This report sets out our plans to expand Project Innovate by implementing a regulatory sandbox. It also sets out proposals for how we can work with industry and the Government to further support businesses.
Why are we publishing this paper?
We developed Project Innovate to foster competition and growth in financial services by supporting both small and large businesses that are developing new products and services that could genuinely benefit consumers. In its first year, Project Innovate has helped over 175 innovative businesses, five of which have now been authorised to undertake regulated activities.
We believe there is opportunity to expand Project Innovate and introduce a regulatory sandbox that is a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms without immediately incurring all the normal regulatory consequences of pilot activities.
In this report, we set out our plans for implementing the sandbox and proposals for how we can work with industry and the Government to further support businesses.
Who should read this paper?
This paper will be of particular interest to businesses looking to develop innovative ways to provide financial services. This includes, but is not limited to, innovator firms (both authorised firms and new entrants), accelerators, software firms, and technology companies. It will also be interesting to their representative bodies, and to professional firms providing support to such businesses.
This report will also be interesting to consumers who want to engage with new solutions to manage their financial affairs and consumer groups who represent their interests.
What are the next steps?
We intend to open the sandbox unit to proposals from firms for testing in spring 2016. Over the course of the next few months we will engage with interested parties to finalise the design of how the unit will operate. We will also start engaging with stakeholders regarding establishing a virtual sandbox and a sandbox umbrella company.
As part of this engagement process we are arranging an event in December 2015. We will publish details of this event shortly on our Project Innovate events page.
How to provide input in writing?
We have also set up an email address [email protected] for anyone who would like to provide input into the development of the sandbox unit but cannot attend the sandbox event.
This email address will remain open throughout the existence of the regulatory sandbox as we want to ensure it will be a useful facility for innovators.
Find out more about Project Innovate
See the innovation section of our website.