Financial Conduct Authority’s regulatory sandbox opens to applications

The Financial Conduct Authority (FCA), today opened its regulatory sandbox to firms. The sandbox is a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms while ensuring that consumers are appropriately protected. The regulatory sandbox is part of Project Innovate, an initiative kicked off in October 2014, to help us encourage innovation in the interests of consumers and promote competition through disruptive innovation.

The sandbox will offer a range of options for eligible firms: a tailored authorisation process (restricted authorisation) for new firms in the testing phase; individual guidance for firms testing ideas that do not easily fit into the existing regulatory framework and in some cases waivers or no enforcement action letters.

Tracey McDermott, Acting Chief Executive at the FCA said:

‘Supporting innovation is an essential part of our role in promoting competition in the interests of consumers. Our aspiration is that the sandbox not only enables innovative ideas to be tested and brought to market, but also helps to reduce the time and the cost of getting them there.’

Firms have until 8 July 2016 to apply to be in the first cohort of the sandbox.

The FCA statement and related information are available here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

Posted in UncategorizedTagged , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *