Legal Updates April 2023

Financial Services

Exposure Draft on Financial Technology Regulatory Sandbox Framework

Bank Negara Malaysia (“BNM”) is inviting feedback by 30 May 2023 to its exposure draft which sets out its proposal to issue a new Financial Technology Regulatory Sandbox Framework (Framework) policy document, which contains enhancements to the policy document of the same name issued on 18 October 2016 [BNM/RH/PD 030-1]. The enhancements are focused at ensuring proportionate regulatory facilitation and improving operational efficiency of the existing sandbox procedures through:

1. implifying the sandbox's Stage 1 (eligibility) assessment; and
2. introducing an Innovation Green Lane, which aims to provide a risk-proportionate and accelerated pathway for innovative solutions by financial institutions with strong risk management capabilities.