The Financial Conduct Authority will be meeting with other regulators from across the world later this week to discuss plans for a global regulatory 'sandbox', where companies can test out new ideas safely before unleashing them on customers.
The idea stems from the sandbox which the FCA already operates, where firms can trial their innovative services or products in a "safe space" without facing the same regulatory repercussions.
Since the launch of the sandbox, the FCA has received 30 applications from international firms and Christopher Woolard, the regulator's executive director for strategy and competition, said there is no joint sandbox programme for firms to take part in.
He said the idea could reduce costs and complexity as well as make it easier and quicker for companies to expand into other jurisdictions.
Mr Woolard said: "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.
"But our whole history with Innovate has been about doing things that regulators historically haven’t done.
"To face those risks, we have to ensure we have the right controls, all the while bearing in mind the risk of not acting."
He said that later this week the FCA would start work with interested regulators, including those across Europe, the US and Far East, on a blueprint.
Mr Woolard said greater collaboration would allow regulators across the world to tackle shared problems, such as money laundering.
He said: "Participating in a global sandbox would represent a truly momentous step forward in the UK’s fintech journey.
"But we think it could do a lot more than just allow innovators to test their ideas. One option we want to explore is the power of this sandbox to solve global problems.
"In my conversations with colleagues I hear them grappling with many of the same challenges as us, whether they’re from Sydney or Singapore.
"Can we use the global sandbox to tackle the questions occupying the minds of the international community, questions which have potentially huge ramifications for financial services and beyond?"
Mr Woolard said that last month the FCA invited submissions on what a global sandbox could look like and he said there was a lot of interest.
damian.fantato@ft.com
