Executive Modifies Brokerage Agent Regulations
17 enero 2020

On January 11, the Executive Branch, through Resolution No. 005-2020, modified Article 166 of the Regulations on Brokers, establishing that agents will automatically enter a liquidation process when the Securities Market Superintendency (SMV, for its acronym in Spanish) revokes their operating license. The SMV will designate a legal entity to act as the liquidator through a public contest, while the settlement process will take place once the SMV revokes the agent’s operating license and they fulfil the following conditions:

  • Verification to the SMV’s satisfaction that there are no outstanding transactions, assets owned by customers, nor outstanding obligations to customers.
  • If administrative or legal proceedings have not yet been brought against the agent during the six (6) months following the issuance of the respective resolution to revoke the operating license, they may request that the SMV appoint a liquidator.

The SMV must accept or refuse the request to appoint a liquidator within thirty (30) days of the application being filed, designating in the latter case a person from a shortlist of three, better able in its opinion, to guarantee the best liquidation process possible.