---
term: "Regulatory sandbox"
category: "Open banking and open finance"
url: https://agenticopenfinance.com/glossary/regulatory-sandbox
source: AgenticOpenFinance glossary
---

# Regulatory sandbox

> A supervised programme where firms test new financial products with real customers under agreed safeguards.

A regulatory sandbox is a programme run by a regulator in which firms can test innovative products, services or business models in the market with real consumers, under agreed safeguards and close supervision. The FCA in the UK and the Monetary Authority of Singapore, among others, run sandboxes, and the EU AI Act requires Member States to set up AI regulatory sandboxes. For agent products, a sandbox is a way to test mandates, limits and oversight with a regulator before scaling.

Related terms: [Open banking](https://agenticopenfinance.com/glossary/open-banking.md), [EU AI Act](https://agenticopenfinance.com/glossary/eu-ai-act.md), [Human oversight](https://agenticopenfinance.com/glossary/human-oversight.md), [Evidence pack](https://agenticopenfinance.com/glossary/evidence-pack.md)