Regulatory Alerts2016-11-15 | CD-SIBOIF-968-1-NOV15-2016Added · Updated
Resolution Amending Article 85 of the Standard on Administrative Companies and Investment Funds
The Superintendence of Banks and Other Financial Institutions amended Article 85 of the Standard on Administrative Companies and Investment Funds to establish that the final value of real estate assets in a fund's portfolio is the lower market value stated in appraisals by two registered experts. Administrative companies must submit these valuations to the Superintendent within five business days of purchase, provided the valuations are not older than six months. The resolution also mandates that real estate be recorded using the fair value model with an associated equity reserve for unrealized gains or losses, which remains undistributable until the asset is sold.
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