Q1. What is a Digital Regulatory Sandbox?
A software application that streamlines the application submission, review, decision and the data reporting processes between central banks, regulators and financial service providers.
Q2. What is the purpose of the Digital Regulatory Sandbox Platform for a Financial Service Provider?
For faster go to market, financial service providers can use our platform to streamline regulatory engagement and compliance reporting. Our Digital Regulatory Sandbox (™) presents an opportunity to test new products and services with regulatory supervision while addressing issues before the product or service is offered on a wider scale.
Q3. How does the Digital Regulatory Sandbox (™) work?
Q4. How much time does a product spend in a Digital Regulatory Sandbox before getting licensed?
The duration will vary based on the regulator, and the nature of the product or service being offered, but typically, between three to twelve months, although we have seen upto 36 months. This enables the FSP to continue to stay in the market with regulatory approval, instead of getting shut down due to lack of formal licensing guidelines for the service type being tested.
Q5. Does a Digital Regulatory Sandbox approval mean the same as getting a full license?
A sandbox participation approval allows you to bring a financial product to market even where no applicable regulatory framework exists, as an example. A full license is typically issued once a regulatory framework is defined and adopted by the regulator.
Q6. What are the benefits of participating in the Digital Regulatory Sandbox?
- Accelerate regulatory review for faster go to market cycle
- Expose developer-friendly APIs to reduce the cost and time of regulatory compliance (free account + pay per use once a FSP is in market).
- Leverage user-friendly dashboards to monitor risk and market performance at the service type level.
Q7. Is there a fee associated with onboarding onto the Digital Regulatory Sandbox?
It’s free to set up an account to get prepared and test APIs. Additional services may be offered in the future based on user demand.
Q8. Is there a fee associated with regulatory compliance reporting?
You will only pay for data reporting when you are ino market. Nothing before then, and the first 500 API calls per month are free! “We make money when you make money” is our model. See our tiered pricing schedule on the billing page. Additional fees may apply depending on the regulator.
Q9. What if I have a product not covered in the list of currently supported service types?
Q10. Who evaluates and decides which FSPs get accepted?
All regulatory decisions are made by the regulator (i.e. a Central Bank or Securities and Exchange Commission).
Q11. Will I be notified if my sandbox application is not accepted?
Yes, regardless of the regulator’s decision on your application, you’ll receive a notification from the reviewing Regulator with applicable details.
Q12. How long does it take before an application gets approved or rejected on the Digital Regulatory Sandbox?
It varies by Regulator, but approval processes target 2 to 3 weeks. For exact timing please see specific regulator’s published sandbox framework.
Q13. How will my business or product performance be assessed in the Digital Regulatory Sandbox?
A Regulator will assess your transactional data to understand market performance, system performance and potential risk exposures; this understanding will inform regulatory policies and licensing guidelines.
Q14. How do I contact a Regulator via the Digital Regulatory Sandbox?
Once you submit your application, regulators can connect with you via email. We are working on new collaboration tools and features for you to efficiently communicate faster and better with them.
Q15. Have more questions?