Singapore: Insurance broking to lead in new fast-track sandbox
Source: Asia Insurance Review | Dec 2018
The MAS is proposing to create pre-defined sandboxes, known as Sandbox Express, to complement the existing FinTech Regulatory Sandbox that was launched in 2016.
As a start, the Sandbox Express will include sandboxes specifically pre-defined for insurance broking, recognised market operators and remittance businesses.
The aim is to enable firms that intend to conduct regulated activities to embark on experiments more quickly, without needing to go through the existing bespoke sandbox application and approval process.
The MAS says that the Sandbox Express is suitable for activities where the risks are generally low, or well understood and could be reasonably contained within the specific pre-defined sandbox.
Each pre-defined sandbox will have its boundaries, expectations and regulatory reliefs pre-determined. The applicant must declare that it is able to comply fully 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.
The applications will be fast-tracked, with approval decisions granted within 21 days. An approved pre-defined sandbox entity will be required to submit periodic progress reports to MAS as well as ensure that the pre-defined sandbox expectations are adhered to.
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.”
MAS is conducting a month-long consultation exercise on Sandbox Express which will end on 13 December. A