US Treasury has been working around defining the legal parameters around Fintechs and other non-bank financial services.
Late last month they released repost identifying ‘improvements’ that had been made in this regulatory space.
In an official, a statement from the US Treasury, they indicated that this is, in fact, the fourth report and this ultimately in response to President Trump’s executive order to identify regulations that have been inconsistent.
The US Treasury said that the report identifies 80 recommendations that are meant to:
Embrace the efficient and responsible use of consumer financial data and competitive technologies;
Streamline the regulatory environment to foster innovation and avoid fragmentation;
Modernize regulations for an array of financial products and activities; and
Facilitate “regulatory sandboxes” to promote innovation.
Fintech in Australia
Australian banks await the implementation of the open banking set in 2019, the Australian Securities and Investments Commissions (ASIC) has steadily been signing a memorandum of understanding (MOU) with multiple jurisdictions when it comes regulatory sandbox and the innovation hub.
ASIC has even signed an enhanced cooperation agreement with the UK’s Financial Conduct Authority (FCA).
As to the efficacy of the sandbox, one big challenge that has been brought against it is the appropriateness when it comes to testing insurtech and innovation in the space of delivering innovative insurance products.
Earlier this year, Insurtech Australia had indicated that they had all but given up on the regulatory sandbox.