The Australian Securities and Investments Commission (ASIC) will work with five regtech startups to hone technology that can recognise poor market disclosure by listed companies.
The startups - Bedrock AI Aus, DigitalX, Eastern Analytica, Listcorp and Pyxta - are recipients of up to $100,000 in government funding.
This initial funding is to be put towards a three-month feasibility study.
From this, "two of these regtechs may receive further grants of up to $1 million each to develop and test a proof of concept over a further 15 months," ASIC said in a statement.
‘Working towards an innovative solution has the potential to transform ASIC’s ability to harness technology to reduce regulatory burden, while enhancing market integrity,’ ASIC commissioner Cathie Armour said.
The funding was awarded for a regulatory-focused round of the federal government's business research and innovation initiative (BRII).
Market disclosure is one of four regulatory challenges that federal agencies currently face and wish to troubleshoot with innovative uses of technology.
The government awarded 17 small businesses more than $1.6 million in grants in the regulatory round.
Other BRII regulatory challenges include “remote and automated monitoring of export livestock health and welfare”, real-time asbestos testing and "marine autonomous systems assurance".
