The U.K. Financial Conduct Authority (FCA) is planning on rolling out a “regulatory sandbox” that will allow companies to test out new products, services or business models without facing harsh regulatory consequences, said FCA. This new addition is part of the regulator’s year-old Project Innovate, which was designed to boost competition and growth in financial services. The regulator plans on launching the “regulatory sandbox” for testing in spring 2016.
Under its plans, firms that are not licensed will be able to use the sandbox, which will provide a “tailored authorization process” and allow only the testing of products and services. Licensed companies, on the other hand, will be given the confidence that an enforcement action will not follow at a later date in light of testing.
