- What is a Regulatory Sandbox?
A Regulatory Sandbox is a controlled environment where businesses can test their innovative financial products, services, business models, and delivery mechanisms, in a live environment while being closely monitored by regulators.
- What is the purpose of a Regulatory Sandbox?
A Regulatory Sandbox allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers.
For businesses, a sandbox presents an opportunity to test the viability of their product, service, etc. on a small scale, and allows them to detect and address any issues before the product or service is offered on a wider scale.
- How does the Regulatory Sandbox work?
Businesses offer their innovative products and services to the public on a small scale, while being closely monitored by Regulators. Regulators monitor the activity and determine if the product or service should be regulated.
- Why are the Central Bank of Barbados and the Financial Services Commission introducing this?
FinTech innovations can differ significantly from traditional financial services, so there can be some uncertainty on how they should be regulated. By allowing businesses to test their products and services within the controlled live environment of a Regulatory Sandbox, the CBB and FSC, as Barbados’ financial regulators, will be able to determine whether existing regulations are sufficient to protect consumers, or if new legislation is needed.
- What type of businesses is the sandbox for?
The Regulatory Sandbox is intended for businesses testing technology-based financial products and services.
- How long does the sandbox last?
The duration will vary based on the nature of the product or service being offered by the business.