Giulia Keese Montanhesi
Lawyer at Marcos Martins Advogados
Published on October 26, 2020, CMN Resolution No. 4,865 establishes the guidelines for the operation of the Controlled Test Environment for Financial and Payment Innovations (Regulatory Sandbox) and the conditions for the provision of products and services.
Among its directives are the concept of the Regulatory Sandbox, its objectives, the Central Bank’s prerogatives and rules on participation in the regulatory sandbox.
The regulation also clarifies that the Central Bank of Brazil may, at any time, cancel a participant’s authorization ex officio as a result of:
I – non-compliance with the terms of the authorization to participate;
II – an increase in excessive risks to clients and users, as well as to the financial system;
III – failure to prove the origin of the funds used to develop the innovative project;
IV – failure to meet the deadline for putting the innovative project into operation;
V – replacement of the participant’s controller or administrator without prior authorization from the Central Bank of Brazil;
VI – failure to prove the unblemished reputation of the controller or substitute administrator; or
VII – excessive complaints from users of the products and services provided by the participant.
The regulations and the Regulatory Sandbox are welcomed as important tools for stimulating innovation and the diversity of business models in the National Financial System and the Brazilian Payment System.
