The Regulatory Sandbox is for firms wanting to test new products live in the market with real consumers. Find out more about it and how to apply.
The Sandbox isn’t just for start-ups that may need to be authorised in the future.
We accept applications from authorised firms seeking to trial new products and services, and technology companies that want to help regulated firms meet their obligations more efficiently. We also welcome applications from unauthorised firms that are seeking authorisation.
Firms can submit their applications at any point throughout the year.
We encourage applications related, but not limited to, AI and quantum, financial inclusion and open finance.
Video: Regulatory Sandbox process explained
What the Regulatory Sandbox offers
The Regulatory Sandbox provides innovators, both incumbents and new players, access to regulatory expertise and gives firms:
- the ability to test products and services in a controlled environment
- the opportunity to find out whether a business model is attractive to consumers, or how a particular technology works in the market
- a reduced time to market at potentially lower cost
- support in identifying consumer protection safeguards that can be built into new products and services
The Regulatory Sandbox is not regulatory exempt. This means that if you will be carrying out a regulated activity you will need to be appropriately authorised or registered first.
The support the Regulatory Sandbox provides is not comparable to the services of a compliance consultant. While we can help with questions around the applicability of FCA rules and our processes and expectations, it's up to you to determine how you will comply with those rules and to demonstrate to us that you meet our standards.
Who is the Regulatory Sandbox for
We accept applications from firms that are:
- authorised
- unauthorised
- of all sizes
- from all sectors of financial services
- technology businesses looking to deliver innovation in the UK financial services market to UK consumers or firms
See firms previously accepted into the Regulatory Sandbox.
You can also see the latest data on the firms supported by the Regulatory Sandbox.
Regulatory Sandbox tests
Firms will have a dedicated case manager to provide support in the development and implementation of a test.
Sandbox tests are expected to have a clear objective and a clear positive impact on consumers. They are typically conducted on a small scale, for a limited duration, and with a limited number of consumers.
Regulatory Sandbox tools
The Regulatory Sandbox gives firms access to regulatory expertise and a set of tools to facilitate testing. The tools your firm will need will depend on the nature of your business and your test.
Restricted authorisation
To conduct regulated activities in the UK, firms must be authorised or registered with us, unless certain exemptions apply. If your firm is accepted to the Sandbox, you will need to apply for the relevant authorisation or registration to test. We have a tailored authorisation process for firms accepted to the Sandbox and will provide support with the authorisation process.
Any authorisation or registration will be restricted. This means that you’ll only be able to test your innovative product or service as agreed.
Signposting
We can help in identifying existing rules and guidance that might be relevant to your firm and proposed business model.
This won’t be tailored to your firm but, given the amount of guidance we produce, many firms find it useful to be pointed towards relevant information.
Informal steer
An informal steer is a tool we use to help firms understand the potential regulatory implications of their innovative product or business model.
We can provide informal steers on specific regulatory issues and the implications of an innovative product or business model that is at an early stage of development.
However, informal steers are followed at your own risk. An informal steer may not have been considered by FCA senior management or a relevant committee, and we reserve the right to change our mind on an informal steer.
Read more about informal steers (PDF).
Individual guidance
If you are unclear on how our rules apply to your firm, we can explain how we would interpret the requirements in the context of your specific test.
Waivers or modifications to our rules
We may be able to waive or modify an overly difficult rule for the purpose of the test. We’re not able to waive national or international law.
No enforcement action letters
For cases where we can’t issue individual guidance or waivers, but believe it’s justified considering the circumstances of your Sandbox test, we can issue ‘no enforcement action’ letters.
The letter would only apply for the duration of the Sandbox test and only to our disciplinary action. It wouldn’t limit any liabilities to consumers.
If you are not looking to live test your proposition
Take a look at our other services:
- Digital Sandbox: an online platform aimed at early-stage development propositions, where firms can access data sets to test and build prototype solutions.
- Innovation Pathways: for firms that are not ready to test but need help understanding the FCA regulatory regime.
Find the right service for you
Use our decision tool to find out which is the right service for you, and answers to the most frequently asked questions.
We’re acting to accelerate the change needed to promote more diverse and inclusive practices across FinTech. We encourage innovators from all backgrounds to apply to the Sandbox. We also welcome applications with a focus on tackling issues associated with diversity and inclusion in financial services.
Find out more about our Diversity, Equity and Inclusion (DEI) Innovation Spotlight.
Get in touch
You can contact us by emailing: [email protected]
Please note, in initial calls or emails, we can’t answer complex regulatory questions and we can’t confirm whether an application would be successful.
