Private banks filed a protection action against the resolution on electronic money

The Association of Private Banks of Ecuador (Asobanca) filed a Constitutional Protection Action against the Resolution of the Superintendency of Market Power Control (SCPM) regarding electronic money; this was informed by this guild on Tuesday, December 20, 2016, through a press release.

On December 14, the First Instance Resolution Committee (CRPI) of the Superintendency of Market Power Control (SCPM) issued a resolution to force 14 private banks to join the electronic money platform within 30 days. If they fail to comply, they will be punished with up to 8% of their profits volume.

According to the agency, the decision is a precautionary measure for alleged unfair practices of banks. However, eight hours after the resolution was communicated, the Monetary and Financial Regulatory Board disavowed the action.

Asobanca stated that after analyzing the Resolution issued by the CRPI on the position of Asobanca and its partners against electronic money, Asobanca filed a Protection Action.

The measure seeks to: “protect their constitutional rights to freedom of expression, due process, and legal security, among other reasons due to the lack of competence of the Superintendency to regulate acts already governed by other state bodies such as the Board of Monetary and Financial Policies and Regulation.” The proposed Protection Action, according to Asobanca, seeks to demand the courts to” suspend the application of the act issued by the Commission and subsequently leave it without effect.”