Regulatory Alerts2024-06-28 | NRP-68Technical Standards for the Disposal and Acquisition of Assets by Insurance Companies
The Central Reserve Bank of El Salvador issued Technical Standards NRP-68 to regulate asset transactions between insurance companies and their insiders, including directors, managers, shareholders, and their relatives. The regulation establishes strict authorization requirements based on transaction value, requiring unanimous board approval and Superintendence authorization for amounts between 0.5% and 2% of capital, and shareholder approval for amounts exceeding 2%. It also defines specific kinship degrees, valuation procedures, and a 20-day administrative review period for compliance with solvency and liquidity safeguards.
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