On January 30, an organic law bill that backs the operations of foreign financial institutions in Ecuador (Read File) was submitted for review to the National Assembly’s Economic Regime Committee. The bill would expand the level of financial operations foreign entities are entitled to carry out. It also seeks to ensure the requirements that these companies must meet to operate in the country are the same as those applying to equivalent national entities. Even though the bill was introduced by a legislator of the ruling party, it is likely to advance slowly as the Committee’s upcoming meetings are set to focus on a bill concerning fiscal transparency in the public sector.
The bill seeks to drive competition in the Ecuadorian financial sector. It aims to stimulate the entry of new foreign entities into the sector by harmonizing the legal requirements applying to national and foreign entities. Moreover, the initiative establishes that all financial entities will be able to provide the same services, and must comply with the same requirements to be incorporated as companies in the country.
The bill was introduced by Isaac Mendoza (Alianza País – ruling party), so it has the support of a sizable legislative bench. However, it will likely advance slowly since it will not be a top priority for the Economic Regime Committee, which instead next week is expected to discuss a bill to promote fiscal transparency in the Executive branch.