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Debate: Regulatory Sandbox vs Innovation Hubs

The digital transformation of the financial sector constitutes a regulatory challenge. Many countries have chosen to develop Innovation Hubs to favor technological innovation. It is not the case of Spain that bets by the mechanism known like Regulatory Sandbox, a space of tests extended by the Anglo-Saxon world and controlled by the supervising authorities. In this framework, the FIDE Foundation presents the session “Regulatory Sandbox”, which will take place on Thursday, March 14, 2019, with the aim of analyzing this new playing field.

The draft bill

The Draft Bill of measures for the digital transformation of the financial system has already established the main bases on which the Spanish sandbox would be based. In theory, the Draft is aimed at encouraging innovation and at the same time protecting financial stability and the financial consumer. Thus, it aims to favor collaboration between the public sector, regulator and supervisor, and the private sector, eliminating the obstacles that hinder the development of innovative processes.

This issue, in depth

The session organized by FIDE will address this issue in depth, answering questions such as whether the Innovation Hubs are sufficient or if the Regulatory Sandbox is necessary. For its development, the foundation will have four experts in Fintech and in financial regulation: Martín Huete, Vice President of the Spanish Association of Fintech and Insurtech; Francisco Ramírez Arbúes, Regulatory & Compliance Partner at Deloitte Legal; Víctor Rodríguez Quejido, General Director of Strategic Policy and International Affairs of the National Securities Market Commission (CNMV); and Fernando Zunzunegui, President of Zunzunegui Abogados.

FIDE will question the Regulatory Sandbox

The supposed legal security of the Fintech sector that will guarantee the test bench (sandbox) is another of the topics that will be debated in the session; together with the principle of technological neutrality, the implications for market competition and business freedom. In this way, FIDE will question the Regulatory Sandbox, a model that has been received with open arms by many of the experts, but has also been criticized for being contrary to technological neutrality and not sufficiently protect the financial consumer.

Thus, it presents a debate that will undoubtedly be interesting and timely, at a time close to the approval by the Government of the bill for which Sandbox will begin to be operational in Spain. Anyone interested in attending, under the conditions of registration, should contact FIDE.

Published inFintech
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