Regulatory Alerts2023-03-26
Agreement No. 1-2024 Modifying Article 27 of Agreement No. 1-2016 Regarding the Forced Liquidation of Institutions Registered with the Securities Market Superintendence
The Securities Market Superintendence of Panama issued Agreement No. 1-2024 to modify Article 27 of Agreement No. 1-2016, establishing updated procedures for the custody, storage, and preservation of documentation for institutions undergoing forced administrative liquidation. The regulation mandates that physical custody of documents be maintained for five years from the effective date of the liquidation order, requiring the appointed liquidator to transfer records to secure storage or the Superintendence while ensuring confidentiality and proper final disposal. It further stipulates that the liquidating institution bears all associated costs, with the Superintendence covering expenses only if the institution lacks financial capacity, and requires specific handling of documents involved in ongoing litigation.