The Securities and Exchange Commission (SEC) has announced that it has concluded reviewing applications for the second cohort of the Regulatory Sandbox which is meant to encourage technology innovations.
A Regulatory Sandbox, launched in 2021, is a framework that allowed Financial Technology (FinTech) innovators to conduct live experiments in a controlled environment under a regulator’s supervision.
Innovators currently operating in the sandbox are as Premier Credits, Lupiya, Kukula Capital as well as the Lusaka and Securities Exchange (LuSE).
SEC Chief Executive Officer, Phillip Chitalu, in an interview with Zambia Monitor last week was hopeful that the second cohort of the Regulatory Sandbox would start during the first quarter of 2024, once the current four innovators were done.
Chitalu pointed out that the Commission successfully undertook a preliminary assessment of Sandbox applications for the second cohort, which would only be admitted once the first cohort was closed.
“Application on review has already been done. I am sure that by the first quarter next year, the next cohort should be entering its second phase.
“We are done reviewing the applications, but we are still in the process of trying to admit them and see that we find space for them,” he said.
He indicated that in line with the provisions of the Regulatory Sandbox Guidelines for Capital Markets, the Commission had continued in its efforts to close off the first Sandbox cohort by ensuring an orderly exit.
“Further to the above, the Commission in collaboration with the Bank of Zambia and the Pensions and Insurance Authority have continued their efforts to explore mechanisms for harmonising the Regulatory Sandboxes and ascertain pros and cons and collaborative approaches for the supervision of Fintechs.
“The objective of this assignment is to facilitate for streamlined sandbox regulations and effective implementation of sandbox processes in the financial sector,” Chitalu concluded.
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