On May 27th, the National Commission for the Protection and Defense of Users of Financial Services ("CONDUSEF") sent a draft to the National Commission for Regulatory Improvement ("CONAMER"), “Regulation on registries before CONDUSEF” (the “Preliminary Draft”) with the purpose to gather in a single normative body the different obligations of the Financial Institutions before the CONDUSEF.[1] You may find the Draft in Spanish here.
- Purpose of the Draft
As previously mentioned, the CONDUSEF proposes in the Draft to repeal the provisions- which currently regulate each of the Financial Institutions and Financial Entities[2] - and which aim to regulate the compliance of obligations of these regulated subjects vis-à-vis the CONDUSEF.
Therefore, the Financial Institutions and Financial Entities must comply with their obligations through the: Single Portal Registries or PUR[3], o en su caso el SINE[4], or where appropriate the SINE , and for such purposes they must use the means of identification known as CICI[5] o CIC[6].
In addition to the above, we highlight certain points that will be gathered and regulated through the Draft:
- The organization and operation of the Registries (as defined and explained below) and systems operated by CONDUSEF;
- The way in which Financial Institutions must obtain their registration, submit reports, send and receive notices and provide information to the CONDUSEF;
- The administrative procedures of the CONDUSEF, (i.e. the way in which promotions, applications, reports, notifications electronically, etc.) will be received; and
- Determine the way the CONDUSEF shall make known to the public the sanctions it imposes for violations of the laws or the provisions emanating therefrom.
- What are the Registries?
The Registries established by the CONDUSEF that are indicated in the Draft are: COT[7]; IFIT[8]; RECA[9]; RECAS[10]; RECO[11], REDECO[12]; RESBA[13]; REUNE[14], REUS[15], SIGE[16], SINE[17] y SIPRES[18].
Financial Institutions and Financial Entities must send the information corresponding to these records by sending (i) Reports[19] and (ii) Quarterly Reports[20]; and the presentation of information to meet the requirements that are formulated to them.
- Common features for promotions, requests, Reports, Quarterly Reports, and compliance.
On the other hand, the Draft establishes a series of common characteristics and obligations that will be applicable to all Financial Institutions and Financial Entities, regarding requests, Reports, Quarterly Reports and compliance with the requirements made by the CONDUSEF, so we highlight some of them:
- All promotions, requests, Reports, Quarterly Reports, and fillings to answer the requirements from the CONDUSEF must be sent by electronic signature;
- All promotions, requests, Reports, Quarterly Reports, and fillings to answer the requirements from the CONDUSEF must be sent by electronic signature;
- All promotions will have an electronic acknowledgment of receipt;
- The notifications will be made in a schedule from 09:00 hours to 18:00 hours on business days. Otherwise, they will be considered fulfilled the next business day at 09:00 hours.
- When the deadlines for shipment, presentation or fulfillment are counted in days, it will be until 23:59 hours of the day of its expiration for the conclusion of the same, which will be accredited with the generation of the acknowledgment.
- The obligated subjects must keep at the disposal of the CONDUSEF, all the documents that are entered and/or sent in any of the Registries and systems.
- The documents that are entered through the Registries and systems will be digitally encrypted incorporating a digital seal that will contain the information related to the advanced electronic signature or the means of electronic identification; that guarantees their integrity.
- Sanctions
Now, regarding the disclosure of sanctions, the CONDUSEF will publish in its official website, the information related to the sanctions imposed for violations committed by Financial Institutions and Financial Entities to various regulations[21], and such information will be monthly updated, showing the name, the violated provision, the imposition date, penalty, etc.
Some of the events that may lead to sanctions by the CONDUSEF are the following:
- Failure to comply with the obligations related to providing information to integrate and keep UPDATED the SIPRES: fine of 200 to 1000 days of salary.
- Failure of Multiple Purpose Financial Companies to obtain their registration with the CONDUSEF: fine of 200 to 1000 days of salary.
- Failure to send the Quarterly Report of the REUNE in the first 10 (ten) business days of the months of January, April, July and October: fine of 500 to 2000 days of salary.
It is important to highlight that the Draft does not regulate that if an obligated subject who has been sanctioned by the CONDUSEF and has been published in such official website, it may be deleted from the registry.
- Relevant transitories
It is important to mention that the Draft is subject to public consultation on CONAMER’s website, however, if published in accordance with the current text, the following transitories will be observed:
- (i) The fulfillment of the obligations of SINE and SIGE, that is, promotions, requests, reports, or compliance with requirements of the CONDUSEF as well as to receive notifications of Electronic Actions, and the reception of Controversies presented by the Users, through an Electronic Management procedure, will enter into force as of September 30, 2022.
- Obligations related to SIPRES; REUNE; RECA; REBSA; RECAS; RECO, BURÓ, REUS and Registry of Public Offers, will enter into force on January 1, 2023.
- The obligations of the Financial Entities for the registration and attention of Complaints and the bad collection practices of the Financial Institutions, will enter into force on January 1, 2023.
- Financial Institutions that have user and password keys and, where appropriate, with Electronic Identification Means referred to in the general rules for receiving promotions and making notifications by electronic means, may continue to use them for compliance with the obligations of SIGE and SINE, until September 29, 2022.
- Financial Institutions that at the entry into force of the Draft have user keys and passwords, may continue to use them for the fulfillment of the obligations of SIPRES, REUNE, RECA, RECAS, RESBA, RECO, REDECO, BURÓ, REUS and the Registry of Public Offers, until December 31, 2022.
- As of January 1, 2023, the institutional keys granted to Financial Institutions will be disabled, in terms of the General Provisions for the registration of financial service providers, the user keys and password that have originated from them for each of the Registries and systems.
- As of January 1, 2023:
- The following provisions shall be repealed:
- General provisions applicable to Financial Institutions in the field of Collection Offices, except as established in provisions TENTH, TENTH, FIRST and TWELFTH;
FIRST and TWELFTH;
- Chapter II of the Guidelines of the Arbitration System in Financial Matters.
- The following provisions shall be repealed:
- General provisions for the Registration of Insurance Adhesion Agreements;
- General provisions for the Registration of Adhesion Agreements;
- General provisions for the registration of financial service providers;
- General provisions for the registration of commissions, the Total Portfolio and Number of Agreements, which must be carried out by Financial Institutions;
- General provisions establishing the information to be submitted by the specialized units of financial institutions to CONDUSEF.
- Public Registry Rules of Users;
- General provisions for the organization and operation of the Bureau of Financial Institutions;
- Guidelines for the disclosure of sanctions imposed by CONDUSEF.
- The CONDUSEF will have a period of 365 (three hundred and sixty-five) natural days, after the entry into force of the Draft to adapt its regulations internal. Until it is issued, it will continue to apply in what does not oppose the Draft.
Campa & Mendoza
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This document does not constitute legal advice. If you have any questions or comments on the matter, please contact us.
[1] It is understood by Financial institution: in particular or plural, holding companies, credit institutions, multi-purpose financial companies, credit information companies, brokerage firms, investment funds, general deposit warehouses, credit unions, exchange houses, insurance institutions, mutual insurance companies, bonding institutions, retirement fund administrators, PENSIONISSSTE, companies operating the national retirement savings system database, Institute of the National Fund for the Consumption of Workers, cooperative savings and loan societies, popular financial societies, community financial societies, financial technology institutions, and any other society that requires the authorization of the Ministry of Finance and Public Credit or any of the National Commissions to constitute and function as such and offer a financial product or service to Users.
[2] It is understood by Financial Entity: to credit institutions, to financial companies of object multiple regulated and non-regulated, to popular financial companies, to companies Community financial institutions, to cooperative savings and loan societies, to institutions financial institutions acting as fiduciaries in trusts that provide credit, loan or financing to the public, credit unions and financial technology institutions.
[3] It is understood by Single Portal Registries or PUR : To the electronic platform used and managed by the CONDUSEF, so that Financial Institutions enter the Registries of the CONDUSEF, register, update, send Quarterly Reports and Reports, as well as information and are notified, in an automated manner.
[4] It is understood by SINE: : as the electronic communication system between Financial Institutions and CONDUSEF for the reception of promotions, requests, reports or compliance with requirements and electronic notifications, created by CONDUSEF, which allows Financial Institutions access to the Remote Means of Electronic Communication.
[5] It is understood by CICI: : To the Means of Electronic Identification and password provided to the Financial Institution by the CONDUSEF, which serves as access to the Registries and systems of the CONDUSEF, with which it expresses its will in the acts that they present before the CONDUSEF, as appropriate;
[6] It is understood by CIC: : To the Means of Electronic Identification and password that is granted to the proxy, representative, official and/or employee who has designated the Holder of the Institutional CONDUSEF Identity Code, for access to certain Registries and systems, in order to meet the obligations provided for in each of them, with which they express their will in the acts they present to the CONDUSEF, as appropriate.
[7] Telephone reconciliation between Financial Institutions and users.
[8] Computer system that contains information on the provision and offer of products and services of Financial Institutions and is in the PUR.
[9] Registration of Adhesion Agreements.
[10] Registration of Insurance Adhesion Agreements.
[11] Commission Registration.
[12] Registration of Collection Offices.
[13] Registration of Standardized Insurance Commodity Rate Premiums.
[14] Registry by means of which the Financial Institutions report to the CONDUSEF the Consultations, Claims and Clarifications of the users of financial services of financial products or services and their causes.
[15] Public Registry of Users who do not want their information to be used to marketing or advertising purposes.
[16] Electronic Management Process implemented by CONDUSEF, as a channel of communication with Financial Institutions by remote means.
[17] Electronic communication system between Financial Institutions and CONDUSEF for the reception of promotions, requests, reports or compliance with requirements and electronic notifications, created by CONDUSEF.
[18] Registry of Financial Service Providers.
[19] It is understood by Informe: : To the report that Financial Institutions must submit to the CONDUSEF, on a monthly or quarterly basis, in each of the Registries administered by the CONDUSEF.
[20] It is understood by Informe Trimestral: : To the report that the UNE must present to the CONDUSEF regarding the Consultations, Claims and / or Clarifications that they know by any of the Means of Reception, in terms of section V of article 50 Bis of the LPDUSF (Law on Protection and Defense to the User of Services).
[21] (i) Law on protection and defense of the User of Financial Services;; (ii) General Law on Organizations and Auxiliary Activities of Credit;; (iii) Law on Transparency and Promotion of Competition in Secured Credit,, (iv) Law on Credit Institutions;; (v) Law to Regulate Credit Information Societies;; (vi) Law for the Transparency and Regulation of Financial Services;; (vii) Law to Regulate Financial Technology Institutions..
