The federal government, in caretaker mode two weeks out from a general election, has returned to its "innovative and agile" themes, with Treasurer Scott Morrison singing the praises of ASIC's proposed "regulatory sandbox".The Australian Securities and Exchange Commission released its detailed discussion paper earlier this month, seeking comments from industry and other interested parties. ASIC's draft blueprint showed an intention to allow businesses to test products and trial services for up to 100 retail clients each with a maximum exposure limit of up to A$10,000, and a total exposure for all clients of less than $5 million. None of this was changed in Friday's announcements.This left the door open for Morrison, on the hustings and shamelessly seeking votes (his words), to cheerfully remind small business advisers and entrepreneurs that funding for the sandbox had been approved "in the Budget," although he did not provide costings.Jost Stollmann, chief executive of Tyro, who hosted the Treasurer at the Tyro Finteh Hub, told an audience of industry representatives that fintech investment had grown to US$30 billion globally, including $9 billion in Asia in the last four quarters."This is important because the finance and insurance sector employs 450,000 people, and contributes $140 billion to our economy," Stollman said.Investment into the sector in Australia, as Stollmann was polite enough to keep secret, is embarrassingly low, compared to the size of the country's total economy. Instead, as he put it: "This is a unique time in our economic history. We are at a crossroad. "And by 'we' I mean policymakers, regulators, innovators and entrepreneurs. ... smart public policy and smart regulation is the source of sustainable competitive advantage for Australia in its ambition to become a leading Asian financial services hub.""The UK and the EU understand this and are well-advanced with their Open Data and Open API movement," Stollmann reminded the invited guests."If we get the policy settings right, the sector will open up, banks will survive, fintech will thrive and together we can solve the challenges of privacy and security."The high cost of obtaining a financial services licence for a savings or investment product is likely to prove too high a hurdle for most start-ups - and this is where the sandbox comes into play, allowing products and services to be tested without onerous conditions.The Treasurer said the government has committed funds in the Budget to promote the regulatory sandbox around the world to attract people who understand the sector to come and base themselves in Australia, pitching the arrangements to improve and out-perform what has been established in the UK. He mentioned that the government was committed to ensuring tax rates were as low as possible "to ensure businesses are competitive." Morrison also promised the regulators would be "as innovative as those who are starting the businesses [in the fintech sector]."