The FCA has received more than 630 applications from entrepreneurs to its Regulatory Sandbox initiative since it was launched in August 2021, according to the latest update on submissions.

The Regulatory Sandbox is an initiative set up by the FCA to provide space for firms wanting to test new products live in the market with real consumers.

It is not just for fintech start-ups that may need to be authorised in the future, the FCA said.

It accepts applications from authorised firms seeking to trial new products and services and technology companies that want to help regulated firms meet their obligations more efficiently.

It also welcomes applications from unauthorised firms that are seeking authorisation.

The regulator said firms can submit their applications at any point throughout the year and it encourages applications related, but not limited to, AI and quantum, financial inclusion, open finance and tokenisation.

The regulator said the 630 applications included: 

• Distributed Ledger Technology (DLT) and blockchain
• Artificial Intelligence (AI)
• Open Banking and Application Programme Interface (API)
• Digital ID
• Data analytics
• Crypto and DeFi
• Infrastructure and process innovation
• Environment, Social and Governance (ESG)
• Robo advice
• Embedded finance
• Services aimed at facilitating access to finance
• RegTech

The FCA said the Regulatory Sandbox provides innovators, incumbents and new players, access to regulatory expertise and gives firms:

• the ability to test products and services in a controlled environment
• the opportunity to find out whether a business model is attractive to consumers, or how a particular technology works in the market
• a reduced time to market at potentially lower cost
• support in identifying consumer protection safeguards that can be built into new products and services

Anyone wishing to apply to the Regulatory Sandbox needs to complete an online application form here.

Applicants are asked a series of questions about their proposal, how it meets the FCA’s eligibility criteria and the details of their testing plan. Applicants will need to meet all the FCA’s eligibility criteria to be accepted for support.