The MFSA officially launches a Fintech Sandbox Framework
28 July 2020
On 22 July, the Malta Financial Services Authority officially launched a Fintech sandbox framework, where innovative fintech solutions which do not clearly fall within the remit of the traditional financial services licensing framework but are at the same time not necessarily covered by the VFA regime, can test their innovative offering within a regulated environment. With the aim of supporting sustainable financial innovation, ensuring regulatory certainty and promoting knowledge sharing, the objectives of the Sandbox are as follows:
The Sandbox will provide for a regulatory environment allowing technologically enabled financial innovation - new business models, applications, processes or products - to operate within the financial services market.
Through close dialogue, the MFSA will be monitoring Participants to observe whether their innovations truly offer value to the consumer and the wider financial services sector, whilst ensuring consumer/investor protection, market integrity and financial soundness.
The Sandbox will enhance legal certainty within the financial services market as it provides both the Participants and the MFSA with the space to determine the appropriate requirements under the applicable regulatory frameworks.
Through collaboration with Participants, the Authority will have the opportunity to enhance its capacity in assessing the regulatory implications and gaps of such Solutions, and identify the appropriate response, as necessary.
Get in touch with our Fintech team which can help you assess whether your eligible for the sandbox framework and assist you throughout your discussions with the MFSA.
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