Regulatory Alerts2020-12-09
Guideline No. 3 of 2020 Regulatory Sandbox Framework for Capital Markets
The Securities and Exchange Commission of Zambia issued these guidelines to establish a regulatory sandbox framework that enables capital market operators and unregulated firms to live-test innovative financial products under relaxed regulatory conditions. The framework mandates a structured five-stage lifecycle encompassing application, preparation, live testing, exit planning, and commercial deployment, while requiring participants to implement robust consumer protection measures, risk management protocols, and periodic reporting. By granting targeted regulatory waivers and maintaining active oversight, the guidelines aim to foster financial inclusion, mitigate innovation-related risks, and accelerate the commercialization of technology-driven capital market solutions.