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 ArticleIASB Publishes Summary of October Meeting of Global Preparers Forum
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.