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Regulatory perimeter: Difference between revisions
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The recent Ashes series illustrates both the pitfalls of the regulatory perimeter, and the conceptual challenges presented to it by the naturally borderless character of the world wide web. | The recent Ashes series illustrates both the pitfalls of the regulatory perimeter, and the conceptual challenges presented to it by the naturally borderless character of the world wide web. | ||
In the image we see the Adelaide Oval during the second Ashes test of 2021. Allica Bank is, as far as we know, a UK lender to small and medium-sized enterprises in the British Midlands, and it must operate on the theory that its potential customers like cricket. We dare say it has no more interest in the custom of cricket fans half a world away in Australia, than do Laithwaites, Arnold Clark or OnBuy — all of them resolutely British undertakings — but, like them, is advertising for the Uncle Vernon Dursley types who do the finances for drill-bit companies in and around Wolverhampton. | In the image we see the Adelaide Oval during the second Ashes test of 2021. Allica Bank is, as far as we know, a UK lender to small and medium-sized enterprises in the British Midlands, and it must operate on the theory that its potential customers like cricket. We dare say it has no more interest in the custom of cricket fans half a world away in Australia, than do Laithwaites, Arnold Clark or OnBuy — all of them resolutely British undertakings — but, like them, is advertising for the Uncle Vernon Dursley types who do the finances for drill-bit companies in and around Wolverhampton.<ref>I did half heartedly reach out to Allica Bank to see if my theory of the Australian regulatory perimeter on their advertising is right, but they didn’t answer. I don’t blame them.</ref> | ||
Nevertheless, the Australian financial services regulator ASIC has firm ideas who may offer financial services on Australian soil, and how they may describe themselves.<ref>See, for example: [https://asic.gov.au/for-business/registering-a-company/steps-to-register-a-company/company-name-availability/guidelines-for-names-relating-to-financial-institutions/ this entry on ASIC’s website.]</ref> In particular, those without the right kind of ASIC licence to operate in Australia may not describe themselves as a “bank” in Australia, even if that is what they are by the lights of their own home jurisdiction. This causes international financial services organisations no end of bother, by the way. Here we see how Allica has solved this conundrum: it has described itself as “Allica UK Business Lending”. | Nevertheless, the Australian financial services regulator ASIC has firm ideas who may offer financial services on Australian soil, and how they may describe themselves.<ref>See, for example: [https://asic.gov.au/for-business/registering-a-company/steps-to-register-a-company/company-name-availability/guidelines-for-names-relating-to-financial-institutions/ this entry on ASIC’s website.]</ref> In particular, those without the right kind of ASIC licence to operate in Australia may not describe themselves as a “bank” in Australia, even if that is what they are by the lights of their own home jurisdiction. This causes international financial services organisations no end of bother, by the way. Here we see how Allica has solved this conundrum: it has described itself as “Allica UK Business Lending”. | ||