Daniela Karen Morales González José Antonio Casas Vessi Sofía Rojas Cuellár November 8 2022 Changes to CONDUSEF registration obligations Ramos, Ripoll & Schuster | Banking & Financial Services - Mexico Daniela Karen Morales González, José Antonio Casas Vessi, Sofía Rojas Cuellár Banking & Financial Services What is the purpose of the provisions?What is the PUR?What is the scope of application of the provisions?What passwords do financial institutions need in order to enter the PUR?What aspects must be considered when using the PUR?What is the SINE?What is the SIGE?What is the CONDUSEF's API?When do the provisions become effective?On 14 October, the National Commission for the Protection and Defense of Financial Services Users (CONDUSEF) published the Provision on Registration in the Federal Official Gazette. These provisions introduce changes in the way financial institutions must comply with their registration obligations with the CONDUSEF.What is the purpose of the provisions?The purpose of the provisions is to ensure that all the information management of the different registries and systems administered by the CONDUSEF are incorporated into a single platform. To that end, the provisions provide for the following improvements:regulating the organisation and operation of registries and systems by creating a single registry portal (PUR);establishing a prior procedure for the registration of the unregulated multiple purpose financial companies (SOFOM ENR);establishing the CONDUSEF's competence in administrative procedures;determining the operation and function of the electronic notification systems (SINE) and electronic management systems (SIGE); andregulating the publication of penalties.What is the PUR?It is the platform enabled and managed by the CONDUSEF, for financial institutions to comply with their registration obligations. The registries and systems that may be accessed through the PUR are:the adhesion contracts registry (RECA);the insurance adhesion contracts registry (RECAS);the commissions registry (RECO);the collection offices registry (REDECO);the basic insurance rates registry (RESBA);the specialised units information registry (REUNE);the public registry of users (REUS);the SIGE;the SINE;the financial services providers registry system (SIPRES);the fintech user platform (PLUF);the bureau of financial institutions for the entry of fact sheets (IFIT);the telephone conciliation; andthe public offerings registry.What is the scope of application of the provisions?The provisions apply to financial institutions according to the following categories:financial institutions include:the PUR;the SINE;the SIGE;the SIPRES;the REUNE;the IFIT; andthe REUS; andSOFOM ENR include pre-registration and the SIPRES;insurance institutions include the RECAS and the RESBA;banks, SOFOM ENR, SOFIPO, SOFICO, SOCAP, credit unions, ITF and financial institutions acting as trustees in trust that grant credit, loans or financing to the public include the RECA and the REDECO; andSOFOM ENR, SOFIPO, SOFICO, SOCAP and credit unions include the RECO.What passwords do financial institutions need in order to enter the PUR?The CONDUSEF will assign two types of passwords to access the PUR:the CONDUSEF institutional identity password – this is the password provided to the financial institution by CONDUSEF; andthe CONDUSEF identity password – this is the password given to the attorney-in-fact, representative, officer and/or employee designated by the financial institution.Both passwords will be used to enter the PUR and comply with the obligations of the different registries and will also be the means to externalize their consent in the acts they present with the CONDUSEF. Financial institutions that are already operating and have been assigned user codes and passwords before the publication of the provisions in the Official Gazette of the Federation will continue to be in force for compliance with their obligations. The request, assignment and activation of the passwords will depend on each financial institution.What aspects must be considered when using the PUR?Financial institutions must consider the following:The CONDUSEF will issue an electronic acknowledgment of receipt.The timetable for notifications from registries, systems and/or the SINE will be from 09:00 to 18:00 hours on business days.When the deadlines for sending, filing or compliance are computed in days, the deadline will be until 23:59 hours of the day of its expiration for the conclusion of that day.Financial institutions will verify the authenticity of the documentation and if necessary and may make the documentation submitted available to the CONDUSEF.The documents entered through the PUR will be digitally encrypted incorporating a digital seal, with an advanced electronic signature.What is the SINE?It is the communication system enabled by the CONDUSEF in which financial institutions must send electronically the following procedures:promotions;requests or fulfilments; orother requests.What is the SIGE?It is the electronic management system implemented by the CONDUSEF, as a means of communication to receive and process disputes submitted by users. Financial institutions must deal with such disputes. Financial technology institutions will manage complaints through the PLUF.What is the CONDUSEF's API?The CONDUSEF will implement an application programming interface (API) with the objective of not duplicating information and making its exchange more agile within the REUNE and the REDECO. Therefore, financial institutions are obliged to enable the API, and the above will be mandatory when the CONDUSEF makes the API available to financial institutions. Meanwhile, the obligation will be performed through the REUNE and the REDECO.When do the provisions become effective?The provisions became effective on 17 October. However, financial institutions will have different deadlines for the implementation of such changes, according to the characteristics of each. These deadlines range from October 2022 to October 2024.For further information on this topic please contact Daniela Karen Morales González, José Antonio Casas Vessi or Sofía Rojas Cuellár at Ramos, Ripoll & Schuster by telephone (+52 55 1518 0445) or email ([email protected], [email protected] or [email protected]). The Ramos, Ripoll & Schuster website can be accessed at www.rrs.com.mx.