MAS Proposes Regulatory Sandbox Approach For Fintech Solutions

 On 6 June 2016, the Monetary Authority of Singapore ("MAS") issued a consultation paper inviting comments on a proposed set of Guidelines that would set out the objectives and principles behind a regulatory sandbox ("Sandbox") for the development and implementation of financial technology ("FinTech") solutions.

This note provides a brief overview of the proposed Guidelines.

Objectives and Principles of the Sandbox

The MAS has chosen to describe the approach as a sandbox, because that term appears quite appropriate to describe what it intends – namely, a conducive but safe and controlled environment within which one might experiment with FinTech. The MAS themselves acknowledge that experimentation within the Sandbox will still not be entirely free of risks, but such an approach does help to minimise any adverse impact on consumers and financial stability in general, should the experiment fail.