The Financial Conduct Authority has made its regulatory sandbox available for applications year-round as it enhances its offering.
Previously firms could only access the sandbox, which provides access to regulatory expertise and tools to facilitate pre-launch testing, during specific windows through the year.
The regulatory sandbox moved to always open from the start of this month.
The sandbox was first launched in 2016 but has been updated to “reflect its maturity and the lessons learned since its inception”.
The sandbox can be access by authorised firms, unauthorised firms that require authorisation, and technology business that are looking to deliver products to UK financial services firm.
The FCA said sandbox tests are expected to have a clear objective, such as reducing costs to consumer, and to be conducted on a small scale. In order to qualify for the sandbox there should also be few, or no, comparable offerings already established in the market.
By using the sandbox, firms can test products and services in a controlled environment. This can reduce time-to-market and costs. It can also allow firms to identify appropriate consumer protection safeguards for new product and services.
It also offers tools such as restricted authorisation, individual guidance, informal steers, waivers and no enforcement action letters.
The FCA's regulatory sandbox approach has helped dozens of fintech firms over the past five years.