U.K. Report Finds Fintech Regulatory Scheme Experiment Successful

A recent U.K. Financial Conduct Authority report has found that their year-old experiment has reduced the time and cost of getting new ideas into the market and helped facilitate access to capital for innovators.

Companies that are approved to enter the 'regulatory sandbox', including startups and large firms, work with British regulators to design and implement a six-month test, according to American Banker. The report found that approximately 90 percent of participating firms have continued toward a wider launch of their products following the testing period.

Under the program's rules, firms are permitted to operate in certain legal gray areas, and the government's involvement may allay executives' worries about their risk exposure — but they still must abide by consumer protection rules, American Banker explains.

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