If the sandbox is fostering innovation through reduced regulatory burden, and innovative business models are finding it difficult to engage customers through suitability reports, it seems likely that some elements of regulation are stifling intended outcomes and are far from optimal.
The world of financial services is becoming increasingly complicated to navigate and understand, and not just for the most vulnerable.
There is, undeniably, an important role for the regulation of financial services, but the scale of regulation has become disproportionate to the need and motivation for it, and the cost of this is not transparent to consumers.
There is now an opportunity to create an innovative and thriving financial services sector if we revisit regulation, challenging its scope, while also making individuals more responsible for their own financial wellbeing.
Jonathan Warren is a consultant at Altus Consulting