The Monetary Authority of Singapore (MAS) announced on Wednesday it launched Sandbox Express to provide firms with a faster option to test financial products and services in the market. MAS reported that eligible applicants can begin market testing in the pre-defined environment of Sandbox Express within 21 days of applying to the organization instead of taking a long time to customize their sandboxes under the existing Fintech Regulatory Sandbox.
“Sandbox Express shortens the approval process for entry into the sandbox by relying on standard disclosures and pre-determined rules. Hence, Sandbox Express 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 that was operational since 2016 remains open for applicants with more complex business models or where MAS requires more time to understand the risks of the activities.”
MAS further explained Sandbox Express will be available specifically for insurance brokers, recognised market operators and remittance businesses. It was also noted that 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.
While sharing more details about Sandbox Express, Sopnendu Mohanty, Chief Fintech Officer of MAS stated:
“For innovation to take root, it is important for ideas to be tested quickly and in a safe environment. Sandbox Express aims to achieve this through appropriate disclosures and pre-defined rules. This introduction of Sandbox Express builds on the experience we have gained from running the FinTech Regulatory Sandbox and reflects our commitment to encouraging more experimentation and greater adoption of innovative technologies in the financial sector.”
MAS added it will closely monitor the utilization of Sandbox Express to ensure that it meets the evolving needs and interests of the financial industry.
The original MAS consultation on the Sandbox Express is embedded below.MAS Consultation Paper on Sandbox Express