Sandbox Express provides firms with faster access to test their innovative financial products and services. The Monetary Authority of Singapore (MAS) launched the program this week.
Yet, the idea was announced last year. MAS announced the idea during the Singapore Fintech Festival. Sandbox is a fintech regulatory in Singapore. The regulation allows financial institutions and financial technology to experiment with their financial products. However, they can experiment only in a well-defined space and duration. Besides, MAS will loosen specific legal and regulatory requirements for them.
The Fintech Regulatory Sandbox launched in 2016. It remains open for applicants with more complex business models.
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Sandbox Express
Sandbox Express requires eligible applicants 21 days of applying to MAS. After they apply, they can begin market testing in the pre-defined environment. However, the application duration is shorter than customizing their sandboxes under the existing FinTech Regulatory Sandbox.
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In other words, it shortens the approval process for entry into the sandbox. They rely on standard disclosures and pre-determined rules. Therefore, Sandbox Express is only suitable for activities where the risks are low and well-understood by the market. Moreover, it is best for products that can be managed within pre-defined parameters.
In the beginning, Sandbox Express will be available specifically for insurance brokers, recognized market operators and remittance businesses. Each sandbox will have pre-defined boundaries, regulatory reliefs, and expectations. Besides, firms must comply with all conditions of approval. That includes providing clear and proper disclosure to the customer as well as submitting regular progress reports to MAS.
Moreover, experiments can remain in Sandbox Express for up to nine months. Thus, firms will have more time to overcome business and technical challenges during experimentation. Furthermore, they can also use the longer duration to better prepare for exiting the sandbox and deploying their innovation on a larger scale.
