The implementation of regulatory sandboxes in the financial market of the UK – the first experience

The article discusses the British experience on the implementation of the regulatory sandbox, defines the phenomenon, describes the goals of “sandboxes” and how they function. The first results of the implementation of the regulatory sandbox in the UK have been analysed on the basis of the FCA’s report. First data on the implementation of the regulatory sandbox shows its high efficiency. 80% of firms that completed testing are continuing toward a wider market launch following their test. Despite the fact that the vast majority of “sandbox” firms were startups, such big banks as Lloyds and HSBC participated in the project as well. The hypothesis that participation in testing improves the project’s investment attractiveness has been confirmed: according to the statistics, 40% of "sandbox" firms received investment during or following their sandbox tests.