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 Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB Publishes Overview of Resolution Tools Available in Banking Union
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.