On July 2, the Superintendency of Banking, Insurance and Private Pension Funds (SBS, for its acronym in Spanish) issued SBS Resolution No. 1747-2020 which extends the deadline for filing complaints against securities held by entities subject to SBS control. The SBS has also issued a bill opening up the Financial System Market Conduct Management Regulation for public consultation. Interested parties may submit their comments until July 8, 2020.

Resolution 1747 states that this procedure may be applied to any security that, as of March 11, 2020, involved a valid period which could have been objected, but this did not happen as a result of the State of Emergency. The measure may be extended to cover all securities dated August 7, 2020. 

In other news, the SBS proposed the Regulation of the Financial System Market Conduct Management Regulations to establish the minimum requirements to be implemented by financial entities wishing to charge interests or other costs additional to those originally agreed, as well as ensuring their clients receive adequate information regarding their nature, benefits and risks. 

Likewise, the regulations detail the abusive practices prohibited when providing financial products and services. In this context, companies must designate a person responsible for the implementation of these issues, which will be subject to verification by the Market Conduct Officer.