New rules issued for authorizing savings and deposit products in Colombia
Colombia Banking & Finance Alert 32-2018
In order to issue instructions regarding the rules for authorizing regulations for products from the electronic savings and deposit sections, and the mechanisms for resolving bridge banks, the Colombian Finance Authority (SFC) has issued External Circulars Nos. 025 and 026 of 2018.
By means of External Circular No. 025, the SFC amends the Basic Legal Circular in order to establish procedures for authorizing regulations for products from the credit establishment and compensation fund savings section. The Circular establishes a general authorization procedure and another individual authorization procedure, both of which will take effect on December 10, 2018.
In addition, by means of External Circular No. 026, the SFC adds heading 3 of Chapter I, Title I, Part I of the Basic Legal Circular, in order to issue basic guidelines for the creation and operation of bridge banks. Under this heading, the SFC establishes the nature of the company under which the bridge bank should be created, the temporary nature of the company, its incorporation process, the transactions and investments that it may make, among other matters, as well as the provisions that govern after the Circular is published.
The External Circulars may be consulted at the following link.