Following the launch of the Regulatory Sandbox last year, Arizona is continuing its push to attract more FinTech firms including enticing firms from other global FinTech centers.
Darryn Jones, the Greater Phoenix Economic Council’s vice-president of business development co-hosted a series of events for FinTech start-ups alongside Tech UK and the UK Government’s Department of International Trade to help British Fintech businesses enter the US.
Greater Phoenix already has one of the top 10 largest Finance and Insurance clusters in the US and, since 2011, the number of FinTech start-ups there has risen by more than 50%.
The Arizona Regulatory Sandbox enables successful applicants to obtain limited access to the Arizona market to test innovative financial products or services without first obtaining a state license or other authorization. One blockchain based product has already been accepted into the program alongside other new technologies and services.
The Regulatory Sandbox is the first of its kind in the US and based on the UK Financial Conduct Authority’s similar program, which has proven successful in increasing innovation and easing market entry for eligible FinTech firms in Britain. The UK program has been running since 2016, and has had greatest success helping Start-Ups in the UK, although it has also helped existing SMEs and larger firms launch new innovative products and services.
Firms interested in taking advantage of the Arizona Sandbox must apply via the Arizona Attorney General’s Office. The product or service must be innovative and firms still need to demonstrate that they will be compliant with the necessary federal and state laws, including providing details of their Testing Plan and Consumer Protection Plan.
Neopay, a leading regulatory compliance specialist for FinTech firms, is hosting a two-day event in Scottsdale to help firms understand how to implement regulatory requirements in practice. You will have the opportunity to discuss specific issues with leading industry experts as well as gaining help in developing your plans. For more information, visit www.practicalcompliance.org or, if you would prefer a call from one of our advisors, please complete the contact form here.