This is the Taiwan version of Financial Technology Innovation Sandbox.
The Act stipulates that proposals from firms which have passed an assessment to use the sandbox would be allowed to bypass — in part or in full — certain regulations after gaining the approval of the Financial Supervisory Commission (FSC).
The FSC is to consult responsible agencies when it wants a test financial service to be exempted from certain rules, with the exception of the Money Laundering Control Act and the Act Against the Threats of Hacking, which cannot be exempted.
A review committee is to be established under the FSC to review plans. To promote innovation, the committee is required to hire experts from the private sector for between one-third and half of its staff, with the rest composed of representatives from government agencies.
To avoid profitability being harmed by red tape, the committee is to decide within 60 days of a submission whether it qualifies for the sandbox. Approved plans would then be given an 18-month time frame within which firms would be allowed to launch trial runs of their services. The 18-month period may be extended to no more than 36 months at the discretion of the FSC.
The review committee is to submit a report to the Legislative Yuan detailing the results of a project and which regulations should be changed within 90 days of the end of a trial, so that a new service may be put on the financial market after necessary legal amendments are approved.
People who experience financial losses as a result of their participation in a financial service test are protected by the Financial Consumer Protection Act and should file complaints with the Financial Ombudsman Institution.
Financial Supervisory Commission (FSC)
To upgrade the nation’s financial sector by granting technology firms more leeway when experimenting with innovative financial services.
The Act just passed by the Legislative Yuan on Dec. 29 2017. For the time being, the Fintech Innovation Act has not yet been formally promulgated by the president, and the relevant supporting measures have not been formulated and implemented by the FSC either.