Fintech Supervisory Sandbox (FSS) Pilot Conditions for Banks and Tech Firms
Learn about HKMA's FSS, which lets banks and tech firms pilot fintech with limited customers without full compliance.
What Is the Fintech Supervisory Sandbox?
The Fintech Supervisory Sandbox (FSS), launched by the Hong Kong Monetary Authority (HKMA) in September 2016, allows banks and their partnering technology firms (tech firms) to conduct pilot trials of their fintech initiatives involving a limited number of participating customers without the need to achieve full compliance with the HKMA’s supervisory requirements.
Who Can Use the Sandbox?
The FSS is available to fintech and other technology initiatives intended to be launched in Hong Kong by banks.
What Are the Conditions and Limits?
The FSS should not be used as a means to bypass applicable supervisory requirements. Additionally, the HKMA has not laid down an exhaustive list of the supervisory requirements that may potentially be relaxed within the FSS environment.
For projects under FSS 3.0, qualifying projects can apply for funding: In addition to the pilot trial function offered by FSS 2.0, FSS 3.0 facilitates eligible trial projects of research and development (R&D) to apply for a maximum of HK$1 million funding support under the Innovation and Technology Commission (ITC)‘s Public Sector Trial Scheme (PSTS).
Furthermore, qualifying FSS 3.1 Pilot projects must have a bank in Hong Kong as a project sponsor.