The Australian Securities and Investments Commission has released details of regulatory waivers it will apply to allow fintechs to test their business models before taking up a financial services or credit licence.The licensing exemption allows businesses to test eligible products and services for 12 months with up to 100 retail clients and total customer exposure of no more than A$5 million.ASIC first announced that it was considering setting up a "regulatory sandbox" in May and issued a consultation paper in June. The regulator said it recognised that start-up business face a couple of problems when dealing with regulators: the regulatory process slows their speed to market; and they may lack required organisational competence to provide a financial service.Eligible services include financial advice and dealing or distribution of products. Eligible products include deposit products with a maximum balance of $10,000, payment products with a maximum balance of $10,000, general insurance with a maximum of $50,000 insured, listed Australian securities and simple investment schemes with a maximum exposure of $10,000 and consumer credit contracts with loan sizes between $2001 and $25,000.Businesses must have compensation arrangements in place, such as professional indemnity insurance, have a dispute resolution process and meet disclosure and conduct requirements.Some businesses will be able to nominate a third-party responsible manager with no day-to-day involvement in the business to provide sign-off on processes and systems. This provision will allow start-ups to deal with the requirement for organisational competence.The new rules are set out in a new regulatory guide, RG 257.