Regulatory Alerts2015-10-20 | CD-SIBOIF-912-2-OCT20-2015Added · Updated
Resolution Amending Articles 6, 8, and 14 of the Non-Banking Correspondents Regulation
The Superintendence of Banks and Other Financial Institutions amended Articles 6, 8, and 14 of the Regulation on Non-Banking Correspondents to define requirements for contracting non-banking correspondents (CNBs) and mandate specific contract contents. Financial institutions must ensure CNBs are legally authorized, have good reputation, and do not simultaneously operate for other entities, while contracts must explicitly state the institution's full responsibility and include minimum obligations for the CNB. The resolution prohibits clauses restricting a CNB's freedom to terminate a contract to work with another financial institution and requires existing institutions to have their shared CNBs choose a single partner upon the regulation's entry into force.