The Securities and Exchange Commission (CVM) published CVM Instruction No. 626 on May 15, 2020, which constitutes and establishes the operation of an experimental regulatory environment, called a "regulatorysandbox ".
The sandbox aims to foster entrepreneurship, competitiveness and the development of the Capital Markets, allowing participating entities to test innovative business models in activities regulated by the CVM.
The participant admitted to the sandbox will receive temporary authorization to develop its product, service and/or innovative business model and may receive waivers of regulatory requirements. In return, specific limits and conditions will be set to the performance, which will be monitored by CVM throughout the process.
The benefits expected from the new regulation are: fostering innovation; legal certainty on regulatory issues during the sandbox; reduced cost and time to develop innovative products, services and business models; greater visibility and traction; increased competition; financial inclusion; and enhancement of the regulatory framework.
CVM Instruction 626 will come into force on June 1, 2020.
To access CVM Normative Instruction 626, click here.
The Capital Markets team of Barcellos Tucunduva Advogados is available to clarify any doubts related to the above topic, at [email protected]
