Securities Commission chairman Datuk Mohammad Faiz Azmi.
PETALING JAYA: The Securities Commission Malaysia (SC) has released its Regulatory Sandbox Guidelines, detailing the eligibility criteria and requirements for participation.
The regulatory sandbox, announced during last year’s SCxSC Fintech Summit, is a regulatory tool that enhances policies and ensures they are fit for purpose by providing a controlled environment for entities to test innovative capital market products or services.
SC chairman Datuk Mohammad Faiz Azmi said the sandbox facilitates responsible innovation in the capital market while also ensuring robust investor protection.
“By empowering industry players to experiment with innovative ideas, the sandbox embodies our vision of building a dynamic, inclusive, and future-ready capital market.
“It also fosters collaboration across the ecosystem, ensuring progress aligns with investor protection,” he said.
The eligibility criteria for the sandbox include introducing a capital market product or service not currently available in Malaysia and does not fully fit any of the SC’s existing frameworks; demonstrating a clear value proposition to the Malaysian capital market; presenting comprehensive testing plans, expected outcomes, and winding-down measures; demonstrating sufficient resources including human, financial and operational; showcasing a realistic business plan for post-testing commercialisation; as well as possessing the necessary infrastructure, governance and fully functional prototypes to begin testing.
The SC said products and solutions focusing on financial inclusiveness, Islamic finance, or retirement solutions are strongly encouraged.
“Applications for the sandbox will open from April 15 until May 31, 2025. Applicants will be notified within 30 days of submission if they have progressed to the evaluation stage.
“The evaluation stage is estimated to take two months, subject to the complexity of the application received, after which successful candidates will be informed of their admittance into the Sandbox.”
The SC added that alongside the Guidelines, application forms are now available, allowing interested parties
to prepare ahead of the application window opening in April
