Musings of a Fintech

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On Thursday 15th October , ASIC’s John Price and Mark Adams spoke at a Fintech Melbourne event hosted by KPMG. Whilst each start-up has their own regulatory questions, we’ve decided to add our thoughts on the key aspects from the night.

  1. If you’re trying to create something new, licensing will be complicated

If you’re the only one who can understand your product or service, how do you expect regulators or customers to understand the risks? You will need to take your customers on a journey, so start simple and add complexity where it is warranted and understood.

  1. You can borrow another entities license for an interim period

Licensed entities with similar products or services to you can lend you their license under certain circumstances. This is a quicker way to meet regulations. One concern of this approach is the potential impact on margin if you need to share revenue, particularly if you rely razor thin margins.

  1. Think modular as not everything needs to be in one go

ASIC has a modular approach: pick where you are operating and ask for regulation on those aspects. This makes licensing easier than a one-size fits all license. You can also start small and specific and grow over time.

  1. Community, co-working and industry groups

A wider Fintech community, centred in one location in Melbourne, will drive better collaboration.

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