Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Hansard source

I'm not sure about that. Firstly you said that the whole point of this was to reduce regulation to give them access, and you're saying that if suddenly they come up with a viable business model while they're in the sandbox they're no longer going to be in it. As I mentioned in my second reading contribution, I have no problem with fledgling, high-risk companies seeking capital from those who understand risk and how to diversify their risk. But at what point are retail investors going to get dragged into providing capital while these companies are going through a sandbox stage and don't have to disclose the kind of 'viable'—to use your words—information to show they're viable? That's what they're getting an exemption for.

To quote from the Bills Digest:

… financial advisers or dealers of the product to first obtain an Australian Financial Services Licence—

will be exempt. It says:

It is not available to issuers of the product—

but to those who are going to be advising on these products and their services.