1. Amendments to the Financial Services and Markets Regulations 2015

(1) In Schedule 1, insert the following chapter following Chapter 17:

"Chapter 17A Technology Innovation in Financial Services

The activity

73A. Developing Financial Technology Services within the RegLab
(1) Developing Financial Technology Services within the RegLab is a specified kind of activity.
(2) Developing Financial Technology Services within the RegLab is an activity which:
a. involves the developing and testing of innovative financial technology services, business models or delivery mechanisms; and
b. is connected to or associated with the Regulated Activities specified in paragraphs 4, 12, 16, 28, 33, 43, 46, 50, 52, 54, 56, 59, 60, 61, 65, 68 or 72 (subject to any exclusions in those paragraphs made by this Schedule)."
(2) In section 258 the following definitions shall be inserted —
Developing Financial Technology Services within the RegLab means the Regulated Activity specified in paragraph 73A of Schedule 1.
FinTech means innovative financial technology.
FinTech Participant means an Authorised Person who has a Financial Services Permission to carry on the Regulated Activity of Developing Financial Technology Services within the RegLab.
FinTech Proposal means the financial technology innovation proposed to be developed and tested by the FinTech Participant.
FinTech RegLab Guidance means the FinTech Regulatory Laboratory Guidance in relation to the Regulated Activity of Developing Financial Technology Services within the RegLab issued in accordance with section 15(2).
RegLab means the tailored regulatory laboratory that provides a framework for FinTech Participants to engage in the Regulated Activity of Developing Financial Technology Services within the RegLab in a controlled environment.