A paper published by the Financial Conduct Authority (FCA) in the United Kingdom covering its expansion of Project Innovate by implementing a regulatory sandbox in the UK, appealing to businesses (FinTech) who provide innovation in financial services.
This paper is a report to Her Majesty’s Treasury on the feasibility and practicalities of developing a regulatory sandbox that is a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms without immediately incurring all the normal regulatory consequences of engaging in the activity in question. We believe there is opportunity to expand Project Innovate and introduce a regulatory sandbox. In this report, we set out our plans for implementing the sandbox and proposals for how we can work with industry and the Government to further support businesses.
2: The benefits of introducing a sandbox
3: How a sandbox could be implemented by the FCA
4: Industry recommendations
5: Options for legislative change for the Government to consider
6: Outline of next steps