October 16, 2018

Equity requirements for Fintech

Fernando Eraña Carlos Eduardo Ugalde

The provisions published on September 10th, in the Mexican Official Gazette (the “Provisions”) mention the minimum equity requirements a fintech must comply with, depending on the activities they intend to carry out, pursuant to the following:

Collective Financing Institutions Electronic Payment Funds Institutions
One type of Operation according to the following:

  • Collective Financing Institutions: debt, capital or co-ownership or royalties.

 

  • Electronic Payment Funds Institutions: authorized to perform operations in national currency and no other additional operations.

500,000 UDIS

(approx. $3’050,000 MXN)

500,000 UDIS

(approx. $3’050,000 MXN)

Two or more types of operation

700,000 UDIS

(approx. $4’270,000 MXN)

700,000 UDIS

(approx. $4’270,000 MXN)

Virtual assets, operations with foreign currency

700,000 UDIS

(approx. $4’270,000 MXN)

700,000 UDIS

(approx. $4’270,000 MXN)

Operate, design or market financial instruments derivatives that have virtual assets as underlying assets.

700,000 UDIS

(approx. $4’270,000 MXN)

700,000 UDIS

(approx. $4’270,000 MXN)

Clearinghouse in the networks of means of disposal N/A

700,000 UDIS

(approx. $4’270,000 MXN)

Regardless being authorized to perform only one type of operation, fintech that have obtained the registration of their debt securities in the National Securities Registry of the CNBV must comply with a minimum equity of 700,000 UDIS (approx. $4’270,000 MXN).  Also in the event an authorized fintech desires to modify its number of operations, it must perform the appropriate corporate amendments and comply with the minimum equity requirements according to its modifications as applicable.

Finally it is important to note that companies that desire to incorporate as fintech must bear in mind that the abovementioned minimum equity requirements must be subscribed and paid in no later than the last working day of the year in which the authorization is obtained.

If you have questions regarding these rules please contact Fernando Eraña (ferana@solcargo.mx) or Carlos Ugalde (carlos.ugalde@solcargo.mx).

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