General provisions of CONDUSEF

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The Commission for the Defense of the Users of Financial Services (National Commission for the Protection and Defense of Financial Services Users (Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros)) ("CONDUSEF") issues the General provisions of CONDUSEF regarding transparency and sound practices applicable to financial technology institutions.

On July 9, 2019, CONDUSEF published in the Official Gazette of the Federation (Official Journal of the Federation) ("DOF") the General provisions of CONDUSEF regarding transparency and sound practices applicable to financial technology institutions ("GeneralProvisions FTI").

In this sense, the General Provisions FTI aim to regulate financial technology institutions ("FTIs") in the matters of:

• I. The standard-form agreements used by the FTIs;

• II. Termination of transaction that have been entered into through standard-form agreements used by the FTIs;

• III. The updated information regarding amounts, terms and periodicity of the FTI commissions;

• IV. Statements and operating statements of the FTIs;

• V. Proof of operation of the FTIs;

• VI. Advertising carried out by the FTIs on the characteristics of their products and services;

• VII. Platforms that use FTIs to offer their products and financial services with their users; and

VIII. Activities that deviate from standard practices and uses related to the offering and commercialization of transactions by FTIs.

It is important to bear in mind that since the FTIs are already actively operating within the Mexican Financial System, CONDUSEF has taken the necessary measures and actions to start issuing secondary laws that allow regulation in transparency of the services and products offered to the public.

Finally, the General Provisions FTI will enter into force within 180 calendar days of their publication in the DOF.

The lawyers of the banking, financial practice and of the Capital of Innovation, Technology and Emerging Companies Group are at your service to answer any doubt regarding the content of this informative note.

SINCERELY,

Mexico City, July 15th, 2019.