The Securities and Exchange Commission of Brazil (CVM) launched its Regulatory Sandbox program, in order to select seven innovative business models from financial entities operating in capital markets. While promoting market innovation and regulatory improvement, the program can result in definitive authorization for those selected projects.
The Securities and Exchange Commission of Brazil (CVM), through Instruction n. 626/2020, launched its Regulatory Sandbox program, in order to select seven innovative business models to take part in its innovative regulatory framework. Financial entities can submit projects that, if selected by CVM, will be given special regulatory prioritization and supervision to operate and, if successful, be authorized for definitive operation.
The instruction defined program eligibility criteria in article 5, while innovative projects to be submitted must follow the directives of article 6. Tie-breaking rules are defined by article 11 and are detailed here (in Portuguese).
Financial entities can submit projects though this electronic form until January 15, 2021. CVM must analyze, select and disclose a list of participating companies until April 30, 2021. The Regulatory Sandbox is schedule to May 3, 2021.
The Central Bank of Brazil (BCB) also presented a Regulatory Sandbox program, ruled by CMN Resolution n. 4.865/2020 and BCB Resolution n. 29/2020. BCB’s Regulatory Sandbox will be directed to innovative business models under the National Financial System (SFN, in the Portuguese acronym) and the Brazilian Payments System (SPB, in the Portuguese acronym). The selection process will be opened in 2021.
