A Guide to BVI’s FinTech Regulatory Sandbox...Financial Services Test Scenarios/ projected ... •...
Transcript of A Guide to BVI’s FinTech Regulatory Sandbox...Financial Services Test Scenarios/ projected ... •...
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A Guide toBVI’s FinTech
Regulatory Sandbox
Presented by: Kishelle Blaize‐Cameron
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Presentation Outline• Introduction of the Sandbox
– Objectives
• Applications– Who can apply– Key Exemptions, Key Requirements, Entry Criteria– Application Process
• Participation– Active sandbox requirements– Operating Restrictions– Duration of Sandbox
• Exit Options– Winding down/ ceasing of business– Revocation of authorization
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Objectives of the Sandbox
• Align regulation and innovation• Provide a defined test environment• Development of tailored and focused supervisory framework
• Protection of market participants• Generation of new business models within the jurisdiction
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Objectives of the Sandbox
RegulationRegulation InnovationInnovation
New business models
Improved Efficiencies
Inclusion
Protection of Markets
Tailored Framework
Market Inclusion
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Key Exemptions for sandbox participants
• Provisions of Regulatory Legislation dis‐applied• Specific provisions within the Regulatory Code dis‐applied
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Who Can Apply?a BVI business company;a foreign company;a limited partnership; a Micro Business Company;a licensee;
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Sandbox Entry Criteria
Busin
ess P
ropo
sal
Innovative Product / Service
Regulated Activity / Nexus to Financial Services
Test Scenarios/ projected outcomes
Exit Strategy
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Sandbox Entry Criteria (2)
Exit Strategy
Wind Down Operations
Transition to Licensee
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Key Requirements
• Applicant must be fit and proper– Competency– Integrity – Financial Soundness
• AML Code and AML Regulations apply• Sandbox application fee
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Fit and Proper RequirementsRequired Documents
Yes Form A’s
Yes References
Yes Police Clearance
Yes Resumes
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Sandbox Participant‐ Ongoing Requirements
• Governance• Restricted number of clients• Submit interim reports on progress• Seek prior approval before making materialchanges to business operations
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Sandbox Participant‐ Ongoing Requirements
• Maintain adequate and transparent records • Maintain risk management policies &controls• Independent review of IT systems
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Required Disclosures to clients
• Potential risks • The Sandbox participant does not hold a licenceissued by the Commission for the sandbox activity
• Business model is being tested within the Regulatory Sandbox
• Sandbox participation period/duration
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Sandbox Duration
Evaluatio
n Stage Nature,
Size, ComplexityState of Application
Approval Stage
21 Days toLaun
ch Stage
90 Days to launch
Sand
box Participant
18 Months Extension
Up to 6 Months
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Options for exiting the Sandbox
• Transitioning to licensee• Winding down/ ceasing of business• Revocation of authorisation
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Application Receipts
Beginning Q4, 2019