We provide a number of tools to sandbox firms to help facilitate their test. Tools are not always needed and their value will depend on the nature of each business and their test.
To conduct a regulated activity in the UK, a firm must be authorised or registered by us, unless certain exemptions apply. Successful firms will need to apply for the relevant authorisation or registration in order to test.
We have a tailored authorisation process for firms accepted into the sandbox. Any authorisation or registration will be restricted to allow firms to test only their ideas as agreed with us.
This should make it easier for firms to meet our requirements and reduce the cost and time to get the test up and running.
If you require a restricted authorisation you will have to pay an application fee.
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 unduly burdensome rule, for the purpose of the test. We are 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 in light of the particular circumstances and characteristics of the sandbox test, we can issue ‘no enforcement action’ letters.
As long as the firm deals with us openly, keeps to the agreed testing parameters and treats customers fairly, we accept that unexpected issues may arise and wouldn’t expect to take disciplinary action.
The letter would only apply for the duration of the sandbox test, only to our disciplinary action and would not limit any liabilities to consumers.
We can provide informal steers on potential regulatory implications of an innovative product or business model that is at an early stage of development.
If you have any questions about the sandbox, email [email protected] or call 020 7066 4488 and someone will be able to help you.