On 11 July 2018, the Spanish Ministry of Economy published a draft law which will regulate a regulatory sandbox for fintech projects – view here
The regulatory sandbox will allow performing tests in a controlled environment for those projects which have a financial innovation aspect together with a technological component.
Once admitted to the regulatory sandbox (a prior assessment is made for admission), a test protocol will need to be entered into between the sponsor of the project and the relevant competent authority, which will regulate the conditions under which the tests on the project will be developed.
After the tests have been performed, the sponsor may request regulatory approval to undertake the regulated activity and, in some cases, the statutory period for granting regulatory approval may be reduced to half of the period.
Together with the regulatory sandbox, the draft law contains a regime for submission of written queries on Fintech projects to the competent authorities. The responses to such queries will be binding for the competent authorities.
The draft law is open to public consultation until 7 September 2018.
Ricardo Plasencia joined DLA Piper as Legal Director in the Corporate Department in February 2015. Prior to that, he was Managing Associate in the Financial Regulation Group of International Law Firm where he spent four and a half years. Earlier in his career he worked another International Law firm, in the Spanish Securities Markets Authority (Comisión Nacional del Mercado de Valores) and in PwC.