Various aspects of fund management, netting of operations and securities issues are modified

On September 14, Decree 1235 of 2020 was issued, which modifies the regime applicable to the sole guarantee fund of Stock Brokerage Companies that serves as support for the operations that these entities celebrate on behalf of their clients. Among the most significant changes we highlight:

1. The operations authorized to these funds are not limited in the regulation, but will depend entirely on the policies established by its Board of Directors.
2. Said operations must be reflected in the fund regulations to be approved by the Financial Superintendency.

Additionally, the Decree modified several aspects of financial regulation with respect to central counterparty risk chambers summarized here:

• It is now possible for financial institutions to grant guarantees on operations cleared and settled through central counterparty risk chambers, including those held by the funds that some of these entities manage (pension funds, stock brokers, trust companies, etc.).
• Financial institutions that manage third-party funds, trusts, or portfolios may act as clearing members or not of central counterparty risk chambers on behalf of said entities.

On the other hand, the Decree includes additional operating conditions and the delivery of information for the Collaborative Financing Companies, authorizing them to carry out certain additional operations. The increase in the amount of resources that can be contributed in a collaborative financing operation stands out (it goes from 10,000 to 58,000 SMMLV).

Finally, the regulation extended the term for carrying out public offerings that are part of a securities issuance program from 3 to 5 years, included additional duties for the representatives of bondholders and defined the conditions of corporate governance that the companies by Simplified shares (SAS) must comply to issue securities in the Second Market.

In general, these modifications seek to facilitate the negotiation of securities in the Colombian market, being able to represent a business opportunity for your company as issuer or acquirer of the same.