The Financial Conduct Authority (FCA), UK’s conduct regulator for financial services firms and financial markets, has announced the names of 29 firms that have been successful in applying for the testing of the fourth cohort of the regulatory sandbox yesterday, July 3.
Originally, there were 69 applications to cohort four of the said sandbox. The FCA named the 28 companies, with one requesting to maintain its anonymity at this time.
Interestingly, 40 percent of those firms that have been accepted for the cohort are using Distributed Ledger Technology (DLT).
Christopher Woolard, FCA’s executive director for the organization’s Strategy and Competition arm, expressed his excitement, saying:
“This is the largest sandbox cohort to date with a record number of applicants meeting our eligibility criteria. Cohort Four has seen a large increase in the number of firms testing wholesale propositions including firms that are aiming to increase the efficiency of the capital-raising process.”
A regulatory sandbox consents for firms to test innovative products, services, even business models, in a live market, all the while maintaining appropriate protections. The said activity is part of Innovative, an initiative which began in 2014 for the chief goal of promoting competition in the interest of consumers. Since its creation, over 1200 applications have been submitted, with 500 firms getting approved for the said program.