Please find below the latest news on Colombia’s law for supervision of financial conglomerates put into force.
Law 1870, regarding the definition and supervision of financial conglomerates, entered into effect in Colombia this Wednesday, February 6, 2019. As such, the Colombian Superintendence of Finance (SFC) has begun the process of supervision to 13 financial conglomerates in the country, of which five are local and eight are foreign.
The control and monitoring entity set the dates for the different stages of the supervision scheme to take place, establishing February 8, 2019 as the term for parent companies or financial holdings to certify their corresponding capital.
Likewise, in a year’s time by February 6, 2020, financial holdings must identify the quality of firms linked to the conglomerates and have policies and exposure limits, as well as guidelines for managing conflicts of interest between entities of the conglomerate and its affiliates.
According to the SFC, Law 1870 of 2017 provided the entity with the necessary powers to ensure an adequate level of capital that is consistent with the risks assumed by the financial conglomerate and the entities that comprise it, promote adequate risk management in financial conglomerates and maintain appropriate corporate governance standards, among others.
“These new tools raise the level of comprehensive and consolidated supervision of the SFC to the highest international standards,” stated the organisation.
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