The South African Reserve Bank and Financial Services Conduct Authority have announced they intend setting up an innovation hub for the regulation and oversight of fintech and experimental financial products.
As reported by Moneyweb, the hub will include a regulatory guidance unit, described as a ‘platform where financial institutions and fintech providers can engage with regulators for guidance on these new products and services […]’. The unit will also help fintech companies to understand the regulatory landscape, and act as a tool for regulators to ‘keep abreast of innovation in financial services’.
Another important feature of the hub is the ‘regulatory sandbox’, whereby innovators will be able to test their products in a live environment while benefiting from a measure of regulatory relief.
The hub is expected to be operational during the first half of 2020.
