INTRODUCTION TO THE SANDBOX
In accordance with its mandate to regulate and promote the development of the Zambian Capital Market as enshrined in the Securities Act (“the Act”), the Securities and Exchange Commission (“Commission”) seeks to create a regulatory sandbox (“sandbox”) environment in which the testing of capital market innovations can be facilitated under a set of conditions and limitations designed to protect investors, but without strict adherence to all the regulatory obligations required for engaging in such activities.
Given the rapid evolution of Fintech, financial sector regulators worldwide are scrutinising the development and application of Fintech in financial markets to better understand the potential impact on consumers and market dynamics.
Zambia has over the years experienced advancements in Financial technology (Fintech) which has to a great extent, changed the financial services landscape. The introduction of Fintech in financial markets has necessitated a shift from traditional business models and paved way for innovation that add greater value to consumers, enhance efficiency and risk management, as well as foster financial inclusion.
The Sandbox shall therefore be a controlled environment conducive for the deployment and live testing of innovations that are not adequately addressed by the existing regulatory framework.