ASIC calls for ‘two-tier’ regulation of fintech sector
ASIC chairman Greg Medcraft has advocated a two-tier regulatory system that encourages innovation via ‘light-touch’ oversight of fintech start-ups.
Speaking at a Finsia ‘Regulators Panel’ event in Sydney, Mr Medcraft pointed out that innovative business models often do not “fit” into existing regulatory frameworks.
“It’s really important we rethink the way we regulate [financial services companies] in a digital economy,” he said.
Mr Medcraft said Australia should adopt a more flexible or ‘agile’ approach to regulation, as is seen in other parts of the world.