A key federal government initiative designed to boost financial technology has backfired, with an independent review revealing that industry groups view the scheme as a "bridge to nowhere".
The Enhanced Regulatory Sandbox (ERS) allows tech start-ups and entrepreneurs to test new financial products on real customers for up to two years without needing a full corporate licence.
Under the scheme, managed by the Australian Securities and Investments Commission (ASIC), firms must prove their idea is novel and offers public value, and cap customer exposure at $5 million.
