The legislation involves amending existing laws to cover the BNPL sector
DLA Piper has helped FinTech Australia to put together a submission in relation to the government's draft legislation concerning the buy now pay later (BNPL) sector.
The draft legislation seeks to modify the National Consumer Credit Protection Act 2009 (Cth) and the National Consumer Credit Protection Regulations 2010 (Cth) by having BNPL covered under the current regulatory framework for other credit products.
"Australia's fintech sector has been a global leader in innovation, so it's important the regulatory framework doesn't stifle this momentum – but at the same time, we recognise that some legislative provisions that currently regulate BNPL providers are dealing with products and services that were not necessarily envisaged at the time those legislative provisions were introduced," said DLA Piper corporate partner Dylan Burke, who headed up the firm’s team.
The firm confirmed that it would continue to be involved with FinTech Australia and the government through the development of the new regulatory framework.
"It's critical the regulatory landscape encourages and allows the Australian fintech sector to remain globally competitive and innovative. We support a regulatory framework which is flexible, adaptable and proportionate to consumer risk", said Nick Kavass, head of policy at FinTech Australia.
FinTech Australia acts for over 420 fintech companies across the country. The organisation is actively entrenced in policy reform, with its latest contribution being the submission on BNPL regulatory reforms.
