- The regulatory window will give more freedom for fintech and companies to test innovative solutions for the financial system;
- In this first admission process, Brazilian CVM will select up to seven participants for the regulatory sandbox.
The Brazilian Securities and Exchange Commission (CVM, its acronym in Portuguese) started the admission process of the regulatory sandbox participants.
The regulatory sandbox is an environment in which companies and fintechs – already regulated or not – will be able to test innovative projects for the financial system while subject to fewer rules and less monitoring. First projects will be enrolled in the first quarter of 2021.
The admission process is the first one after Brazil’s Central Bank and National Monetary Council (CMN) approved last Monday the implementation of it. The sandbox is relatively new, even globally, having begun to be implemented by the United Kingdom, Australia, and Singapore in 2016.
In this first admission process, Brazilian CVM will select up to seven participants for the regulatory sandbox and, depending on the proposals received, may exceptionally increase the number of participants.
Entities interested in participating must complete the electronic registration form beginning in November 16th, 2020 up to January 15th, 2021. The responses and documents submitted through the form will be used by the Sandbox Committee to assess whether the proposers are eligible and whether the proposals are considered eligible for participation.
If the vacancies available are not sufficient to receive all proposals considered suitable for admission to the regulatory sandbox, the CVM will use selection criteria and prioritization of bidders.
Following CVM’s schedule, the period for analyzing proposals and editing a normative act that will formalize the admission of participants, detailing, for each of the selected ones the name, conditions, activity, duration and regulatory waivers granted, takes place from January 18th to April 30th (next year).
The estimated date for participation in the regulatory sandbox is on March 5th.