The FinTech sandbox would aim to foster innovation in the financial, credit, and insurance sectors.
By Antonio Coletti and Isabella Porchia
The Italian Ministry of Economy and Finance has launched a public consultation on a draft ministerial decree (Draft Decree) implementing the mandate received by the Italian legislature (Decreto Crescita) to set up a regulatory sandbox to test FinTech activities in the financial, credit, and insurance sectors and establish a FinTech Committee.
The Draft Decree proposes that activities eligible for the sandbox include regulated or non-regulated activities that (i) use technologies contributing to the innovation of banking, financial, and insurance products and services, (ii) require an exemption from the regulatory provisions or guidelines adopted by the supervisory authorities or a joint testing and assessment from the supervisory authorities, and (iii) bring added value at least in terms of (a) benefits for final users enhancing the quality of the services, competition, access conditions, availability, protection, and costs, (b) general efficiency of the financial system and market participants, or (c) less burdensome and more efficient compliance with the financial regulations.
Before submitting an application to the sandbox, entities may present and discuss informally the project with the FinTech Committee. The proposed testing period for any admitted project has a maximum duration of 18 months, which may be extended upon request of the applicant entity.
The Draft Decree proposes: (i) monitoring the evolution of FinTech to set goals, define programs, and take actions to foster the development of FinTech, while supporting initiatives to reduce and simplify administrative requirements and drafting guidelines and promoting best practices; (ii) facilitating contacts and interactions between market participants, the industry, and national and foreign regulators; (iii) cooperating with foreign regulators and exchanging relevant information on FinTech matters.
The public consultation on the Draft Decree will be open until 19 March 2020.
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