Enhanced regulatory sandbox

The Australian Government has introduced the enhanced regulatory sandbox (ERS). The sandbox allows natural persons and businesses to test certain innovative financial services or credit activities without first obtaining an Australian financial services (AFS) licence or Australian credit licence (credit licence). The ERS aims to facilitate financial innovation in Australia from 1 September 2020.

The enhanced regulatory sandbox supersedes the previous regulatory sandbox administered by ASIC. It allows testing of a broader range of financial services and credit activities for a longer duration (up to 24 months). We have provided several resources providing information and guidance on the new framework:

• Information Sheet 248 Enhanced regulatory sandbox
  
• Infographic – Enhanced regulatory sandbox
• Comparison of the Enhanced regulatory sandbox with the ASIC sandbox
• Additional resourced for the enhanced regulatory sandbox
• 20-195MR ASIC issues guidance to government's enhanced regulatory sandbox

If an entity intends to use the enhanced regulatory sandbox, it must first complete and lodge with ASIC a prescribed form for the financial service or credit activity that you plan to test:

• For financial services, see Notification to use the enhanced regulatory sandbox exemption to test eligible financial services
• For credit activities, see Notification to use the enhanced regulatory sandbox exemption to test eligible credit activities

If you require additional information or assistance with the ERS exemption, contact ASIC's Innovation Hub at innovationhub@asic.gov.au.