SEARCH
Tech start-ups warned on AFSL requirements
Tech start-ups warned on AFSL requirements
Financial services technology providers may be operating without an AFSL or credit licence, which could make them a target for the corporate regulator, says The Fold Legal.
The Fold managing director Claire Wivell Plater said start-up technology businesses which are "dabbling on the fringes" of financial services should carefully investigate whether what they are doing requires an AFSL or ACL.
"There is a lot of focus on [financial technology] businesses at the moment. We are concerned that some of these wonderful, innovative companies starting out may be setting themselves up with a target on their backs," Ms Wivell Plater said.
"These businesses need to get expert advice at a very early stage because they need to be either building their business in a way that doesn't provide a financial service, putting boundaries in place to ensure they are not crossing over into providing a financial service or biting the bullet and actually getting a licence."
Ms Wivell Plater also said financial technology businesses may think simply providing information or analysis means they do not need an AFSL.
She explained that these businesses need to take care with this approach and be sure the material they supply does not turn into financial product advice.
"It's complex," she said. "If, for example, a website contains a recommendation about, or even just compares financial products, that's likely to be a financial service.
"Any information that is an opinion that could influence a person's decision to purchase the product can be a problem if the business does not have its licensing in order," she said.
Ms Wivell Plater also pointed out that ASIC is constantly on the look-out for business that are providing credit or financial services without a licence.
"If you're providing a financial or credit service without a licence, then go to ASIC and apply; ASIC will rightly ask why you do not already have one," Ms Wivell Plater said.
"It is a much larger hurdle to overcome. If you haven't properly checked the requirements and your obligations, then why should ASIC trust you are going to comply going forward?" she asked.
To read the original article and for more financial advice news click here.
Subscribe to our Newsletter
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
latest articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Subscribe to the Adviser Innovation eNewsletter.
