The FCA has launched a consultation on the creation of a global fintech sandbox.
The FCA's current sandbox only allows firms to conduct tests in the UK, while many aspects of fintech and financial markets are global. A global sandbox could potentially allow firms to conduct tests in different jurisdictions at the same time and allow regulators to work together and identify and solve common cross-border regulatory problems, through tests.
The FCA proposes that the global sandbox could focus on:
- inviting applicants to address pre-identified challenges, such as developing innovative solutions to anti-money laundering compliance and payment services that seek to transfer money cross-border;
- supporting specific firms with cross border ambitions across any sector; and
- seeking to address policy and regulatory challenges.
One option is that the global sandbox is 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. It would also mean that regulators could collectively share and learn from each other on new innovative business models.
Although the FCA has set out one view on how a global sandbox could be developed, it remains interested in other ideas and welcomes input on any and all aspects of moving towards a global sandbox.