ESAs published a joint report providing a comparative analysis of the innovation facilitators (that is, regulatory sandboxes and innovation hubs) established to date within the EU. ESAs also set out best practices for the design and operation of the innovation facilitators. Annex A to the report contains a list of regulatory sandboxes and innovation hubs in EU and Annex B to the report describes principles for establishment and operation of innovation facilitators.
The number of innovation facilitators in the EU has grown rapidly in recent years. As of the date of the report, 21 EU member states and three European Economic Area states have established innovation hubs while five EU member states have regulatory sandboxes in operation. A comparative analysis of these national innovation facilitators is set out in the report and, based on this analysis, a set of best practices has been prepared. The best practices are intended to promote consistency across the single market in the design and operation of innovation facilitators; promote transparency of regulatory and supervisory policy outcomes from arising from interactions in the context of innovation facilitators; and facilitate cooperation between national authorities, including consumer and data protection authorities. ESAs also set out options, to be considered in the context of future EU-level work on innovation facilitators, to promote coordination and cooperation between innovation facilitators, which would support the scaling-up of FinTech across the single market. These options comprise the development of Joint ESA own-initiative guidance on cooperation and coordination between innovation facilitators, along with the creation of an EU network to bridge innovation facilitators established at the member state level.
Keywords: Europe, EU, Banking, Insurance, Securities, Fintech, Regtech, Regulatory Sandbox, Innovation Hub, ESAs