A joint statement was published on June 13 by the Ministry of Economy, the Central Bank, the Securities Commission and the Private Insurance Superintendency (Susep) pledging to facilitate fintechs’ regulatory environment, meaning that these companies will now receive government support to help them adapt to regulations.
The statement talks about the idea of implementing a regulatory “sandbox” model which would involve financial authorities temporarily exempting innovative companies from complying with certain regulations, according to previously-established criteria, limits and deadlines. This announcement comes as part of the “Capital Markets” initiative presented by the Central Bank in early June which is a key factor driving the changes transforming the financial, capital and insurance segments over the last months.
The text explains that the use of innovative technologies, such as blockchain technology, robo-advisors and artificial intelligence, has fostered new business models, reflected in the supply of products and better quality services with a broader scope. According to Orlando de Souza Lima, the general coordinator of Financial Systems at the Economic Policy Secretariat (SPE/ME) in the Ministry of Economy, the idea is to allow encourage these digital transformations to take place without jeopardizing the consumer data security and the integrity of the market. “It will eventually be possible to reduce the costs related to the financial markets and offer consumers more convenient products and services,” he said.
The document also guarantees the commitment of these institutions to further developing cooperation mechanisms in innovative projects that include activities regulated by more than one financial authority.
In turn, the Ministry of Economy published a fintech report which highlights the benefits of technological innovations for the financial system and the adoption of a regulatory sandbox model in Brazil.