NOTE: THIS IS JUST A TRANSLATION OF A NEWS ARTICLE APPEARING IN LA PRENSA NEWSPAPER IN PANAMA ON APRIL 5th 2018. THE ARTICLE IS AUTHORED BY YOLANDA SANDOVAL, AND IS PROPERTY OF GRUPO CORPRENSA. THE BRITISH CHAMBER OF COMMERCE IN PANAMA DOES NOT CLAIM OWNERSHIP OF THE CONTENTS OF THE ARTICLE, ONLY THE TRANSLATION PRESENTED BELOW.
An ambitious project intends to regulate alternative financing systems. It hopes to bring more competition and services for consumers.
The government has now finished the Bill that reforms the financial system with the intention of making it more competitive.
The legal proposition introduces products and services for the banking, insurance and securities sectors, which would result in a transformation of the industry, with a view to confront the technological changes that govern today’s world.
The Bill has among its objectives establishing parameters for trying financial technology products, services and institutions (Fintech).
It seeks to create conditions to promote the establishment of persons and businesses who are interested in investing in those types of projects, which are defined as specialised financial entities (EFES).
The EFES will have a licence that allows them, for example, to issue electronic money and offer alternative financing mechanisms. Initially, they will be regulated by the Ministry of Economy and Finances, to be passed on in three years to the Superintendency of Banking in Panama (SBP).
With a view to make the market more attractive, they are asking for the adoption of legal vehicles such as the Family Office, dedicated to the administration of patrimony.
Moreover, they will be looking to attract captive insurance companies that are loyal to business groups. And life insurance policies will be offered that could include an investment portfolio with asset diversity. The Bill has more than 200 pages. At its heart, it opens doors to more competitors and to new ways of doing business.
Read the original article here: https://impresa.prensa.com/economia/Transformacion-industria-financiera_0_5000499959.html
