FCA regulatory sandbox
Written by Mark Evans
The Financial Conduct Authority (FCA) has confirmed the companies that are to begin testing in the third cohort of its sandbox.
Part of the Innovate initiative, the sandbox allows firms to test innovative products, services or business models in a live market environment, while ensuring that appropriate protections are in place. The sandbox is a global first for the FCA, underlining its commitment to innovation in financial services.
Christopher Woolard, executive director of strategy and competition at the FCA, said: â€œSince we first opened the sandbox, it has supported almost 70 firms in testing innovative new products and services. It is particularly encouraging that we are now seeing more applicants from outside London and a broader range of firms testing in the sandbox.â€
Accepted propositions cover a range of areas including blockchain based payment services, RegTech propositions, general insurance, AML controls, and biometric digital ID and Know Your Customer (KYC) verification.
Firms involve include Barclays, first direct and Nationwide.