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A Regulatory Sandbox is a controlled environment where businesses can test their innovative financial products, services, business models, and delivery mechanisms, in a live environment, while being closely monitored by regulators.
A Regulatory Sandbox allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers.
For businesses, a Sandbox presents an opportunity to test the viability of their product, service, etc. on a small scale, and allows them to detect and address any issues before the product or service is offered on a wider scale.
Businesses offer their innovative products and services to the public on a small scale, while being closely monitored by Regulators. Regulators monitor the activity and determine if the product or service should be regulated.
FinTech innovations can differ significantly from traditional financial services, so there can be some uncertainty on how they should be regulated. By allowing businesses to test their products and services within the controlled live environment of a Regulatory Sandbox, the CBB and FSC, as Barbados’ financial regulators, will be able to determine whether existing regulations are sufficient to protect consumers, or if new legislation is needed.
The Regulatory Sandbox is intended for businesses testing technology-based financial products and services.
The duration will vary based on the nature of the product or service being offered by the business.
The high production cost for one cent coins meant that the Bank must spend significantly more to mint the coins than they are worth. In addition, because one cent coins are usually thrown away or accumulated in homes, the Bank had to issue large volumes of one cents to maintain an adequate supply in circulation.
The Bank therefore decided to stop issuing the one cent as a cost-saving measure. It is estimated that this will result in savings of BBD1,000,000
In preparation for the withdrawal of the one cent coin, the Bank drafted a set of rounding guidelines for handling cash transactions.
Under these guidelines, the prices of individual items does not need to be altered. At the checkout, however, for cash payments only, the total of all the items to be purchased will be rounded up or down to the nearest .05. Totals ending in .01 or .02 will be rounded down to .00. Similarly, totals ending .06 or .07 will be rounded down to .05. Conversely, totals ending .03 or .04 will be rounded up to .05, and those ending .08 and .09 will be rounded up to .10. The maximum gain or loss for any single transaction is .02.
Non-cash transactions, e.g. those made using debit or credit cards or by cheque, will not be subject to rounding as exact payment can be made.
Yes. The one cent remains legal tender, so consumers can continue to use one cents at businesses that accept them.
If a business continues to accept one cent coins and the customer has exact change, the total does not need to be rounded.
Barbadians can continue to deposit one cents at their commercial bank or credit union. Barbadians should consult their financial institutions in advance to determine how best to make deposits.
The one cent will remain legal tender, so financial institutions and retailers are free to continue to accept them indefinitely.
At present there are no plans to phase out the five cent coin.
Yes. Read the regulations related the one cent withdrawal and the rounding policy.
No. The prices of individual items should remain the same. The rounding policy applies only to the total cost of the items.
Transactions that do not involve cash do not need to be rounded since payment can be made for the exact total.
A regulatory Sandbox is a controlled environment where businesses can live test their innovative financial products, services, business models, and delivery mechanisms while being closely monitored by regulators.
A Sandbox allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers and the financial system.
For businesses, a Sandbox presents an opportunity for them to test the viability of their product or service on a small scale, and allows them to detect and address any issues before the product or service is offered to a wider audience.
Businesses offer their innovative products and services to the public on a small-scale basis, while being closely monitored by regulators. Regulators keep track of the activity and determine whether the product or service is viable as well as if and how it should be regulated.
Being in the Sandbox allows businesses to discover and address any regulatory concerns early in the life of the product or service, thereby avoiding the possibility of major regulatory issues being discovered after the product or service has been offered on a wider scale.
To be eligible to participate in the Regulatory Sandbox, the product or service being offered by the business:
Yes. Businesses hoping to participate in the Regulatory Sandbox are required to pay the applicable fees, which will be used to cover regulatory and administrative costs.
The application process includes two major steps. The business must:
The duration of a business’ participation in the Regulatory Sandbox will be determined by a Regulatory Review Panel (RRP) based on the nature and complexity of the product or service.
Based on issues or concerns that emerge during testing, the RRP may extend the time beyond what was originally anticipated. A business can also request to have the time extended.
Once a business has successfully completed testing in the Sandbox, the RRP will issue a report that outlines how the product or service performed during its participation in the Regulatory Sandbox.
At present there are no plans to phase out the five cent coin.
Transactions that do not involve cash do not need to be rounded since payment can be made for the exact total.
No. The prices of individual items should remain the same. The rounding policy applies only to the total cost of the items.
Yes. Read the regulations related the one cent withdrawal and the rounding policy.
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BOSS+ is a five-year security that the Government of Barbados is issuing.
BOSS+ bonds are sold at par (face value) and pay 4.5 percent interest per annum. That interest is paid in two instalments and is not subject to withholding tax.
While the maturity period for BOSS+ bonds is five years, they can be redeemed, without penalty, after 24 months.
You buy BOSS+ bonds at face value – the minimum investment is $500 and thereafter you can increase your investment in increments of $100 – and receive 4.5 percent interest per annum over the five-year maturity period. That interest is paid semi-annually, and is not subject to withholding tax. At the end of the five years, you get back your initial investment.
If you don’t want to hold your BOSS+ bonds for the full five years, you can redeem them, without penalty, after 24 months. You can also trade them on the secondary market through a broker, e.g. Royal Fidelity, NCB, SigniaGlobe. Another option is to sell your BOSS+ bonds to someone else.
First, because BOSS+ bonds offer attractive returns. They pay 4.5 percent interest per annum, a rate that is significantly higher than you get on savings accounts at financial institutions or for other comparable investments, and that interest is not subject to withholding tax. Interest is paid semi-annually, which means you begin to see a return on your investment in six months.
Second, because they are flexible investments. While BOSS+ bonds have a maturity period of five years, you have the option of redeeming them, without penalty, after just 24 months. You can also trade them on the secondary market at any time after you purchase them (except in the months when interest is paid).
And third, because they are a safe investment. Like savings bonds, BOSS+ bonds are protected from debt restructuring.
There’s another reason you should buy BOSS+ bonds, however. The money you invest in BOSS+ will be spent on projects that contribute to Barbados’ economic, social, and environmental development. For example, government will use it in its efforts to mitigate the impact of climate change – a benefit for each of us. That means that while you’re helping yourself, you’re also helping the country.
Because they offer an attractive interest rate, 4.5 percent per annum, investing in BOSS+ bonds will help your savings grow at a faster rate than if you left your money in a savings account. As an example, if you invest $2,000 in BOSS+, at the end of five years, you’ll have earned $450, as opposed to investing the same amount elsewhere with interest rates at .015 percent per annum and earning $15 before tax.
And because you receive interest twice a year, and that interest is not subject to withholding tax, you’ll have additional cash on hand, supplementing your income, in the event that you need it.
If you’re a Barbadian over 18, you can invest in BOSS+ either on your own, or jointly with someone else. You can also buy BOSS+ bonds in trust for your minor children.
Businesses, churches, and other organisations can also invest in BOSS+.
The money you invest in BOSS+ will be used on projects that contribute to Barbados’ economic, social, and environmental development. For example, government will use it in its efforts to mitigate the impact of climate change - a benefit for each of us. That means that while you’re helping yourself, you’re also helping the country.
And the attractive returns it offers, 4.5 percent interest per annum, will help boost your savings or supplement your income.
You can buy BOSS+ bonds any time that there is an issue open.
You can buy BOSS+ bonds from the Central Bank of Barbados. Email us at publicdebt@centralbank.org.bb.
To buy BOSS+ bonds, you’ll need to complete an application form, which is available on the Central Bank of Barbados’ website. Submit the application in person or via email to publicdebt@centralbank.org.bb and make your payment. Here are your payment options:
The minimum investment is $500. Thereafter you can buy in increments of $100.
Yes. However, you must purchase the bonds in your name, “in trust for” your minor children.
Yes. You pay the face value for the bond and receive 4.5 percent interest per annum on that amount. And the interest you get is not subject to withholding tax.
Yes. You can purchase BOSS+ bonds jointly with up to two other persons.
No. There is no maximum investment apart from what is available when you apply.
You will need to complete a new application each time you want to purchase BOSS+ bonds
There are several ways you can pay for your BOSS+ bonds:
You will get an e-statement confirming your holdings when you purchase your bonds. You will also get an updated statement each time you make a purchase or a sale from your account.
You will need to purchase your BOSS+ bonds directly from the Central Bank.
Yes. Your credit union can issue a draft payable to the Central Bank on your behalf. And once you start to receive interest on your BOSS+ bonds, it will be lodged to your credit union account.
You’ll receive interest on your investment twice a year (on February 28 and August 31), and the principal will be repaid when the bonds mature in five years. If you choose to redeem your BOSS+ bonds early (after 24 months), you’ll receive your principal back at that time.
Both the bi-annual interest payments you earn and the principal will be credited to your account.
No. You’ll need to complete a new application each time you want to buy bonds.
You can sell your bonds on the secondary market through a broker, e.g. Royal Fidelity, NCB, SigniaGlobe. You can also sell them directly to someone else.
The price at which you sell your BOSS+ bonds will be based on negotiations with the buyer or at the market value based on the listed price on the Barbados Stock Exchange.
You can sell your bonds at any time after you buy them, except during the months when interest is scheduled to be paid (February and August).
If you wish, you can redeem your bonds 24 months after they are issued instead of waiting the full five years. Before then, you will need to sell your bonds on the secondary market, or trade with another person.
You can’t see your bonds to the Central Bank. If you want to sell your bonds before the 24-month early redemption period, you can go through a broker, and they will facilitate the sale. You won’t need to find a buyer.
Once your BOSS+ bonds mature, your account will be credited with the principal of your holdings.
You won’t be penalised if you redeem your BOSS+ bonds after 24 months. To do that, you will need to send written correspondence indicating that is what you wish to do at least one month prior to the early redemption date.
Yes, they can.
No. You can buy whatever value of BOSS+ bonds you’d like as long as that amount is available.
Transactions that do not involve cash do not need to be rounded since payment can be made for the exact total.
No. The prices of individual items should remain the same. The rounding policy applies only to the total cost of the items.
Yes. Read the regulations related the one cent withdrawal and the rounding policy.
At present there are no plans to phase out the five cent coin.
The one cent will remain legal tender, so financial institutions and retailers are free to continue to accept them indefinitely.
Barbadians can continue to deposit one cents at their commercial bank or credit union. Barbadians should consult their financial institutions in advance to determine how best to make deposits.
If a business continues to accept one cent coins and the customer has exact change, the total does not need to be rounded.
Yes. The one cent remains legal tender, so consumers can continue to use one cents at businesses that accept them.
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