Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Sand and globe
February 15 2018

FCA considers launch of global fintech sandbox

Emily Perryman Industry News, News Financial Conduct Authority, fintech, regulatory sandbox

THE FINANCIAL Conduct Authority (FCA) is considering developing a global regulatory sandbox that enables fintechs to conduct tests in different jurisdictions at the same time.

It would also enable regulators to work together and solve common cross-border regulatory problems.

Currently, the FCA’s sandbox, which launched in 2016, only allows firms to conduct tests in the UK.

The regulator said many aspects of financial markets and fintech are global and that firms value being able to work with other regulators to conduct tests in more than one jurisdiction.

“We want to ensure we continue to create the right conditions for firms who are looking to develop and launch innovative businesses models that benefit consumers,” the FCA said.

Read more: FCA’s regulatory sandbox is helping fintech grow

The regulator pointed out that firms face regulatory problems that cross jurisdictional boundaries, for example developing innovative solutions to Anti-Money Laundering (AML) compliance and Know Your Customer (KYC) on-boarding, and payments services that seek to transfer money cross-border.

It said a global sandbox could help regulators and firms work together to define where these common problems exist and collaborate to find solutions.

“Under this approach, participating regulators could set out areas where cross-border testing would be most beneficial, and invite firms to participate in the global sandbox to propose tests to explore these,” the FCA said. “Firms would benefit from having access to support from multiple regulators in the design and supervision of their test.”

It suggested the global sandbox could allow firms to bring their ideas to market more quickly, creating more effective competition.

It added: “The overall approach would be to better understand and solve common regulatory problems, as well as being more helpful to firms who have aspirations to grow at scale in multiple markets.”

Read more: Orca accepted into regulatory sandbox scheme

One option is for the global sandbox to be initially set up as an international college of regulators who have their own innovation or sandbox models. Firms already working with those regulators would get access to multiple regulators.

The FCA has set out questions for consideration on its website and wants to hear from interested parties on the viability of the proposal by 2 March.

Since it was launched in 2016, the FCA’s regulatory sandbox has helped 60 firms to test their innovation with customers in the live market under controlled conditions.

Of the firms that tested in the first cohort, 90 per cent are progressing towards a wider market launch and at least 40 per cent received investment during or following their sandbox test.

Read more: FCA to push for global fintech framework

Banco BNI Europa to invest with CrossLend Coin-backed P2P platforms shrug off crypto volatility

Related Posts

man business analytics and financial Business finances and accounting concept.

Industry News, News, Top 3

ThinCats’ credit processes unchanged despite pandemic

closeup macro fifty euros bankontes background

Global News, Industry News, News, Top 3

EstateGuru reports 50pc rise in annual lending volumes

Geschäftsmann vor weißem Hintergrund stellt Geschäftserfolg vor

Industry News, News, Property, Top 3

LendInvest predicts higher demand for complex lending in 2021

Popular posts:

  • Government responds to P2P fraud query
  • FCA lumps P2P lending in with higher risk products again
  • The alternative lenders accredited for CBILS
  • 4th Way gives its views on Zopa and Funding Circle returns
  • Funding Circle to offer first and second draw PPP loans
  • SME lender warns many companies will not survive
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by