Once the innovator obtain the LoA “temporary permission” it can proceed with its testing plan as detailed and agreed during the Lifecycle Stage (2) and in accordance with the terms contained in the LoA. Innovators have a minimum of (6) six months and a maximum of (12) twelve months from the receipt date of the LoA to complete their test.

During the testing stage, the Innovator will provide Saudi Central Bank with the results of their monitoring activity.

The purpose of the Innovators’ reports is to inform Saudi Central Bank on the status of its adherence to the terms of the LoA, as well as to notify them of any non-foreseen events that may impair its ability to complete the test or result in consumer detriment.

Throughout the Testing Stage, a member of the relevant Licensing team will be a stakeholder in meetings between the Regulatory Sandbox team with the Innovator’s team and will also be a recipient of all the periodic reports submitted by the Innovator. Their role is also to support the Innovator in understanding the general licensing requirements to ensure the Innovator commences preparation for their licensing application in an orderly and timely manner. Once Saudi Central Bank issues the specific regulatory requirements, the Innovator can complete the full licensing application and/or amend their existing license.

In cases where Saudi Central Bank believes that the Innovator has failed to adhere to the terms of the LoA, it can request the Innovator to temporarily discontinue the test until the matters in question are fully clarified. In cases where Saudi Central Bank finds indications of potential or actual consumer detriment it can ask the Innovator to terminate its testing exercise and present an Exiting plan that may include a remediation plan. In this case, Saudi Central Bank will communicate to the Innovator that its LoA has been withdrawn.

Similarly, Innovators may encounter unexpected technical or non-technical difficulties beyond their control that may lead them to suspend the test until these are fully resolved. As a result of that, Innovators may find themselves in a situation where the test cannot be completed within the dates stated in their LoA. In these exceptional circumstances, Innovators can submit a written request for an extension of the Testing Stage. Saudi Central Bank will look at each case on its own merits.

The Testing Stage would automatically end twelve months from the date of the LoA and it is expected the Innovator will transition to one of the paths identified in Stage 4 “Exiting the Regulatory Sandbox”.