The House of Lords Financial Services Regulation Committee, chaired by Baroness Noakes DBE, has opened an inquiry into the use and effectiveness of regulatory sandboxes across the UK financial services sector.
The probe will look at how both regulators and firms are using sandboxes, and whether the mechanism genuinely fosters innovation. Lords will specifically weigh up whether sandboxes support innovation, what part they play in shaping regulation, whether they deliver value for money and public benefit, and how much influence the process of selecting participating firms has over the wider market.
Baroness Noakes DBE said, “We have launched this inquiry to assess the impact of regulatory sandboxes. There has been surprisingly little evaluation of how sandboxes work in practice and what effect they have, even as new types of sandboxes continue to be introduced. We want to examine how they are used by both the regulators and the firms that participate, and whether they are successful in driving innovation.
“We welcome evidence and views from anyone with expertise or interest in this area, especially from firms that both have and have not participated in a sandbox.”
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