The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023

Sandbox arrangements – requirements related to relevant enactments and overall limitation

6.—(1) The relevant enactments as specified in the Schedule have effect subject to the modifications in the Schedule in their application to—

(a) the appropriate regulators in connection with implementing and operating the FMI sandbox arrangements;

(b) a sandbox entrant in connection with carrying on the DSS activities;

(c) a person described in regulation 3(4) when participating in the FMI sandbox arrangements in connection with the DSS activities.

(2) Where a person has ceased to be a sandbox entrant or a person described in regulation 3(4), the provisions of specified relevant enactments as modified in the Schedule will continue to apply to that person in connection with any DSS activities performed in their capacity as a sandbox entrant or in their capacity as a person described in regulation 3(4), insofar as the provisions relate to an appropriate regulator exercising any of its powers.

(3) Each sandbox entrant must make the extent to which it is approved to participate in the FMI sandbox arrangements publicly available.

(4) The Treasury may direct the appropriate regulator, having first consulted with them, to impose restrictions on the overall FMI activities or ancillary FMI activities in the FMI sandbox arrangements, whether by reference to a number, value or another metric.