On September 28, the Ministry of Finance and Public Credit issued Decree 1291 of 2020 that seeks to modify Decree 2555 of 2010 on some issues related to the classification of investors and the regime of private equity funds.
Among the most relevant modifications are the following:
(i) the requirement that the minimum amount for each investor to constitute participations in private equity funds could not be less than 600 SMMLV is eliminated. Instead, it establishes that the amount may not exceed 20% of the investor’s annual income or equity, whichever is greater.
Investors who to date do not comply with the 20% limit mentioned, may keep their shares until redemption.
(ii) the amounts of the requirements to be a professional investor are modified: (a) the equity that must be credited to the intermediary must be equal to or greater than 6,000 SMMLV; (b) must be the holder of an investment portfolio of securities equal to or greater than 3,000 SMMLV, and (c) the added value of the sale or acquisition operations that the client had to carry out must be equal to or greater than the equivalent of 21,000 SMMLV.
(iii) to determine the value of the securities investment portfolio, it is added that investments made through investment trust contracts, management of third-party portfolios, the shares that the investor has in investment funds and , other vehicles that manage investor resources, other than social security.