SMSF Association submission on the Enhanced Regulatory Sandbox

The SMSF Association welcomes the opportunity to make a submission on the Enhanced Regulatory Sandbox.

We support the Government’s move to introduce a legislative framework for an enhanced regulatory sandbox which will enable new financial technology (FinTech) products and services to be established in Australia. The regulatory sandbox will help overcome regulatory burden and the costs that may hinder providers in developing innovative offering.

FinTech services will be able to use the sandbox to assist in bringing a whole range of benefits and information to the SMSF industry. This can be from bringing full financial pictures to consumers to the offering of innovative specific financial products to the use of distributed ledger technology. The provision of ‘robo-advice’ for example, will benefit from the sandbox to provide relevant services which will help consumers understand, manage and maximise their retirement savings.

Notwithstanding our support for the sandbox, the regulations must be balanced with consumer protection. It is important that consumers understand and know they are dealing with a FinTech that is acting without an Australian Financial Services License (AFSL) because it is innovating in a certain area of the industry. We strongly support the regulations that allow for consumer protection to continue in areas such as dispute resolution and consumer compensation arrangements.