MAS aims to transform Singapore into a smart financial centre by encouraging the adoption of innovative and safe technology in the financial sector. To this end, the sandbox can help to encourage more FinTech experimentation within a well-defined space and duration where MAS will provide the requisite regulatory support, so as to:
a. increase efficiency;
b. manage risks better;
c. create new opportunities; or
d. improve people’s lives.
The Monetary Authority of Singapore (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.
Finantial institutions or any interested firm can apply to enter a regulatory sandbox to experiment with innovative financial services in the production environment but within a well-defined space and duration. The sandbox shall include appropriate safeguards to contain the consequences of failure and maintain the overall safety and soundness of the financial system.
Depending on the financial service to be experimented, the applicant involved and the application made, MAS will determine the specific legal and regulatory requirements which it is prepared to relax for each case.
At the end of the sandbox period, the legal and regulatory requirements relaxed by MAS will expire, and the sandbox entity must exit from the sandbox.
Upon exiting, the sandbox entity can proceed to deploy the financial service under experimentation on a broader scale, provided that:
a. both MAS and the sandbox entity are satisfied that the sandbox has achieved its intended test outcomes; and
b. the sandbox entity can fully comply with the relevant legal and regulatory requirements.
Monetary Authority of Singapore (MAS).