The Poland KNF Regulatory Sandbox operates under a decentralized model where approved entities - Sandbox Operators - provide testing environments (for one year periods and selected annually during a two week process) to an approved "Testing Entity", both of which must comply with the Rules Governing the KNF Regulatory Sandbox.
This document provides the rules for the KNF Regulatory Sandbox and also the determination of what is and who may apply and be accepted as a "Testing Entity" in the Sandbox. An excerpt of the Rules appears as follows:
- The purpose of the ‘Sandbox’ programme is to support the development of innovation in the financial market in Poland in the area of entities which implement innovative financial solutions using modern technologies (FinTech).
- For the purposes of these Rules, Sandbox means a decentralised IT environment which is to be used to test innovative financial solutions implemented using modern technologies (FinTech) and to be made available to Testing Entities by a Sandbox Operator, and which is to run under the auspices of the UKNF.
- For the purposes of these Rules, a Testing Entity means an entity with its registered office in the territory of the Republic of Poland which conducts supervised activities or which intends to undertake supervised activities under the provisions referred to in Article 1(2) of the Act of 21 July 2006 on financial market supervision (Journal of Laws [Dziennik Ustaw] of 2018 item 621, as amended), and which has an innovative financial solution implemented using modern technologies and tested in the Sandbox running under the auspices of the UKNF.
- Sandbox Operator is an entity with its registered office in the territory of the Republic of Poland which is able to provide an effective UKNF-approved test environment and to make it available to Testing Entities; such environment is necessary to test a service or business model and ensures the necessary set of training initiatives relating to the business activities conducted by Testing Entities.
These Rules shall apply as of 25 October 2018.