COLOMBIA
On May 13, the Financial Superintendency of Colombia (SFC, in Spanish), through Circular No. 009, published instructions regarding the authorization regimes for capital investments of financial holding companies. The rule sets forth the conditions to be met by foreign financial, insurance and securities market entities in order to obtain authorization for direct or indirect equity investments. On the other hand, the President of Colombia, Iván Duque, through Decree N°481, made official the appointment of José Manuel Restrepo as Minister of Finance and Public Credit. The minister is already in office.
- Capital investment authorization regime
Circular 009 states that the total amount of the investment to be made must be less than 10% of the technical equity of the financial conglomerate. In turn, this percentage will be calculated taking into account the total amount of the investment, regardless of whether it is made through one or several operations of any nature, simultaneous or successive, during the 12 months following the initial investment. The technical equity will correspond to the last one transmitted to the SFC, prior to the date on which the first payment of the investment is expected to be made.
In turn, the regulation states that those capital reinvestments intended to be made by financial holding companies with investments in financial, insurance and stock market entities abroad, for profits, which generate an increase in the participation in the capital, will be subject to the general authorization regime. For example, for the payment of dividends in shares or distribution of retained earnings.
- Minister of Finance and Public Credit
On the other hand, Duque made official the appointment of José Manuel Restrepo, replacing Alberto Carrasquilla. The new minister is an economist and finance specialist from Universidad del Rosario. He also holds a Master’s degree in Economics from the London School of Economics, and a specialization in Senior Management from Inalde. In addition, he holds a PhD in Management of Higher Education Institutions from the University of Bath since 2015. Likewise, Restrepo is of conservative line, liberal economic thought, defender of the free market and the strengthening of the private sector.
During the government of former President Ernesto Samper in 1997, Restrepo was manager of financial planning and budget of Fonade, a state entity that structures and finances development projects for the country. In 2002 he was rector of the Business Foundation of the Bogota Chamber of Commerce, and in 2003 he was vice-rector of Universidad del Rosario. He is credited with having promoted the Ser Pilo Paga program, which sought to increase investment in research and infrastructure improvement.