The Monetary Authority of Singapore has proposed the launch of a new regulatory sandbox which will have fast-track approvals.
This new Sandbox Express will complement the FinTech Regulatory Sandbox which was launched in 2016. Its goal is to help firms which wish to ‘conduct regulated activities to embark on experiments more quickly’ and remove their need of going through the current bespoke application and approval process.
Sandbox Express is suitable for activities where risk is low or understood well enough and could be contained with the specific pre-defined sandbox. Initially it will have pre-defined sandboxes for insurance broking, recognised market operators and remittance businesses.
All pre-defined sandboxes are established with boundaries, expectations and regulatory reliefs, and applicants must declare it can comply with all of these. This includes providing clear disclosure and obtaining an acknowledgment from the user before they can be onboarded as a customer.
Applicants for the fast-track service will be based upon two criteria. The first is the technological innovativeness of the service, and the second is the fitness and proprietary of the applicant’s key stakeholders.
Successful companies will be fast-tracked, with approval decisions granted in 21 days.
MAS chief FinTech officer Sopnendu Mohanty 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.”
A public consultation is running from 14 November through to 13 December.
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