BCB Publishes Proposal for Regulatory Sandbox
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 Article
IASB Publishes Summary of October Meeting of Global Preparers ForumRelated Articles
PRA and FPC Finalize Changes to Leverage Ratio Framework in UK
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
CFPB Proposes Rule on Small Business Lending Data Collection
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
PRA Decides to Maintain O-SII Buffers for Another Year
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
FSB Report Assesses Implementation of Recommendations on Stablecoins
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
APRA Updates Loan Serviceability Expectations for Home Lending
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
EBA and EIOPA Set Out Work Priorities for 2022
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
MFSA Issues Reporting Updates and Guidance for Banks
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
EC Publishes Decision on List of Equivalent Third Countries Under CRR
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC Rule on Contractual Recognition of Write-Down and Conversion Powers
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.
