Regulatory Alerts2022-02-09
Agreement No. 2-2022 of February 9, 2022 Modifying Articles 3 and 17 of Agreement No. 2-2011 of April 1, 2011
The Superintendency of the Securities Market of Panama issued Agreement No. 2-2022 to amend Articles 3 and 17 of Agreement No. 2-2011, expanding the permissible principal and ancillary activities of Securities Houses to include execution brokerage, investment advisory, portfolio management, and specific services to parent or affiliated financial institutions. The regulation mandates that all Securities Houses explicitly detail these activities in their business plans, subjects ancillary services to prior Superintendency approval and ongoing compliance monitoring, and grants the regulator authority to restrict or revoke approvals if risks or inadequate resources are identified. Additionally, the amendment establishes a mandatory monthly consolidated transaction reporting requirement via Form DS-01 through the Electronic Information Submission System, imposes administrative fines for late submissions, and sets a three-month compliance window for existing execution brokerage firms to align their business plans with the new framework.