The Securities and Exchange Commission (“CVM”) received suggestions until September 27th about the public consultation regarding the sandbox regulatory, an instrument already used in the international market, which aims to promote innovation in the financial and capital markets.

Through this instrument, the CVM may issue temporary authorizations for entities to test new, innovative or differentiated models that do not have specific rules. In this way, the CVM will monitor, advise and impose limits on new activities, but without applying sanctions.

The draft Instruction submitted by CVM establishes the creation of a “Committee of sandbox”, to be composed of employees of the CVM itself, which will be able to establish complementary procedures, enable testing in foreign jurisdictions, in addition to creating eligibility criteria and a term of duration for entities that wish to participate in the sandbox.

At first, the cycle of each sandbox will be for one year and may be extended for the same period.

It is worth noting that the proposal is still preliminary and may undergo several changes, depending on suggestions sent by interested parties.