In keeping with their messaging of being open to experimentation the Monetary Authority of Singapore is exploring an “express version” of their fintech regulatory sandbox which was introduced in 2016.
Dubbed the “Sandbox Express” the regulator is proposing the creation of pre-defined sandboxes to complement the current approach. The aim is to enable firms which intend to conduct certain regulated activities – where the risks are generally low and well understood – to embark on their experiments more quickly within pre-defined sandboxes.
The proposed Sandbox express will initially look at creating 3 pre-defined sandboxes for the following; insurance broking , recognised market operators and remittances.
Each pre-defined sandbox will have its boundaries, expectations and regulatory reliefs pre-determined. The applicant must declare that it is able to fully comply with all expectations of the pre-defined sandbox that it has applied for, which includes providing clear disclosure and obtaining an acknowledgement from the user before the user can be on-boarded as a customer.
MAS will assess applications based only on two criteria – technological innovativeness of the financial service, and fitness and propriety of the applicant’s key stakeholders.
In their consultation paper it also states that MAS will endeavor to complete the assessment and respond to the applicant within 21 days from the date of receiving the application.
The full consultation paper can be found here and submission can be made before 13 December 2018
Sopnendu Mohanty
Mr Sopnendu Mohanty, Chief FinTech Officer of MAS, said,
“We are heartened that the FinTech Regulatory Sandbox has been well received by the industry. We have engaged with more than 150 FinTech players since the Sandbox was launched; and a number of firms have experimented in the sandbox. To facilitate quicker experimentation and faster introduction of innovative financial services to the market, we are now offering the option of Sandbox Express.”
