Mexico's Regulatory Sandbox In 2020
Mexico is currently in the 59th position of the Most Innovative Countries in the World in 2019 according to the Spectator Index. This in itself is wrong. One thing we know is our county is full of every day innovation. Innovation for the average Mexican citizen to succeed each day of hard work, complicated and tiring commutes, lack of modern infrastructure, some corrupt authorities and a lower than average feeling of security. This is a hard atmosphere to work around and every day, every week, every month, every year, we see the Mexican people adapting to find themselves in a better position to serve their loving interests. This is, without a doubt, social innovation and this is the fabric of our Mexican society.
Our 1 year old Administration, through the Comisión Nacional Bancaria de Valores (CNBV), is aggressively promoting Mexico's first regulatory sandbox in 2020, and with this, Mexico's innovative spirit in the Fintech Sector. The purpose of the financial regulatory sandbox is to promote effective competition in the interests of consumers by allowing firms to test innovative products, services and business models in a live market environment, while ensuring that appropriate safeguards are in place. The sandbox, which was introduced by the UK's Financial Conduct Authority (FCA) regulatory sandbox report in November 2015, and was implemented in June 2016, has been an innovative experiment for both the FCA and the firms testing it in the UK. Since then, the concept has been widely used and adopted around the world.
In Mexico, the financial regulatory sandbox was first introduced when became effective the Financial Technology Institutions Law (Ley para Regular las Instituciones de Tecnología Financiera). The Mexican sandbox consists in a trial period of up to 2 years, wherein the innovative financial services providers have to evidence tangible benefits resulting from their launched products and/or services. If such providers duly show the success behind their products and/or...
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