On February 6, Colombia’s Financial Regulation Unit (URF, for its acronym in Spanish) opened a public consultation on a draft decree and technical document to regulate the regulatory sandbox for the financial sector. The sandbox is a controlled testing space, represented by a set of rules, procedures, plans, conditions and prudential requirements where innovative technological developments for the provision of new financial services can be tested. Those interested have time to send their comments until February 21, 2020, by writing to the e-mails: [email protected] and [email protected].

At international level, a controlled space for testing technological innovations to provide services and activities in the financial sector is known as a regulatory sandbox. This space seeks to promote financial innovation as a tool to improve and expand the supply of services by facilitating speedier, safer and more efficient access to these products for Colombians.

The most relevant points put up for consideration are: 

• Temporary operation certificate. Those who intend to implement innovative technological developments to carry out financial activities must constitute themselves as an entity and obtain a temporary operation certificate. Controlled entities wishing to apply for activities not included on their licence must also submit a constitution application for temporary operation to the Finance Superintendency. The temporary operation certificate shall be granted for a maximum term of two (2) years as from the beginning of the trial period.

• Advertising information. All advertising material used by participants in the promotion and marketing of financial products and services in the controlled test environment must comply with the following:
  • State that the products and services offered are part of a controlled test environment. These should be accompanied by a distinctive expression informing financial consumers that the respective product or service being offered is part of a temporary test.Report that the entity offering the products and services operates under a temporary operating license to test an innovative technological development.
  • Inform the ending date of the project’s operations.

Inspection, surveillance and control. The Colombian Finance Superintendency shall inspect, watch and control participants in the controlled test space.