- The regulatory project provides a regulatory and supervisory framework appropriate to the new digital context, ensuring that innovation is safe and benefits citizens
- The Draft Law includes the creation of a sandbox, or controlled testing space
- Spain thus joins the countries at the forefront of technology that have similar systems to accompany the digital transformation of the financial system, in line with the recommendations of international institutions
The Council of Ministers has approved the Draft Law for the digital transformation of the financial system. The project establishes an adequate legal environment to ensure that the innovative process is developed efficiently and safely for users.
The Draft Law is a definitive impulse to advance the latest administrative procedures and fulfill the commitment that the Government acquired to support the implementation of the sandbox, which involves the creation of a controlled testing space.
The measures included aim to ensure that the financial authorities have optimal instruments to continue fulfilling their supervisory and regulatory functions in the new digital context, as well as facilitating the innovative process to contribute to better access to the financing of the sectors productive, more efficient financial services and greater talent acquisition in a highly competitive international environment.
This initiative responds to the conviction that the digital transformation of the economy is a phenomenon of structural change that requires an active involvement of public authorities, ensuring that changes occur in an orderly manner and consistent with the principles and values that define interest general.
Spain thus joins the countries at the forefront of technology that have similar systems to accompany the digital transformation of the financial system and responds to the recommendations of various international institutions and forums.
Among the measures included in the draft, it stands out The creation of a sandbox. A safe environment is established in which technological innovations in the financial field can be tested before commercialization, under strict supervision of supervisors and with maximum guarantees for participants. It is primarily conceived as an instrument that will facilitate adaptation to the process of digital transformation of both public and private actors. In particular, it will be an instrument to improve supervision and also to match financial legislation with digital transformation.
Regarding the access regime, a one-stop-shop system is established for the presentation of projects by technology companies, financial institutions, research centers or other interested promoters. The projects submitted must be sufficiently advanced and demonstrate that they provide added value in aspects such as the improvement of regulatory compliance and the protection of customers, the increase in efficiency or the improvement of quality in the provision of financial services.
The normative proposal includes other measures such as the application of the principle of proportionality between activities and risks in the financial field, which guarantees that the requirements required are proportional to the risks associated with each activity, ensuring equal treatment to all entities.
It drives the agile communication with the authorities and legal certainty, through a direct communication channel between companies and financial authorities and a mechanism for consultation on doubts in the application of the legislation.
The normative text establishes a system of accountability, by sending an annual report to the General Courts on the digital transformation of the financial system. This report will not only make it possible to communicate the actions of the different authorities in the matter, thus increasing transparency, but will also be a valuable source of information for the permanent updating of the legislation in the light of the incidence of new developments. An annual report on the application of new technologies to the supervisory function itself is also planned.
Finally, the international cooperation mechanisms Spain in the matter, contemplating the possibility of establishing agreements between authorities of different jurisdictions to use in common the mechanisms provided by law.