Mexico Prepares Regulations for Debt & Equity Crowdfunding
Monday, May 2, 2016
This past week the Comisión Nacional Bancaria y de Valores (CNBV) published their 7th National Financial Inclusion Report (Reporte Nacional de Inclusión Financiera). The document (embedded below) spent a good amount of time defining and addressing the various forms of investment crowdfunding. The document was published in advance of expectations that Mexico will soon enact an updated securities regulatory regime to embrace internet finance.
Speaking at the 79th Convención Bancaria this past March, Senior Jaime González Aguadé, President of the CNBV, commented on the pressing need to adjust to changes across the financial industry;
“the advance of technology is evident every day with the entry of new players with innovative ideas and hybrid solutions. As an example, we have the new digital portfolios, recent payment solutions or industry collective financing (crowdfunding).”[translated from Spanish]
One of the main objectives of the CNBV is financial reform as outlined by the current government. Much of this reform is in regulatory changes designed to improve the financial sector.
The report predicts that crowdfunding in Mexico will grow in line with global expectations specifically in regards to SME finance. Mexico, as many other countries will understand, struggles to provide access to capital for the sector of the economy that needs it most: small businesses. The advent of raising capital online correlates directly with the rapid growth of internet access.