35 OF 1993
(January 5)
Official Journal No. 40,710 of 5 January 1993
For which general rules are dictated and the objectives and criteria to which the National Government should be subject to regulate financial, stock and insurance activities and any other related to the management, use and investment of resources collected from the public and other financial and insurance provisions are dictated
THE CONGRESS OF COLOMBIA,
DECRETA:
CHAPTER I.
INTERVENTION IN FINANCIAL, STOCK AND INSURANCE ACTIVITIES
ARTICLE 1o. OBJECTIVES OF THE INTERVENTION. 46 > According to article 150 numeral 19 literal d) of the Political Constitution it will be up to the National Government to exercise the intervention in the financial, insurance, market activities of securities and other activities related to the management, use and investment of resources collected from the public, subject to the following objectives and criteria:
a. That the development of such activities is in accordance with the public interest;
b. That in the operation of such activities the interests of the users of the services offered by the entities object of intervention and, preferably, that of savers, depositors, policyholders and investors are adequately protected;
c. That the entities performing the above activities have adequate equity levels to safeguard their solvency;
d. That the operations of the entities subject to the intervention are carried out in appropriate conditions of security and transparency;
e. To promote free competition and efficiency by entities that aim to develop such activities;
f. Democratise credit, so that people cannot obtain, directly or indirectly, unlimited access to the credit of each institution and avoid excessive concentration of risk;
g. That the stock market develops in the broadest conditions of transparency, competitiveness and security, as well as propender because there are increasing levels of savings and private investment;
h. Protect and promote the development of financial institutions of the solidarity economy.
i. That the financial system has a regulatory framework in which each type of institution can compete with the others under conditions of equity and balance according to the nature of its operations.
PARAGRAFO. The National Government will exercise the powers granted to it by this Law based on the principle of economy and preserving stability in regulation.
ARTICLE 2o. POLICY COORDINATION. 47 > In the exercise of the intervention regulated in this Law, the National Government will take into account the objectives of monetary, exchange and credit policies and general economic policy.
ARTICLE 3o. INSTRUMENTS OF INTERVENTION. 48 > In development as provided for in Article 1, the National Government shall have the following functions of intervention in relation to financial institutions and insurers subject to control and surveillance of the Banking Superintendence and, in general, with respect to the entities whose activities consist in the management, exploitation and investment of resources collected from the public:
a. To authorize the operations that may be performed by the entities object of intervention in the development of their main object permitted in law;
b. Set the time limits for the authorised operations, as well as the classes and amounts of the guarantees required to perform them;
c. To lay down the rules required for the intervention entities to maintain adequate levels of equity, in accordance with the different risks associated with their activity;
d. To limit or prohibit, for reasons of financial security, the granting of guarantees and guarantees by the entities subject to intervention and including the granting of individual credit insurance;
e. To determine the solvency margin, the minimum technical assets and the investment regime of the reserves of the insurance institutions in accordance with the respective legal rules;
f. To lay down rules to ensure that the operations authorised to the entities subject to intervention are carried out subject to the nature of such operations and to the principal object authorised to the institution concerned;
g. To determine the rules for the disclosure of the financial condition of the entities subject to intervention and the responsibility of the entities and their administrators on the veracity and fidelity of the respective information;
h. To lay down rules that extend the mechanisms of prudential regulation so that they operate in a comprehensive and consolidated manner and are supervised on such bases. This power shall be exercised primarily in order to integrate the supervision of subsidiaries abroad of credit institutions.
PARAGRAFO 1o. Developing the powers enshrined in literal (a) of this article may not reduce the types of operations currently authorised by the existing rules to the entities object of intervention, No operations corresponding to the main object of specialised entities shall be authorised. In addition, the faculties there will be exercised, after information to the Board of the Bank of the Republic, so that this body can decide on its impact on the policies in its position.
PARAGRAFO 2o. The intervention functions provided for in this article will be exercised by the National Government without prejudice to those attributed by the Constitution and the Law to the Board of the Bank of the Republic.
PARAGRAFO 3o. The National Government will dictate the rules necessary for the application of the provisions to be issued under this article, taking into account the specific nature of financial institutions cooperatives.
ARTICLE 4. INTERVENTION IN THE STOCK MARKET. 75 of Law 964 of 2005 >
ARTICLE 5o. DEMOCRATIZATION OF CREDIT. 49 > The National Government will intervene to promote the democratization of credit. For this purpose, the institutions subject to intervention shall set maximum credit or risk concentration limits for each natural or legal person, either directly or indirectly, and the rules for their calculation.
In addition, the National Government will be able to issue rules in order to prevent the use of discriminatory practices by the institutions subject to the supervision and inspection of the Banking Superintendence. related to sex, religion, political affiliation and race or other situations other than those directly linked to the risk of the operation and the ability to pay the applicant.
For this same purpose, the National Government may define and prohibit practices that constitute a requirement of reciprocal reciprocity in order to prevent access to credit or other services from being unjustifiably prevented through them. financial.
ARTICLE 6o. GUIDANCE OF FINANCIAL SYSTEM RESOURCES. 50 > The National Government may temporarily determine the amount or minimum proportion of resources which, in the form of loans or investments, must be used by credit institutions. the different sectors or economic activities and the territorial authorities, when there are market failures or with the purpose of democratizing the credit. It will also point out the terms and conditions under which this obligation will be met.
In the exercise of this power of intervention, the National Government will have to seek to ensure that the obligations imposed are common to the different types of credit institutions, in any event, taking into account the nature of the operations of each of them.
However, this faculty can only be used to complement resources of funding systems and sectoral support created by law, such as the social housing system and the sectors defined as priorities in the Plan of Development. In any event, this mechanism will only be able to commit resources on the basis of this power in a proportion, as a whole, of up to 30% of the total assets of each credit establishment class.
PARAGRAFO 1o. The National Government must act in coordination with the Board of the Bank of the Republic for the exercise of this faculty.
PARAGRAFO 2o. When specific limits are set for loans or investments of credit institutions for housing of social interest, the Government must do so on equal terms for all entities that grant long-term mortgage loans for housing.
ARTICLE 7o. SANTIONS. 52 > The National Government, in the exercise of the function of intervention, may point out the penalties corresponding to the infringement of the provisions which it dictates in the exercise of its function of regulating financial activities, insurance, the securities market and those related to the management, exploitation and investment of the resources collected from the public. In the course of this exercise, only financial penalties may be imposed, without prejudice to the adoption of the other administrative measures resulting from the law.
ARTICLE 8o. EXERCISE OF THE FACULTIES. The intervention functions enshrined in 3or., 5o., 6, or. and 7or. will be exercised by the National Government through the Ministry of Finance and Public Credit.
However, the Government will dictate the provisions that are necessary for the development of these powers before 30 June 1993, without prejudice to the subsequent exercise of such powers when it comes under the law.
ARTICLE 9o. LIMITS TO THE POWERS OF INTERVENTION. 51 > In exercise of the powers of regulation granted in this Law, the National Government will not be able to modify the rules regarding the structure of the financial system, the constitution, main object, societarian form, and causal and conditions dissolution, takeover and liquidation of the entities authorized to carry out the financial activities, including that developed by cooperative financial institutions, insurance companies, stock exchanges and other entities whose activity is relate to the management, exploitation and investment of resources collected from the public.
In the application of this article, the Government will not be able to ignore the nature and principles of the cooperative entities authorized to carry out the financial, insurance, securities, or any activities that are relate to the management, use and investment of resources collected from the public, without prejudice to compliance with the prudential regulation rules applicable to financial, stock exchange and insurance institutions.
The provisions of this article do not prevent the national government from dictating provisions aimed at regulating the formation of companies when, during that constitution or as a step prior to it, a public offer of securities is made.
CHAPTER II.
INSPECTION, SURVEILLANCE, AND CONTROL IN FINANCIAL, INSURANCE, AND SECURITIES ACTIVITIES
ARTICLE 10. INSPECTION, SURVEILLANCE AND CONTROL OF FINANCIAL, INSURANCE AND SECURITIES ACTIVITIES. The President of the Republic, through the Banking and Securities Superintendents, within the scope of their respective competencies, will exercise the inspection, surveillance and control over the persons carrying out the financial, insurance, securities and other activities related to the management, use and investment of the resources collected from the public, on the same terms and the conditions under which such functions are currently exercised in accordance with the provisions legal force. In addition, the Banking and Securities Superintendents shall monitor in their jurisdiction the compliance with the rules that are issued in the development of this Law.
Financial higher-grade cooperative bodies will continue to be under the control and surveillance of the Banking Superintendency. The control of the other savings and credit cooperatives, first grade, will continue to be carried out by the National Administrative Department of Cooperatives, Dancoop.
From 1o. February 1993 shall be the responsibility of the National Administrative Department of Cooperatives for the inspection and surveillance of Mutual Funds of Investment that are not administered by trust companies, in accordance with the rules that establish the National Government. Those who are administered by such companies shall not be subject to permanent control of the State.The recognition of the legal status of Mutual Funds of Investment that are constituted from the validity of this Law shall be with the simple registration of the organic act of its constitution in the National Administrative Department of Cooperatives, as long as they conform to the legal provisions. However, those who have initiated their procedure of incorporation to the date of validity of this Law shall continue to be governed, for these purposes, by the foregoing rules.
ARTICLE 11. SURVEILLANCE OF COMPANIES THAT DO NOT CAPTURE SAVINGS. In the future, the inspection, surveillance and control of the holding companies will not be carried out by the Banking Superintendence, but will be subject to the provisions general on the supervision and control of commercial and issue companies and securities offering. These companies will continue to be subject to the prohibition of mass and habitual public savings.
The activity of insurance intermediaries shall continue to be subject to the supervision and supervision of the Banking Superintendency, which shall exercise such functions in the current terms in respect of insurance and reinsurance undertakings; relationship with the other insurance intermediaries such functions shall be exercised with the exception of those whose amount of commissions is less than the sum that the National Government periodically points out.
PARAGRAFO 1o. Credit institutions may only make or maintain investments in the entities that this item deals with as long as they are legally entitled to do so, as long as the receiving entity the investment maintains its exclusive object.
PARAGRAFO 2o. As long as the contrary is not available, the persons and entities concerned shall continue to be subject to the regulations in force at the time of entry into force of this Law, in the to point out the regulation. It shall also set out a programme for the replacement of the current inspection and surveillance system which shall not exceed one year.
PARAGRAFO 3o. However, the Banking Superintendence may impose on insurance intermediaries the penalties corresponding to the infringements that I will make, even if they are intermediaries not subject to their control and surveillance.
ARTICLE 12. FINANCIAL LEASING. Within the year following the validity of this Law, existing leasing or leasing companies may become commercial financing companies subject to the rules of the Staff Regulations. Organic of the Financial System.
Companies that are organized as a result of the conversion and the others that are specialized in leasing will be able to carry out active operations of credit only up to the maximum percentage that the National Government points out.
Existing or existing commercial financing companies will be able to carry out leasing operations, from the 1st. July 1993, up to the maximum percentage indicated by the National Government.
The maximum percentage of financial leasing operations authorized to commercial financing companies will be equal to that of the leasing companies to perform active credit operations.
PARAGRAFO 1o. The leasing or leasing companies that opt for the conversion regulated in this Article shall have a period of three years to credit the fulfilment of the minimum capital required. for the establishment of commercial financing companies in accordance with the law in 1992; the missing value for reaching that minimum capital must be subscribed and paid as follows: not less than 40% before 30 April 1994; not less than 30% by 30 April 1995 and the balance by 30 April 1996 at the latest.
PARAGRAFO 2o. Commercial finance companies specializing in financial leasing may use the expression "Financial Lease" or "Leasing" in their trade name.
PARAGRAFO 3o. The currently existing leasing companies that do not become compliant with this article, will be dissolved and must be liquidated.
ARTICLE 13. POSSESSION OF OFFICIALS. henceforth they shall only be required to take office and take oath before the Banking Superintendence members of boards or boards of directors, tax reviewers and legal representatives of the institutions. supervised, except branch managers.
ARTICLE 14. CONTROL OF STATUTORY REFORMS. As of the validity of this Law, the reforms to the statutes of the entities subject to the supervision of the Banking and Securities Superintendents will not require their prior authorization, without prejudice to the special authorisations that these entities must grant in accordance with their powers. However, the statutory rules shall be notified to the body concerned as soon as they are approved, in order to carry out their inspection and inspection duties and, if appropriate, may order the respective amendments. when they depart from the Law.
ARTICLE 15. TITULARIZATION. 77 of Law 510 of 1999. The text transcribed and the text modified by article 77 is as follows: > Banking and Securities Superintendents, as appropriate, shall monitor within their legal competence the processes of securitization to be performed by the entities subject to their control.
The transfer of collateral to be granted or acquired by financial institutions and by insurance institutions shall be understood to be improved by the transfer of the title representing the corresponding obligation, in the event that the transfer takes place within a process of securitization or is carried out between credit institutions or in favour of a securitisation company. The disposals that are carried out in the development of this provision will not produce any effects of novation. The National Government shall determine the manner in which the transfer and the other requirements to be fulfilled by the financial institutions involved in the respective operations shall be recorded.
The Banking Superintendency shall be empowered to provide for measures that are essential to restrict securitization operations when they may endanger the solvency of the institution or its financial stability, by be held in conditions which are not in conformity with those of the market, or because they involve the taking of risks or responsibilities which are qualified as excessive.
ARTICLE 16. CONTRACTS OF COMMERCIAL FIDUCIA. 146, Num. 2 > Trust companies may conclude contracts of commercial trust without the solemnity of public deed being required for this purpose, in all cases in which it is authorized by General rule the National Government.
146, Num. 3 >Contracts consisting of a private document and corresponding to goods for which the transfer is subject to registration must be entered in the Chamber of Commerce of the Chamber of Commerce with jurisdiction in the address of the trustee, without prejudice to the registration or registration which, according to the class of act or the nature of the goods, must be made in accordance with the law.
PARAGRAFO. 151, Num. 2. > Investment contracts in common funds are consensual, but must be noted for the adherence of the trustee or trustee to the regulation of the respective fund approved by the Banking Superintendency.
ARTICLE 17. OPERATIONS OF SAVINGS AND HOUSING CORPORATIONS. Within its main object, savings and housing corporations may also carry out in addition the operations stipulated in legal currency authorized by the National Government. in the development of this Law up to the ceiling that it establishes.
Savings and housing corporations will also be able to make investments in financial services companies on the same terms and conditions authorized to credit institutions.
The National Government will authorize from 1o. July 1993 to the savings and housing corporations to grant consumer loans without a mortgage to the limits and with the conditions that the government points out, preserving their specialization in housing and construction financing.
PARAGRAFO 1o. Savings and housing corporations may perform in addition to the operations listed in Article 2.1.2.3.8 of the System Organic Statute Financial, those authorized by the National Government in the development of this Law.
PARAGRAFO 2o. In any case, savings and housing corporations may grant mortgage-guaranteed investment loans on different housing properties, subject to special conditions. the National Government.
ARTICLE 18. FOREIGN EXCHANGE BUYING AND SELLING OPERATIONS. 22 > Savings and housing corporations and commercial finance companies will be able to carry out foreign exchange market intermediaries, currency buying and selling operations, and other Exchange operations authorized by the Board of the Bank of the Republic, which will dictate the relevant regulations.
ARTICLE 19. LIQUIDATION. The forced liquidation of entities subject to supervision and supervision of the Banking Superintendence will be carried out by the liquidators under their immediate direction and responsibility.
The liquidators shall be natural or legal persons, of free appointment and removal from the Fund of Guarantees of Financial Institutions, to exercise their functions in accordance with the rules and procedures laid down in the Organic Statute of the System Financial, shall be subject to the audit of the creditors of the liquidation in the terms and conditions indicated by the National Government, which shall fix within three months following the validity of this law and the terms and the conditions under which the Financial Institutions Guarantee Fund may carry out the monitoring the activity of the liquidators, the manner and terms in which they are to be held accountable to the creditors, the actions which they may take in the event of disagreement or disagreement, the procedure to be applied by the liquidator in the processing of the process and the administrative and judicial resources which may be brought against the decisions taken by it.
The liquidation of operations carried out illegally by natural or legal persons without authorization to carry out exclusive activities of institutions monitored by the Banking Superintendence will be brought forward according to the procedures laid down in Title II of the Sixth Code of Commerce. For this purpose, the Banking Superintendence or the Fund of Guarantees of Financial Institutions, as the case may be, shall immediately transfer to the competent judge of the business, property and assets of the person involved.
The provisions of this article will apply to the settlement processes currently underway.
PARAGRAFO 1o. Insurance contracts, whatever their class, concluded by an insurance institution in respect of which the Banking Superintendence has, for settlement purposes, the takeover of its assets and you shall automatically terminate three (3) months after the date of execution of the respective administrative act, with the exception of individual life insurance in which case the said period shall be extended up to one year from the date of same date. In the administrative act which orders the holding of the goods and assets of an insurance undertaking, the result of the automatic termination referred to above shall be noted.
The liquidator appointed by the Financial Institutions Guarantees Fund shall communicate to policy holders, policyholders and beneficiaries about the automatic termination of insurance contracts by means of two notices published in large national circulation, on different days. You may also, if you consider it appropriate, send written news to policyholders, policyholders and beneficiaries to your last known address, informing them about that circumstance.
In the ongoing settlement processes, the terms of this paragraph shall be computed from the validity of this law.
PARAGRAFO 2o. For liquidator designation the following minimum requirements will be considered:
a. Be a professional with a university degree and have a minimum experience of five (5) years in areas related to financial activity.
For legal persons, they must have been constituted at least one year prior to the date of their appointment and credit that they have an adequate technical and operational infrastructure for the performance of the function and qualified personnel who meet the required requirements to be a natural person liquidator.
b. Absolute suitability for judgment and responsibility of the nominee.
PARAGRAFO 3o. At any time the creditors representing at least 75% of the accreances recognized in the liquidation other than those corresponding to the Fund of Guarantees of Financial Institutions may replace the liquidator designated by the Fund.
ARTICLE 20. COMMERCIAL PROMOTION BY MEANS OF INCENTIVES. 99, Num. 2 > All financial institutions and insurers will be able to offer directly or indirectly and under their responsibility prizes by lot, to establish life insurance plans by companies of duly authorized to the effect or other incentives, in order to promote its image, its products or services, free of charge and exclusively among its customers, under the conditions that the National Government points out. This should dictate rules in order to prevent the cost of prizes or insurance from being translated into higher loads or lower returns or rewards to the saver or user of the promoted product or service.
ARTICLE 21. PAYMENT OF COMPENSATION BY INSURER. 185, Num. 1 > The period for the payment of compensation by the insurer may be extended, by way of agreement between the parties, up to a term not greater than sixty (60) working days, only when the insurance of damages in which the insured person is a legal person and the sum insured in the respective policy is greater than the equivalent of 15,000 minimum monthly legal salaries in force at the time of their subscription. In this case, the parties may also agree to the default interest rate in the payment of the claim.
ARTICLE 22. REVOKING CONTRACT OF INSURANCE. 185, Num. 2 > The term for the revocation of the insurance contract by the insurer may be reduced prior to authorization which, for reasons of general interest, provides for a specific class of Banking Superintendence.
ARTICLE 23. RISKS OF FINANCIAL ACTIVITY. 185, Num. 3 > In insurance that is covered by the risks inherent in the financial activity, it will be possible to ensure, by means of an express agreement, the facts that are unknown. by taker and insurer.
ARTICLE 24. EFFECTS OF THE ANNULMENT. The cancellation of unilateral administrative acts that allow certain operations to those who handle, exploit or invest resources collected from the public; or that they are ordered to vary the amount of capital, assets, assets or the liabilities, or the value of their shares or bonds; or by virtue of which public entities have acquired rights in the administration or in the assets of those institutions, or obligations for their acts, shall only produce effects from the execution of the statement that declares it. But in these cases and in similar cases, if the judgment annulling the administrative act orders the restoration of the injured right or the repair of the damage, this will be done in money, as soon as it is necessary not to harm those who have worked good faith.
PARAGRAFO. When the Nation assumes the economic effects that may arise from hidden liabilities, legal disputes, disputes with administrative authorities or others that may affect the entity whose actions it is planned to sell in development of article 25 in the program of disposal shall be indicated the conditions and procedures under which the Nation can assume such contingencies. In such a case, the Nation, with full legal effects, will replace the entity in relation to the contingencies assumed and, therefore only to this will be required any sum that for the reason of such contingencies can be legally claimed.
CHAPTER III.
SALE OF STATE SHARES IN FINANCIAL INSTITUTIONS AND INSURANCE ENTITIES AND PARTIAL REGULATION OF ARTICLE 60 OF THE NATIONAL CONSTITUTION
ARTICLE 25. APPROVAL OF THE PROGRAM. 304 > Developing the forecasts contained in article 60 of the Political Constitution and for the sole purposes of this law, when the Nation, an entity The Council of Ministers will be required to do so according to the program of disposal approved by the Council of Ministers. In the program to be adopted, the necessary measures will be taken to democratize state participation and special conditions will be granted to workers, their organizations, and solidarity organizations, in accordance with the rules of the chapter.
The Guarantee Fund will present to the Council of Ministers, as a recommendation, a program with the applicable conditions and procedures for the disposal of stocks and bonds.
The disposal should preferably be carried out through hammer operations in stock exchanges or, in the alternative, through other procedures that guarantee wide publicity and free competition.
Approved the program of disposal by the Council of Ministers, the National Government will have to disseminate it widely through the Fund of Guarantees of Financial Institutions in order to promote sufficient participation of the public. In addition, the National Government will have to present a report on the program adopted to the Third Party Committees of the Congress of the Republic.
PARAGRAFO 1o. The approval of the conditions and procedures for the disposal of the shares or bonds of the Nation, of public entities of the national order or of the Fund of Guarantees of Financial Institutions, shall be carried out by Decree of the National Government, in which the relevant entity will have to reform its statutes in order to adapt them to the regime applicable to similar entities operating under the rules of private law; result, in the case of nationalized entities will be ordered to carry out the reforms (a) the right of shareholders to participate in the administration of the institution and to appoint its administrators subject to the common laws, which shall apply from the date on which the Government of the Republic of National approves the respective statutory reform.
PARAGRAFO 2o. In the event that the joint participation of the Nation and other public entities in the capital of the same financial or insurance institution is less than 50% of the subscribed and paid capital of the institution, including within this institution the actions that would result from the compulsory conversion of the bonds in circulation, the conditions and procedures of disposal will be approved directly by the Board of the institution public or by the national government through the Ministry to which it is attached or linked to the financial institution or insurer, as the holder of the shares or bonds.
This is without prejudice to the obligation of such authorities, in the definition and execution of the relevant disposal programme, to comply with the principles and rules laid down in Chapter III of this Law, without Such cases may require the participation of the Fund for Guarantees of Financial Institutions.
PARAGRAFO 3o. The provisions of Chapter III of this Law shall not apply to operations for the mobilisation of assets with a resale agreement held by the Fund for Guarantees of Financial Institutions with registered entities, which have had or have as their object the acquisition of shares or bonds obligatorily convertible into shares.
PARAGRAFO 4o. The commissions that originate from the hammer operations that this article is dealing with cannot exceed the limits set by the National Government.
ARTICLE 26. PRIOR ACQUISITION REQUIREMENT. 305 > With respect to transactions occurring in development as provided for in the previous article, the Banking Superintendence shall be approved when, as a result of such transactions, it is acquired, direct or indirectly, 5% or more of the shares subscribed or of the bonds obligatorily convertible into shares of the relevant entity or where having a percentage equal to or greater than the above indicated may be increased as a result of such transaction, already performed by one or more operations of any nature, simultaneous or successive. The Banking Superintendence, in such a case, will examine the suitability, responsibility and character of the persons interested in making acquisitions. For transactions in shares and bonds obligatorily convertible into shares not covered by this article, the provision contained in the article 1.3.5.0.1 of the Financial System Organic Statute.
The approval of the Banking Superintendence referred to in this article and article 1.3.5.0.1 of the Organic Statute of the Financial System will not be necessary when persons interested in buying shares or bonds obligatorily convertible into shares of the same institution have obtained such approval within three (3) years prior to the date of the corresponding transaction, provided that in the interregno have been the subject of any sanction by the Banking, Securities, of Changes or of Societies and have not been given a measure of assurance or conviction within a criminal procedure and report in advance on the intended operation.
ARTICLE 27. CONTENT OF THE PROGRAM. > In the proposal of the program referred to in article 25 of this law, the minimum price for the placement of the shares shall be indicated, which shall be based on a concept financial technical detail based on the institution's profitability, the commercial value of its assets and liabilities, the support of the Nation, the decentralized entity or the Guarantee Fund of Financial Institutions that are maintained, and of the market conditions.
The minimum placement price to be indicated by the Council of Ministers shall be disclosed on the following working day.
In addition, a minimum of fifteen percent (15%) of the shares or bonds will necessarily be convertible into shares that will be the subject of the sale, which must be offered among the entity's active and pension workers, employees, mutual fund of investment of employees, funds of cesanties and pensions, cooperatives and other solidarity or workers ' organizations and within this 15% maximum limits of individual acquisition of these shares may be fixed.
The actions to be used for the persons referred to in the previous subparagraph shall be offered at a fixed price, which shall be the minimum price set by the Council of Ministers. Such values shall be placed under the conditions and in accordance with the procedure to be determined in the disposal programme.
PARAGRAFO. For the determination of the minimum price, consideration will be given to the current and future profitability of the institution, the value of its assets and liabilities, and the support received from the Nation and the Financial Institutions Guarantee Fund.
ARTICLE 28. DISCLOSURE. 307 > Without prejudice to the banking reserve, mechanisms shall be established to grant broad and complete disclosure of the financial condition of the institution whose shares are in the process of disposal under the terms of Article 25 of this law, information that can be accessed by interested parties on equal terms.
ARTICLE 29. PARTICIPATION OF PROFESSIONAL SUBSCRIBERS. 308 > In order to facilitate the access of persons to the property of financial institutions and insurers, authorize to participate in the hammer to professional subscribers who through (i) operations in the firm or best effort are committed to placing all or part of the obligatorily convertible shares or bonds between the public and in a broad and democratic manner within the conditions set out in the the programme of disposal within the period specified for the purpose. The financial and administrative capacity of such subscribers will be previously qualified by the Fund of Guarantees of Financial Institutions, which will also point out the guarantees of seriousness that such subscribers must constitute.
Professional subscribers and definitive buyers of such shares or bonds shall obtain the approval provided for in Article 26 where there is a place.
PARAGRAFO. They shall be eligible as professional subscribers for the purposes of this article exclusively financial corporations, stock exchange agents and trust companies.
ARTICLE 30. ALTERNATIVE PROCEDURES. 309 > When the hammer is used for the disposal of the shares and all or part of the shares are not placed on the market, any other procedure shall be used to ensure sufficient publicity and free concurrence with the approval of the Council of Ministers.
If the above procedure is exhausted the total placement of the shares on the market is not obtained, the Fund of Guarantees of Financial Institutions will present to the Council of Ministers, for its approval, alternative proposals They will be able to complete the privatisation process, giving preference to those who have already taken action.
PARAGRAFO. If in any case the entire shares are not placed, the remaining assets must be delivered to the Fund of Guarantees of Financial Institutions in the irrevocable trust of sale, so that they are placed fully in accordance with the procedures outlined in this chapter.
ARTICLE 31. FUNCTIONS OF THE FINANCIAL INSTITUTION GUARANTEES FUND. 310 > When it comes to financial institutions that have contributed to capitalizing, the Financial Institutions Guarantees Fund will present the proposal for a disposal program. of the shares and bonds referred to in Article 25 of this Law, once the Banking Superintendence certifies that the state of the entity's wealth of assets allows to proceed to its disposal.
In other cases, the Guarantee Fund shall submit the proposal at the request of the Ministry to which the respective financial institution, insurance institution or public entities that have a stake are attached or linked. would act in an institution of that nature.
Within the terms and conditions of the contract by virtue of which the Nation and the Fund agree to the preparation of the program of disposal by the latter entity, the Ministry to which the institution is attached or linked the financial institution, the insurance institution or the public entities that are shareholders of the insurance companies, shall indicate the basis for the preparation of the same.
The Nation or its decentralized entities will be able to contract with the Fund of Guarantees of Financial Institutions the guarantee, preparation of the program as well as the orientation, administration or management of the disposal of the shares and bonds to which refers to this article. Such contracts shall be subject to the rules laid down in this Article and to private law.
PARAGRAFO. The provisions of this Article shall apply to any disposal of shares or bonds held by the Nation, its decentralized entities or the Financial Institutions Guarantee Fund, unless there is a merger or absorption of financial institutions or insurance institutions in which they have shareholding.
ARTICLE 32. ACTIONS OF FINANCIAL INSTITUTIONS AND STATE INSURANCE ENTITIES. 311 > In the process of the disposal or privatization of entities in which the joint participation of the individuals of the same financial institution is equal or higher 10% of the subscribed and paid capital of the institution concerned, and where there is a place, strict application shall be made in the first term to the details of Article 407 of the Trade Code, reserving the minimum percentage indicated in the article 27, of this Act. The statutes may not be reformed in such a way that the rights enshrined in favour of the individual shareholders are not improved.
In this case, the government will dispense with the state offers referred to in Articles 10 and 18 of Decree 130 of 1976.
The minimum price and the conditions of placement to third parties may not be more favourable than those offered for the exercise of the right of preference.
In the scenario governed by this rule, the provisions of Article 25 and none of those that contravene the text of this article will not apply, which will only be allowed to operate when exhausted. The right of preference is not to be acquired or to be acquired only in part.
PARAGRAFO 1o. The provisions of this article will apply exclusively to entities in which, at the date of this law, there is participation of the Nation only through one or more entities. decentralized.
PARAGRAFO 2o. Dealing with financial institutions or state insurance entities, different from those referred to in this article, there will also be no place to apply the limitations set forth in the articles. 10o. and 18o. Decree 130 of 1976, when determined by the National Government.
PARAGRAFO 3o. The provisions of this chapter are without prejudice to the provisions of Article 2.4.9.4.3 of the Organic Statute of the Financial System and the established in the contract of administration of the National Coffee Fund.
PARAGRAFO 4o. The obligations arising from payment agreements concluded by the Nation in development of the privatization process of the Transport Finance Corporation, may be compensated and extinguished. automatically with other obligations in favor of the Nation and other entities and agencies of the national order.
CHAPTER IV.
OTHER PROVISIONS
ARTICLE 33. REGULATORY POWERS. The National Government, shall exercise through the Ministry of Finance the powers of ordinary regulation currently assigned to the Banking Superintendency and other bodies in accordance with the following provisions:
Article 1.3.1.1.5., 1.3.1.3.4., 2.1.1.2.1., 2.1.1.2.7. (b), 2.1.2.4.1. (e), 2.1.3.2.4. (d), 2.1.3.2.25., 2.1.3.2.26., 2.1.4.2.20., 2.2.1.2.5., 2.2.2.7.2. (m), 3.1.2.0.1., 3.1.4.0.3. (l) of the Organic Statute of the Financial System and Article 3. from the numeral 11 of Decree 2739 of 1991.
75 of Law 964 of 2005 >
The other legal functions on the stock market that are not expressly mentioned in this law will be exercised by the National Government through the Superintendency of Securities.
PARAGRAFO 1o. Existing minimum capital amounts for banks, financial corporations, savings and housing corporations, commercial finance companies, insurance entities, and other entities financial services, which is dealt with in article 1.3.1.1.1., and those indicated by the Banking Superintendence for financial services companies, in the development of the same article, and the amounts set by the Government National for entities monitored by the Superintendency of Securities, may only be amended by law.
PARAGRAFO 2o. Suit the powers assigned to the Banking Superintendence in article 2.4.6.3.5. of the Organic Statute of the Financial System.
ARTICLE 34. VICEMINISTERIO TECNICO. 29 of Decree 1133 of 1999. >
ARTICLE 35. FUNTIONS. 29 of Decree 1133 of 1999. >
ARTICLE 36. CHANGES IN STANDARDS. The existing rules on financial sector regulation issued by the National Government through autonomous constitutional regulations prior to the validity of this law and which relate to aspects that do not they are within the regulatory functions provided herein can only be modified by the law in the future.
Within three months of the passage of this Law, the National Government will have the power to incorporate the amendments made here into the Organic Statute of the Financial System, and will make the amendments to the Statute of the Financial System. location of entities and the required number and numbering system,as well as to adopt a special administrative procedure applicable to the Superintendence Banking.
ARTICLE 37. STRUCTURE. The National Government will be able to modify the structure and functions of the Ministry of Finance and Public Credit and the Banking and Securities Superintendents with the exclusive purpose of making the necessary adjustments to make effective compliance with the provisions of this law.
ARTICLE 38. MERGER OR ACQUISITION PROCESSES. The National Government shall, within three (3) months following the validity of this law, issue rules to facilitate, streamline and promote the conduct of merger or acquisition processes of financial institutions and entities. insurance, preserving free competition. In addition, the expenses associated with these processes may be deferred in terms of the Banking Superintendence, in accordance with their legal powers.
ARTICLE 39. INVESTMENT IN THE CAPITAL OF COMMERCIAL FINANCING COMPANIES. Credit institutions will be able to participate in the capital of commercial finance companies specializing in leasing.
ARTICLE 40. VALIDITY. This Law governs from the date of its publication.
Dada en Santafe de Bogota D.C., a los fives (5) dias
of the month of January thousand nine hundred and ninety-three (1993).
The President of the honorable Senate of the Republic,
TITO EDMUNDO RUEDA GUARIN.
The Secretary General of the Honorable Senate of the Republic,
PEDRO PUMAREJO VEGA.
The President of the Honorable House of Representatives,
CESAR PEREZ GARCIA.
The Secretary General of the Honorable House of Representatives,
DIEGO VIVAS TAFUR.
Republic of Colombia-National Government
Publish and execute.
Dada en Santafe de Bogota D.C., a 5 de enero de 1993.
CESAR GAVIRIA TRUJILLO
The Minister of Finance and Public Credit,
RUDOLF HOMMES RODRIGUEZ.
Provisions analyzed by the Legal Advance Casa Editorial Ltda. ©
"Laws since 1992-Expressed Effective and Constitutionality Sentences"
ISSN [1657-6241 (Online)]
Last Updated: September 23, 2016
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