Magazine

May 2019

Read the latest edition of AIR and MEIR as an Interactive e-book

Singapore: MAS introduces regulatory sandbox to test fintech solutions

Source: Asia Insurance Review | Jul 2016

MAS has released a consultation paper on proposed guidelines for a “regulatory sandbox” that will enable financial institutions (FIs) as well as non-financial players to experiment with fintech solutions.
 
   In a statement, MAS encourages FIs to test and introduce these innovations if they are relevant, and do their own due diligence. However, there may be circumstances where it is less clear whether a particular fintech solution complies with regulatory requirements or poses unacceptable risks. The uncertainty may stifle promising innovations, and may result in missed opportunities.
 
   The regulatory sandbox will enable FIs or any interested firms to experiment with innovative fintech solutions in an environment where actual products or services are provided to the customers but within a well-defined space and duration. For the duration of the regulatory sandbox, MAS will relax specific regulatory requirements which an applicant would otherwise be subject to.
 
   MAS recognises that failure is often a feature of such experiments and the purpose of the regulatory sandbox is to provide appropriate safeguards to contain the consequences of failure for customers rather than to prevent failure altogether.
 
Aim to enable promising fintech innovations to develop and flourish
Interested firms are encouraged to approach MAS to discuss how their innovative fintech solutions can be launched in the regulatory sandbox, even while the proposed guidelines are being consulted and finalised.
 
   Ms Jacqueline Loh, Deputy Managing Director of MAS, said: “MAS aims to provide a responsive and forward-looking regulatory approach that will enable promising fintech innovations to develop and flourish. The sandbox will help reduce regulatory friction and provide a safer environment for fintech experiments. We believe this will give innovations a better chance to take root.”
 
   The public consultation will be open till 8 July 2016.
 
| Print | Share

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.