New Fintech Legislation Passed by Parliament

A lady working on a laptop computer and holding a smartphone.

Parliament passed legislation on February 10 2020 allowing fintech firms to test new products and services without a licence.

Fintech (Financial Technology) is a sector of products which, typically, provide consumers with more flexible ways of controlling their finances.

Budgeting apps are one example of this type of product, allowing users to import transactions from multiple bank accounts and credit cards. Having a snapshot of their entire income and spending together in one place may help with creating manageable budgets. It can also help when calculating how small adjustments to spending here and there can make significant differences over time.

The fintech legislation allows testing of new, specified, financial services for up to 24 months. This is without needing to obtain a financial services or credit licence from the Australian Securities and Investments Commission (ASIC). The specified services will include financial advice, crowd-sourced funding and consumer credit contracts.

Restrictions will be in place with this unlicensed testing. This will include limiting the financial exposures of retail clients to ensure consumers are not put at risk.

Baldwin Financial Services is based in the northeastern suburbs of Adelaide.
Contact us to find out how we may be able to help you.