But…
what is the Sandbox?

The Regulatory Sandbox is identified as a testing environment in which the supervisory authority will allow the testing of innovative technology-based projects in the financial field, with real users, under the control and supervision of the competent authority.

On November 4th, 2020, the Senate passed the Bill for the digital transformation of the financial sector that introduces a suitable legal environment to ensure that innovation in the financial sector can be developed in an efficient and safe manner for users.

In terms of regulation and supervision, it represents one of the greatest innovations made to date by the supervisory authorities, since the ultimate goal of the Sandbox will be to support the development of innovative projects under a legal and secure framework, which, due to the novelty of their business model, are unable to find a place in the current regulatory framework

 

How does the Sandbox work in Spain?

1. Application

The entry of projects to the Sandbox must be requested at the electronic headquarters of the General Secretariat of the Treasury and International Finance. The application must be accompanied by an Annex of required questions and an explanatory Memorandum of the project detailing the business model and the reasons that justify its entry into the controlled testing space.

2. Evaluation

The competent authorities will evaluate the project and the details of its application to determine its suitability to access the Sandbox. Those that do not meet the requirements will be automatically discarded by means of a reasoned statement.

3. Tests

The entity that is considered suitable to access the Sandbox will begin its business activity after the approval of the testing protocol, once the informed consent of the participants has been obtained and the system of guarantees and indemnities foreseen has been activated. The testing period will be for an initial period of 6 months that may be extended.

Benefits of the Regulatory Sandbox

Competitive advantage and legal certainty

Business and legal feasibility 

Greater investment and public recognition

Close contact with the supervisor

Testimonies

For us, it has been very gratifying to work with the Finnovating and CMS team, in addition to their professionalism, we highlight their involvement and adaptability to everything we transmitted to them, despite the different approaches we have been giving to the project, the work done has not suffered at all and we’re very happy with the end result”.

“Finnovating and CMS have been two key partners on the road to submitting the project to the Sandbox. The combination of expert knowledge of the InsurTech/FinTech world with legal advice has been a key factor in the development of the project. Undoubtedly, this type of project is born from innovation and technology teams that require experts to enrich it with a business and legal vision without losing focus on the development of the project”.

“At Equifax, when submitting our project to the Sandbox, we believed it was necessary to have external support with a dual focus, business and technical, to ensure that the preparation of the project memorandom met the expectations of the organising body, both in terms of form and content. Thus, among the different options, we chose the partnership created between Finnovating and CMS Spain, which has covered expectations in a satisfactory way, making the project very simple and agile. Without a doubt, from our point of view, it was the right choice and we would trust in their services again”.

The Finnovating and CMS binomial has worked perfectly from the very first moment we began working on the project. From the beginning, they were able to understand and capture the value proposition of our project proposal, a key element in order to develop a solid project memorandum, in addition to having worked with a team with great professionalism and understanding”.

Finnovating and CMS services has been essential for us to be able to submit Cobertoo to the Sandbox. Their legal and business support has allowed us to focus on developing our product and in submitting a complete and sound project to the regulator”.

Very good. I would definitely recommend it. I think the service has been outstanding. Getting into the Sandbox would be the icing on the cake.”

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We help your project enter the Sandbox.

Our experts will generate the necessary documentation needed for the submission of the project. 

Sandbox Spain

We answer your questions

What advantages can the Sandbox bring for my project?

The entry of the project into the Sandbox is the opportunity to demonstrate and evaluate its feasibility from a business and regulatory point of view under the supervision of the competent authority (CNMV, Bank of Spain or DGSFP). The objective is to launch products or services in the market that may not be offered today because there is a regulatory brake, and thus, an impediment to be able to operate in the market with legal certainty.

We tell you all about it in the following article. Read more 

What are the requirements to enter the Sandbox?

There are certain requirements that must be met in order for the project to access the Regulatory Sandbox. Some of these include:

  • Provide technology-based innovation applicable to the financial system.
  • Be sufficiently advanced to be tested.
  • Benefit users of financial services.
  • Increase the efficiency of financial institutions or markets.
  • Provide mechanisms to improve financial regulation or supervision.

We tell you all about it in the following article. Read more

How do I request access to the Sandbox in Spain?

Applications for access to the Sandbox must be submitted at the electronic headquarters of the General Secretariat of the Treasury and International Finance. The application must be accompanied by an Annex of required questions and an explanatory Memorandum of the project detailing the business model and the reasons that justify its entry into the controlled testing space.

We tell you all about it in the following article. Read more 

When is the next call for the Sandbox planned for?

New calls for access to the Sandbox will be published every six months. Our team can let you know if you provide us with a contact email in order to do so.

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