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The Central Bank aims to create an environment that fosters innovation within a suitable regulatory and supervisory framework, in the development of Licensed Financial Activities. On this basis, the Central Bank aims to apply appropriate regulatory standards for entities conducting Licensed Financial Activities, to protect Consumers of such entities, amongst other objectives. To achieve this objective, the Central Bank will implement channels of engagement with Participants.

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The Regulatory Sandbox acts as an environment that attracts innovators to test innovative products, services, solutions and business models in a controlled space. This is achieved by adopting an approach of ensuring that regulatory requirements are applied to such Participants in a proportionate manner, while at the same time, ensuring that appropriate Consumer protection safeguards are in place.

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The Central Bank envisages that Applicants may include operators (including start-ups and established businesses) and technology businesses that are looking to deliver innovation in the financial services sector.

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The Conditions provide clarity on the criteria for entry into, and rules for participation within the Regulatory Sandbox. The Regulatory Sandbox is intended for entities offering innovative products, services, or solutions which are regulated under the Central Bank’s regulatory regime.