Page 129 - Are You Future Ready?
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Chapter Two - Right Timing
The establishment of a regulatory sandbox allows creative
financial products to be tested in a controlled environment
with real customers before they are officially launched.
While participants can learn from the experience, the
regulatory authorities can also explore measures required
to regulate them.
According to the FCA’s review, its sandbox has done a
positive job in these areas: 80% of the participants in the
first year were startups. At least 40% of the firms with
complete testing in the first cohort received investment 127
during or following their sandbox tests. A further 90% of the
participating companies launched their tried services in a
wider market.
At the same time, Britain planned the next step: to enter
the global financial market arena. At the time the sandbox
was launched in 2016, cooperation with various regulatory
bodies in different countries and economies including
Hong Kong was discussed. A blueprint for a cross-border
sandbox with some regulatory bodies around the world
was also raised.
