The Superintendency of Banks and Other Financial Institutions (“SIBOIF”) issued Resolution No. CD-SIBOIF-1360-1-FEB14-2023 “Rule on Purchases and Sales of Credit Assets” (“the Rule”), which was published in La Gaceta, Diario Oficial No. 44 on March 9, 2023. This Rule aims to establish provisions to regulate the purchase and sale of credit assets by banks, financial and insurance companies. This Rule contains the general guidelines that financial institutions must comply with in the purchase and sale of credit assets, such as:
- Establishing a policy for the purchase and sale of credit assets that includes, among other things, the methodology for determining fair value in accordance with IFRS 13 and legal, regulatory, operational, and technological aspects.
- Establishing a Committee responsible for the application of regulations and policies for the purchase and sale of credit assets.
- The information that supports the methodology for determining fair value must be documented and supported with respect to the assumptions or variables used.
- Internal Audit must evaluate compliance with relevant regulations and policies.
Likewise, the obligations that buyer and seller parties of these assets must observe are also regulated, including both those operations that involve related parties and those that are substantial sales, which are sales for an amount exceeding the equivalent of 20% of the Calculation Base of the selling entity’s Capital within a period of the last 12 months.
As a result of the new Rule, Resolution No. CD-SIBOIF-563-1-DIC3-2008 “Rule on Purchases and Sales of Credit Assets,” published in La Gaceta, Diario Oficial No. 17 on January 27, 2009, is repealed.
At CENTRAL LAW, we have an experienced team of lawyers who can advise you in the most diligent and comprehensive manner for the needs of your company.
For more information, contact us at: [email protected]
Avil Ramírez Mayorga