Gabriela de Ávila Machado
Lawyer at Marcos Martins Advogados
On May 15, 2020, the CVM published CVM Instruction 626, which regulates the creation and operation of the regulatory sandbox. The Instruction comes into force on June 1st of this year.
The regulatory sandbox is an environment specially created to allow innovation tests with a special relaxation of rules, under supervision. Some new products and services are born without it being possible to identify the applicable regulations. This environment allows companies to test innovative business models in regulated activities, reducing the burden of compliance with current rules.
The participating company must have a temporary authorization (see here) and will be monitored by the CVM at all times, which will allow mutual learning and the opportunity for timely action, if necessary, by the regulator.
According to the CVM, some of the expected benefits are: fostering innovation in the capital markets; guidance on regulatory issues during the development of the activities, thus increasing the legal certainty of the participants, reducing the cost and maturation time for developing innovative products, services and business models, among others.
