Testing regulated activities.
WHAT A SANDBOX IS
An arrangement permitting limited testing of a regulated activity under supervision.
WHERE THEY HAVE APPEARED
Financial services, primarily, through the central bank and securities regulator.
WHAT THEY PROVIDE
The ability to test with real customers Engagement with the regulator A route toward full authorisation
WHAT THEY REQUIRE
Application and acceptance A defined testing plan Limits on customers and volumes Reporting Consumer protections
WHY LIMITS EXIST
Testing carries risk to participants.
WHAT TO PREPARE
A clear description of the innovation Why existing rules do not accommodate it How customers are protected What you will learn
WHY THAT SECOND POINT
Sandboxes are for genuinely novel activity, not for avoiding authorisation.
WHAT TO EXPECT
Competitive selection A defined testing period Close supervision
WHAT FOLLOWS SUCCESSFUL TESTING
A route to authorisation, not automatic approval.
WHAT TO PLAN FOR
The full authorisation process afterwards.
WHAT TO ESTABLISH
Whether a scheme is currently open.
WHY
They run in cohorts, with application windows.
WHAT TO VERIFY
Current arrangements, with the regulator.
WHAT TO TAKE ADVICE ON
Whether your activity requires authorisation at all.
