Regulatory Alerts2015-09-22 | CD-SIBOIF-908-1-SEPT22-2015Added · Updated
Norm on Investment Limits for Insurance, Reinsurance, and Surety Companies
The Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-908-1-SEPT22-2015 to regulate investment limits for insurance, reinsurance, and surety companies in Nicaragua. The norm mandates that institutions maintain a minimum investment sufficiency base and restricts domestic investments to specific asset classes with defined caps, such as 60% in time deposits and 20% in bills of exchange. It permits up to 20% of the investment base to be held abroad in securities from multilateral organizations, first-class financial institutions, or US and EU governments. Additionally, the regulation prohibits encumbrances on reserve-backing deposits and requires currency matching and specific accounting treatments for various investment types.