What has happened?

The UK Financial Conduct Authority (FCA) is to begin work on a global 'sandbox' in which FinTech businesses will be able to test their ideas.

The scheme is detailed in the FCA's Business Plan, which explains the watchdog's priorities in financial services regulation for the next 12 months.

What does this mean?

The FCA's current sandbox - which will continue to allow new service providers to test their commercial and regulatory viability - only alows firms to conduct tests in the UK.

But the regulator recognises that many aspects of financial markets and FinTech are global and last month invited stakeholders to share their views on what a global sandbox could look like.

The FCA says the idea proved popular.

"There is a lot of interest in the idea of cross-border testing and the benefits this could bring, such as reducing cost and complexity and accelerating expansion into other jurisdictions – especially for start-ups who are keen to expand internationally," the Plan notes

"Over the next few months we will work with interested regulators on a blueprint of the global sandbox."

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