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Wide range of new initiatives announced for UK FinTech by Chancellor (Part 1 of 2)

10 May 2021

On 19 April 2021, during his opening keynote speech at a launch event for FinTech Week, the Chancellor of the Exchequer, Rishi Sunak, announced new proposals for UK FinTech, as follows: A new FCA ‘scale box’ and Centre for Finance, Innovation and Technology (“CFIT”) would be launched; A new Central Bank Digital Currency (“CBDC”) taskforce would be set up and the implementation of a new sandbox and “omnibus” account; and Plans for implementing reforms to the prospectus regime and listings were announced. 1. ‘Scale box’ and CFIT The ‘scale box’ is a permanent digital sandbox pilot which supports partnerships between incumbent financial services firms and FinTechs / RegTechs to provide support for growing regulated firms. The Chancellor has announced the launch of the ‘scale box’ along with the Second Phase of its Digital Sandbox which creates a sandbox for firms to test new products which tackle sustainability and climate change related challenges. The CFIT is an industry-led organisation which co-ordinates and fosters growth of the FinTech market by providing a variety of services and creating a collaborative environment. We have provided a detailed explanation of its proposed role in our previous article (available here). The CFIT is also the body which implements or oversees a number of other recommendations which were set out in the Kalifa Review, such as working closely with newly formed regional hubs to help address their challenges. The ‘scale box’ and CFIT were both ideas recommended in the recent Kalifa Review (see our article on the topic available here). Whilst we await ...

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