Providing a space for safe experimentation
Innovation means pushing boundaries. The Regulatory Sandbox provides market innovators with an opportunity to test new products and services that push the boundaries of existing regulation, all under the responsible supervision of relevant regulators.
The Regulatory Sandbox is a controlled environment that offers regulatory relief for participants to test innovative products and services within predefined parameters. It is managed by the Intergovernmental Fintech Working Group (IFWG) with participation from the Financial Intelligence Centre, the Financial Sector Conduct Authority, National Treasury, the National Credit Regulator, the South African Reserve Bank, and the South African Revenue Service.
Should you apply to the Regulatory Sandbox?
In order to be eligible for the Regulatory Sandbox, the following initial criteria must be met:
- The innovation to be tested must be intended for deployment in the South African market
- The innovation to be tested must not clearly fit within the existing regulatory framework or it challenges the existing regulatory framework
- The innovation must be beneficial to consumers or the market at-large (e.g., for Business-to-Consumer companies – lower prices, increased competition, improved access/financial inclusion; for Business-to-Business companies – lower costs, increased efficiency, improved compliance)
- The innovation must be significantly different from other offerings in the market
- The innovation must be ready to be tested, including fully developed technology, sufficient funding to cover the full testing period, and secured partnerships (if required for testing)
- The applicant must have a clear and detailed test plan, including:
- Clear objectives and success criteria for testing
- Timeline and milestones for testing
- Identification of regulatory requirements and/or required regulatory relief
- Possible risks (including risks to consumers) and risk mitigation strategies
- An acceptable exit and transition strategy
Upon reviewing your application, the Regulatory Sandbox team may reach out for additional information including financial statements, bank guarantees, affected party consent, proof of contractual arrangements with required partners, etc.
The application period for the inaugural cohort of the Regulatory Sandbox is currently open and will remain open until 15 May 2020.
Accepted applicants will be informed by early June 2020, and testing is expected to begin on 1 July 2020.
Please send your completed application form to firstname.lastname@example.org.