8. 8. Exiting The Reglab
At the end of the two-year validity period, the FSP for the RegLab will expire.
Unless an application to extend the two-year validity period is made at least three months before its expiry, or at such time as is otherwise agreed by the Regulator4, the FinTech Participant will have to exit the RegLab and choose to either:(a) migrate to the full authorisation and supervisory regime under the FSMR and deploy its FinTech solution on a broader scale; or(b) employ an exit strategy.
4 Please refer to paragraphs 8.5–8.6 of this Guidance.
The exit strategy of a FinTech Participant may vary according to its commercial needs. For example, the FinTech Participant may choose to cease its business at the end of the validity period, or it may transfer its FinTech product and any clients to other authorised financial institutions.
The two-year validity period of the authorisation granted under the RegLab may only be extended in exceptional circumstances.
In applying for an extension of the validity period, the FinTech Participant shall provide the justifications for extension to the Regulator in such form and manner as FSRA may prescribe.
All applications for an extension of the validity period are to be determined at the Regulator's discretion on a case-by-case basis. The Regulator reserves the right to refuse an application for an extension of the validity period if it is of the view that it is desirable to do so in order to further one or more of its regulatory objectives.
Cancellation of the FSP
FSRA may cancel the FSP on the application of the FinTech Participant, in accordance with section 32 of the FSMR, or on the initiative of the Regulator, in accordance with section 33 of the FSMR, if it appears to the Regulator that:(a) the FinTech Participant is failing, or is likely to fail, to satisfy the Threshold Conditions made under section 7(2) of the FSMR and set out in paragraph 5.2(a) of this Guidance;(b) it is desirable to exercise this power to further one or more of the Regulator's objectives, including, for example, if:i. the FinTech Participant is failing, or is likely to fail, to satisfy the authorisation requirements set out in section 5.2(b)–(f) of this Guidance; orii. the FinTech Participant is failing, or is likely to fail, to satisfy the limitations or conditions set out in section 7.1 of this Guidance; or(c) the FinTech Participant has committed a contravention of the FSMR or any Rules made under the FSMR.