Regulatory Alerts2019-03-27 | NRP-17Added · Updated
Technical Standards on Corporate Governance
The Committee for Standards of the Central Reserve Bank of El Salvador issued Technical Standards on Corporate Governance (CNBCR-06/2019), effective May 2, 2019, to regulate corporate governance bodies and procedures for a comprehensive list of supervised financial entities. The document mandates that entities establish appropriate governance frameworks, define the roles and suitability requirements for Boards of Directors and Senior Management, and ensure shareholder rights and transparency. It specifically restricts Boards to having only one Executive Director and requires the segregation of functions for entities administering third-party funds to manage conflicts of interest.
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