Digital markets, funding and payment services
The Fintech Law regulates crowdfunding and expressly allows for different models such as peer-to-peer lending and collective investment schemes. Crowdfunding companies may operate debt investment schemes, equity investment schemes, co-ownership and royalty investment schemes.
The Fintech Law does not allow crowdfunding entities to securitise or trade loans in secondary markets. Furthermore, the Fintech Law provides that crowdfunding companies cannot take loans or issue securities whenever those loans or securities are issued to 'share risks' with investors.
As mentioned before, crowdfunding and e-money companies need a licence that will be granted at the discretion of the CNBV, prior to the approval of the Inter-institutional Committee.
Licensed crowdfunding companies may only engage in the following activities:
- receive and publish the requests of crowdfunding operations of borrowers or targets and their projects through its interface, website or electronic or digital communication means used to perform its activities;
- provide information to the potential investors so that they know the characteristics of the requests of crowdfunding or projects;
- enable and allow electronic means of communications between investors and borrowers;
- obtain loans and credits;
- issue securities;
- own or lease real property;
- make deposits in authorised financial companies;
- create a trust required to comply with their legal purpose (e.g., to segregate funds);
- make investments in complementary, auxiliary or real estate companies;
- perform judicial or extrajudicial collection of credits granted to borrowers by investors, as to renegotiate the terms and conditions of relevant credits; and
- other activities required to comply with their corporate purpose.
E-money companies are only allowed to engage in the following activities:
- issue, commercialise or manage instruments for the disposal of funds of electronic payments;
- provide the service of money transmission;
- provide services related to payment networks;
- process information related to payment services;
- grant credits or loans only as overdrafts of the accounts they administer;
- operate with cryptocurrencies;
- obtain loans and credits of any local or foreign person in order to comply with their corporate purpose;
- issue securities on their own account;
- constitute overnight or term deposits in financial institutions;
- own or lease real property;
- broker with cryptocurrencies; and
- buy, sell or transfer cryptocurrencies on their own account.
As mentioned above, sharing information rules will be subject to secondary regulations that shall be drafted and issued, in the future, by the Supervising Commission and Banxico. The Fintech Law provides that fintech companies (among the other entities mentioned within the law) will be obligated to execute an agreement with transferees and set forth therein that they (transferees) will be required to allow audits by fintech companies to verify compliance with the Fintech Law. Fintech companies will be required to report the results obtained of such audits to the Supervising Commission and Banxico.
In addition, the Fintech Law provides that CNBV will be the authority in charge of issuing general provisions related to information security, which shall include confidentiality policies and registry of accounts related to transactional movements, the use of private or public technological means or other systems for processing of information that will apply to crowdfunding companies. In the case of e-money companies, the foregoing provisions are issued by the CNBV in conjunction with Banxico.
Fintech companies are required to retain information in a physical or electronic format for minimum terms of 10 years.