SEC MC No. 09, series of 2024SEC Stratbox (Strategic Sandbox)
SECURITIES AND EXCHANGE COMMISSION � STRATBOX APPLICATION FORM SEC STRATBOX APPLICATION FORM 1. Applicant's Information Corporation Name SEC Registration Number Address Contact Number Name of Authorized Representative Designation Email Contact Number
SECURITIES AND EXCHANGE COMMISSION � STRATBOX APPLICATION FORM 2. Overview Response 1 Provide a brief description of the organization and its core business/es. 2 Provide a brief description of the proposed business model, financial product, or service to be experimented with in the sandbox. 3 Do you have the relevant license to deploy the proposed financial product or service to the public? Please provide the details and specify from which regulator. 4 Does the business model, product, or service require the SEC to relax or modify any specific regulatory requirements prescribed by SEC, for the duration of the sandbox? If yes, please provide the details. 5 Does the business model, product, or service exist in other jurisdictions? Please provide details on how it is regulated.
SECURITIES AND EXCHANGE COMMISSION � STRATBOX APPLICATION FORM 3. Details of the proposal to support the sandbox evaluation criteria. Refer to Section 5 of MC _ -2024. Criteria Requirements Supporting Information or Attachments Section i. The technology and innovative ways in which the 5.1 technology will be applied, including a comparison of the key features against similar or competing technologies, or manner in which competing financial services are operating. ii. Benefits of the proposed financial service, such as improvements in security, customer experience, cost efficiency, operational efficiency, expansion into new market segments, or others. Provide quantifiable estimations where applicable. Section i. Brief position explaining that the business model, financial 5.2 product, or service is not prohibited by any laws in the Philippines. Sections i. Assessment of the suitability and readiness of the 5.3, 5.4, & proposed financial service for the Philippine market, 5.5 including a brief comparison against similar markets globally.
SECURITIES AND EXCHANGE COMMISSION � STRATBOX APPLICATION FORM Criteria Requirements Supporting Information or Attachments ii. Brief overview of the business strategy and plan, including the roadmap to continue development in the Philippines. The business plan should also address the gaps (if any) in meeting the relevant legal and regulatory requirements after exiting the sandbox. iii. Financial standing of the applicant, including any funding raised from investors. iv. Relevant technical and business domain knowledge and experience of the applicant. Section i. Test scenarios aimed at removing the uncertainty which 5.6, 5.7, & could be arising from regulatory, technology or business 5.8 model, and could not be reasonably or effectively simulated in a test environment. ii. Appropriate targets which allow SEC and the applicant to assess whether the test outcomes have been achieved. iii. Boundary conditions for the sandbox (with justifications), such as: � Start and end date of the sandbox � Target customer type; � Limit on the number of customers involved; � Other quantifiable limits such as transaction thresholds or cash holding limits.
SECURITIES AND EXCHANGE COMMISSION � STRATBOX APPLICATION FORM Criteria Requirements Supporting Information or Attachments iv. Processes and controls to ensure that the boundary conditions are not breached. Section i. Quantification of the maximum loss and impact that the 5.9 & 5.10 proposal could potentially create, including any potential indirect effects. ii. Channels for handling customer queries, feedback or complaints. iii. Monitoring plan to ensure the prompt notification of any breach, for example, breach of the sandbox test scenarios, boundary conditions or safeguards, to SEC. iv. Risk mitigation plan to minimize the impact of failure on customers and the broader financial ecosystem. v. Exit and transition plan for customers, in the event that the proposed financial service has to be discontinued or can proceed to be deployed on a broader scale after exiting the sandbox. vi. Communications plan to inform customers, including: � the duration, boundary conditions and associated risk disclosure for participating in the sandbox; � advance notification of the termination or extension of the sandbox, or when the proposed financial service can proceed to be deployed on a broader scale.
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