Treasury has published a new Financial Innovation Strategy that will support a coordinated whole-of-government approach to financial innovation, starting with changes to the ASIC Regulatory Sandbox and the Consumer Data Right.
The Government has announced that ASIC will be authorised to modernise the sandbox framework to better support testing and adoption.
They will repeal the existing Enhanced Regulatory Sandbox legislative framework and replace it with a more flexible model administered through ASIC’s existing powers.
They have identified a growing role for targeted sandboxes in strategically important areas such as AI, tokenised assets, digital money and digital financial market infrastructure.
They will establish a Digital Financial Market Infrastructure (DFMI) sandbox to provide a regulator-supported environment to trial innovative market models and infrastructure.
It will enable participants to assess how these models interact with existing trading, clearing and settlement arrangements, and identify whether adjustments to regulatory settings may be needed to facilitate innovation while maintaining market integrity and stability.
The Government will improve the Consumer Data Right so it is easier to use and better targeted to high-value use cases.
This includes changes to how business consumers nominate representatives to share data, expanding third-party disclosures, implementing a minimum threshold in the banking sector and continuing the rollout of the CDR to the non-bank lending sector.
Treasury, jointly with the ATO, is developing a business case to explore whether taxpayers could share ATO-held tax data through the CDR.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
