Cross-border testing pilot for innovative firms open to applications

On Friday, ASIC will announce the launch of the Global Financial Innovation Network (GFIN), a group of 28 international organisations including ASIC, committed to supporting financial innovation in the interests of consumers.

The network was proposed in August 2018, building on earlier discussions that year on a proposal to support cross-border testing of innovative businesses.

"ASIC’s membership of GFIN is part of our work to encourage innovation in the interests of consumers and the operation of markets," said ASIC commissioner John Price.

"Innovation has the potential to offer consumers better quality and value products and services and to promote improved risk management and compliance outcomes by firms through use of regulatory technology," Mr Price noted.

The pilot cross border tests follow last year’s consultation on the role of the GFIN.

Innovative fintech start-ups interested in applying to take part in the pilot cross border tests should review the list of participating regulators and submit an application before the 28 February 2019 deadline, ASIC said. 

The commission cautioned that firms must meet the eligibility criteria under ASIC’s regulatory sandbox licensing exemption.

In addition, the GFIN has finalised terms of reference for governance and membership of the group, and is inviting formal expressions of interest from regulators and international organisations interested in joining. There is no deadline for these applications.