4Simplified outline of this instrument

4 Simplified outline of this instrument

A person may use an exemption from the licensing requirements in Part 7.6 of the Act to test eligible financial services.

The exemption will only become available if:

(a) the person is an eligible person; and

(b) the person lodges a valid notification and satisfies certain requirements (see Part 4).

The exemption will also not become available if:

(a) ASIC is not satisfied that it will result, or be likely to result, in a net benefit to the public; or

(b) ASIC is not satisfied that the financial service is new, or is a new adaptation or improvement of another financial service; or

(c) ASIC reasonably believes that certain other circumstances exist.

The exemption can become available at different times for different eligible financial services. However, the exemption cannot become available a second time to test the same kind of financial service for the same kind of financial product.

Each exemption lasts up to 24 months.

Each exemption is subject to conditions that limit:

(a) the kinds of financial services that can be provided to wholesale clients; and

(b) the kinds of financial services that can be provided to retail clients; and

(c) the exposure of the person’s clients to the financial services, including the total investment activity under the exemptions and any exemptions under the National Consumer Credit Protection (FinTech Sandbox Australian Credit Licence Exemption) Regulations 2020.

Each exemption will cease automatically if the person fails to meet these limits (see Division 1 of Part 3), or if the person ceases to be an eligible person.

Each exemption is also subject to other conditions (see Part 5). Failing to meet these conditions may result in ASIC cancelling the exemption or applying to the Court for an order that the person comply with the conditions.

Only one member of a group of related bodies corporate can use an exemption at any one time.