ISLAMABAD:In order to broaden outreach, the Security and Exchange Commission of Pakistan (SECP) has restructured its Regulatory Sandbox (RSB) from a cohort-based system to an open status, allowing applicants, including fintech and start-ups, to apply year-round.
The applications will be received in three streams: Islamic finance, conventional finance, and women’s-specific trades, said a press release issued here on Thursday.
For the convenience of applicants, the SECP has developed a comprehensive, self-explanatory application format and diagnostic tool.
These formats are available at the Sandbox section of SECP’s website.
Restructuring of the sandbox was required to reflect its maturity and the lessons learned in the three plus years of its operations.
The always open status will ensure continuity in partnerships and allows applicants to approach the RSB at the right point in their development lifecycle.
Potential applicants can now test the suitability of their proposed model through the diagnostic tool, build an application based on a self-explanatory format, and submit it at any time to the dedicated email at [email protected].
After undergoing a comprehensive evaluation, the applicants can be allowed to test their solutions for a period of six to nine months in a controlled environment.
Launched in 2019, the RSB is in its fourth year of operations. During this period, the SECP received immense response from a wide range of innovators including well established entities, foreign companies, start-ups and Fintech.
To date, 128 applications have been received in the four cohorts announced.
The most recent Cohort IV accepted application in May-June of this year.
Out of the 26 applications received in fourth cohort, the SECP has allowed eleven applicants to test.
The participants will start the six-month testing period from December 01, 2023.
The commission has also published RSB Position Paper 2023, on its website, sharing experiences and learnings from its Regulatory Sandbox project for the benefit of potential participants.
The paper also encapsulates the journey of the second cohort participants and details of their testing methodology, performance and learning outcomes.
The SECP believes that testing of technology driven solutions through RSB can stimulate financial and technological innovation and broaden the range of financial products in the financial services market.