The regulatory sandbox will be available from 1 January 2017.
Innovative businesses may apply to their relevant regulator in each
phase of development. Applications are treated confidentially. The
regulatory sandbox will not involve any extra charges. Regular
costs for authorisation and continuous supervision however do
In addition to the regulatory sandbox, the regulators offer
innovative businesses the possibility to apply for partial
authorisation. Partial authorisation may be issued when a financial
institution does not wish to engage in all operations governed by a
full authorisation or is not yet able to meet all eligibility
requirements for such an authorisation. Partial authorisation may
be granted on a temporary basis but may also have a more permanent
nature. As such, partial authorisation may be used by businesses to
develop a full-fledged financial institution step by step.
Impact of the regulatory sandbox and partial authorisation
We believe the regulatory sandbox and possibility of issuing
partial authorisation will support innovation in the financial
services sector. The power of the regulatory sandbox lies in its
specificity. Applications for the regulatory sandbox are
confidential and the tailor-made solutions are by definition
individual. The tailor-made solutions will therefore not set
precedent and do not constitute universally binding policies. As a
result, we expect the regulators to be readily approachable and
have a positive and constructive attitude towards innovation. In
addition, the discussion on the underlying purpose of financial
markets regulation is likely to drive the efficiency of financial
De Brauw can help
To ensure an efficient and effective process, the financial
institution must have a well prepared plan and have already
analysed whether or not its innovative product or innovative
business process constitutes a regulated service. With our
experience working with the InnovationHub of DNB and the AFM, we
can assist you in preparing the analysis and in the ongoing
discussions with DNB or the AFM. Please contact us if you want to
discuss whether your idea may be eligible for a tailor-made
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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With effect from 18 April Jersey is introducing a new regime in respect of private funds - simplifying the regulatory regime, and extending the benefits of flexibility and speed across Jersey's private funds space.
The English Court of Appeal has recently re-affirmed, in National Infrastructure Development Co Ltd v Banco Santander...
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