The Australian financial market regulator, ASIC, has selected five regulatory technology (regtech) companies to the Business Research and Innovation Initiative (BRII) to find a solution to the challenges of corporate disclosures.
Announced on Friday, the selected companies are Bedrock AI, DigitalX Limited, Eastern Analytica, Listcorpcand Pyxta. All of them are small-to-medium regtech enterprises (SMEs).
These companies are tasked to help the regulator in analyzing the corporate disclosures and other company datasheets. They will identify and assess compliance by listed companies with a range of requirements, including continuous disclosure, financial reporting obligations, and the prohibition against deceptive disclosures and security price manipulation.
“ASIC deliberately designed a challenge around market disclosure that is a representative problem so that potential regtech solutions can also be applied to other problem use cases by agencies and industry,” ASIC Commissioner Cathie Armour.
Adequate Funding
Under the initiative, all of the five companies will receive a grant of up to AU$100,000 each to conduct a feasibility study for around three months. Then, two of these companies will be shortlisted for the next stage and will be given a further AU$1 million each to develop and test a proof of concept over a further 15 months.
ASIC will cooperate and collaborate will all of these companies in all states.
The need for regtech increased dramatically over the past few years. Both regulators and companies are using these technologies to find lapses in compliance requirements.
“Working towards an innovative solution has the potential to transform ASIC’s ability to harness technology to reduce regulatory burden, while enhancing market integrity,” Armour added.
The Australian financial market regulator, ASIC, has selected five regulatory technology (regtech) companies to the Business Research and Innovation Initiative (BRII) to find a solution to the challenges of corporate disclosures.
Announced on Friday, the selected companies are Bedrock AI, DigitalX Limited, Eastern Analytica, Listcorpcand Pyxta. All of them are small-to-medium regtech enterprises (SMEs).
These companies are tasked to help the regulator in analyzing the corporate disclosures and other company datasheets. They will identify and assess compliance by listed companies with a range of requirements, including continuous disclosure, financial reporting obligations, and the prohibition against deceptive disclosures and security price manipulation.
“ASIC deliberately designed a challenge around market disclosure that is a representative problem so that potential regtech solutions can also be applied to other problem use cases by agencies and industry,” ASIC Commissioner Cathie Armour.
Adequate Funding
Under the initiative, all of the five companies will receive a grant of up to AU$100,000 each to conduct a feasibility study for around three months. Then, two of these companies will be shortlisted for the next stage and will be given a further AU$1 million each to develop and test a proof of concept over a further 15 months.
ASIC will cooperate and collaborate will all of these companies in all states.
The need for regtech increased dramatically over the past few years. Both regulators and companies are using these technologies to find lapses in compliance requirements.
“Working towards an innovative solution has the potential to transform ASIC’s ability to harness technology to reduce regulatory burden, while enhancing market integrity,” Armour added.
