Design, Implementation and Evaluation of Regulatory Sandboxes

Policymakers are increasingly relying on regulatory sandboxes for supervised testing of innovative technologies or processes in a live environment to enable their full entry into the marketplace. Although implemented in over 60 jurisdictions internationally, regulatory sandboxes lack a consistent definition and framework for measuring their success. Stakeholders have identified a strategic need for policymakers to quickly assess whether a sandbox is a viable path to mitigating the risks of new innovations. To date, some jurisdictions have developed handbooks and frameworks for sandbox design, but no standards exist. A national standard will establish a consistent definition and approach to designing regulatory sandboxes for use in Canada. The proposed standard for developing regulatory sandboxes will provide policymakers with a:  Clear definition of regulatory sandboxes  Decision-tree for determining when a sandbox is appropriate  Elements required to establish a sandbox  Considerations for determining eligibility requirements  Performance Indicators for measuring success The benefits to stakeholders include:  Regulators - Greater market and innovation insight - Gain evidence on how innovation interacts with people, markets, and regulations in a live environment - Informed policymaking and regulatory development  Industry - Reduced barriers to adoption of innovation in products and services - Quicker entry to market - Reduced regulatory uncertainty - Greater investor confidence  Consumers - Assurance that appropriate safeguards are in place when adopting new technologies or participating in new business models - Provide an avenue for early intervention in consumer, public and environmental protection.