Regulatory Sandbox is a tailored regulatory environment for conducting limited scale, live tests of innovative products, services, processes, and/ or business models in a controlled environment for a limited period of time so as to assess their viability to be launched on full-scale, and to determine the compatible and enabling regulatory environment that will be conducive for the innovative solutions.
The Regulatory Sandbox is primarily applicable for new products, services or business models which have not been addressed under existing laws and regulations; or these new ideas bring an innovative approach to the market and there exists considerable uncertainty in terms of unexpected adverse outcomes or existing regulatory framework does not fully address the solutions proposed to be experimented through the regulatory sandbox.
Regulatory Sandboxes are becoming increasingly popular regulatory tools internationally. As of now, more than 50 countries have introduced their respective regulatory sandboxes with similar objectives.
For inclusion in Regulatory Sandbox and becoming an integral part of this dynamic environment, the applicants can apply year-round across three specific streams: Islamic finance, Conventional finance, and initiatives focused on women. Potential applicants can assess the viability of their proposed models through the diagnostic tool, develop an application based on a self-explanatory format and submit at their convenience to sandbox@secp.gov.pk.
The SECP made rapid progress and started to show disruption in Pakistan’s FinTech landscape and are proving to be significant in furthering the journey of financial inclusion. The SECP has instituted various reforms to develop a comprehensive and coherent industry policy to share regulatory thinking and promote a conducive FinTech environment in Pakistan.
- Digital Only Insurer
- Online Only Securities Broker
- Digital Distribution of Mutual Funds
- Peer to Peer Lending
Click here to view SECP Regulatory Sandbox Guidelines, 2019.
Click here to generate Manual Bank challan for Regulatory Sandbox.
The SECP has a dedicated mailbox (sandbox@secp.gov.pk) for any queries with respect to the Regulatory Sandbox.