The Stock Market Superintendency (SMV) has modified the Common Regulations for entities requiring authorization for the organization and operation of the SMV. Resolution 00020-2019-SMV/01 aims to bring about changes in the boards of supervised companies to promote good corporate practices and will enter into force on January 1, 2020.
All entities authorized by the SMV must have a Board of Directors including Independent Directors, who should fulfil the criteria established in the Guidelines for the Qualification of Independent Directors, approved through Resolution SMV No 016-2019-SMV/01. There must also be a Board of Directors Regulation, and a policy clearly delimiting the administrative or governance functions of the Board, and management efforts by the general director and other managers.
The SMV is seeking to establish clear corporate governance standards for those entities granted operational authorization. These include stock markets, brokers, securities clearing and settlement institutions, and mutual investment fund management companies, among others. They must all have a Board of Directors which implements good corporate governance practices. The proposal foresees an adaptation period so that companies can put these provisions into place, due to end on March 31, 2020.
On February 25, the Stock Market Superintendency ( SMV), launched a public consultation, and considered modifications to the regulation over a 90-day period, during which it received observations that were duly analyzed. The resolution will enter into force on January 1, 2020