# Regulatory Sandbox

*Regulation & Compliance — Finicade finance glossary*

A regulatory sandbox lets firms test new products with real customers under supervision and relaxed requirements, with agreed safeguards and limits. The FCA launched the first in 2016 and dozens of regulators have copied it. Its value is informational in both directions: firms learn what compliance requires before scaling, and regulators see business models before they become systemic.

**Also known as:** sandbox, innovation hub

**Related terms:** [FCA](https://finicade.com/glossary/fca), [Neobank](https://finicade.com/glossary/neobank), [Banking as a Service](https://finicade.com/glossary/banking-as-a-service), [Regulatory Arbitrage](https://finicade.com/glossary/regulatory-arbitrage), [Compliance](https://finicade.com/glossary/compliance)

Source: https://finicade.com/glossary/regulatory-sandbox