Regulatory sandbox

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Regulatory sandbox provides for a process enabling the existing or potential financial market participants, whose activities require operating authorisation from the FCMC (licence or registration), to test or verify innovative financial products, financial services or business models in accordance with a specific testing plan agreed with the FCMC.

Regulatory sandbox is open to innovative financial solutions that would contribute positively to the sound functioning and development of the financial market, as well as improve and safely expand the options to use financial services for consumers and investors.

An innovative financial service that could be tested in the Regulatory sandbox is a new or substantially improved electronic payment or electronic money service at national level. This service should result in an evident contribution to the user of services. The applicant should be able to demonstrate this contribution focusing primarily on the service users in Latvia, which does not exclude the possibility to offer the service also to other European Union (EU) states. The above contribution could take place in one of the following ways:

  • increased competition in the sector; the service would be more advantageous, inexpensive, simpler for the customer; excluding individual inter-stages from the traditional chain of service provision (e.g. excluding the card scheme);
  • the idea of innovative service on the market could potentially lead to a response from traditional market participants either by improving their service or by adopting the new innovative business model;
  • providing consumers and non-professional customers with access to the market segment, which has not traditionally been available to them.


For further information please contact the FCMC.

Contact details
Phone: +371 67 774 922; +371 67 774 853, +371 67 774 800

Application form for the Regulatory sandbox

1. Information on the applicant

2. Information on the innovative financial service

3. Brief description of eligibility criteria

Please describe how your innovation makes a significantly different offer in the Latvian financial market. Your response should include: an explanation of why your idea is innovative at the national level and who are your market rivals.
Please describe how your idea benefits consumers (directly or through increased competition). Your response should include: an explanation of how this idea can benefit consumers directly or indirectly. You may also include a summary of the risks your idea can pose to customers (both consumers and businesses), as well as measures to reduce the risks identified in the sandbox testing.
Please clarify why you need to test innovation in the sandbox with real customers. Your response should include: test target(s); why you need to perform test in real life situations; why you cannot start or continue product development without using the sandbox; and what sandbox tools or FCMC support you might need for testing.
Please clarify at what stage your innovative product is, whether it is at the drafting stage or is developed and ready solution. At a partial development stage, please specify additional tasks that are required to complete the product.
Please clarify whether and how your idea is a regulated activity in the field of financial services or whether it is a supporting function for other financial services. Your response should indicate whether and how your idea is part of the regulatory framework. If you believe that you are outside the perimeter of regulation, please clarify your point.
Please describe how your idea will focus on the users of Latvian financial and service markets and users of services, which does not exclude the possibility of offering the service in other European Union states.
This field is for validation purposes and should be left unchanged.


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