Skip to main content
You have permission to edit this article.
Edit
Lawmakers OK regulatory sandbox bill to boost innovation in NC financial sector
0 Comments

Lawmakers OK regulatory sandbox bill to boost innovation in NC financial sector

  • Updated
  • 0
{{featured_button_text}}
N.C.House

The “sandbox” bill passed the N.C. House, shown here, 111-0, and the N.C. Senate 49-0.

A unanimous vote in the N.C. House means a “regulatory sandbox” bill is on its way to Gov. Roy Cooper. The new “sandbox” would waive certain obstacles for a trial period for fast-emerging financial and insurance products and services.

The 111-0 vote Thursday in the state House followed a 49-0 vote Wednesday in the Senate.

“In setting up a regulatory sandbox we can signal to a growing group of entrepreneurs that North Carolina is committed to fin-tech innovation,” Jordan Roberts, government affairs associate for the John Locke Foundation, said in comments to the House Finance Committee when the bill was introduced in June.

House Bill 624 would create a regulatory sandbox similar to one authorized in Arizona in 2018. At least five other states have since adopted similar laws, and some half a dozen are considering such bills this year in an effort to remain agile and competitive in an increasingly digital world.

“The idea originated in the United Kingdom in 2014 specifically for financial tech companies,” said Jon Sanders, Locke’s senior fellow in regulatory studies. “By 2018 it was considered a huge success, and regulatory sandboxes started cropping up around the world (Singapore, Abu Dhabi, Denmark, Hong Kong, etc.) as well as the U.S. (Arizona, Utah, and Wyoming). South Korea built its regulatory sandbox for every industry, and Utah, whose regulatory sandbox started with finance and insurance, just did the same.”

H.B. 642 would apply only to the finance and insurance industries in North Carolina. Among other changes, the bill would create a new Innovation Council to market the program and seek and review applications. The council would evaluate applications based on level of innovation, potential consumer risks, level of consumer protection and complaint resolutions in place, and level of business plan and capital. It would then make recommendations and pass them along to the state agencies ultimately responsible for the final decision.

“This bill would keep North Carolina as a regional and national leader for business by encouraging companies with innovative finance and insurance products to test them right here in North Carolina,” said Roberts in an interview. “The sandbox approach ensures the right balance of consumer choice and protection.”

0 Comments

Be the first to know

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

  • Updated

Nov. 24—NEWTON — A trooper with the N.C. Highway Patrol pulled a woman and child from a burning car crash that killed the driver. Around 5:30 p.m. Tuesday, Nov. 23, trooper K.L. Huss was on stationary patrol in Catawba County on U.S. Highway 321 near mile marker 35 and clocked a northbound 2020 Dodge Charger traveling over 100 miles per hour in a 65 mph zone. Moments later, another trooper ...

  • Updated

Nov. 19—A Triangle-area town has been named the best place to live in North Carolina. Morrisville ranks No. 1 on a list of cities that offer residents jobs, housing and educational opportunities, according to a list published from the data website Stacker. The town, west of Raleigh, earned the top spot after Stacker studied data from the neighborhood tool Niche. Using data from the U.S. ...

  • Updated

Nov. 25—The N.C. Department of Transportation is building a bridge on Interstate 40 that is one of the first in the state to take into account the needs of bears and elk. The bridge will carry I-40 over Cold Springs Creek and Harmon Den Road near the Tennessee state line in the narrow, winding Pigeon River Gorge. The highway creates a barrier there between two sections of Pisgah National ...

  • Updated

A largely unnoticed dispute over honorary and special awards at UNC-Chapel Hill is emerging as a mini version of the school’s Nikole Hannah-Jones controversy, but with a twist. In this latest version, the trouble started when the faculty balked at a nominee backed by the Board of Trustees. Hannah-Jones’ case involved the Board of Trustees – a group appointed by the Republican-controlled ...

  • Updated

Last week, Facebook changed its company name to Meta, a reflection of its efforts to create more tools and products for a concept called the metaverse. Around the same time, Epic Games, the Cary, North Carolina-based video game developer, pried away one of Facebook’s lead executives to lead its own efforts at creating a metaverse. Matthew Henick, a former vice president of content at Facebook, ...

Get up-to-the-minute news sent straight to your device.

Topics

Breaking News

News Alerts