Objectives:

Upon completion of this course, participants will be able to:

• Analyze the policy rationale, global models, and key components of a **Regulatory Sandbox** and Innovation Hub.
• Design the legal and operational framework for a sandbox, including defining the scope and criteria for regulatory relief.
• Develop clear and objective **application, entry, and exit criteria** for FinTech firms seeking sandbox participation.
• Establish robust **consumer protection, disclosure, and recourse mechanisms** tailored for the experimental, live testing environment.
• Implement a systematic approach for **monitoring and supervising** sandbox participants and managing emerging risks.
• Evaluate the impact of sandbox participation and develop clear pathways for successful products to receive full authorization (**scaling up**).
• Understand how to leverage the sandbox to specifically attract and test **financial inclusion-focused** innovations (e.g., low-cost CDD, DFS).
• Measure the success of the sandbox in terms of regulatory learning, innovation rate, and consumer benefit.

• Regulators and Policy Makers from Central Banks and Financial Supervisory Authorities
• Heads of Innovation, FinTech Desks, and Regulatory Sandbox Units
• FinTech Founders, Executives, and Legal/Compliance Leads
• International Development Professionals focused on Digital Finance and Innovation
• Legal Counsel specializing in Financial Technology Regulation
• Policy Analysts responsible for financial sector reform and competitiveness
• Consumer Protection Specialists involved in live product testing oversight

• Case Studies analyzing successful sandbox exits and subsequent regulatory changes.
• Group Activities on drafting objective entry criteria for a financial inclusion-focused FinTech applicant.
• Discussions on the ethical line between controlled testing and exposing consumers to risk.
• Individual Exercises on designing a consumer disclosure statement for a sandbox product.
• Workshop on developing a structured Test Plan with key regulatory risk metrics.
• Role-playing a Sandbox Steering Committee review of a mid-test progress report.

Unit 1: Rationale and Design of Regulatory Sandboxes

• The need for regulatory agility in the face of rapid FinTech innovation.
• Differentiating between Innovation Hubs, Sandboxes, and Regulatory Accelerators.
• Key global models (e.g., UK FCA, Singapore MAS) and lessons learned.
• Defining the primary objective: **Innovation, Competition, or Financial Inclusion**.

• The legal power required to grant temporary **regulatory exemptions/waivers**.
• Defining the scope: Which laws can be waived and which are non-negotiable (e.g., AML/CFT).
• Setting parameters for the testing environment (time limit, consumer volume, transaction value).
• Establishing a clear, predictable, and transparent process for all phases.

Unit 2: Application, Entry, and Testing

• Designing objective and fair **entry criteria** (genuineness, consumer benefit, innovation).
• The assessment process: Vetting the business model, risk management, and consumer safeguards.
• Prioritizing innovations that specifically address **financial exclusion** challenges.
• The role of the regulator's internal FinTech office in screening and triage.

• Developing a robust **Test Plan** with measurable milestones and risk metrics.
• Establishing a proportional and focused supervisory monitoring plan during the test.
• Managing operational and consumer risks within the controlled environment.
• Regulatory flexibility vs. maintaining adherence to core principles.

Unit 3: Consumer Protection in the Sandbox

• Mandating clear and conspicuous **consumer disclosure** of the "experimental" status.
• Requiring a simple, fast-track **dispute resolution** and consumer redress mechanism.
• Setting maximum liability limits and mandatory consumer compensation requirements.
• Ensuring no reduction in fundamental data privacy and security rights.

Unit 4: Exit, Scaling, and Regulatory Learning

• Defining clear **Exit Criteria** (success, failure, or further testing).
• Developing a predictable pathway to full regulatory authorization and **scaling up**.
• Procedures for an orderly consumer exit and remediation upon test failure.
• Using regulatory sandbox findings to inform broader, permanent regulatory reform.