The outcome of the assessment within the Regulatory Sandbox period is likely to lead to one or a combination of the following outcomes:
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| | | 1. | A new regulatory framework being developed to include Licensing, Supervision and Enforcement guidelines
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| | | 2. | Amendments to one or more parts of existing regulatory frameworks.
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| | | 3. | Amendments to one or more existing rules or instructions.
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| | | 4. | Confirmation the business model/concept will not require regulatory approval by Saudi Central Bank.
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Upon that, Innovators’ exiting strategies may vary according to their commercial needs and experience within the Regulatory Sandbox Testing Stage.
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| | For example, they may choose to:
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| | | ■ | Cease business at the end of the Sandbox testing stage;
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| | | ■ | Sell and transfer the solution tested to any clients and other Saudi Central Bank licensed firm;
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| | | ■ | Partner up with other Saudi Central Bank licensed firms in order to reach out a larger target market;
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| | | ■ | Deploy their own solution directly to consumers.
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Exiting the Regulatory Sandbox would be through one of the following (3 three paths:
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Path 1: For those Innovators selecting to deploy their proposition to the full market, they will have applied for a full license and/or amend current license following the requirements as issued by Saudi Central Bank.
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For Path 1, there is a dependency on Saudi Central Bank to have issued guidance in the form of new or updated regulatory frameworks, which provide details of the specific licensing requirements for the business model/concept being deployed by the Innovator. Saudi Central Bank will aim to provide clarity on the licensing requirements within 12 months of any new business model/concept being first reviewed and accepted by the Regulatory Sandbox team.
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Path 2: If the Innovator has chosen not to continue with a full license application, during or at the end of the testing period, the Innovator will submit a final report to Saudi Central Bank describing:
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| ↘ | The overall results of the test so that Saudi Central Bank can fully assess the potential impact of the technology tested in the regulatory environment.
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| ↘ | Details on the Exiting strategy that will be implemented.
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The Innovator must execute their Exit Strategy with remediation and safeguards to their registered customers ensuring there are no detriments to customers. There should also be neutral or positive outcomes for staff and suppliers wherever possible.
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Path 3: If at any time during the Testing Stage, Saudi Central Bank has confirmed there is no regulatory oversight required for the Innovators business model/concept, the Innovator can end their involvement in the Regulatory Sandbox and continue with their business operations without further periodic reporting to Saudi Central Bank. Saudi Central Bank will issue a suitable letter confirming the business model/concept has no requirements of permission to operate from Saudi Central Bank.
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