This exposure draft sets out the Bank Negara Malaysia’s (the Bank) proposal to issue a new Financial Technology Regulatory Sandbox Framework (Framework) policy document, which contains enhancements to the policy document of the same name issued on 18 October 2016 [BNM/RH/PD 030-1]. The enhancements are focused at ensuring proportionate regulatory facilitation and improving operational efficiency of the existing sandbox procedures through:

1. simplifying the sandbox’s Stage 1 (eligibility) assessment; and
2. introducing an Innovation Green Lane, which aims to provide a risk-proportionate and accelerated pathway for innovative solutions by financial institutions with strong risk management capabilities.

Bank Negara Malaysia invites written feedback on the proposals in this exposure draft, including suggestions on areas to be clarified and alternative proposals that the Bank should consider. The written feedback should be supported with clear rationale, accompanying evidence or appropriate illustrations to facilitate an effective review of this exposure draft.

Feedback must be submitted by 30 May 2023 to:

Pengarah,
Jabatan Pembangunan dan Inovasi Kewangan
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur

Email: [email protected]

Electronic submission is encouraged. Submissions received may be made public unless confidentiality is specifically requested for the whole or part of the submission.

In the course of preparing your feedback, you may direct any queries to

1. Anneka Ng ([email protected])
2. Ahmad Shah Hussaini ([email protected])

Issuance Date
28 March 2023

Applicability

1. An authorised or registered person under the FSA
2. An authorised person under the IFSA
3. A licensee under the MSBA
4. A prescribed institution under the DFIA
5. A fintech company intending to carry on:
6. an authorised or registered business as defined in the Financial Services Act 2013 (FSA) and
7. an authorised business as defined in the Islamic Financial Services Act 2013 (IFSA); or
8. a money services business as defined in the Money Services Business Act 2011 (MSBA).

Section in Charge
Market Enablers Unit

Issuing Department
Financial Development and Innovation Department

Relevant Acts

• FSA
• IFSA
• DFIA
• MSBA

Document
Exposure Draft on Financial Technology Regulatory Sandbox Framework