On 17 September 2026, the House of Lords Financial Services Regulation Committee (Committee) announced the launch of an inquiry into regulatory sandboxes.

The Committee have launched this inquiry to examine how regulators and firms use regulatory sandboxes and whether they are successful in driving innovation. According to Chairman of the Committee, Baroness Noakes, there has been “surprisingly little evaluation of how sandboxes work in practice and what effect they have, even as new types of sandboxes continue to be introduced”. In particular, the Committee will explore:

  • whether regulatory sandboxes support innovation;
  • their role in supporting the development of regulation;
  • whether they represent value for money and public benefit; and
  • the degree to which the selection of participating firms can influence the market.
  • Whether the current sandbox framework is sufficiently broad in scope and accessible to a diverse range of firms, including smaller and early-stage businesses.
  • The role of sandboxes in balancing innovation with consumer protection and financial stability.

Next Steps

The Committee is welcoming submissions from anyone with answers to the questions in the call for evidence until 23 October 2026.