The UK House of Lords Financial Services Regulation Committeehe
Can financial innovation move faster without compromising consumer protection and market integrity? And what happens when artificial intelligence becomes part of the equation?
Im delighted to share that my other written evidence has been accepted and published by the UK House of Lords Financial Services Regulation Committee, as part of its inquiry into Regulatory Sandboxes in Financial Services. My submission, “Regulatory Sandboxes in UK Financial Services: Innovation, Market Selection, Regulatory Learning and Emerging AI Risks,” examines an increasingly important question for the future of financial regulation:
Are regulatory sandboxes simply helping FinTech firms innovate, or are they also reshaping competition, capital allocation, and the way financial regulation itself evolves?
Drawing on academic research and developments in financial technology, I explore several important issues:
🔹 Innovation and investment: How regulatory sandboxes can reduce uncertainty and improve access to finance for innovative firms.
🔹 Market selection and competition: Whether participation creates unintended advantages for selected firms and influences investors perceptions.
🔹 Regulatory learning: How lessons from controlled experimentation can inform more effective financial regulation.
🔹 Emerging AI risks: Why agentic AI, autonomous financial decisions, and increasingly complex technological systems require new approaches to regulatory testing and accountability.
One of my central arguments is that the success of a regulatory sandbox should not be measured simply by how many firms participate, but by whether it delivers genuine innovation, better market outcomes, stronger consumer protection, and meaningful regulatory learning. For me, this is also a reminder of why connecting academic research with public policymaking matters.
Research should not only explain how financial markets function; it should also contribute to the debate about how they can function better. As an academic at the University of Exeter and University of Exeter Business School, I am particularly pleased to contribute evidence to this important parliamentary inquiry.
📖 Read my full published evidence
I would be interested to hear your views: Can regulatory sandboxes keep pace with the next generation of AI-driven financial innovation?
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