The Department and regulators have been slow to follow best practice in facilitating innovation. The Government’s 2019 White Paper ‘Regulation for the 4th Industrial Revolution’ found that only 29% of businesses believed that government’s approach to regulation facilitates innovation. The Department aims to promote innovation in various ways, primarily through the Regulatory Horizons Council and the Regulators’ Pioneer Fund which has made £13m available to regulators so far. However, the Fina...

The Department and regulators have been slow to follow best practice in facilitating innovation. The Government’s 2019 White Paper ‘Regulation for the 4th Industrial Revolution’ found that only 29% of businesses believed that government’s approach to regulation facilitates innovation. The Department aims to promote innovation in various ways, primarily through the Regulatory Horizons Council and the Regulators’ Pioneer Fund which has made £13m available to regulators so far. However, the Financial Conduct Authority’s regulatory ‘sandbox’ to encourage and test innovations with a small number of customers in a controlled environment for a limit Type: conclusion | Number: 2 | Response status: not_addressed Government response: 2: PAC conclusion: The Department and regulators have been slow to follow best practice in facilitating innovation. 2: PAC recommendation: Government should require regulators to engage meaningfully with businesses to explore potential new ideas and innovations an