Spain's Ministry of Economy has launched a Public Consultation on the implementation of a 'Regulatory Sandbox' regime for Financial Services in the country.
This consultation is part of a project of the Ministry of Economy to regulate the digitization of economy in Spain. The objectives of the future 'Law on Digital Transformation' would be to ease innovation of Financial Services and enable the modernization of economy in Spain in the context of globalization, while ensuring legal certainty.
The consultation focuses on the implementation of a 'Regulatory Sandbox' regime in Spain. A Regulatory Sandbox is usually defined as a controlled environment in which businesses can test innovative products, services, business models and delivery mechanisms without immediately incurring all the normal regulatory and financial consequences of engaging in the activity in question. Accordingly, players in the Financial Sector would be able to test innovative products and services in a safe environment, under the scrutiny of Supervisors.
In relation to the functioning of the ' Sandbox' the Consultation differentiates three phases:
- Access to the Sandbox
- Warranties and protection of the clients; and
- Exit of the 'Sandbox' and subsequent effects.
The 'Regulatory Sandbox' would be in principle open to all sorts of entities (traditional players and FinTechs alike), as long as the Regulator considers that their projects provide added value. The consultation is open until 7 June, and is available here.