The Financial Markets Authority (FMA) has announced the six fintech firms who will test their innovative products, services or business models in the FMA’s pilot regulatory sandbox. The full announcement can be found here.
What does it cover?
This pilot regulatory sandbox was announced in December 2024. The objective is to provide a platform for innovative firms to test their products, services, and business models.
The FMA received 24 applications to be part of the pilot sandbox. After a thorough selection process, the successful fintech firms are:
- ECDD Holdings Limited;
- Emerge Group Limited;
- Homeshare;
- IndigiShare;
- Invest in Farming Co-op; and
- Tandym Limited.
The FMA used the following criteria to determine the successful firms:
- genuine innovation exists that is either unique or solves an existing issue;
- there will be a likely benefit to consumers;
- the product or service does not pose high risk of causing consumer harm;
- there is a demonstrated need to be in the sandbox;
- the firm is ready and has a product to test; and
- the management team have appropriate experience and skills to execute the sandbox testing plan.
It is anticipated the firms will operate within the terms of the sandbox for a period of between 12 and 24 months. During this period, firms will be able to test their products and services while gaining a deeper understanding of the supervisory expectations. This will provide them the opportunity to adjust their products or services before full commercial launch, which may also help to reduce costs for firms.
Our view
We welcome the introduction of the regulatory sandbox as it is a new and great step towards driving more financial innovation within the New Zealand market.
Our Financial Services team is proud to be the regulatory lawyers for five out of the six successful participants. We look forward to continuing to collaborate with them and the FMA in the coming months.
If you have any questions regarding the FMA’s announcement or are seeking guidance on how existing financial regulations may apply to your product or service, please contact one of our experts.
This article was co-authored by Olivia Maher, Law Clerk in our Banking and Financial Services team.
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