The concept of the regulatory sandbox (“Sandbox”) was first introduced over 4 years ago by the UK Financial Conduct Authority (“FCA”) to offer:
“a safe space in which businesses can test innovative products, services, business models and delivery mechanisms without immediately incurring all the normal regulatory consequences of pilot activities.”
Several other jurisdictions have followed the UK’s lead including Australia, Canada, Hong Kong and Singapore. However, as I wrote in my article last year[i], although each regulatory sandbox essentially has the same objectives, not all sandboxes are identical in structure and approach and not all have matured at the same pace.
“RegTech is trust, as a service”: the outcome of RegTech for London event in Canary Wharf
As everyone in the industry will tell you, RegTech is styled to be ‘the next big thing’, ‘bigger than FinTech’, ‘more profitable than bitcoin’. Numerous events take place week on week, repeating the same story. At the same time, the financial industry has suffered serious reputational damage through the 2008 crisis and other scandals, including mis-selling and misconduct, facilitating money laundering and terrorist financing.
This week was the first in a series of events being held in London – The RegTech For London series. The event was attended by leaders from the financial services industry, consultants, as well as by a number of RegTech firms and the wider technology sector.
“Knowing and Understanding your Customer in an International World”
Donna Bales, Co-Chair of RegTech RoundTable Foundation opened the dynamic event with a Keynote speech on knowing and understanding your customer across the globe at the first RegTech For London event on 10th July at Canary Wharf.
"I am delighted to be given the opportunity to open the conference and meet so many professionals in this intimate forum.
Today we have an exciting agenda ahead of us where we will explore some of the opportunities new technologies can provide in unlocking value and understanding the customer. Yet we must remember as we explore these topics that fundamentally KYC procedures preform a critical function in combatting financial crime.
The digital wave is hitting the financial service industry at an extraordinary rate creating opportunities but also challenges for the financial services ecosystem. Consumers have higher expectations and want better access, transparency and delivery options. New technologies such as blockchain are unravelling traditional workflows and have the potential to represent the next evolutionary jump in process optimization. Digital currencies and asset value exchanges are disrupting how value and assets change hands. Each of these innovations are upsetting the current market structure and regulatory framework and create their own set of unique challenges in terms of governance, risk management and standards.