Of FinTechs and Regulatory Sandboxes – Field Report by Law Student Esra Eroglu
“As a member of the Law Schools Global League (LSGL), EBS Law School and its students have numerous opportunities to collaborate with renowned international law schools. For example, FGV São Paulo awarded 25 scholarships to students from LSGL partner universities for its 4-week seminar “FinTech & Law”, which took place for the second time and in digital form in 2021.
The fact that the seminar was offered at FGV São Paulo, of all places, is no coincidence: São Paulo is the financial center of Brazil and at the same time a city where, especially during the Corona pandemic, major developments took place regarding the general population’s access to financial and insurance services. Thus, the faculty and the invited experts have their finger on the pulse regarding current technical developments in the financial world. However, the courses did not only focus on the Brazilian legal and financial system, but also on international developments in financial markets and the accompanying legal adjustments.
The topics covered what FinTechs are, how technical innovations are playing an increasingly important role in insurance services in the form of InsurTechs, data protection aspects and legal regulatory approaches. The teaching sessions were held in the form of video lectures, interactive Zoom sessions and expert discussions. Especially in the interactive Zoom sessions, group work phases provided opportunities to exchange ideas and socialize with fellow students. This was particularly enriching because the participants came from all over the world and one thus gained impressions on opinions from the most diverse legal backgrounds.
Among the high-profile lecturers was Carlos Eduardo de Almeida from the Central Bank of Brazil, who spoke at the last event about dealing with new regulations for financial technologies. The Central Bank promotes and facilitates so-called regulatory sandboxes, where FinTechs are granted relief from existing legal regulations, allowing financial technologies to develop, mature and test new ideas and opportunities in an innovation-friendly framework. The innovation potential of technical developments for the financial and insurance market is actively promoted in Brazil.
Overall, the participation in the seminar “FinTech & Law” was not only professionally enriching in terms of current developments and innovations in the financial market, but also a valuable digital experience abroad, where I could interact with lawyers and students from all over the world. This gave a small insight into different regulatory systems in the context of new developments and at the same time I learned that for some new phenomena all legal systems are confronted with similar problems and regulatory possibilities and that these can be tackled together.”