2017-11-20

Recent Development of Taiwan's Regulatory Sandbox

On 8 November 2017, Taiwan's Finance Committee of the Legislative Yuan reviewed a bill for the Financial Technology Innovation and Experiment Act (FTIEA). The bill is expected to pass the third reading before the end of this year.

According to the FTIEA, any individual, partnership or judicial person may apply to the Financial Supervisory Commission (“FSC”) for an innovative experiment and the application of the regulatory sandbox, provided that the subject business activities (1) require special approvals from FSC; (2) are innovative; (3) can improve the effectiveness of financial services, reduce cost and/or promote consumer welfare; (4) the relevant risk has been duly evaluated and corresponding measures to deal with the same have been developed; and (5) a consumer protection mechanism has been established and appropriate funding has been set aside for potential compensation to consumers.

Based on the current FTIEA bill, an applicant may apply for a one-year experimentation period. The applicant may also extend said period for up to three years.
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