Amendment to provisions applicable to financial entities providing investment services

21 September 2023

On September 13, 2023, the Ministry of Finance and Public Credit together with the National Banking Commission (hereinafter “CNBV” for its acronym in Spanish) published the resolution that amends the “General provisions applicable to financial institutions and other persons that provide investment services” (hereinafter the “Provisions”), published on January 9, 2015 in the Federal Official Gazette (hereinafter “DOF” for its acronym in Spanish).

The foregoing, in order to adjust the regulatory framework, allow for due compliance with the obligations applicable to Financial Entities (term defined below) and persons providing investment services, as well as legal certainty in the services provided and facilitate the CNBV’s supervision of the development of the securities market in Mexico.

For the purposes of this legal alert, a “Financial Entity” shall be understood as credit institutions, brokerage firms, investment fund operating companies when they provide portfolio management services to third parties, as well as companies that distribute investment fund shares and entities that provide such service.

The amended provisions contemplate, fundamentally, the following changes:

– Amendments to the obligations to define the profile of a “Sophisticated Client”, as well as its exceptions;

– New obligations for Financial Entities rendering investment services;

– New obligations for clients who intend to carry out transactions or procedures with Financial Entities;

– Implementation of new processes for the security of clients and Financial Entities;

– Additional information to be provided to clients by Financial Entities in certain cases;

– Training of investment advisors’ personnel registered before the CNBV.

Finally, it is important to note that the amendments to the Provisions, including their additions, and reforms, will become effective on September 14, 2023.

In light of the above, in Bravo Abogados we would be happy to answer any question you may have regarding this legal alert.

Blvd. Antonio L. Rodríguez 3000, Colonia Santa María, 5to piso, Interior 501 Torre Albia, C.P. 64650 Mty, N.L., México T.

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