On August 10, the Ministry of Finance and the Financial Regulation Unit launched a public consultation on a draft decree concerning securities issuers, with the idea of undertaking a comprehensive review of the information which needs to be provided by securities issuers in order to develop the capital markets and make them more efficient. Parties interested in sending in their comments are requested to complete this form or send an email to [email protected]; [email protected]; and [email protected]. The consultation closes on August 27.
The key aspects of the bill are:
- Issuers of securities must keep the National Registry of Securities and Issuers (RNVE, for its acronym in Spanish) permanently updated and send information related to their activities in the capital market to the Colombian Finance Superintendency.
- Data must comply with the principles of:
- Materiality. Allow for the identification of information that would be taken into account by an investor at the time of buying or selling securities.
- Opportunity. Issuers must always comply with the deadlines established in the RNVE.
- Proportionality. The duties arising from the disclosure of information must recognize the different types of issuers and be proportional to the reality of each one.
- Equality. Disclosure must be made to all investors on an equal basis.
- The measure also proposes quarterly and annual reports be drawn up on stock market participation, including an institution’s financial statements and stock market performance as well as an analysis of the market and risk to which it is exposed.
- Other relevant issues are the commercial, legal and operational situation of the securities issuer, whether there are insolvency proceedings involved, and the state of the corporate governance of the entity.
- The measure also provides for instructions, procedures and exceptions for information reporting.