FinTech Regulatory Sandbox

Introduction

Against the backdrop of a rapidly evolving financial technology (FinTech) landscape, emerging financial products or services that utilise FinTech are becoming more sophisticated and there may be uncertainty over whether the innovation meets regulatory requirements.

In circumstances where it is less clear whether a new financial product or service complies with legal and regulatory requirements, some financial institutions (FIs) or start-ups may err on the side of caution and choose not to implement it. This outcome is undesirable as promising innovations may be stifled and this may result in missed opportunities.

MAS is encouraging more FinTech experimentation so that promising innovations can be tested in the market and have a chance for wider adoption, in Singapore and abroad. The regulatory sandbox will enable FIs as well as FinTech players to experiment with innovative financial products or services in the production environment but within a well-defined space and duration. It shall also include appropriate safeguards to contain the consequences of failure and maintain the overall safety and soundness of the financial system.

 

Last Modified on 01/09/2017