Regulatory Alerts2014-09-24 | CD-SIBOIF-847-1-AGOST8-2014Added · Updated
Norm on Investment Fund Management Companies and Investment Funds
The Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-847-1-AGOST8-2014 to regulate the constitution, operation, and scope of investment fund management companies and public offering investment funds. The norm establishes a minimum share capital of C$1,600,000, or C$4,000,000 for real estate funds, and mandates a 1% processing deposit with specific forfeiture rules for denied or withdrawn requests. It sets a 120-day deadline for the Board of Directors to authorize constitution and requires operational commencement within six months of authorization, otherwise revoking the license. The regulation also defines impediments for directors, procedures for management company substitution, and requirements for changes in control or mergers.