FinTech Australia Launches New Wealthtech Policy Working Group

FinTech Australia is excited to announce the launch of its new Wealthtech Policy Working Group (WPWG) as a proof of concept for a new model for proactive policy advocacy and engagement.

Wealth technology companies (wealthtechs) make up 21% of fintechs in Australia, encompassing almost 200 firms in roboadvice, superannuation, investment and personal finance. 

FinTech Australia’s launch of the WPWG represents a shift towards a more proactive model of member-led policy advocacy in this key subset which will enable fintech members to surface emerging issues and engage constructively with regulators and the government.

FinTech Australia CEO Rehan D’Almeida said wealthtech was selected as it has exposure to multiple regulatory regimes including financial advice, markets, Australia Financial Services licensing, superannuation, data and disclosure.

“Wealthtech plays a critical role in shaping the future of financial technology, as it helps empower individuals to manage their financial futures effectively,” D’Almeida says.

“We will continue to strengthen our policy impact in this sector through taking a more dynamic and interactive approach ensuring our member’s voices are heard earlier in the policy making process. This builds on our existing policy impact in responding to formal consultations.” 

Samantha Horton, COO at Selfwealth by Syfe and co-chair of the WPWG says: “Fintech plays an essential role in expanding access to investment opportunities that were previously only available to the ultra wealthy. It broadens availability of advice and creates competition that drives affordability and improves end outcomes for customers.

“Through this new wealthtech working group, we will form proactive strategies and influence the macro policy landscape to drive further innovation in the sector and ultimately, to better serve all Australians in their wealth building journey.”

Jason Leong, CEO & Founder at PocketSmith and co-chair of the WPWG, emphasised the importance of addressing the complex regulatory environment surrounding wealth tech. “Wealthtech sits at the intersection of advice, data and consumer behaviour, which means even small regulatory frictions can have outsized impacts on everyday people. This group is an opportunity to surface those issues early and turn them into constructive, real-world inputs for policymakers. Done well, it can help ensure innovation and regulation evolve together in a way that genuinely benefits consumers.”

The WPWG will cover a range of key policy areas affecting wealth tech businesses, including:

1. Digital wealth, investment, and advice models: Exploring innovative solutions and best practices in delivering wealth management services.

2. Market infrastructure, disclosure, and product settings: Examining the regulatory necessities that govern market practices and consumer transparency.

3. Interactions with superannuation and managed investment schemes: Addressing overlap and compliance requirements within the wealth management ecosystem.

4. Data, consumer, and regulatory frameworks: Assessing the impact of data regulations on wealthtech operations and consumer interactions.

5. Emerging risks, frictions, and unintended consequences: Identifying potential pitfalls and challenges posed by evolving technologies and regulatory landscapes.

“The establishment of the WPWG not only illustrates our commitment to engagement but also highlights the incredible opportunities that lie in collaboration across the wealthtech ecosystem,” added D’Almeida. “By working closely together, we can shape a proactive agenda that addresses the pressing issues facing our members in real-time.”

The inaugural meeting of the Wealth Tech Policy Working Group is scheduled for April 28 from 1:00 – 2:00 PM (AEST). 

The meeting will focus on defining the future direction of the group and will include discussions on pivotal regulatory developments, pain points members face, and the prioritisation of ongoing initiatives. 

For more information, to register for the inaugural meeting, or to provide feedback, please contact policy@fintechaustralia.org.au.