Canada    FinTech Guide    Chapter 7    Uruguay


7. Loan Services / Factoring / Loan Broking / Finetrading
Uruguay  Uruguay

There are no social or political reservations



Legal Affairs


This activity may be encompassed under a specific license called Peer to Peer Lending Platform Administrators (“Empresas Administradoras de Plataformas para préstamos entre personas”) (hereinafter, the “P2P Platform Administrators”).The P2P Platform Administrator is defined as the entity that administrates a web application or other electronic platform designed for peer to peer money loans. Such entities only mediate (“mediación“) between the loan offerors and the loan offerees.

In order to obtain a license, a P2P Platform Administrator must file the following information:

Corporate information (as commercial name, address, taxpayer number, website among others) notarized copy of the by-laws, information regarding the legal representatives, information of its shareholders and senior personnel; information regarding the person or legal entity who has the effective control over the P2P Platform Administrator, affidavit with signature certified by a notary public stating the legitimate origin of the capital, AML Manual describing the integral system for the prevention of money laundering and financing of terrorism, and a detailed description of the activity to be developed, structure of the organization and a description of its information technology structure as well as of the procedures established to perform its services, templates of the agreements to be entered with its clients, a description of the services to outsource that are essential for the operation of the company, attaching the model contracts to be signed and the constitution of a guarantee before the CBU (deposit).

Please note that there is no registration fee.

We estimate that the total process to complete the registration before the CBU is approximately between six (6) to nine (9) months, though the timing will depend on the complexity of the structure, information and documentation submitted, etc. There is no statutory term.



Economic Conditions


Some of companies like Prezzta and TuTasa were present in this market. However, after the CBU issued the P2P Platform Administrator regulation the activity was in general discontinued (due to the regulations being too burdensome).



Miscellaneous


Regarding in general the activity of lending funds (which would include in general the activities mentioned in the question) there are no special requirements or procedures that need to take place in order for non-banks to be authorized to provide financing. As mentioned in “5. / Uruguay / Miscellaneous” above, under current Uruguayan regulations, any natural person or legal entity, may provide financing to local or foreign companies without being necessary to comply with any particular authorization, licensing or registration procedure, provided that in that case the person providing such financing is not deemed to be carrying out financial intermediation. To such effects we refer to our comments included in “5. / Uruguay / Miscellaneous” above, which refer to the source of funds. Provided that the source of funding is from any of the categories mentioned, not licensing or registration would apply. On the other hand, regarding these type of activities (including in particular, finetrading where they buy due receivables and grant the debtor an extension of payment time), it should be analyzed on a case by case basis if the purchase of such receivables does not amount to investing in a type of security and therefore that no public offering regulations are triggered which will require the issuer and security to be issued before the CBU. In this regards also please refer to “5. / Uruguay / Miscellaneous” above.



Contributing Authors

Guyer & Regules

Federico Susena
Montevideo, Uruguay


John Leaman
Montevideo, Uruguay

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 August 2019