Forum Posts

Md Delwar Hossain
May 07, 2022
In General Discussions
Interests of financial consumers—not only let consumers enjoy the efficiency improvement brought by innovation. but also Special Database avoid the potential risks of innovation as much as possible. 1. Origin The predecessor of the regulatory sandbox is the "Innovation Hub" experiment (Innovation Hub) implemented by the FCA. In 2015, FCA put forward the sandbox supervision idea in the "Regulatory sandbox" report, and accepted the Special Database application of enterprises in the following year to officially implement the supervision sandbox. In the first two sandbox tests conducted in 2016-2017, FCA received a total of 146 applications, 50 companies were approved. And 41 were tested in the box (9 companies failed to meet the test conditions for various reasons. Cooperating customers, etc.), more than 80% are Special Database start-ups. From the results, the regulatory sandbox has the following advantages: Reduce the time and potential cost of bringing innovative ideas to market; Reduce regulatory uncertainty and increase the attractiveness of entrepreneurs to venture capital; Help more new products enter the market and improve market competition; The FCA stepped in early to establish Special Database appropriate consumer protection safeguards in new products and services. According to FCA's post-mortem inventory, one-third of the enterprises. Have made significant adjustments to their business models. After testing to better meet compliance and market requirements. 2. Process A complete sandbox test consists of seven steps: Enterprise application for sandbox testing: The Special Database enterprise submits an application to FCA, including the new product/service to be tested and the basic requirements to be met. FCA Approval: Review corporate applications and designate regulatory liaisons for projects that meet the requirements. Customized test plan: FCA and the enterprise determine the test plan one-to-one, including test business, test parameters, result measurement, reporting requirements and safeguard measures. Testing permission: The FCA allows Special Database businesses to conduct testing. Testing and monitoring: The enterprise starts testing according to the agreement in step 3.
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Md Delwar Hossain

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