FME Regulatory Intelligence, Learning & Practice · IFSCA (Fund Management) Regulations, 2025
Regulatory or Innovation Sandbox and Fund Lab

Regulation 145

Regulatory or Innovation Sandbox and Fund Lab

IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter XI · Power to Relax, Issue Clarifications and Specify Additional Requirements

Chapter XI · Power to Relax, Issue Clarifications and Specify Additional Requirements

Regulation 145 – Regulatory or Innovation Sandbox and Fund Lab
Medium importance about 3 min

Relaxations, sandbox & closing: Relaxation powers, the sandbox, IFSCA's rule-making powers and the repeal/savings.

1

In plain English

The Authority may exempt a person or class from any requirement for up to 18 months to test new products, strategies, processes or technology in a regulatory/innovation sandbox; a sandbox cannot solicit money from the public and is governed by a specified framework.

In plain English
Exemption up to 18 months
Regulatory sandbox
2

The rule, in its own words

Read the exact text of Regulation 145
145. (1) The Authority may, exempt any person or class of persons from the operation of all or any of the requirements under these regulations for a period as may be specified but not exceeding eighteen months, for furthering innovation in aspects relating to testing new products, strategies, processes, services, business models, use of technology, etc. in live environment of regulatory or innovation sandbox in the financial markets: Provided that any experiment in a scheme towards a new strategy shall not solicit money from public and shall be governed by a framework specified by the Authority. (2) Any exemption granted by the Authority under sub-regulation (1) shall be subject to the applicant satisfying such conditions as may be specified by the Authority including conditions to be complied with on a continuous basis.
Statutory text — Principal Regulations, 2025 (as amended to 30 January 2026), consolidated where amended. The notified Gazette text prevails. Tap a highlighted word for how it functions.
3

Exceptions and conditions

Taken from the wording of this provision — the carve-outs and conditions worth reading closely.

Provided that any experiment in a scheme towards a new strategy shall not solicit money from public and shall be governed by a framework specified by the Authority
(2) Any exemption granted by the Authority under sub-regulation (1) shall be subject to the applicant satisfying such conditions as may be specified by the Authority including conditions to be complied with on a continuous basis
4

What this means in practice

Compliance actions
Applies to
Sandbox participants
Frequency
Event-driven
Timing
Exemption up to 18 months
5

The numbers that matter

RequirementThresholdOn crossing
Regulatory sandboxExemption up to 18 monthsNo public solicitation in sandbox
6

Where it connects

Read alongside

7

Check yourself

Quiz Centre

Test yourself on Regulation 145

2 questions in the unified bank test this regulation. Each explains every option and cites the provision.

A regulatory/innovation sandbox exemption may last up to how long?
8

Your notes

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Relaxations, sandbox & closing
Regulation 145 Chapter XI Medium · about 3 min