The UK’s Financial Conduct Authority is to establish a ‘regulatory nursery’ in the Autumn to ensure keener oversight of newly-authorised institutions.
The initiative was unveiled by FCA chief Nikhil Rathi in a speech given as part of UK Fintech Week.
“Currently, firms gain regulatory status and are treated in the same way as a firm with a long track record,” he says. “The regulatory nursery will keep us in close contact with firms immediately post-authorisation so we can provide support and, where we need to, intervene earlier to steer firms in the right direction.”
Rathi also announced plans to expand the watchdog’s regulatory Sandbox from a quarterly proposition to a year-round application process boosted by better advertising.
The FCA will also extend its Digital Sandbox pilot programme with the City of London Corporation beyond Coranavirus recovery projects to focus specifically on sustainability. The move coincides with the FCA’s appointment of its first sustainability lead in the form of Sacha Sadan as director, Environmental, Social and Governance.
“Financial innovation is vital if we are to deliver net-zero economy,” says Rathi. “When he joins in the summer, Sacha will accelerate our work to encourage the development of a green, sustainable investment market, underpinned by investor protection and innovative use of data.”