Financial Services Bulletin June 2016

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Published date: 29 Jun 2016

MAS proposes “regulatory sandbox” to encourage FinTech experimentations

On 6 June 2016, the Monetary Authority of Singapore (“MAS”) announced its proposal of a regulatory sandbox approach to create a safe and conducive space to experiment with financial technology (“FinTech”) solutions where the consequences of failure can be contained. MAS will determine the specific legal and regulatory requirements which it is prepared to relax for each case depending on the FinTech solution, the applicant involved and the proposal made to MAS.
 
MAS has released a consultation paper on a proposed set of “FinTech Regulatory Sandbox Guidelines” for public feedback to be submitted by 8 July 2016. In the meantime, MAS also encourages interested parties to approach MAS to discuss how their innovative FinTech solutions can be launched in the regulatory sandbox. The proposed guidelines cover matters such as potential parties who might be interested in the sandbox and explain what the regulatory sandbox approach is as well as set out the evaluation process criteria. The application and approval process set out in the proposed guidelines suggests that MAS will endeavour to inform the applicant of its potential suitability for a sandbox within 21 working days after MAS receives a complete and final set of information necessary for the assessment. According to the proposed guidelines, the regulatory sandbox may not be suitable under the certain circumstances, for example, if the FinTech solution is considered to be similar to those that are already being offered in Singapore or the applicant has no intention to deploy the FinTech solution in Singapore on a broader scale after exiting from the sandbox.
 
This proposal addresses the current situation where a new FinTech solution may not be pursued due to uncertainty over possible non-compliance with some legal and regulatory requirements. MAS would like to encourage more FinTech experimentations so that promising innovations can be tested in the market and have a chance for wider adoption, in Singapore and abroad.
 
Reference materials
 
The following materials are available on the MAS website www.mas.gov.sg:
 
·         Media release
 
 
 
 
For further information, please contact:
 
+65 6890 7883
 
+65 6890 7710
 
+65 6890 7786
 
+65 6890 7741
 

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