The FCA, the UK FX regulator, will be launching the so-called “regulatory nursery” initiative in order to scrupulously oversee newly licensed FX companies and well as other financial services firms. Nikhil Rathi, FCA head, revealed this information while being a presenter at FinTech, which occurred last week.
The initiative is being facilitated with the help of Ron Kalifa, who is former payments fintech Worldpay CEO. Kalifa helped the FCA by providing it with recommendations in a recent blueprint that scaled the UK’s fintech industry.
Nikhil Rathi revealed that the FCA will be allowing Sandbox applications all year-round. The FCA Sandbox allows innovative businesses to test fintech services and products in the real market world. Moreover, the UK watchdog has also made a priority of supporting companies that create innovative and new products.
The agency also recently partnered with the City of London Corporation to increase the effectiveness of its Digital Sandbox initiative, focusing mainly on sustainability. The first step is even close to complete, with the FCA officially appointing a leader in the program.
However, Rathi has also disclosed his concerns about the risks of fintech. He looked at social media companies as well as search engines, and their roles and responsibilities in connecting investment companies to consumers, and vise versa.