21 February 2019Analysis

Washington DC to implement regulatory sandbox, could explore captives

US District of Columbia mayor Muriel Bowser has recently established a council charged  with studying and reporting on the feasibility of implementing a financial services regulatory sandbox in Washington DC.

It would enable existing and new financial service licensees to test innovative products, services and business models in financial services, and also areas such as insurance and captive insurance.

Furthermore, the council will help develop a blockchain and innovation regulatory framework to facilitate financial services innovation in the District.

The District of Columbia Financial Services Regulatory Sandbox and Innovation Council has called for a cross section of professionals from the insurance, securities, captive insurance and banking industries, along with consumer representatives; technology industry members; and financial services regulatory professionals.

There will be a total of 21 members sitting on the council including three from the insurance industry and one from the captive insurance industry.

“We want the District on the cutting edge—utilising the intersection of technology and financial services to benefit our residents and businesses,” said Stephen Taylor, commissioner of the District of Columbia Department of Insurance, Securities and Banking. “Washington, DC is a creative, tech-savvy city, and as we grow, we will continue to explore ways to ensure that the District’s prosperity is inclusive; we will also champion innovation that could improve the availability, accessibility and affordability of financial services for all.”

The Council will be chaired by the Commissioner for the Department of Insurance, Securities and Banking, and includes the District’s Chief Technology Officer.

Mayor Bowser has requested the Council report on  its findings within the first six months and regularly review the effectiveness of the Blockchain and Innovation Regulatory Framework; the Council will also review and help administer, if feasible, the regulatory sandbox.