ASIC seeks to support responsible innovation through engaging with and providing informal assistance to eligible fintech and regtech companies. This can include guidance on:
Your obligations under the financial services regulatory framework (if applicable)
How we administer this framework (e.g. how to obtain an Australian financial services licence)
Potential regulatory issues that should be considered as you set up your business
Referrals to international agencies or other business teams within ASIC where appropriate
ASIC will review all informal assistance requests through the Innovation Hub with the aim of helping as many businesses as possible. The more developed your business model is, the more specific we can be on any guidance we provide.
Please note: ASIC does not provide legal advice or financial assistance and we do not offer endorsement for any fintech or regtech businesses we assist.
Eligibility for informal assistance
Find out whether your business is eligible for informal assistance.
Fintechs
A startup, scaleup or established business that is developing, facilitating or providing innovative fintech products or services that can potentially promote a better outcome for investors, financial consumers and markets and:
requires an Australian financial services licence or an Australian credit licence from ASIC
is in the process of obtaining one of those licences, or
has held either licence type for less than 12 months.
Regtechs
A startup, scaleup or established business that is developing or providing innovative regtech products or services that can potentially promote a better outcome for investors, financial consumers and markets.
Ability to demonstrate:
the extent to which a regtech product or service will align with and promote ASIC's regulatory objectives through improved risk management or compliance
the extent to which regtech tools and systems promote the efficient and effective sharing of information with ASIC.
When reviewing requests, the Innovation Hub will give preference to innovative business models. ASIC considers ‘innovative’ to be new or significantly different products or services from those currently available.
Whether your product or service can potentially provide a ‘better outcome’ for users is a factor we will also consider.
Other factors that will help determine whether your business is selected for assistance include:
the timing of your request within your business-planning process, and
the level of detail you supply in your application.
Both considerations will affect the quality of assistance that ASIC can provide.
Application process
The application process consists of the following steps:
Steps for application process
Step 1: Your submission
Submit your Innovation Hub assistance request form
Step 2: ASIC's assessment
We assess your request against the eligibility criteria and will provide a response in about one week
Step 3: ASIC's response
ASIC's response may include one or more of the following:
We need more time:
We require more time to assess your request
You will be kept informed of any progress.
We need more information
More information is needed to assess your request
We will discuss what information is required with you by email
Once the information is provided, the assessment will continue.
Does not meet criteria
An explanation will be provided and we will refer you to any relevant ASIC guidance that may support you moving forward
Once your business idea is more defined, reconsider applying for assistance.
Meets criteria
Your request is eligible for assistance
Informal assistance will be provided by email OR
A face-to-face or phone meeting will be held within 2–3 weeks from making your request, subject to availability.
Step 4: Consider next steps
Once you have considered any assistance or guidance from ASIC, you will need to work out how you will comply with any laws that apply to you.
Your next step may include:
Operate as an authorised representative of another business
Make changes to your business model in light of assistance provided
If you’re a fintech, you may also need to consider:
Making a waiver application
If you already hold an AFS licence, meeting compliance requirements (e.g. register scheme or complete disclosures).
Making a formal licence application
Applying for informal assistance
When filling in your application for assistance form please describe:
what your business will be/is and the stage your innovation is at
who your customers are
products/services you’ll be providing and how
other businesses you will work with
the type of help you need from ASIC.
Use the checklist below to confirm your eligibility prior to submitting an application.
Fintech assistance checklist
Is your startup or scaleup developing financial products or services?
Does one of the specified licensing scenarios apply to your business?
Can you describe how your business works and who your customers are?
Is your innovation potentially ground-breaking?
Will your innovation provide a better outcome for investors and consumers?
ASIC has signed international cooperation agreements with some of its financial regulatory counterparts that are designed to break down barriers to market entry.
If you’re eligible, we can formally refer your fintech business. This could help you meet the right people, set up important first meetings, and receive informal assistance in different regulatory environments. For more information, see International engagement.
The following FAQs relate to informal assistance and licensing for the Innovation Hub for fintechs and regtechs. We will update the FAQs as needed, in response to emerging issues and changing circumstances.
Informal assistance FAQs
1. What kinds of businesses can use these services?
We are open to discussing any type of fintech startup or scaleup, provided the business meets certain criteria.
A business will be more likely to receive support through the Innovation Hub if it:
is a financial technology (fintech) business;
has not been trading under a licence from ASIC for more than 12 months;
offers a potentially groundbreaking innovation; and,
offers an innovation that provides a potentially better outcome for investors and consumers.
Regtech businesses are also encouraged to reach out to the Innovation Hub to discuss their product or service. ASIC does not endorse or certify regtech businesses or business models.
2. Will the information be kept confidential?
Yes. The law requires ASIC to take reasonable measures to prevent unauthorised use and disclosure of information we receive in confidence in connection with our statutory functions.
More information about this topic is available in Regulatory Guide 103Confidentiality and release of information.
3. Can I publicly refer to assistance provided through the Innovation Hub?
ASIC does not object to you mentioning that we have provided informal assistance to you through the Innovation Hub. However, you should not create an impression (either explicitly or implicitly) that your business or services are in any way endorsed or approved by ASIC.
Also, you must not reproduce ASIC’s logo without our express written approval.
4. Can ASIC give me legal advice?
No, ASIC cannot give legal advice. However, ASIC can provide you with informal assistance. Help we can provide includes:
providing an ASIC contact for your business during the pre-licence application, the licensing application phase and first year of being licensed;
guidance and assistance during the pre-licence application phase, including meeting with senior staff to discuss the licence application process and any regulatory issues that the business has identified; and,
guidance and assistance during your business’s first year of being licensed if required, for example if an application for a licence variation is being considered.
Resources are available on ASIC’s website to help you understand how ASIC interprets the laws it administers, and determine how they may apply to your startup.
Licensing FAQs
1. Do I need an AFS licence?
Generally, if you carry on a financial services business in Australia, you will need to hold an Australian financial services (AFS) licence or an authorisation from an AFS licensee. Some exemptions from the requirement to be licensed may apply. For more information see Do I need an AFS licence?
2. Do I need an Australian credit licence?
If you engage in credit activities involving consumers you will generally need an Australian credit licence (credit licence) or an authorisation from a credit licensee before commencing business.
3. I'm providing services related to consumer credit, but not act as a lender. Will I need a credit licence?
It depends. Some non-lenders do need a credit licence. If you 'act as an intermediary' or provide 'credit assistance', you will need a licence unless there's an exemption that applies to you. These terms are explained in more detail in Regulatory Guide 203 ‘Do I need a credit licence?’
In general terms, you may 'act as an intermediary' if you are take part in the process of securing credit for a consumer by preparing or passing on information. You may be an intermediary even if you do not have face-to-face contact with the consumer.
In general terms, you may be providing credit assistance if you assist someone in applying for credit/a consumer lease or are making suggestions to consumers about credit/consumer leases. If you provide credit assistance, you may also have what are known as 'responsible lending' obligations. This includes making reasonable inquiries about the consumer’s financial situation and taking reasonable steps to verify the consumer’s financial situation. More information on responsible lending.
4. Does ASIC have a preference to my business seeking an AFS licence or acting as an authorised representative of an AFS licensee?
No. ASIC does not have a preference whether your business has its own AFS licence or acts as an authorised representative.
If you are acting as an authorised representative you will need to meet the regulatory obligations of the AFS licensee that has appointed you, which are relevant to your business. Your AFS licensee will need to supervise the financial products and services you provide on their behalf. The AFS licensee will need to have sufficient expertise about your business to enable them to do this.
5. Can ASIC refer me to an AFS licensee willing to appoint me as an authorised representative?
No. We understand that some licensees offer an authorised representative appointment service. However, it is up to you to identify these licensees through your own research. ASIC’s Moneysmart website has a register of licensed financial advisers that you could refer to as a starting point.
6. How long does the licensing process take?
Once you make a licence application, you still need to go through the same process and assessment criteria that apply to all AFS and credit licence applications.
ASIC’s Service Charter outlines how long the licensing process can take. We aim to decide whether to grant or vary an Australian financial services or credit licence within 150 days of receiving a complete application (target: 70%). We also aim to decide 90% of complete applications within 240 days.
Please keep in mind that the time your application takes may differ depending on the quality and complexity of your application and proposed business.
High quality applications that contain all the information ASIC requires may be able to be processed more quickly.
Applications will typically take longer where:
they raise complex or new policy issues
the applicant has not provided all the information we need
there has been past unlicensed conduct or non-compliance by the applicant, its directors, responsible managers or controllers
we have concerns about the controllers, directors, or responsible managers that raise doubts about their character or whether the licensee is likely to comply with the financial services laws or operate its business in an efficient, honest and fair manner.
7. Can I tailor my licence to my specific needs?
Yes. The AFS licensing requirements are scalable to the size, nature and complexity of your business. The simpler and smaller your business is, the less onerous the requirements. One way of reducing the compliance burden of the licensing requirements is to limit your activities. For example, if you will only be offering one or two financial services, you will only need a licence that authorises you for these specific activities.
Some activities do not require you to hold an AFS license or be an authorised representative of a licensee. You only need an AFS licence if you are providing a 'financial service' (see Regulatory Guide 36Licensing: Financial product advice and dealing and Regulatory Guide 104Licensing: Meeting the general obligations for guidance on what constitutes a financial service).
8. Can I operate under a restricted licence?
In general, no. The same licensing regime applies to all service providers equally.
Licensing is an important part of the financial service regulatory regime as it allows us to ensure that:
businesses operating in the market have the skills and experience necessary to operate in an efficient, honest and fair way
businesses have adequate resources to carry out their activities
important protections are provided to consumers.
These things are very important to maintain consumer trust. A more restricted licensing regime that replaces these requirements and protections, even with trading or turnover restrictions, may undermine consumer outcomes, even if the number of customers affected is small.
However, you can simplify the licence application process by ensuring that you only apply for the authorisations you need. In addition, ASIC can provide waivers from the law in certain circumstances.
9. Can I apply to ASIC for a waiver from certain legal requirements?
Yes. ASIC has certain discretionary powers to grant a waiver (or relief as it is normally referred to) from the various laws it administers. ASIC’s policy on application for relief is explained in Regulatory Guide 51Applications for relief. As a general principle, we will not provide relief where there is a more than minimal risk of detriment to investors or consumers or where relief would reverse the usual and intended effect of the law.
10. What competencies does ASIC expect of 'responsible managers'?
‘Responsible managers’ are defined as senior staff members with direct responsibility for making significant day-to-day decisions about the financial services offered by the organisation, and who hold the relevant skills and experience for this purpose.
ASIC assesses your business’ competence to provide the financial or credit services covered by your licence by looking at the knowledge and skills of your responsible managers.
If you are applying for an AFS licence, ASIC offers five options for these responsible managers to demonstrate the relevant necessary skills and knowledge. There are four options to demonstrate by a combination of relevant formal qualifications or assessment and experience.
Option
Knowledge component (qualifications, training etc)
Skills component (experience)
Option 1
Meet widely adopted and relevant industry standard or relevant standard set by APRA
3 years relevant experience over past 5 years
Option 2
Be individually assessed by an authorised assessor as having relevant knowledge equivalent to a diploma
5 years relevant experience over past 8 years
Option 3
Hold a university degree in a relevant discipline and complete a relevant short industry course
3 years relevant experience over past 5 years
Option 4
Hold a relevant industry or product-specific qualification equivalent to a diploma or higher
3 years relevant experience
If an applicant does not fit within the first four options, Option five allows for an applicant to provide us with a written submission to explain why they think their nominated responsible managers have the appropriate knowledge, skills and experience for the services and products their role relates to.
Whether you can rely on Option five to demonstrate competency will depend on the facts. It is up to the applicant to provide sufficient detail and reasons for ASIC to exercise its discretion under Option five.
If you are applying for a credit licence, ASIC has guidance on relevant qualifications for responsible managers. Generally, responsible managers must have at least two years’ relevant problem-free experience and either:
credit industry qualification to at least the Certificate IV level
another general higher-level qualification (e.g. a diploma or university degree) in a relevant discipline.
There are also specific requirements for some responsible managers.
More detail about this is provided in Regulatory Guide 206Credit Licensing: Organisational competence and training (section B), and see also ASIC's credit licensee page.
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