Update BRP – Country Manual Asset Management
Mexico
BRP has published its latest Country Manuals Asset Management for Mexico
| SOURCE OF CHANGES | ANSWERS |
|---|---|
| Law/Regulation | No |
| New Position of the Authorities | No |
| Evolution of Expert’s interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.
Material changes
The changes/modifications are as follows:
Performing road shows in Mexico (at target) is not permitted as it is considered marketing/promotion of investment services by a foreign (unlicensed) entity. The Country Manual Asset Management Behaviour Template (CM AM BT) now provides the answer “NO”.
It is emphasised that the execution of any agreements by the foreign (non-licensed) investment firm or the receipt of subscription documents must take place outside Mexico (although the prospect/client may sign in Mexico). Accordingly, the CM AM BT now provides the answer “Grey Zone/NO” for the relevant onshore scenario.
As a reminder, occasional onshore meetings are permitted if they are conducted either on a one-to-one basis (with each investor separately) or (in the context of marketing financial products) in accordance with the “private placement exemption”. During such onshore meetings, a foreign (non-licensed) investment firm may present itself without triggering licensing requirements. However, no investment services may be solicited during such meetings.
The (active) marketing of investment services (as well as investment strategies) qualifies as an activity which triggers licencing requirements in Mexico. Such an activity of a foreign (non-licensed) investment firm is now only permitted if performed on a one-to-one basis to pre-identified prospects/clients from outside of Mexico (with each investor separately) (i.e. in accordance with the “tolerated market practice”). Accordingly, the CM AM BT now provides the answer “NO” for the relevant onshore scenarios.
Providing/Handing over services and mandates specific marketing materials and information is only permitted on a cross-border basis into Mexico (remote), provided that the contacting was legitimate. Accordingly, the response of the CM AM BT in the relevant scenarios is “NO”.
Non-material changes
Some comments and content have been slightly reworded in the CM, without introducing substantive changes to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, October 22nd, 2024