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CMS secures place in FCA’s regulatory sandbox

CMS partners with VALK to drive innovation in the fintech sector

16 June 2021

International law firm CMS has been chosen by the UK Financial Conduct Authority (FCA) to participate in its 2021 regulatory sandbox (the sandbox). The FCA received 58 applications for the sandbox, with CMS’s being one of only 13 that were successful. 

Launched in 2016, the sandbox is designed to help the financial services industry and UK fintech market to collaborate and solve some of the industry’s most complex challenges, including the drive towards full digital transformation. The sandbox provides a safe test space for both companies and the regulator to learn how products work with safeguards in place.

CMS applied to the sandbox in collaboration with existing client VALK, a leading digital platform designed to enable users to capitalise on a global surge in private trading activity. As VALK’s partner in the sandbox, CMS will provide legal advice to ensure that VALK’s product fully complies with all legal and regulatory requirements.

Sam Robinson, CMS Financial Services Regulatory partner, comments: “Successful sandbox applicants are required to demonstrate ground-breaking or original innovation with identifiable consumer benefits. The success of CMS and VALK’s collaborative application demonstrates the firm’s position at the very centre of developments in the regulatory space.”

Tom Jameson, CMS Corporate partner, comments: “It is rare to see a law firm secure a place in the FCA’s sandbox, and therefore CMS’s inclusion is a testament to our team’s deep sector knowledge and expertise. We are delighted to continue supporting VALK and to help drive forward exciting fintech developments that will impact the wider sector.”

The sandbox is expected to last for three years and, for VALK, a successful exit will include FCA authorisation for its products and fully regulatory-compliant infrastructure and processes.

VALK co-founder, Antoine Loth, said: “Our success and experience to date has helped us to ensure a sought-after place on the FCA regulatory sandbox and we look forward to participating fully in this hugely beneficial and unrivalled experience as part of our growth journey. The CMS team has already demonstrated their deep understanding of the fintech sector, and we couldn’t have asked for a better partner for this journey.”

CMS expects to provide VALK with legal advice related to corporate and IP issues and other areas during its tenure in the sandbox.