§ 40-29-104 — Financial technology sandbox application; standards for approval; consumer protection bond

(a) A person shall apply to the commissioner or secretary
to make an innovative financial product or service available to
consumers in the financial technology sandbox, based on the
office that administers the statute or rule, or portion thereof,
for which a waiver is sought. If both the commissioner and the
secretary jointly administer a statute or rule, or if the
appropriate office is not known, an application may be filed
with either the commissioner or the secretary. If an application
is filed with an office that does not administer the statute or
rule for which a waiver is sought, the receiving office shall
forward the application to the correct office. The person shall
specify in an application the statutory or rule requirements for
which a waiver is sought, and the reasons why these requirements
prohibit the innovative financial product or service from being
made available to consumers. The application shall also contain
the elements required for authorization which are set forth in
subsection (f) of this section. The commissioner and secretary
shall each, by rule, prescribe a method of application.
(b) A business entity making an application under this
section shall be a domestic corporation or other organized
domestic entity with a physical presence, other than that of a
registered office or agent, in Wyoming.
(c) Before an employee applies on behalf of an
institution, firm or other entity intending to make an
innovative financial product or service available through the
financial technology sandbox, the employee shall obtain the
consent of the institution, firm or entity before filing an
application under this section.
(d) The individual filing an application under this
section and the individuals who are substantially involved in
the development, operation or management of the innovative
financial product or service shall, as a condition of an
application, submit to a criminal history background check
pursuant to W.S. 7-19-201.
(e) An application made under this section shall be
accompanied by a fee of five hundred dollars ($500.00). The fee
shall be deposited into the financial technology innovation
account as provided in W.S. 40-29-105.
(f) The commissioner or secretary, as applicable, shall
authorize or deny a financial technology sandbox application in
writing within ninety (90) days of receiving the application.
The commissioner or secretary and the person who has made an
application may jointly agree to extend the time beyond ninety
(90) days. The commissioner or secretary may impose conditions
on any authorization, consistent with this act. In deciding to
authorize or deny an application under this subsection, the
commissioner or secretary shall consider each of the following:
(i) The nature of the innovative financial product or
service proposed to be made available to consumers in the
sandbox, including all relevant technical details, which may
include whether the product or service utilizes blockchain
technology;
(ii) The potential risk to consumers and methods
which will be used to protect consumers and resolve complaints
during the sandbox period;
(iii) A business plan proposed by the person,
including a statement of arranged capital;
(iv) Whether the person has the necessary personnel,
adequate financial and technical expertise and a sufficient plan
to test, monitor and assess the innovative financial product or
service;
(v) Whether any person substantially involved in the
development, operation or management of the innovative financial
product or service has been convicted of, or is currently under
investigation for, fraud, state or federal securities violations
or any property based offense;
(vi) A copy of the disclosures required under W.S.
40-29-106(c) that will be provided to consumers;
(vii) Any other factor that the commissioner or
secretary determines to be relevant.
(g) If an application is authorized under subsection (f)
of this section, the commissioner or secretary shall specify the
statutory or rule requirements, or portions thereof, for which a
waiver is granted and the length of the initial sandbox period,
consistent with W.S. 40-29-102(a)(vii). The commissioner or
secretary shall also post notice of the approval of a sandbox
application under this subsection, a summary of the innovative
financial product or service and the contact information of the
person making the product or service available through the
sandbox on the internet website of the commissioner or
secretary.
(h) A person authorized under subsection (f) of this
section to enter into the financial technology sandbox shall
post a consumer protection bond with the commissioner or
secretary as security for potential losses suffered by
consumers. The bond amount shall be determined by the
commissioner or secretary in an amount not less than ten
thousand dollars ($10,000.00) and shall be commensurate with the
risk profile of the innovative financial product or service. The
commissioner or secretary may require that a bond under this
subsection be increased or decreased at any time based on risk
profile. Unless a bond is enforced under W.S. 40-29-109(b)(ii),
the commissioner or secretary shall cancel or allow the bond to
expire two (2) years after the date of the conclusion of the
sandbox period.
(j) A person authorized under subsection (f) of this
section to enter into the financial technology sandbox shall be
deemed to possess an appropriate license for the purposes of
federal law requiring state licensure or authorization.
(k) Authorization under subsection (f) of this section
shall not be construed to create a property right.
(m) Any fee charged and collected under this section by
the commissioner shall be in accordance with W.S. 13-1-603(d)
through (f).