Regulatory Alerts2020-05-15
CVM Instruction No. 626 of May 15, 2020 - Rules for the Establishment and Operation of an Experimental Regulatory Environment (Regulatory Sandbox)
The Brazilian Securities and Exchange Commission (CVM) issued Instruction No. 626 to establish the legal framework and operational rules for a regulatory sandbox in the securities market. The regulation permits participating legal entities to obtain temporary authorizations that waive specific regulatory requirements, allowing them to test innovative business models under strict conditions, limits, and investor safeguards. It outlines a structured admission process, eligibility criteria, proposal evaluation metrics, and ongoing monitoring obligations to foster capital market innovation while mitigating risks and enhancing financial inclusion.
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