2017年-EBA欧洲银行管理局_BSG_Paper_on_Regulatory_Sandboxes_20_July_2017_15页_307kb

Regulatory Sandboxes: A Proposal to EBA by the Banking Stakeholders Group

Core Content

Regulatory sandboxes are controlled environments where innovative financial products and services can be tested without being immediately subject to full regulatory requirements. These sandboxes aim to foster financial innovation while preserving consumer protection and financial stability. The Banking Stakeholders Group (BSG) proposes that the European Banking Authority (EBA) should lead in developing harmonized guidelines for national sandboxes to avoid fragmentation and ensure a consistent regulatory approach across the EU.

Main Points

1. Rationale and Relevance

• Regulatory sandboxes are becoming increasingly popular as a way to support financial innovation.
• The EBA is currently assessing FinTech activities, and the BSG believes that harmonized guidelines can complement this process.
• A fragmented regulatory landscape could lead to regulatory arbitrage, level playing field issues, and consumer risks.
• The EU and OECD view innovation from a systemic perspective, emphasizing the need for inclusive and comprehensive frameworks.

2. Balancing Innovation and Safety

• Financial innovation is unstable, copyable, and risky, but it can bring significant benefits to consumers and the economy.
• Regulatory sandboxes should not be seen as a shortcut to bypass regulation, but as an exceptional process that ensures consumer protection.
• Key criteria for admission to sandboxes include innovation, consumer benefit, and financial stability.
• Consumer rights must be preserved, and additional safeguards may be required if necessary.

3. Functions and Benefits of Sandboxes

• Sandboxes act as learning environments for all stakeholders, including regulators, innovators, and consumers.
• They foster innovation culture, improve communication, and promote knowledge sharing.
• Cross-team collaboration between start-ups and traditional financial institutions is encouraged to enhance spillovers and innovation.
• Iterative learning is a core feature, allowing for feedback and refinement of innovative products and services.

4. Global Sandbox Experiences

• The UK was the first to establish a regulatory sandbox in 2016 through the FCA's Project Innovate.
• Australia followed with a sandbox model that uses a white-list approach, allowing eligible companies to test without a license.
• Other countries, such as Singapore, Indonesia, Malaysia, Thailand, and Hong Kong, have also implemented sandbox initiatives.
• Industry sandboxes, promoted by organizations like Innovate Finance, offer collaborative development environments where FinTech solutions can be tested using shared data and services.

5. Operational Requirements

• A clear and harmonized framework for entry, testing, and exit is essential to reduce uncertainty and ensure consistency.
• Entry requirements should ensure that only genuine innovations are admitted, with a focus on market novelty and regulatory justification.
• Testing conditions must include consumer protection safeguards, risk monitoring, and transparency.
• Exit conditions involve market entry with a clear regulatory report, project discontinuation, and regulatory changes based on observed outcomes.

Key Recommendations

• The EBA should develop guidelines to harmonize regulatory practices across national sandboxes.
• These guidelines should include clear criteria for entry, staying, and exiting sandboxes, along with transparency in the authorization process.
• Consumer safeguards must be prioritized, and activities should be limited to ensure financial stability.
• Cross-border sandboxes should be explored to promote regulatory consistency and market integration within the EU.
• Accredited users should be allowed to participate, ensuring that they are aware of risks and informed about sandbox status.

Conclusion

Regulatory sandboxes offer a valuable tool for promoting financial innovation while safeguarding consumers and the financial system. Harmonization of these frameworks at the EU level is crucial to avoid fragmentation and ensure a level playing field. The EBA is well-positioned to lead this effort, providing guidelines that support innovation, learning, and regulatory efficiency.

References

• AGARWAL, Rajshree; AUDRETSCH, David; SARKAR, M. B. (2010). Knowledge spillovers and strategic entrepreneurship. Strategic Entrepreneurship Journal.
• ANG, J.B. (2014). Innovation and financial liberalization. Journal of Banking & Finance.
• ASIC (Australian Securities and Investment Commission): Testing fintech products and services without holding an AFS or credit licence, Regulatory Guide 257, December 2016.
• BECK, T., CHEN, T., LIN, C., SONG, F.M. (2016). Financial innovation: The bright and the dark sides. Journal of Banking & Finance.
• BSG (Banking Stakeholders Group): Proposal to EBA on Regulatory Sandboxes.
• EUROPEAN BANKING AUTHORITY (2017). Draft EBA response to the EC Consultation Document on Fintech.
• FCA (Financial Conduct Authority): Regulatory Sandbox Report, November 2015.
• FINMA (Swiss Financial Markets Supervisory Authority): Die FINMA ist fit für Fintech, September 2016.
• FinTech Poland (2016). FinTech in Poland - barriers and opportunities.