California Aims to Foster Fintech Innovation. Don’t Say Sandbox (1)

California’s top financial cop wants to create a program for fintech companies to work with regulators on innovative products and services. Just don’t call it a sandbox.

The state’s plan to create an Office of Innovation in San Francisco, the West Coast’s hub for both fintech startups and blue-chip financial companies, won’t result in cozy treatment on licensing requirements or consumer protection, California Department of Business Oversight Commissioner Manuel Alvarez told Bloomberg Law.

Regulators in Sacramento will still be calling the shots, while the new San Francisco office is intended “to help us keep our finger on the pulse of ...