the number of clients, scope of the activity, etc. the experiment is time - bound. if successful, the entity must exit the sandbox and fully comply with all relevant regulations if it wants to roll out the innovative product to the broader market. if the experiment fails, well we all learn something. regulatory sandboxes not only encourage fintech innovation by providing a safe space for 4 / 7 bis central bankers'speeches experimentation. they also give regulators an opportunity to learn the risks associated with new technologies and right - size regulation accordingly. several regulators have introduced variants of the regulatory sandbox over the past year. in fact, i would say the sandbox is itself an experiment for regulators. there is much we can learn by sharing experiences and lessons from our different approaches. and asic is one regulator that we admire and watch closely on this front. ta k e registration requirements. most sandboxes require applicants to register prior to experimentation. the uk fca has two fixed cohorts of applicants a year, while the mas sandbox is always open for application. asic has an interesting approach. it has a class - exemption for firms testing a specific set of services for 12 months and up to 100 clients. interested firms are required to notify asic before commencing business, provided they also meet certain consumer protection conditions. mas opted for an application - based approach because we wanted to closely engage each applicant, understand the innovation, business model, and risks so as to customise the sandbox conditions. but each application is turning out to be quite time - consuming and we are mindful that our process does not get in the way of speed - to - market. so, we are keen to study asic ’ s experience with the class - exemption approach and see how our own approach can be improved. there are also interesting differences in the qualifying entities. hkma ’ s sandbox is restricted to authorised institutions, while asic ’ s sandbox is restricted to fintech start - ups. the mas and uk fca are open to both regulated entities and fintech start - ups. supervisory technology or suptech the second aspect of our approach that i want to highlight is suptech. many of you are familiar with regtech – the use of technology to enhance risk management and regulatory compliance in financial institutions. well, why should regulated entities have a monopoly over the use of technology? regulators too can harness technology to enhance the efficiency and effectiveness of supervision and surveillance. there is

ravi menon : financial regulation - the forward agenda keynote address by mr ravi menon, managing director of the monetary authority of singapore, at the australian securities and investments commission ( asic ) annual forum 2017, singapore, 20 march 2017. * * * mr greg medcraft, chairman of the australian securities & investments commission, distinguished guests, ladies and gentlemen, good morning. i am happy to join you for this asic annual forum on “ future focus ”, and congratulate asic for the choice of a timely topic. the global financial system experienced nine years ago a most devastating crisis. in response, we saw the implementation of perhaps the most wide - ranging set of regulatory reforms ever. we are now at an inflection point. i see three key areas of focus in the regulatory agenda going forward : first, take stock of the reforms to - date, with a focus on evaluating their effectiveness and effects. second, go beyond rule - setting to foster a culture of trust and risk governance in our financial institutions and markets. third, position regulation for the technological changes sweeping the financial industry, to harness the opportunities they present while managing their risks. evaluating the effects of regulatory reforms let me start with a stocktake of the regulatory reforms. basically, the reforms set out to address the fault - lines that caused or exacerbated the global financial crisis of 2008. there are four key thrusts : build resilient financial institutions. this is being done chiefly through the basel iii reforms, strengthening capital and liquidity buffers in banks. end too - big - to - fail. frameworks are being established to identify and address the risks posed by global systemically important financial institutions. make derivatives markets safer. requirements are being put in place to foster central clearing, margin requirements, and mandatory reporting of otc derivative trades. transform shadow banking into resilient market - based finance. oversight of shadow banking entities is being strengthened. the financial stability board has been working to ensure that these internationally agreed regulatory reforms are implemented in a timely and consistent manner across the major jurisdictions. while gaps remain in some areas, implementation is generally proceeding well. it is time now to begin the important task of evaluating the impact of the reforms. in fact, the fsb is developing a conceptual framework for doing this. the framework aims to answer two questions : have the regulatory reforms been effective – are they achieving their intended outcomes? 1 / 7 bis central bankers'speeches what are the cumulative effects of the reforms – how have