Kuala Lumpur: The Securities Commission Malaysia (SC) has unveiled its regulatory sandbox guidelines, detailing the eligibility criteria and requirements for participation. These guidelines aim to facilitate innovation within the capital market by offering a controlled environment for testing new products or services.

According to BERNAMA News Agency, the SC stated that the regulatory sandbox, initially announced last year, serves as a strategic tool to refine policies, ensuring they remain relevant and effective. The sandbox allows participants to experiment with innovative capital market solutions while maintaining strong investor protection measures.

SC Chairman Datuk Mohammad Faiz Azmi emphasized that the sandbox is instrumental in promoting responsible innovation within the capital market. He noted, "By empowering industry players to experiment with innovative ideas, the sandbox embodies our vision of building a dynamic, inclusive, and future-ready capital market. It also fosters collaboration across the ecosystem, ensuring progress aligns with investor protection."

The SC clarified that the sandbox is open to entities introducing new capital market products or services not yet available in Malaysia and those that fall outside the SC's existing frameworks. Applicants must demonstrate a clear value proposition, have robust testing plans, sufficient resources, a viable business plan for commercialization, and possess the necessary infrastructure and governance for testing.

The commission also highlighted a preference for products and solutions that focus on financial inclusiveness, Islamic finance, or retirement solutions. The evaluation process is expected to take approximately two months, contingent on the complexity of the applications. Successful applicants will be notified of their admittance into the sandbox, with application forms now available for those preparing ahead of the application window opening in April.

Applications for the sandbox will be accepted from April 15 to May 31, 2025. Applicants will be informed within 30 days of submission if they have advanced to the evaluation stage.