Featured Product

    MAS Launches Sandbox Express for Faster Market Testing

    August 07, 2019

    MAS launched Sandbox Express to provide firms with a faster option to test innovative financial products and services in the market. The market testing in the predefined environment of Sandbox Express can be done within 21 days of applying to MAS, instead of taking a longer time to customize sandboxes under the existing FinTech Regulatory Sandbox. MAS also published the guidelines for Sandbox Express and the response to feedback received for the consultation paper on Sandbox Express, which was published on November 14, 2018.

    The Sandbox Express was created to complement the FinTech Regulatory Sandbox. Sandbox Express shortens the approval process for entry into the sandbox by relying on standard disclosures and predetermined 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 predefined parameters. For more complex business models or in cases where MAS requires more time to understand the risks associated with activities, the FinTech Regulatory Sandbox remains open for applicants. The FinTech Regulatory Sandbox, which has been operational since 2016, requires an extensive review of each application, as each sandbox is customized to facilitate meaningful experiments while trying to contain the consequences of failure. 

    In the beginning, Sandbox Express will be available specifically for insurance brokers, recognized market operators, and remittance businesses. Each sandbox will have predefined boundaries, regulatory reliefs, and expectations. The firms are required to comply with all conditions of approval, including providing clear and proper disclosure to the customer as well as submitting regular progress reports to MAS. The experiments conducted 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 will enable MAS to address  the 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.

    Along with the guidelines, MAS published three Annexes containing sandbox constructs, application form, and progress reporting form. Respondents to the consultation for Sandbox Express were broadly supportive of the Sandbox Express to complement the current sandbox approach. They also welcomed the initial set of sandboxes under Sandbox Express as well as the flexibility to update them over time. MAS will take a phased approach by starting with an initial set of regulated activities and will continue to review whether appropriate constructs could be established to facilitate meaningful experiments for other activities it regulates while containing risk. A phased approach will also allow MAS to test the relevance and risks of Sandbox Express as well as resolve potential operational challenges.

     

    Keywords: Asia Pacific, Singapore, Banking, Insurance, Securities, FinTech Regulatory Sandbox, Sandbox Express, FinTech, Testing, MAS

    Related Articles
    News

    MAS Amends Notice 610 on Reporting Templates for Banks in Singapore

    MAS published amendments to Notices 610 and 1003 related to submission of statistics and returns, along with the reporting templates and frequently asked questions (FAQs) associated with these Notices.

    January 24, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module on Supervisory Review Process

    HKMA is issuing, by notice in the Gazette, revised versions of two Supervisory Policy Manual modules as statutory guidelines under section 7(3) of the Banking Ordinance. The Supervisory Policy Manual modules are CA-G-5 on “Supervisory Review Process” and SB-2 on “Leveraged Foreign Exchange Trading.”

    January 24, 2020 WebPage Regulatory News
    News

    PRA Amends Pillar 2 Capital Framework for Banks

    PRA published the policy statement PS2/20 that contains the final amendments to the Pillar 2 framework and provides feedback to responses to the consultation paper CP5/19 on updates related to Pillar 2 capital framework.

    January 23, 2020 WebPage Regulatory News
    News

    FED Proposes to Revise Information Collection Under Market Risk Rule

    FED proposed to revise and extend, for three years, FR 4201, which is the information collection under the market risk capital rule.

    January 22, 2020 WebPage Regulatory News
    News

    HKMA Consults on Stay Rules on Financial Contracts Under FIRO

    HKMA published proposals for making rules related to contractual stays on termination rights in financial contracts for authorized institutions under FIRO or the Financial Institutions (Resolution) Ordinance (Cap. 628).

    January 22, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on Minimum Liquid Asset Requirements for Banks

    MAS published amendments to Notices 1015, 613, and 649 related to the minimum liquid assets (MLA) requirements.

    January 21, 2020 WebPage Regulatory News
    News

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News
    News

    OSFI to Implement Operational Risk Capital Rules for Banks in Q1 2022

    OSFI decided to move domestic implementation of the revised Basel III operational risk capital requirements from the first quarter of 2021 to the first quarter of 2022.

    January 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News
    News

    OSFI Consults on Instruction Guide for Termination of Pension Plan

    OSFI is consulting on draft revisions to the instruction guide for termination of a defined benefit pension plan.

    January 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4526