There’s “Watch and learn.”

And there’s “Test and learn.”

The BSP’s Regulatory Sandbox Framework wants an enabling environment for innovation by providing a controlled, time-bound testing environment for new and emerging financial solutions.

This allows participants to test their innovative technologies in a live setting, with the possibility of regulatory waivers at the discretion of the regulators.

By creating a structured process for testing and evaluating new financial solutions, the framework encourages responsible innovation and allows for the development of transformative technologies in the digital financial ecosystem.

Additionally, the framework sets eligibility standards and operational guidelines to ensure that participants adhere to regulatory requirements and consumer protection measures while promoting a more active, evidence-based, and results-driven assessment of new technologies.

BSP Circular No. 1153

  1. What is the Regulatory Sandbox Framework?
    • The Regulatory Sandbox Framework established by the Bangko Sentral ng Pilipinas provides a controlled, time-bound testing environment for new and emerging financial solutions to promote responsible innovation in the digital financial ecosystem.
  2. Who can participate in the Regulatory Sandbox?
    • The framework applies to Bangko Sentral ng Pilipinas (BSP)-Supervised Financial Institutions (BSFIs), third-party service providers of BSFIs, other BSP-registered institutions, and new players intending to offer or use emerging technologies for financial products/services.
  3. What are the eligibility criteria for participation?
    • Participants must meet criteria such as using new or emerging technology, demonstrating the capability to deploy the proposed solution, and bridging market gaps in financial products/services.
  4. What are the key guidelines participants must adhere to?
    • Participants must follow operational guidelines, consumer protection measures, data privacy regulations, and conditions of approval set by the Bangko Sentral to ensure responsible innovation and regulatory compliance.
  5. How is the sandbox oversight managed?
    • The sandbox operates within a supervisory and monitoring oversight framework, with a designated Sandbox Oversight Team overseeing various stages of sandbox implementation.
  6. What measures are in place for consumer protection?
    • Participants must adopt measures to protect consumer rights, inform them about sandbox experimentation, associated risks, and provide mechanisms for handling and resolving disputes.
  7. How is data privacy ensured within the sandbox?
    • Participants must follow rules and guidelines on data sharing, data privacy, and data protection, ensuring that customers are informed about data ownership and rights under Philippine data privacy laws.
  8. What happens after the sandbox period?
    • Participants granted approval must comply with conditions such as overseeing sandbox activities, integrating the sandbox into their strategic plan, and submitting a report summarizing activities and recommendations.
  9. Can participants seek regulatory waivers within the sandbox?
    • The sandbox may feature regulatory waivers at the regulators' discretion, allowing participants to test innovative technologies in a live setting while ensuring compliance with regulatory requirements.
  10. How does the Regulatory Sandbox Framework contribute to the digital financial ecosystem?
    • The framework aims to promote an inclusive digital financial ecosystem by fostering responsible innovation, encouraging the development of transformative technologies, and ensuring a sound risk management system.


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  1. Introduction
    • Overview of the Regulatory Sandbox Framework
    • Purpose and Objectives
  2. Policy Statement
    • Foster an Enabling Environment for Responsible Innovation
    • Promotion of Inclusive Digital Financial Ecosystem
  3. Coverage
    • Applicability to BSP-Supervised Financial Institutions
    • Third-Party Service Providers and BSP-Registered Institutions
    • New Players in the Financial Sector
  4. Key Guidelines for Participants
    • Oversight Framework
    • Operational Guidelines
    • Eligibility Criteria and Self-Assessment Checklist
  5. Consumer Protection Measures
    • Information Disclosure to Customers
    • Complaints Handling and Dispute Resolution Procedures
  6. Data Privacy and Protection
    • Compliance with Data Sharing Regulations
    • Customer Data Ownership and Rights
  7. Regulatory Sandbox Lite
    • Simplified Approach for Accelerated Testing
    • Identification of Regulatory Requirements to be Temporarily Lifted
  8. Conditions of Approval
    • Oversight Committee Responsibilities
    • Integration of Sandbox into Strategic Plans
    • Compliance with Legal and Regulatory Requirements
  9. Sandbox Oversight and Monitoring
    • Formation of Sandbox Oversight Team
    • Roles and Responsibilities of Oversight Units
  10. Operational Process
    • Four-Stage Process: Application, Evaluation, Testing, Exit Stage
    • Submission Requirements and Evaluation Criteria
  11. Exit and Transition Strategy
    • Planning for Exit from the Sandbox
    • Transition to Live Deployment
  12. Conclusion
    • Impact of the Regulatory Sandbox Framework
    • Future Implications and Considerations

About Lyman Manzanares, Esq.

Founder and CEO, Founding and managing partner, Manzanares & Partners Law Offices, est. 2011. A lawyer based in Makati City, Philippines, he is a Lifetime Member of the Integrated Bar of the Philippines, Makati City Chapter, and the Philippine Bar Association. He graduated from the U.P. College of Law in 2004 and has been involved in various legal cases and discussions, particularly in the realm of commercial and cooperative law. He has provided insights into the world of jurisprudence and law through a platform called “A Case A Day,” where he discusses new cases and updates on different areas of interest such as criminal law, civil and family law, commercial law, and technology law.