Regulatory Alerts2022-11-23
Agreement No. 8-2022 Modifying Provisions of Agreement No. 2-2011 Regarding Global Account Management
The Securities Market Superintendence of Panama issued Agreement No. 8-2022 to amend the regulatory framework for securities firms managing global or omnibus accounts, specifically updating Articles 14-B, 15, 42, 43, 44, and 45 of Agreement No. 2-2011. The regulation mandates strict accounting segregation, daily reconciliations, robust technological infrastructure, and specific risk mitigation protocols for global custody structures, while prohibiting short selling and the use of client assets for the firm's own benefit. Securities firms are required to submit modified business plans by February 28, 2023, and achieve full compliance with the new custody and operational standards within designated adaptation periods.
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