‘We have too many regulators’: Zip co-founder
The plethora of financial sector regulators needs to be better coordinated to ensure new technology companies aren’t stifled by conflicting rules, a Senate committee has been told in hearings which reveal huge challenges as Australia struggles to develop an innovative technology industry.
Peter Gray, co-founder of buy now, pay later provider Zip, said fintechs “operate in a variety of regulatory landscapes, and are faced with a myriad of current and potential regulation from different regulators that do not speak to the technology or products we have created”.
“We are currently regulated or overseen by ASIC, the ACCC, AFCA, AUSTRAC, the OAIC, APRA, Treasury, the ASX – and now, in addition, the RBA is making moves.”
“With the pace of change and adoption of new technologies, we understand it is at times difficult for legislation to keep up. But how can we bridge this gap so that regulation and technology work together?”
His views were backed by several other start-up representatives called to testify before a Senate select committee on financial and regulatory technology, which is preparing to make policy recommendations to help technology start-ups to scale up and create new jobs.
Alex Scandurra, who runs the fintech hub Stone & Chalk, said he was concerned ASIC’s new product intervention power could be used to stifle new companies unless ASIC is given a competition mandate, something being considered by the committee. He said Singapore and Britain are much better at top-level coordination of fintech policy.
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