In a bid to provide firms with a faster option to test innovative financial products and services in the market, the Monetary Authority of Singapore (MAS) 0n Wednesday launched Sandbox Express, a pre-defined environment.
Eligible applicants can begin market testing in Sandbox Express within 21 days of applying to MAS, instead of a longer time-frame under the existing FinTech Regulatory Sandbox.
«For innovation to take root, it is important for ideas to be tested quickly and in a safe environment. Sandbox Express aims to achieve this through appropriate disclosures and pre-defined rules. This introduction of Sandbox Express builds on the experience we have gained from running the FinTech Regulatory Sandbox and reflects our commitment to encouraging more experimentation and greater adoption of innovative technologies in the financial sector,» said Sopnendu Mohanty, Chief FinTech Officer, MAS said in a media statement.
Shorter Approval Process
Sandbox Express shortens the approval process for entry into the sandbox by relying on standard disclosures and pre-determined rules. Hence, Sandbox Express is only suitable for activities where the risks are low and well-understood by the market and can be reasonably managed within pre-defined parameters.
The FinTech Regulatory Sandbox that was operational since 2016 remains open for applicants with more complex business models or where MAS requires more time to understand the risks of the activities.
Insurance Brokers and Remittance Businesses
For a start, Sandbox Express will be available specifically for insurance brokers, recognised market operators and remittance businesses. Each sandbox will have pre-defined boundaries, regulatory reliefs, and expectations. Firms must comply with all conditions of approval including providing clear and proper disclosure to the customer as well as submitting regular progress reports to MAS.
Experiments can remain in Sandbox Express for up to nine months. This will provide firms with more time to overcome business and technical challenges during experimentation, and for MAS to address potential regulatory challenges. Firms could also use the longer duration to better prepare for exiting the sandbox and deploying their innovation on a larger scale.
MAS will closely monitor the utilisation of Sandbox Express to ensure that it meets the evolving needs and interests of the financial industry. It will also explore opportunities to expand the range of financial products and services that can be offered through Sandbox Express. Sandbox Express guidelines and application form are available on the MAS website.
