BSP Approves Regulatory Sandbox Framework

On 5 September 2022, and in line with its policy of enabling responsible innovation to promote the development of an inclusive digital financial ecosystem, the Bangko Sentral ng Pilipinas ("BSP") issued Circular No. 1153 and approved a Regulatory Sandbox Framework to be incorporated as Section 115 of the Manual of Regulations for Banks ("MORB") and Sections 112-Q/115-S/115-P/113-T/103-N/141-CC of the Manual of Regulations for Non-Bank Financial Institutions ("MORNBFI"). In broad terms, the new rules allow fintech developers to test the use of new or emerging technology to deliver financial products and services in a controlled environment.

1. What is the Regulatory Sandbox?