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The Financial Conduct Authority and the Bank of England have opened applications for their Digital Securities Sandbox (DSS).

In a statement released today (30 September), the FCA and the Bank urged firms that are innovating in financial market infrastructure to apply.

They said the DSS will “reshape” how they regulate by allowing firms to test legislative changes in real-world scenarios before the changes are implemented.

DSS gives firms the opportunity to explore new technologies in traditional financial markets.

The new tech includes distributed ledger technology (DLT), a system for storing and managing information distributed across participants in a network.

It has the potential to improve efficiency and reduce costs in wholesale markets, benefitting industry and investors.

“We believe the DSS could also lead to a quicker, more effective and collaborative way of delivering regulatory change,” the statement said.

“The DSS supports innovation, helps protect financial stability and strengthens the UK’s leading position as a global and vibrant financial centre, built on globally respected high standards.”

The authorities said there is a range of support available to firms to help them through the application process.

Firms can arrange pre-application meetings to better understand the DSS requirements.

The DSS is open to legally established firms of all sizes and at all stages of development.

The firms could be an existing financial institution that is already authorised or recognised under current regulation or a new entrant to the market.

Find out more about the support available here.

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Mike Ashley’s Frasers Group has made a conditional offer for Mulberry, valuing the UK luxury brand at £83mn, after a “wholly unsatisfactory” response to an initial approach at the weekend.

Frasers, which owns about 37 per cent of Mulberry’s shares, said it had been taken by surprise when Mulberry proposed on Friday to raise almost £11mn from existing shareholders, including its largest investor — the Singapore-based Ong family that holds a 56 per cent stake.

Frasers said it had not been aware of the plan, which was designed to prop up the luxury group’s balance sheet, until “immediately prior to its announcement”, and would have been willing to fund it on potentially better terms.

Frasers has offered 130p per share, a premium of 11 per cent to the closing price on Friday, and said it was “the best steward to return Mulberry to profitability”. The board provided a “holding response” to its conditional offer on Sunday, a move that Frasers considered inadequate. Mulberry shares rose 11 per cent on Monday.

Mulberry said on Friday that it needed to raise cash to give it financial flexibility, after falling to an annual pre-tax loss of £34mn, from a £13mn profit the previous year, on a 4 per cent drop in revenue to £153mn.

Frasers said that as an existing shareholder it would “not accept another Debenhams situation where a perfectly viable business is run into administration” after Mulberry noted a “material uncertainty related to going concern” in its annual report.

Debenhams went into administration in 2020, having rejected a last-ditch rescue plan by Frasers — then called Sports Direct — which was a shareholder as part of an acrimonious battle with Debenhams’ board for control of the business.

Mulberry declined to comment on Monday. Frasers has until October 28 to either make a formal offer or walk away.

In July Mulberry appointed Andrea Baldo, the ex-boss of Ganni, as its new chief executive, replacing Thierry Andretta, who left with immediate effect, after the company became the latest luxury brand to warn of a slowdown in spending among affluent shoppers.

In 2020, Frasers, the retail conglomerate controlled by sportswear tycoon Ashley, bought a stake in Mulberry, which is a significant supplier to House of Fraser, the department store group also owned by Frasers following its collapse in 2018.

Ashley’s group also has a stake in Hugo Boss and owns upmarket department store chain Flannels.

Clive Black, head of consumer research at Shore Capital, said: “No doubt there will be much emotion and potential shenanigans around this illiquid stock that has had to face into well-versed UK luxury market headwinds in recent times.

“Quite whether the two large and dominating shareholders can come to an agreement will be at the heart of the next steps.”

TWO major mobile phone providers have promised not to push up monthly bills for millions of customers ahead of their proposed merger.

Three and Vodafone have said that they will maintain certain social tariffs at £10 or less for two years from the date that their merger is complete.

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These tariffs include some customers on the SMARTY name and social tariffs on both the SMARTY and VOXI For Now brands.

SMARTY is currently owned by Three, while VOXI is a Vodafone brand.

Both companies have not confirmed whether the price of their main tariffs will change as a result of the merger.

Social tariffs are cheaper broadband and phone packages for people who claim Universal Credit, Pension Credit and some other benefits.

They are provided in the same way as normal packages, just at a lower price.

The companies will also keep measures to protect customers who are registered as vulnerable.

Three and Vodafone announced their £15billion union last year, which will bring 27million customers together under one network.

If the deal goes ahead, it would create the largest mobile network in the UK.

But last week the competition watchdog issued a warning that the deal could have a negative impact on customers.

The Competition and Markets Authority (CMA) flagged a number of concerns about the merger, which included fears that it could push up prices for customers.

It also launched an in-depth investigation into the merger in April over fears that it could “result in a substantial lessening of competition”.

This could mean that there are fewer providers to choose from, forcing customers to settle for more expensive deals than the ones they had previously.

The CMA also said that it had “concerns that higher bills or reduced services would negatively affect those customers least able to afford mobile services as well”.

Three and Vodafone have said the deal would help to improve network quality and provide faster 5G.

The latest promise not to hike bills has been put forward to ease the CMA’s concerns.

Both firms have said that they will continue to work with the regulator and the merger can only go ahead with its final approval.

What social tariffs are currently on offer?

The SMARTY social tariff is a low-cost unlimited plan and is available for new and existing customers who are on certain benefits.

It is offered as a one month rolling plan, which can be cancelled at any time.

Once accepted, you can keep the plan for as long as you are eligible.

For £12 customers can make unlimited UK calls and texts, 5G at no extra cost and EU Roaming up to 12GB.

There are fast eligibility checks and no credit checks.

To apply contact SMARTY and complete its short form.

These details will then be shared with the Department for Work and Pensions to confirm that you are in receipt of the eligible benefits.

The VOXI For Now is another tariff available to those receiving financial support.

If you are receiving government benefits then you can get unlimited data, calls and texts for £10 a month.

If you are eligible you will get the deal for six months.

After this point you will be switched to the standard £10 a month plan but you will still have access to unlimited social media, calls and texts.

There is no contract so you can change, pause or cancel the deal at any time.

To be eligible you must be receiving a benefit such as Jobseeker’s allowance, Universal Credit, Employment and Support Allowance, Disability allowance or Personal independence payment.

VOXI will run a quick eligibility check to make sure that you qualify before you are granted the deal.

The company has partnered with Moneyhub to run the security checks and confirm that you do receive government benefits.

The process is simple and Moneyhub will check your bank account for government benefits and will then advise VOXI if you qualify for the tariff.

Other providers such as EE and Vodafone also offer social tariffs.

You can find a full list of providers and rules on the Ofcom website.

Help if you are struggling to pay your bill

If you are struggling to pay your mobile phone bill or you owe your provider money then there are things you can do.

You may be able to switch providers or move to a different contract to get a cheaper deal.

Or if you provider has told you they’re increasing the price of your contract then you may be able to cancel.

Some providers will give you 30 days to cancel your contract without a fee if the price is going up.

Always tell your provider if you are struggling to pay so they can tell you about any support they have on offer.

Most providers will charge you a fee to leave your contract before it ends.

However, some providers will let you leave early without paying a fee if you are struggling to keep up with your payments.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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