FCA supports net zero TechSprints, Sandbox and Green Fintech Challenge

By Joy Dumasia

The FCA is committed to developing a range of innovative programs to help businesses prepare for a changing climate and support their transition to a net-zero economy. Regulators say this program aims to accelerate the development of new approaches and solutions in sustainability and climate change.

A four-day hackathon in the form of a Sustainability TechSprint will bring together cross-organisational teams from across financial services, technology, academia and international regulators to generate new supervisory technology to help supervisory authorities monitor ESG data and disclosure.

This is backed up by a second digital sandbox pilot running over 8-10 weeks to develop a practical proof of concept to improve the transparency of ESG-related market disclosures and consumers’ understanding of ESG characteristics to support Financial products.

The FCA is also proposing a ‘Green FinTech Challenge’ featuring a package of support services to help start-ups, incumbents and technology providers navigate regulation and support live market testing of new products and services that will aid the transition to a net-zero economy.

The FCA states: “These services allow us to engage with and support innovative solutions at various stages of their development. This includes the initial ideation and proof of concept stage through our TechSprint programme, the further development and validation of proof concepts to demonstrate market value through our Digital Sandbox pilot, and the testing of innovative propositions in the market with real consumers through our regulatory sandbox.”

Recently, IBS Intelligence reported that According to official figures, the Financial Conduct Authority (FCA), the regulatory watchdog for financial services firms in the U.K., has misplaced a total of 323 electronic devices estimated to be worth £310,600 over the last three years.