The Monetary Authority of Singapore (MAS) released a consultation paper on bringing pre-defined sandboxes with fast track approvals, known as the Sandbox Express. The new regulatory framework is aiming at firms in FinTech industry with activities where the risks are generally low, or well understood and could be reasonably contained within the specific pre-defined sandbox.
As a complementary policy to the existing FinTech Regulatory Sandbox that was launched in 2016, this new release will aid firms which intend to conduct regulated activities to embark on experiments more quickly, without needing to go through the existing bespoke sandbox application and approval process. To start with, it will include sandboxes specifically pre-defined for insurance broking, recognized market operators and remittance businesses.
According to the news release, MAS will assess applications based on two major criteria. One is technological innovativeness of the financial service. Another one is the fitness and propriety of the applicant’s key stakeholders.
Chief FinTech Officer of MAS, Mr. 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.”
For any firms meeting the criteria, the application will be fast-tracked, with approval decisions granted within 21 days. After the approval with the pre-defined sandbox, the firm would be required to submit periodic progress reports for MAS review to ensure the pre-defined sandbox expectations are adhered to. Public consultation will run from Nov 14 to Dec 13, and a copy of the public consultation paper is available on the MAS website.