Following the release of its FinTech Strategy in May 2019, on the 04 July 2019, the MFSA issued a Consultation Document on the Regulatory Sandbox Pillar 1 – Regulations, which proposes initiatives on the first of six pillars identified within MFSA's FinTech Strategy. The Sandbox will give the opportunity to participants to test the commercial and regulatory viability of their innovations for a specified period of time, and in a fully functional financial services environment. The MFSA will constantly monitor these participants who will operate under a set of conditions and limitations, in order to contain any risks to the said consumers and the financial system. The proposed Regulatory Sandbox is to be set up to further encourage innovative business models and start-ups to be involved in the financial services sphere.
The Consultation Document considers the various proposals under the MFSA Regulatory Sandbox Framework, including, amongst others, how the Sandbox is to operate, the eligibility of the participants, the participation structure, and consumer protection matters that are to be implemented. Moreover, the MFSA is also proposing to set up a framework for the regulatory certification of RegTech solutions.
The Consultation Document can be accessed here.
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