Chancellor Rishi Sunak revealed today that the FCA will launch a regulatory ‘scale up box’ to build on its successful sandbox strategy which has helped dozens of start-up fintech firms get off the ground.

Speaking at the launch of Fintech Week, he said the FCA would take forward a ‘scale box’ - a package of measures to develop its regulatory fintech sandbox which he said had been “invaluable” in allowing start-ups to test new propositions.

The scale box would provide a ‘one-stop shop’ for growth stage firms, he said.

Details of the ‘scale box’ are still sketchy but it is believed the strategy will help embryonic new fintech companies move to the next level while remaining compliant and under the watchful eye of the FCA.

The FCA will also launch the second phase of its Digital Sandbox to enable firms to test concepts that tackle sustainability and climate change-related challenges.

The FCA's regulatory sandbox approach has helped dozens of fintech firms over the past five years. The regulator launched its regulatory sandbox in 2016 to offer firms a chance to test new financial ideas in a ‘safe’ environment.

The regulator says that the sandbox is a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms while ensuring that consumers are appropriately protected.

The Chancellor also announced plans for an industry-led Centre for Finance, Innovation and Technology (CFIT) and committed to work with regional and national fintech bodies to make it a reality. The CFIT would work closely with the regional hubs to support fintech growth across the UK.

He also announced a new ‘scale up’ visa to allow skilled people with a job offer at a recognised UK ‘scale up’ to qualify for a fast-track visa without sponsorship or third party endorsement.

Mr Sunak spoke of his hopes for the UK to lead digitisation of finance with a central bank digital currency taskforce and support for new technologies.

The Chancellor confirmed the UK will take forward many of the recommendations made in the recent Fintech Review, led by Ron Kalifa, and the Listing Review, led by Lord Hill.

Mr Sunak said: “Our vision is for a more open, greener, and more technologically advanced financial services sector. The UK is already known for being at the forefront of innovation, but we need to go further. 

“The steps I’ve outlined today, to boost growing fintechs, push the boundaries of digital finance and make our financial markets more efficient, will propel us forward. And if we can capture the extraordinary potential of technology, we’ll cement the UK’s position as the world’s pre-eminent financial centre.”