FCA Announces List of Firms for Cohort Six of Regulatory Sandbox
FCA announced the list of 22 firms that have been accepted into cohort six of the regulatory sandbox to test innovative products and services. FCA received 68 applications to cohort six of the regulatory sandbox. Names of participating firms and their project descriptions have been made available. Some of the selected firms are DLA Piper, Climate chain, CrediCar, FundAdminChain, and Hitachi Europe Limited. FCA is also collaborating with key strategic partners and the industry to pilot a digital sandbox, which looks to provide enhanced regulatory support for innovative firms tackling the challenges caused by COVID-19 outbreak.
Applications were received from firms operating in the UK and overseas. The majority of applications came from firms looking to operate in the retail banking, payments, and retail lending sectors. Examples of propositions that have been accepted into cohort six include financial education platforms, a digitized motor finance proposition, safekeeping and transacting of digital assets using distributed ledger technology, and a sustainable finance investment platform, which enables the mobilization of capital toward green projects. This notable proposition from Hitachi Europe Limited involves a "Sustainable Finance Platform" that aims to facilitate the mobilization of capital toward green projects through a "matching function" between investors or lenders and project owners. The prototype uses the "Internet of Things" to communicate operational information about green assets and blockchain for enhanced transparency and security.
Tests will be conducted on a short-term and small-scale basis. FCA work closely with each firm to agree on testing parameters and build in appropriate consumer safeguards. For cohort six, FCA called out, for the first time, areas where it would like to see more innovation. This included propositions that "make finance work for everyone" and "support the UK in the move to a greener economy." More than half of the applications received were propositions that sought to address issues around access and exclusion to financial services and vulnerable consumers, with two successful applicants developing sustainable finance models. The propositions in cohort 6 support the increased demand for digital offerings created by the impact of COVID-19 pandemic.
Related Links
Keywords: Europe, UK, Banking, Insurance, Securities, COVID-19, Fintech, Regtech, Cohort 6, Regulatory Sandbox, Sustainable Finance, ESG, Climate Change Risk, FCA
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
FASB Proposes Taxonomy Improvements to Accounting Under Topic 944Related Articles
APRA Issues Interim Update to Policy Priorities for 2021 and Beyond
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
EC Adopts Solvency II and Resolution Rules Package for Insurers
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
OCC Issues Booklets on Regulatory Reporting and Earnings
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
ECB Sets Out Results of Economy-Wide Climate Stress Tests
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
EBA Examines Implications of Increasing Use of Digital Platforms in EU
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
HKMA Issues Updates on Policy Measures Intended to Ease COVID Impact
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
ISDA Responds to BCBS Proposal on Treatment of Cryptoasset Exposures
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS Quarterly Review Discusses Developments in Fintech and ESG Space
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
BCBS to Consult on Supervisory Practices for Climate Risks by Year-End
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
OCC Identifies Operational Risk Deficiencies in MUFG Union Bank
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
