Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

BVI FSC to invite applications for fintech "sandbox"

BVI FSC to invite applications for fintech "sandbox"

“Digitalisation is our ticket,” Jennifer Potter-Questelles, deputy managing director of corporate services at the Financial Services Commission, said last week during the FSC’s annual Meet the Regulator forum.

To help prove it, the commission plans to invite applications to the Virgin Islands’ new “sandbox” for financial technology, providing a testing environment that allows companies to experiment with new ideas within the VI’s regulatory framework without the full weight of the usual rules.

In the process, industry stakeholders hope the territory will attract new companies interested in the fast-growing “fintech” space.

“Integrity and sustainability of the industry are dependent on all the collective parts and more importantly on our connections to each other,” Ms. Potter-Questelles told the roughly 130 industry practitioners gathered at H. Lavity Stoutt Community College for the July 3 forum.

“Weak links, whether large or small, can have significant effect and impact. Sometimes size doesn’t matter, but strength always does. We need every connection to be strong.”

New sandbox

Kishelle Blaize‐Cameron, deputy director in the FSC’s Investment Business Division, explained how the regulatory regime would work.

Specific provisions of the regulatory legislation and regulatory code would be “disapplied” to participants in the sandbox, who can apply beginning in the fourth quarter of 2019, according to Ms. Blaize-Cameron.

These participants — which may include VI-registered and foreign companies — must include a detailed testing proposal and an exit strategy, meaning the company must cease operations after a certain date, she explained.

To qualify, companies must prove that they are “fit and proper,” demonstrating competence, integrity and financial soundness, according to Ms. Blaize-Cameron. In her presentation, she explained that they would be limited to a maximum number of clients, pay a fee, and be required to submit periodic progress reports.

Sandbox history

Since the rise of fintech, calls for a sandbox regime in the VI have been floated. The plan for the regime surfaced in Governor Gus Jaspert’s Speech from the Throne in March 2018, when he said the then-National Democratic Party-led government pledged to “use legislative measures to establish a regulatory sandbox regime to help develop new financial services product legislation.”

The same month, Ayanna Hull, a counsel at Harneys, said the territory was working on drafting related legislation, which she said would give innovators like cryptocurrency exchanges the opportunity to do trial runs in the territory to see if the VI’s regulations work for them. No legislation was introduced, however.

Kyla Forbes, a corporate communications associate at the FSC, in an email to the Beacon, wrote that “Regulations are to be issued under the Financial Services Commission Act, 2001 to enable and govern the Regulatory Sandbox operations.”

Other jurisdictions that have experimented with sandboxes in an effort to increase fintech innovation include the United Kingdom, Jersey, Hong Kong, Singapore, Australia, Canada and Malaysia, according to a recent white paper by Mirza Manraj at Harneys. Other Commonwealth countries have explored the concept as well.

Other presentations

Expanding on the forum’s digital focus, Kenneth Baker, deputy managing director of regulation at the FSC, explained how the commission is also digitising its anti-money-laundering processes and amending regulations to accommodate electronic verifications of identity.

Janay Waters and Chelcy Forbes, also from the Investment
Business Division, presented on system improvements to the application portal on mutual funds annual returns.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
White House Eyes Budapest for Peace Talks
Cave Diving Beneath the Streets of Budapest
Another American Restaurant Chain Opens in Budapest
Hungarian Opposition Politician Supports Ukrainian Commander
Opposition Leader Threatens Media Outlets
American Airlines Adds New Flights to Budapest
F1 Hungarian Grand Prix Wraps Up
WhatsApp is rolling out a feature that looks a lot like Telegram.
U.S. Trade Representative says Washington still negotiating trade deals after court rules tariffs illegal
Von der Leyen says Europe drawing up 'precise' plans to send troops to Ukraine
Kremlin accuses Europe of hindering Trump’s peace efforts in Ukraine
×