On 7 August 2019, the Monetary Authority of Singapore (MAS) launched Sandbox Express to provide financial technology firms with a faster option to test innovative financial products and services in the market. Eligible applicants can begin market testing in the pre-defined environment of Sandbox Express within 21 days of applying to MAS instead of taking a longer time to customize their sandboxes under the existing FinTech Regulatory Sandbox, launched in 2016.
Sandbox Express shortens the approval process for entry into the sandbox by relying on standard disclosures and pre-determined rules and is only suitable for activities where the risks are low and well-understood by the market, and can be reasonably managed within pre-defined parameters. The FinTech Regulatory Sandbox remains open for applicants with more complex business models or where MAS requires more time to understand the risks of the activities.
In the beginning, Sandbox Express will be available specifically for insurance brokers, recognized market operators and remittance businesses. Each sandbox will have pre-defined boundaries, regulatory reliefs, and expectations. Firms must comply with all conditions of approval including providing clear and proper disclosure to the customer as well as submitting regular progress reports to MAS. Experiments can remain in Sandbox Express for up to nine months.
MAS will closely monitor the utilization of Sandbox Express to ensure that it meets the evolving needs and interests of the financial industry. It will also explore opportunities to expand the range of financial products and services that can be offered through Sandbox Express.
(Sources: Monetary Authority of Singapore; Straits Times)