FCA Opens Applications for Digital Sandbox and Green Fintech Challenge
The Financial Conduct Authority (FCA) announced that applications for the Digital Sandbox sustainability cohort are now open until October 11, 2021. FCA has added information on eligibility criteria to assess applications to develop a solution in the digital sandbox. Building on the lessons learned from the pilot, FCA is running the second phase of Digital Sandbox focused on providing support to innovators looking to develop and validate solutions in the area of environmental, social, and governance (ESG) data and disclosure. In addition, FCA has launched the Green Fintech Challenge 2021 to support development and live market testing of new products and services that will aid the transition to a net zero economy. The application window for this challenge is open until November 15, 2021 and successful applicants will be notified in early 2022.
FCA has added information on eligibility criteria to assess applications in the Green Fintech Challenge. The Green Fintech Challenge is open to start-ups, incumbents, and technology providers that meet the eligibility criteria. FCA encourages applications from firms developing innovative green solutions that require regulatory support to bring their proposition to market. FCA highlighted its interest in firms that are developing innovations in the area of ESG data and disclosure. For example, products and services that will:
- enable transparency in disclosure and reporting on sustainability by companies along the investment chain
- help consumers better understand the ESG characteristics of relevant products and providers they engage with as well as provide visibility around alternatives aligned with their needs and preferences
However, FCA also mentioned that the criteria is not limited to the above and that it will consider all proposals in the areas of sustainability and climate change that meet the eligibility criteria. The Green Fintech Challenge does not replace the existing Innovate services (Direct Support, Advice Unit, the regulatory sandbox). Firms developing propositions that are not within the scope of the Green Fintech Challenge can apply directly to Direct Support, the Advice Unit or the regulatory sandbox. This Green Fintech Challenge is being run as part of a broader program of work using the regulatory innovation toolkit to assist firms and regulators to overcome some of the challenges the transition to a net zero economy will raise.
Related Links
Keywords: Europe, UK, Banking, Securities, Digital Sandbox, Green Fintech Challenge, ESG, Reporting, Disclosures, Sustainable Finance, Green Finance, Regtech, Fintech, Net Zero Economy, FCA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
EBA Report Reviews Funding Plans of Banks in EURelated Articles
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.
