Finanstilsynet has opened up for applications for participation in the third intake to the regulatory sandbox for fintechs. The application deadline is 31 December 2021.
What is a regulatory sandbox?
In the regulatory sandbox, fintech firms are given the opportunity to launch new, innovative products, technologies and services while being followed up by Finanstilsynet. Among other things, the firms will learn which permissions are required.
The purpose of the sandbox is to:
- help innovative businesses gain increased knowledge about the relevant regulations
- help raise Finanstilsynet's understanding of new technological solutions in the financial market
- enable technological innovation and open up for new players
Finanstilsynet emphasises that admission to the regulatory sandbox does not qualify as an approval or quality assessment of the product, technology or service.
Who can participate in the sandbox?
Participants in the sandbox may be existing financial institutions, new entrants who wish to offer financial services, or players outside the financial industry who offer services to supervised institutions.
Criteria for participation
In order to participate in the sandbox, the service and the firm must meet certain criteria:
- Association. Is the service associated with regulated financial services under Finanstilsynet's responsibility?
- Use. Will the service be of use to consumers or the financial system as a whole?
- Innovation. Is the service an example of technological innovation or something genuinely new?
- Need. Is participation in Finanstilsynet's regulatory sandbox crucial to the realisation of the service?
- Ready for participation.Are the firm and its service ready for participation in the regulatory sandbox?
Finanstilsynet cannot grant a general dispensation from laws and regulations that apply to licensable activities. The firm must either meet the licensing requirements itself or provide the service to other licensed firms. It is only possible to ease certain requirements if so permitted by the regulations.