The MFSA will be taking part in the upcoming DELTA Summit, where it will be laying out its vision of establishing Malta as an international FinTech hub and demonstrating its new Regulatory Sandbox approach, which provides financial sector participants with a controlled environment to test out their innovations for a specific period.
The DELTA Summit, which will take place from 2nd to 4th October, serves as a platform for marketing Malta as an innovator and an ideal hub for companies seeking to establish themselves, as well as for individuals interested in technology and the various opportunities it presents. DELTA also acts as a venue for the promotion of technology. In fact, for its 2019 edition, the Summit is aiming for an even greater global debate on technology and will seek to further expose the Maltese government’s efforts in establishing Malta as a pioneer in blockchain and the disruptive technology sector.
The Sandbox is an essential part of the Authority’s FinTech strategy, through which it is creating a regulatory environment with the goals of securing investor protection, market integrity and financial soundness. The Sandbox will subject the participants to certain conditions which contain the associated risks to consumers and the financial system. It will provide for a structured framework which would allow technologically-enabled financial innovations – including business models, applications, processes or products – to operate within the financial services market. The Regulatory Sandbox will make it easier for firms to understand what is expected of them from a regulatory standpoint.
Within this structure, the Authority will be able to closely monitor the Sandbox participants and observe whether their technological innovations genuinely offer an added value to the consumer and the financial sector. At the same time, specific safeguards will be implemented within the testing environment to address potential risks which may affect consumers. Furthermore, the Sandbox will give the regulator the opportunity to study financial innovations while assessing their regulatory and supervisory implications and discussing the appropriate response. Moreover, the Sandbox will aid the Authority to keep abreast with the latest technological advancements.
How will the Regulatory Sandbox work? The Authority is proposing to first issue a call for interest to the industry, during which interested Sandbox participants will submit their proposal. Subsequently, a selection board will choose the participants, which will be given the green light to test their innovations within the Sandbox and be evaluated. The testing period will end with a Sandbox exit stage, which will result in either the discontinuation of the financial innovation, the granting of an extension for its continued use within the Sandbox, or an authorisation to use it with or without restrictions.
Proposed Sandbox Lifecycle
Want to meet us at DELTA?
If you would like to schedule a meeting with us during the DELTA Summit, register your details on https://www.mfsa.mt/events/delta-summit-2019-gearing-up-for-the-next-generation-of-financial-services/.
When you’re visiting, look out for us at Stand H5. We look forward to seeing you there!
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Original article found on Malta Winds