The FCA has opened its sandbox to new financial applications capable of tackling challenges caused by the coronavirus pandemic. The regulator has placed emphasis on applications that will prevent fraud and scams and 2 other areas.
October 5, 2020 | AtoZ Markets –The United Kingdom’s major financial regulator, the Financial Conduct Authority (FCA) announced Monday to have opened application windows for two ‘sandbox’ services to support innovative firms tackling challenges caused by the Covid-19 pandemic.
Application windows for cohort 7 of the Regulatory Sandbox and the pilot of a new Digital Sandbox initiative focus on supporting products and solutions that will assist consumers and firms affected by the coronavirus.
FCA to focus sandbox on preventing fraud and scams
Specifically, the FCA’s areas of importance are preventing fraud and scams, supporting the financial resilience of vulnerable consumers, and improving access to finance for small and medium-sized enterprises (SMEs).
Moreover, authorized and unauthorized firms as well as technology businesses that are looking to deliver innovation in the UK financial services market will have access to Cohort 7 of the Regulatory Sandbox. Just like the previous cohorts, this will operate in the same way by allowing businesses to test innovative propositions in the market, with real consumers.
Launched with the City of London Corporation, the Digital Sandbox pilot is designed to support earlier stage innovation where products and solutions are still in development.
The pilot will also evaluate the effect that offering certain assistance to innovative firms, such as access to synthetic data sets, has on enabling new ideas to get to market more quickly, as well as the associated benefits for regulators and incumbent firms. The lessons learned from the pilot will inform efforts to establish an ongoing Digital Sandbox.
“The FCA is a strong believer in the positive power of innovation. Today we are strengthening the range and scale of support we are providing to innovative firms to deal with the challenges raised by the pandemic,” FCA director of innovation Nick Cook said.
“Together, these services will allow us to support a wider spectrum of innovative firms, from early stage Proof of Concept development in the Digital Sandbox, to testing new products or services with consumers in the Regulatory Sandbox.”
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