Description
Number of applications for the FCA sandbox/innovation pathway by sector and innovation focus.
2023/24 Values
Total Application Numbers (2023/24 FY)
146 for Regulatory Sandbox and Innovation Pathways.
Consisting of:
103 to the Innovation Pathways
43 to the Regulatory Sandbox
Applications by Sector
Across both services
|
Top 4 Sectors
|
% of Applications
|
|
Payments & Digital Assets
|
23%
|
|
Cross-sector
|
21%
|
|
Consumer Investments
|
18%
|
|
Wholesale Financial Markets
|
13%
|
Innovation Pathways
|
Top 4 Sectors
|
% of Applications
|
|
Consumer Investments
|
21%
|
|
Cross-sector
|
20%
|
|
Payments & Digital Assets
|
17%
|
|
Consumer Finance
|
13%
|
Regulatory Sandbox
|
Top 4 Sectors
|
% of Applications
|
|
Payments & Digital Assets
|
35%
|
|
Cross-sector
|
21%
|
|
Wholesale Financial Markets
|
19%
|
|
Consumer Investments
|
9%
|
Applications by technology
- DLT/Blockchain technology - 19% of all applications
- mobile application and web platforms - 18%
- artificial intelligence and machine learning - 17%
- API and non-technology-driven innovation - both 13%
Source: FCA data
Description
Rejection rationale/ eligibility criteria applicants are failing to meet to enter innovation programmes
2023/24 Values
29% of applications assessed during the period were accepted for full support. 71% of applications were declined for full support.
More than two thirds of these applications failed to meet 2 or more of our eligibility criteria:
- 70% did not meet the Need for Support criterion. To be eligible for support, firms must be able to describe why they need it. For example, if firms have questions where it is unclear how our rules apply to an innovative business model.
- 48% did not meet the Genuine Innovation criterion. While we take a broad view of innovation, we expect firms to set out why their proposal is innovative and how it compares to alternatives in the market.
- 48% did not meet the Consumer Benefit criterion by not showing how their proposal helps consumers (either individuals or businesses), or how they will protect consumers from risks the proposition poses.
- 45% did not meet the Readiness criterion. Reasons include having a proposal that is not clearly defined or not developed enough for us to provide realistic support, or firms not carrying out the required background research and making a good faith attempt to understand their regulatory obligations before requesting support.
Source: FCA data
Description
Account of new regulatory initiatives which are designed to foster innovation and qualitative commentary on outcomes of the regulatory sandbox programme, including pathways to authorisation where relevant
Value
Secondary Internation Competiveness and Growth report
