The Financial Conduct Authority (FCA) will begin to work with interested regulators from around the world on a blueprint for a global FinTech sandbox.

The aim of the global sandbox is to enable institutions and companies to conduct FinTech tests in different jurisdictions and to allow regulators to collaborate on solving common cross-border issues.

The FCA sought feedback from interested parties about the viability of such proposals, and found that there was much interest in the idea of cross-border testing and the benefits this could bring – such as reducing cost and complexity, and accelerating expansion into other jurisdictions for FinTech firms.

Christopher Woolard, executive director of strategy and competition at the FCA, noted that there is currently no joint sandbox programme with other regulators for firm to participate in. “Such a project represents new territory. Breaking new ground requires an element of risk, not something, as I’ve said, that regulators are generally comfortable with.

“While we may be the ones kicking off the discussion, we won’t have much success if we’re just talking to ourselves. So now is the time to bring fellow regulators around the world into the conversation.”

Woolard confirmed that the FCA would be meeting with interested regulators this week, including parties from Europe, the US and the Far East, to discuss the possibility and a blueprint for a global FinTech sandbox.

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