FCA announced that it is accepting applications from firms for Cohort 6 of its regulatory sandbox until December 31, 2019. The sandbox is open to authorized firms, unauthorized firms that require authorization, and technology businesses that are looking to deliver innovation in the UK financial services market. FCA has identified two technology areas where it would like to see more innovation and testing. Thus, it is welcoming applications from firms using federated learning and traveling algorithms as well as complex scenario modeling and simulation.
The regulatory sandbox allows businesses to test innovative propositions in the market, with real consumers. FCA has specified the eligibility criteria for application and is particularly interested in receiving applications from firms with the following propositions:
- Make finance work for everyone by addressing issues around access, exclusion, and vulnerability
- Support the UK in the move to a greener economy by responding to the challenges posed by climate change
- Use technology to overcome regulatory challenges by helping regulated firms comply with their obligations
To apply for cohort 6 of the sandbox, firms should review the eligibility criteria and submit the completed application form. The sandbox seeks to provide firms with the ability to test products and services in a controlled environment, reduced time-to-market at potentially lower cost, support in identifying appropriate consumer protection safeguards to build into new products and services, and better access to finance. The sandbox provides access to regulatory expertise and a set of tools to facilitate testing. The tools include restricted authorization, individual guidance, informal steers, waivers and no enforcement action letters. FCA closely oversees the development and implementation of tests. Sandbox tests are expected to have a clear objective and to be conducted on a small scale. Firms will test their innovation for limited duration with a limited number of customers.
Keywords: Europe, UK, Banking, Insurance, Securities, Fintech, Regtech, Regulatory Sandbox, Climate Change, Scenario Change, Scenario Modeling, Cohort 6, FCA
Previous ArticleEBA Opinion on Regulatory Treatment of NPE Securitizations
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
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 published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
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 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 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.
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 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.
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