In accordance with the institutional objectives defined by the Central Bank of Uruguay, the Superintendency of Financial Services prepared its new Strategic Framework, aligned with the institutional objectives.
According to this framework some of its duties include, but are not limited to, developing regulations aligned with international best practices that constitute a system of appropriate incentives aimed at achieving good management of supervised firms, greater efficiency and transparency of markets, and fair treatment to users of the financial system.
One of its objectives is to implement systematic and continuous improvement mechanisms of relevant processes, among which is the issuing of regulations. For this, the Superintendency of Financial Services has implemented a quality management system based on international standards ISO (UNIT-ISO 9001: 2008), under which the process of issuing regulations has obtained quality certification according to the standard mentioned.
The issuance process approved by the Superintendency, which is based on the powers that are conferred by the Charter of the Central Bank of Uruguay, seeks that the regulations to be issued are of good quality and meet the above mentioned aspects.
The process comprises different stages that are summarized below.
It is worth stressing that taking into account certain factors, such as the impact of the standard to be issued, some of these stages may not be carried out.
1. Assessment of an initiative standard
The process begins by assessing an initiative standard emerging from the Annual Plan of Regulations or amendments thereto. Studies are performed on the applicable legal and regulatory national framework and Central Bank regulations that relate to the issue. The regulation under study is then compared with those of other countries with similar markets to see how they address the issue. If applicable, and in order to seek consistency with best practices, the recommendations issued by international organizations are evaluated. Based on these elements, a preliminary regulatory proposal is made.
2. Control systems and impact analysis
Once the preliminary regulatory proposal is structured, the sectors involved design the corresponding control mechanisms, and an impact analysis is performed, estimating the potential costs, benefits, and risks that the regulation could have.
3. Consultation with industry
The proposed regulation is disclosed to the industry, other stakeholders, and the general public, granting a deadline for receiving comments. An assessment of the comments received is performed and, if considered appropriate, the project is amended in line with the feedback, thus an adjusted proposal for the regulation is prepared (it is possible that if there are too many changes introduced, it may be required to hold a new public consultation).
4. Verification and validation
The proposed regulation is subject to different internal and external verification and validation procedures throughout the process.
Control mechanisms are developed and implemented, and tests are performed to verify proper operation prior to the date scheduled for the regulation coming into force.
Upon completion of these stages, a regulation that is approved by the authorities is achieved.
Finally, disclosure of the approved regulation is done through the institutional website, the supervised entities are notified, and the Regulatory Digest is updated (Recopilacion de Normas in Spanish), facilitating access of the text to all stakeholders.