On March 2nd, the Executive Branch issued Decree 415/2018, which introduces changes to the adequate patrimony for the fiduciary companies. The measure states that this type of companies must permanently maintain and prove adequate levels of patrimony to the Financial Superintendence of Colombia.
The decree establishes that “companies must comply with at least the solvency ratio”. For this purpose, the solvency ratio is defined as the value of the technical assets divided by the assets according to the level of risk, one hundred ninths (100,9) of the value at market risk and one hundred ninths (100,9) of the exposure value to operational risk. The minimum solvency ratio will be 9 percent.
The main objective of the measure is strengthen the solvency relations of the entities acting as third-party asset managers. It also implies the proper management of the resources that they manage from their position.