Regulatory Agenda of the Financial Regulation Agency (URF) for 2023

  1. Summary
    1. The four strategic objectives developed in the Regulatory Agenda are the following: (i) Develop actions that promote financial inclusion to strengthen the popular economy; (ii) Consolidate a regulatory framework that enhances the growth of the different financing mechanisms of the economy; (iii) Continue the path of implementing the highest standards of prudential regulation; and (iv) Advise on the development of legislative reforms related to the modernization of the financial system.
  2. First strategic objective: Develop actions that promote financial inclusion to strengthen the popular economy.

Its purpose is to close gaps in financial inclusion, create financial instruments for the population that traditionally do not have access to financial products, and eliminate regulatory barriers that inhibit access to the financial system.

The above involves the following actions and regulatory proposals:

  • Development of microcredit products, low-cost productive loans and digital loans, among others.
  • Strengthen social aid organizations (organizaciones solidarias) that offer savings and credit services.
  • Studies related to the importance of Fintechs in financial inclusion processes, with an emphasis on the development of digital credit products.
  • Studies related to the use of Open Data (non-traditional sources of information) that will be conducted to help these segments of the population to access the financial system and improve customer credit risk analysis.
  • Have a greater diversity of tools such as parametric insurance and similar products.
  • Review the insurance marketing structure to reduce costs and promote greater access to these products.
  • Design methodologies to educate citizens on risk management and asset protection.
  • Draft decree to establish the operating rules for an immediate payment system. In addition, a regulatory proposal will be developed for the creation of a governance body for payments matters: the National Payments Council (Consejo Nacional de Pagos).
  • Second strategic objective: Consolidate a regulatory framework that enhances the financing mechanisms growth.

To promote the mobilization of resources to finance different sectors of the economy, the following tools will be enacted:

  • Review the regulation applicable to trust funds.
  • Draft decree to update the regulation applicable to collective investment funds.
  • Alternatives to reduce regulatory arbitrations between third party portfolio management and investment trusts.
  • Adjust the regulation to encourage the use of technological developments and the participation of new agents specialized in trading activities to increase the rotation of Colombian securities.
  • Review of the regulatory standards of foreign securities quotation systems, with the goal of eliminating regulatory arbitrations in consideration of markets integrations.
  • Study related to the benefits, risks, and regulatory treatment of blockchain-based developments.
  • Third strategic objective: Continue on the path of implementing the highest standards of prudential regulation.

This objective seeks to consolidate a prudential regulatory framework, which includes relevant changes for the solidarity savings and credit subsector and the insurance sector.

  • Strengthen the supervisory structure of the financial delegation of the Superintendency of Solidarity Economy through a regulatory decree.
  • Update of the prudential regulatory framework for insurance companies:
    • Adoption of the IFRS 17 for the transmission of financial and accounting information.
    • Convergence to the Solvency II Directive.
  • Amendment of Decree 2555 of 2010, to eliminate the Minimum Legal Monthly Wages in Force (SMMLV) indicator and include the Tax Value Units (UVT) indicator.
  • Fourth strategic objective: advise on the development of legislative reforms related to the modernization of the financial system.

The URF will continue advising and providing technical support to the National Government in the elaboration of legislative proposals for the development and updating of the financial system.

For further information, please do not hesitate to contact us at the addresses below.

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Lawyers

<strong>Regulatory Agenda of the Financial Regulation Agency (URF) for 2023</strong>
REBECA HERRERA
COUNSEL
<strong>Regulatory Agenda of the Financial Regulation Agency (URF) for 2023</strong>
FABIO HINCAPIÉ
LAWYER
<strong>Regulatory Agenda of the Financial Regulation Agency (URF) for 2023</strong>
MISAEL CELEDÓN
LAWYER

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