On February 12, the Colombian Ministry of Finance extended the deadline for receiving comments on the draft decree establishing the regulatory sandbox for the financial sector issued by Colombia’s Financial Regulation Unit (URF, for its acronym in Spanish) on February 5. The sandbox is a controlled space used for testing, and involves a set of rules, procedures, plans, conditions, requirements and prudential requirements in which innovative technological developments to provide new financial services can be tested. The new deadline is February 26, and those interested in submitting their comments can do so by clicking here.
At international level, this kind of controlled space used to test technological innovations affecting the provision of services and activities in the financial sector is known as a regulatory sandbox. The idea is to promote financial innovation as a tool to improve and expand the supply of services by making it easier for Colombians to access products efficiently, quickly and safely.
The most relevant points marked out for consideration are:
- Certificate of temporary operation. People intending to implement innovative technological developments for financial activities must become an entity and obtain a temporary operation certificate. Participating controlled entities intending to try out activities not included in their licence must also submit an application for temporary operation to the Finance Superintendency. A temporary operation certificate shall be granted for a maximum term of two (2) years as from the beginning of the temporary test.
- Advertising information. All advertising material used by participants to promote and market financial products and services in the controlled test space must comply with the following:
- They must report that products and services offered are part of a controlled test space, accompanying these with a distinctive description for financial consumers explaining that the respective product or service is being offered as part of a temporary test.
- They must report that the entity offering the products and services is doing so under a temporary operating license to try out an innovative technological development.
- They must inform the end date of the project’s operations.
- Inspection, surveillance and control. The Colombian Finance Superintendency shall inspect, watch and check participants working in the controlled test space