Regulatory Alerts2024-06-28 | NCF-05Technical Standards for the Liquidation or Conservation of Extraordinary Assets of Insurance Companies
The Norms Committee of the Central Reserve Bank of El Salvador issued Technical Standards establishing the procedures for insurance entities to liquidate or conserve extraordinary assets acquired under the Insurance Companies Law. The regulations mandate a two-year liquidation period, subject to a 180-day extension request, and require public auction and accounting provisioning if deadlines are missed. Additionally, the standards outline the authorization process for retaining assets for community benefit, cultural purposes, or internal use, ensuring compliance with financial solvency limits.
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