Fintech Law Series: Intermediation of Financial Instruments

Regulatory Framework

• Fintech Law 21.521: General framework governing technology-based financial services

• General Rule No. 524 (NCG N°524): Regulation that specifies the requirements for registration and authorization

Checklist: Are You a Financial Instrument Intermediary?

According to Fintech Law 21.521, your company may qualify if it performs the following activities:

1. Transactions on Behalf of Third Parties

Does your company engage in…?

• Buying or selling securities and financial contracts

• Transactions involving virtual financial assets

• Operations with debt instruments

• Intermediation of intangible goods

Practical Example:

If you buy and sell cryptocurrencies or financial instruments on behalf of your clients, your company likely qualifies under this category.

2. Types of Instruments

Do you operate with…?

• Instruments that generate monetary income

• Assets representing outstanding debts

• Cryptocurrencies and virtual assets

• Structured financial contracts

3. Operating Modalities

Does your service include…?

• Direct representation of third parties

• Proprietary trading for resale

• Management of third-party assets

• Transactions on specialized markets

Key Obligations

If you've identified your company as a Financial Instrument Intermediary, you must:

• Implement systems for operational control

• Maintain detailed records of transactions

• Establish risk management policies

• Ensure transparency in operations

Important Note

The CMF has set February 2, 2025 as the final deadline to register in the Financial Service Providers Registry.

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