Regulatory AlertsMechanism for Regulatory Sandbox and Innovation Development
The Financial Services Authority (OJK) issued Circular Letter No. 5/SEOJK.07/2024 to establish the operational mechanism for the Regulatory Sandbox and Innovation Development in the financial technology sector. This regulation implements the mandates of Law No. 4 of 2023 and POJK No. 3 of 2024 by detailing the procedures for participant applications, verification, sandbox execution, monitoring, and final reporting. The circular became effective upon its promulgation on June 3, 2024, providing a structured framework for testing financial innovations under OJK supervision.
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Sector: ITSK
Sub-Sector: Other Regulations
Type of Regulation: OJK Circular Letter
Regulation Number: 5/SEOJK.07/2024
Effective Date: 6/3/2024
Attachment 1 SEOJK 5-SEOJK.07-2024 Mechanism for Regulatory Sandbox and Innovation Development.pdf Abstract SEOJK 5-SEOJK.07-2024 Mechanism for Regulatory Sandbox and Innovation Development.pdf FAQ SEOJK 5-SEOJK.07-2024 Mechanism for Regulatory Sandbox and Innovation Development.pdf
Page Content Circular Letter of the Financial Services Authority Number 5/SEOJK.07/2024 concerning the Mechanism for Regulatory Sandbox and Innovation Development
Abstract: The preparation of the Circular Letter of the Financial Services Authority concerning the Mechanism for Regulatory Sandbox and Innovation Development is carried out to follow up on the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) to issue further provisions related to Financial Sector Technology Innovation. This Circular Letter of the Financial Services Authority is an implementing regulation of Financial Services Authority Regulation Number 3 of 2024 concerning the Implementation of Financial Sector Technology Innovation.
The legal basis for this SEOJK is: Law No. 21 of 2011 as amended by Law No. 4 of 2023, and POJK No. 3 of 2024.
This Circular Letter of the Financial Services Authority regulates provisions regarding the procedures for applying to become a Participant, the process of verification and analysis of participant application documents, approval or rejection of participant applications, the process of testing and developing innovations, reports on the implementation results of testing and developing innovations, monitoring of reports on the implementation results of testing and developing innovations, cancellation of approval as a participant, final Sandbox reports, Sandbox results, and the Sandbox mechanism flow.
Note: This SEOJK takes effect on the date of promulgation, which is June 3, 2024.
Attachment I: 9 PAGES. Attachment II: 5 PAGES. Attachment III: 4 PAGES. Attachment IV: 3 PAGES.