Regulators’ Experimentation Toolkit • 3: Regulatory sandboxes
Part B: Is a regulatory sandbox right for you? Before setting up your own regulatory sandbox, use this checklist of considerations to determine whether this approach is right given your context and needs, and those of your stakeholders.
1. Is regulatory flexibility possible? Use this section to complete the Regulatory flexibility section of the Is a sandbox right for you? worksheet. Before deciding to set up a regulatory sandbox, it is important to clarify what is and isn’t possible under existing legislation (e.g. whether an exemption from a legislative or regulatory provision can be issued to enable a sandbox, or whether some form of waiver can be provided). In some cases, sandboxes may require exemptions from multiple regulations that may be administered at different levels of government. Ensuring that all regulatory exemptions required have been identified and can be secured is an important early step in determining if the proposed sandbox is possible. Any exemptions or waivers would be limited in time and scope. If existing authorities are not sufficient, legislative change may be needed to enable a sandbox. Government departments may wish to reach out to their legal teams for options on how to achieve exemptions, waivers and/or legislative change.
Case study
Remotely Piloted Aircraft Systems (RPAS) with Transport Canada Drone technology is widely available in professional and consumer markets. However, the absence of a regulatory framework is limiting innovation and economic opportunity within this space. There is a need for greater understanding of the technology, its capabilities, and its potential applications in order to bring regulation into alignment with this technology.
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Transport Canada responded to this problem by creating a regulatory sandbox for implementing pilot projects to develop Canadian expertise and experience in drones in the aviation and technology industries. These pilots have allowed the regulator to provide online and accessible services to Canadians, and to make timely and iterative amendments to the Canadian Aviation Regulations.
