Regulatory Alerts2018-11-14 | Circular 16/2018Added
Circular 16/2018 — Modifications to Circular 3/2012 (Subordinated Obligations)
The Bank of Mexico modifies Circular 3/2012 regarding subordinated obligations issued by credit institutions and the Financiera Nacional de Desarrollo Agropecuario, Rural, Forestal y Pesquero. The amendments introduce a definition for "Business Group," update disclosure requirements in Article 28 to include transfer pricing studies for non-public placements, and prohibit acquisitions by related parties except under specific authorized mechanisms. New provisions establish a ten percent acquisition limit for primary issuances, allow early payment or conversion without constituting default under CNBV conditions, and impose capital maintenance restrictions on multiple banking institutions exceeding fifty percent of fundamental capital.
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