FCA accepts 22 businesses into cohort 6 of regulatory sandbox
Examples of propositions that have been accepted into cohort 6 include financial education platforms, a digitised motor finance proposition, safekeeping and transacting of digital assets using distributed ledger technology and a sustainable finance investment platform.
The UK Financial Conduct Authority (FCA) today announces that it has accepted 22 businesses into cohort 6 of the regulatory sandbox to test innovative products and services.
The regulator received 68 applications to cohort 6 of the regulatory sandbox. Applications came from firms operating in the UK and overseas. Primarily, applications came from firms looking to operate in the retail banking, payments and retail lending sectors.
For cohort 6, the FCA called out, for the first time, areas where it would like to see more innovation. This included propositions that ‘make finance work for everyone’ and ‘support the UK in the move to a greener economy’. More than half of the applications received were propositions that seek to address issues around access and exclusion to financial services and vulnerable consumers, with two successful applicants developing sustainable finance models.
Examples of propositions that have been accepted into cohort 6 include financial education platforms, a digitised motor finance proposition, safekeeping and transacting of digital assets using distributed ledger technology and a sustainable finance investment platform, which enables the mobilisation of capital towards green projects.
Tests will be conducted on a short-term and small-scale basis. The FCA works closely with each firm to agree testing parameters and build in appropriate consumer safeguards.
The regulator is also collaborating with key strategic partners and the industry to pilot a digital sandbox, which looks to provide enhanced regulatory support for innovative firms tackling challenges caused by the coronavirus.
Firms that have been accepted to test in the regulatory sandbox are:
AgeWage; AID:Tech; DLA Piper; Climate Chain; CrediCar; Crowdz UK; Faizpay; Fronted; FundAdminChain; HipayUK; Hitachi Europe Limited; HUB Financial Solutions; Huozhi; Mintago; Moneyfold; My Ahmed Ltd; Nest Insight; NestEgg; Project Pyctor; Student Finance; Weather Solutions; Your Block.
Let’s recall that the FCA accepted 29 businesses into cohort 5 of the regulatory sandbox to test innovative products, services, business models and delivery mechanisms.