After having conducted an analysis of fintechs and their regulatory framework in Ecuador, it is necessary to address one of the services they offer; on this occasion, electronic payments and deposits. On May 10, 2024, the Financial Policy and Regulatory Board issued Resolution No. jprf-f-2024-0109 incorporating the rule regulating Specialized Electronic Deposit and Payment Companies in the Codification of Monetary, Financial, Securities and Insurance Resolutions, Chapter LXIII.
This section details the requirements for the incorporation of a Specialized Electronic Deposit and Payment Company (SEDPES). Parameters are established regarding the type of commercial company, the corporate purpose and the capital. SEDPES are fintech companies whose purpose is to provide financial services, in this case, to facilitate payments and the transfer of funds between users through electronic programs or platforms. In addition, they can send and receive financial drafts. In order to operate, these companies must be incorporated in accordance with Ecuadorian regulations and the authorities of the industry.
On May 10, 2024, the Financial Policy and Regulatory Board issued Resolution No. jprf-f-2024-0109 incorporating to the Codification of Monetary, Financial, Securities and Insurance Resolutions, Chapter LXIII "Rules regulating Specialized Electronic Deposit and Payment Companies". This section details the requirements for the incorporation of a Specialized Electronic Deposit and Payment Company (SEDPES). Parameters are established regarding the type of commercial company, the corporate purpose and the capital.
In this regard, the Board's Resolution establishes that SEDPES must be incorporated as a corporation before the Superintendency of Companies, Securities and Insurance. The same applies to foreign companies that have branches and are domiciled in Ecuador. In addition, the corporate purpose of these companies will be solely the receipt of funds for the exclusive purpose of facilitating payments and transfers of funds through authorized electronic means of payment; and, sending and receiving financial drafts.
As any other company, the SEDPES must be constituted with a subscribed and paid-in capital, thus the Board has established that these entities shall be constituted with a minimum of USD 500,000.00 (five hundred thousand dollars of the United States of America) divided into nominative shares. After its incorporation, it must request operating authorization from the Central Bank of Ecuador, and once it is accepted, the SEDPE and the Superintendency of Banks will be notified of the decision, which in turn will grant its license.
Based on the above, SEDPES are a fundamental part of fintechs and are intended to facilitate financial transactions through electronic platforms. Resolution No. jprf-f-2024-0109 issued by the Financial Regulatory and Policy Board is a clear indication of the progress of electronic financial services and the need for them to be regulated. It is important to keep up to date with the rules that regulate the activities derived from fintech, their issuance will be more and more frequent and will go hand in hand with the advance of new technologies.
If you do not want to miss anything about the law of new technologies, do not hesitate to contact one of our professionals. You can write to us at info@iurenovum.com ktorres@iurenovum.com.
