On July 7, the Colombian Financial Superintendency (SFC for its acronym in Spanish) published two circular communications on investment valuation and operational risk. Please find below the most relevant aspects of these measures:
Circular 24 and its annexed document provide guidelines for the market price provisioning activity and investment valuation of controlled entities. The idea is to modify the obligations of price valuation suppliers and of valuation committees. It also seeks to include a response mechanism for supervised entities in the event of calculation errors or flaws in the information provided by their official supplier. The first article of the regulation will come into force on January 1, 2021, while the second article is already in force.
Circular 25 and its annexed document update instructions on operational risk management regulating supervised entities. Its purpose is to adapt current regulations to international standards and best practices in accordance with the Basel Committee on Banking Supervision, known as Basel III. This introduces changes in the solvency margin and other equity requirements. The regulation is already in force.