Inside the FMA sandbox pilot: What comes next for fintechs?

Send us your feedback In this episode, Financial Services Partner Jeremy Muir and Senior Associate Ken Ng discuss the Financial Markets Authority's (FMA) fintech regulatory sandbox pilot. Drawing on their insights advising several pilot participants, they explore the programme's key outcomes, lessons learned, and what comes next for fintech regulation in New Zealand. \[01:53] Jeremy and Ken discuss the purpose of the FMA’s regulatory sandbox pilot and why it was established, providing fintechs with a controlled environment to test innovative products and bespoke business models under regulatory oversight. Ken explains how the initiative sought to balance innovation with consumer protection, while enabling fintechs and the FMA to work collaboratively through regulatory uncertainty. \[04:17] They consider the diversity of the sandbox pilot’s six participating businesses (Homeshare, Emerge, Tandym, ECDD Holdings, Invest in Farming Co-op (IIF) and IndigiShare) and explain how each was seeking to bring a novel offering to market that sat at the edge of existing regulatory frameworks. \[10:50] Jeremy explains how regulatory uncertainty can slow innovation, increase costs and, in some cases, prevent promising ideas from reaching the market. He discusses how the sandbox pilot provided a structured way for innovators and regulators to better understand emerging business models and identify where existing regulatory settings may need to evolve. \[11:43] Ken and Jeremy consider some of the key lessons from the pilot, including how a one-size-fits-all licensing approach can create barriers to entry for startups and emerging fintechs. He also discusses how the programme gave the FMA valuable insight into the practical challenges faced by innovative businesses, while participants benefited from tangible outcomes such as exemptions, bespoke licences, and specific regulatory designations. \[14:18] Jeremy and Ken look ahead to the future of fintech regulation, with a particular focus on the FMA’s proposed on-ramp licensing regime. Ken explains how a graduated licensing framework could lower barriers to entry for startups, while Jeremy highlights other developments on the horizon, including payments modernisation, the use of AI in financial advice, and ongoing digital asset reform. ***Information in this episode is accurate as at the date of recording, 11 September 2026.*** Please contact Jeremy Muir, Ken Ng or our Financial Services team if you need legal advice and guidance on any of the topics discussed in the episode. And don’t forget to rate, review or follow *MinterEllisonRuddWatts* wherever you get your podcasts. You can also email us directly at [techsuite@minterellison.co.nz](mailto:techsuite@minterellison.co.nz) and sign up to receive technology updates via your inbox here. **Additional resources** FMA Report: Supporting innovation in New Zealand’s financial markets, May 2026 For show notes and additional resources visit minterellison.co.nz/podcasts