FCA announced the list of 13 firms that have been accepted into cohort seven of the regulatory sandbox to test innovative products and services. The selected firms include Blockpass, Hlthie, Kontinuous, TrustElevate, and Willow Money. Examples of propositions that have been accepted into cohort seven include a digital identity software service, a digital-first health insurance product, a distributed leger technology (DLT)-enabled platform, and an open banking platform.
FCA had received 58 applications to cohort seven of the regulatory sandbox and has set out the names of participating firms and their project descriptions. Applications were received from firms operating in the UK and overseas. The majority of applications came from firms in the retail investments and retail lending sectors. In the wider context of COVID-19 pandemic, FCA was interested in seeing more innovation and testing from firms developing businesses, products or services intended to detect fraud and scams, support the financial resilience of vulnerable consumers, or improve access to finance for small and medium-sized enterprises (SMEs). Tests will be conducted on a short-term and small-scale basis.
At present, the regulatory sandbox is run on a cohort basis, with periodic application windows opened throughout the year. However, FCA intends to move to “Always Open” later in 2021, making the regulatory sandbox available throughout the year. In doing so, FCA will expand and clarify the scope of qualifying propositions to ensure it supports firms and sandbox tests, which will lead to tangible benefits for consumers and markets. FCA will make further announcements when the regulatory sandbox will be opening for new applications.
Keywords: Europe, UK, Banking, Insurance, Securities, COVID-19, Fintech, Regtech, Cohort 7, Regulatory Sandbox, Open Banking, DLT, FCA
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleEuropean Council Endorses Strategy on Adaptation to Climate Change
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.