BCB proposed "normative acts" for the controlled testing environment for financial and payment innovations (regulatory sandbox) and on the conditions for provision of products and services in the context of this environment and within the National Financial System and the Brazilian Payments System. The public consultation also covers specifics for the first cycle of the regulatory sandbox, such as duration and limitation of the number of participants, required documentation, classification criteria, schedule of the application phase, and selection and authorization process. Interested parties are requested to submit comments by January 31, 2020.
The regulatory sandbox will allow institutions to test innovative projects (new products, services, or business models) with real customers, subject to specific regulatory requirements. To participate in the regulatory sandbox, companies will need BCB authorization. Therefore, in addition to meeting the eligibility criteria, institutions must submit proposals for the supply of products or services within the concept of an innovative project and within the scope of the National Monetary Council (CMN) and BCB. For the first cycle of the regulatory sandbox, BCB will select 20 companies, which will have a one-year period, renewable for another year, to develop the product.
Related Links (in Portuguese)
Comment Due Date: January 31, 2020
Keywords: Americas, Brazil, Banking, Regulatory Sandbox, Fintech, Regtech, BCB
Previous ArticleOFR Annual Report Describes Risks to Financial Stability as Moderate
APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.
US Agencies (FDIC, FED, and OCC) finalized two rules, which are either identical or substantially similar to the interim final rules in effect and issued earlier this year.
EIOPA is consulting on a supervisory statement on the use of risk mitigation techniques by insurance and reinsurance undertakings.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
ESMA announced that it will recognize three central counterparties (CCPs) established in the UK as third-country CCPs, from January 01, 2021.
PRA published Version 02.04 of the PRA110 liquidity metric monitoring tool (PRA110 LMM tool).
BoE and FCA are supporting and encouraging liquidity providers in the sterling swaps market to adopt new quoting conventions for inter-dealer trading based on SONIA, instead of LIBOR, from October 27, 2020.
Deutsche Bundesbank published special schema files for securities holdings statistics (SHS), along with a document on the XML format description.
FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.