Before you purchase a product or engage in the services of a company in the FinTech Regulatory Sandbox, it is important that you understand your rights, in order to protect you and ensure you are fully informed in engaging with a FinTech sandbox company.
You are advised to take the following steps
*:
(*please note that this is applicable to only FinTech sandbox consumers and not all FinTech consumers.)
1. CHECK THE SANDBOX COMPANY'S SAFEGUARDS
Within the parameters of the FinTech Regulatory Sandbox, a FinTech company can experiment its FinTech products and services in a relaxed regulatory environment, for a limited period of time and within set boundaries.
FinTech sandbox companies need to ensure that there are safeguards in place, in the event of failure during the experimentation period to minimise any impact on the financial system.
2. VERIFY WHETHER IT IS AN APPROVED FINTECH SANDBOX COMPANY
Check and verify whether the company is an approved sandbox company. For the list of the approved FinTech sandbox companies, please click here.
3. CHECK THE PERIOD OF EXPERIMENTATION
If the experimentation period of the FinTech sandbox company is over, the company should stop offering their financial product or service.
Should the FinTech sandbox company choose not to re-apply for a licence to continue its business, it must inform you in advance and exit according to the agreement you have entered with them.
4. UNDERSTAND THE PRODUCT OR SERVICE AND ITS POTENTIAL RISKS
Before committing to subscribe the product or services, please ensure that you know the following:
- The key features of the product or service;
- The benefits of subscribing to the product or service; and
- The fees and charges that are imposed.
You must also understand the risks. Although a company under the FinTech Regulatory Sandbox has a relaxed regulatory and legal requirement, they are still required to do the following:
- Clearly inform you that its business activity is operating in the FinTech Regulatory Sandbox;
- Disclosed and provide transparency on the features of the product or service;
- Disclose potential risks associated with the offered product or service; and
- Receive your acknowledgement that you have read and understood these potential risks.
5. REMEMBER TO ALWAYS ASK!
As a consumer, you reserve the right to ask questions from the company. By asking, you will then also know whether the products or services are suitable to cater your needs.
