THE NATIONAL BANKING AND SECURITIES COMMISSION ("CNBV") PREPARES ITS INITIAL RECOMMENDATIONS TO THE LAW TO REGULATE FINANCIAL TECHNOLOGY INSTITUTIONS LAW ("FINTECH LAW").

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The National Banking and Securities Commission (National Banking and Securities Commission) ("CNBV") prepares its initial recommendations to the Law to Regulate Financial Technology Institutions Law (Law to Regulate Financial Technology Institutions) ("Fintech Law").

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Pursuant to Articles 18, 36, 44 and 48 of the Law to Regulate Financial Technology Institutions Law (Law to Regulate Financial Technology Institutions) ("Fintech Law"), which came into force on March 12, 2018, the National Banking and Securities Commission (National Banking and Securities Commission) ("CNBV") must issue general provisions regulating certain matters of the Fintech Law within the six (6) months following the passing of such Law. On July 9, 2018, the CNBV prepared its initial recommendations in that regard, which include (a) the capital limits that the Financial Technology Institutions must maintain, pursuant to the following: (i) the minimum for the Collective Financing Institutions (Collective Financing Institutions) (crowdfunding) equals 210,000 Investment Units (Investment Units) ("UDIs"(approximately MXP$1,266,000.00 or USD$65,000.00), while the maximum equals 630,000 UDIs (approximately MXP$3,800,000.00 or USD$195,000.00); and (ii) the minimum for Electronic Payment Funds (Electronic Payment Fund Institutions) (electronic wallets) equals 1,000,000 UDIs (approximately MXP$6,000,000.00 or USD$307,000.00), while the maximum equals 3,250,000 UDIs (approximately MXP$19,600,000.00 or USD$1,005,000.00); and (b) the risks that Financial Technology Institutions must inform to their potential investors, highlighting the obligation of the Financial Technology Institutions to obtain the written consent of their investors. We consider that the proposed recommendations will be included in the general provisions to be published in September 2018-after such date, the Financial Technology Institutions will have a period of twelve (12) months to conform to the applicable provisions.

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Mexico City, July 10th, 2018