FCA Opens Applications for Regulatory and Digital Sandbox Initiatives
FCA published final rules banning the sale of derivatives and exchange-traded notes that reference certain types of crypto-assets to retail consumers. The ban will come into effect on January 06, 2021, with FCA estimating that retail consumers will save nearly GBP 53 million from the ban on these products. Additionally, FCA opened application windows for Cohort 7 of the Regulatory Sandbox and for pilot of a new Digital Sandbox initiative to support innovative firms in tackling the challenges caused by COVID-19 pandemic.
Three key areas have been identified as areas of importance for FCA: preventing fraud and scams, supporting the financial resilience of vulnerable consumers, and improving access to finance for small and medium-size enterprises. Cohort 7 of the Regulatory Sandbox is open to authorized and unauthorized firms as well as technology businesses that are looking to deliver innovation in the financial services market in UK. This will operate in the same way as previous cohorts, allowing businesses to test innovative propositions in the market, with real consumers.
Additionally, the Digital Sandbox pilot, which was launched with the City of London Corporation, aims to support earlier stage innovation wherein products and solutions are still in development and not at the stage where they are ready to be tested with consumers or are not in a live production environment. The pilot will evaluate the effect that offering certain assistance to innovative firms, such as access to synthetic data sets, has on enabling new ideas to get to market more quickly; it will also evaluate the associated benefits for regulators and incumbent firms. Lessons learned from this pilot will inform efforts to establish an ongoing Digital Sandbox.
Related Links
Keywords: Europe, UK, Banking, Securities, Regulatory Sandbox, Digital Sandbox, COVID-19, Crypto Assets, Derivatives, Cohort 7, Regtech, Fintech, 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
BIS and Saudi G20 Presidency Announce TechSprint WinnersRelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
