Parties interested in exploiting new insurance models must seek approval from the CNSF. An authorisation is valid for up to two years and can be extended for up to one year. The approval process aims to allow start-ups to offer and test new models without having to fully comply with the applicable legal framework. This allows them to better predict the success of the model without incurring the costs associated with securing and operating a fully licensed regulated entity. On 4 April 2015, the Law on Insurance Institutions and Obligations, published in April 2013 at the initiative of mexico`s National Insurance and Surety Commission (CNSF), entered into force, in order to strengthen, within the legal framework of the insurance and surety sectors, the issues of solvency, Stability and Security, in accordance with international standards and best practices. The legal and regulatory framework applicable to the activity of insurance and suretyship in the country is presented, the objective of which is to regulate the constitution, organization and functioning of the institutions that make up these sectors and other related persons. Daher hat die CNSF kürzlich die Sole Insurance and Bonding Rules geändert, um das Verfahren zur Erlangung einer befristeten Zulassung für den Betrieb als reguliertes Unternehmen im Versicherungssektor unter Verwendung technologisch neuartiger Modelle aufzunehmen. The FinTech Institutions Regulation Act, released in March 2018, allows the National Insurance and Bonding Commission (CNSF) to allow companies to create startups to exploit «new models» (i.e., technology tools or media that do not exist in the market and help provide financial services). In order to obtain an authorization, companies that intend to operate a new model must meet different requirements, including information on: So far, no company has been denied a temporary authorization. If approved, businesses that operate new models can operate without having to comply with certain obligations that apply to regulated financial institutions. In einer von der CNSF erteilten Genehmigung werden die Verpflichtungen festgelegt, von deren Erfüllung ein Unternehmen befreit ist, die sich von denen eines Versicherungs- oder Schuldverschreibungsinstituts unterscheiden.

Among the novelties to be highlighted, the aforementioned law provides for the possibility that entities determine their own Solvency Capital Requirement, according to their level of risk, which they will then submit to the CNSF for approval. The document also regulates other aspects that should be highlighted, mainly related to the management board of the institutions: responsibilities, composition and functions of the board of directors; the appointment of directors; non-delegable powers; the incompatibilities inherent in the position of director; the definition of related parties; the obligation to avoid situations that lead to conflicts of interest; Definition of an independent director as a person who is not only outside the administration of the institution, but who has been proven to have held high-level decision-making positions for at least five years. For more information, please contact Carlos Ramos Miranda of Hogan Lovells BSTL SC by phone (+52 55 5091 0172) or by e-mail ([email protected]). The Hogan Lovells BSTL SC website can be found at www.hoganlovells.com. During the period of its authorisation, a new model should be transformed into a fully financially regulated entity; otherwise, the CNSF will withdraw the authorization. For all these reasons, the implementation of the law has led to major challenges for insurance and surety institutions, which have had two years since its publication to change the way they conduct business, renew and apply their organizational culture at all levels, reform their corporate governance systems and adapt and meet the necessary solvency and information requirements. In order to comply with the above provisions, the law contains certain mechanisms aimed at strengthening corporate governance structures. In particular, in its third title, `On the organisation and corporate governance of establishments`, it provides that institutions must have an effective system of corporate governance which ensures sound and prudent management of their activities, the implementation and monitoring of which are the responsibility of the board of directors. The system shall take into account a transparent and appropriate organisational structure, characterised by a clear division of functions and effective mechanisms to ensure the timely transmission of information. The policies and procedures developed by institutions to design their corporate governance system should take into account, inter alia, the following:.