Update BRP Country Manual Asset Management
Panama
BRP has published its latest update concerning
the Country Manual Asset Management
for Panama
| 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
Material changes
The changes/modifications are as follows:
The (active) marketing of (registered and not registered) funds and structured products as well as services and mandates by a foreign (non-licensed) investment firm is now only permitted onshore in Panama (at target) and when indirectly performed via/with locally licensed intermediaries/distributors on the basis of a SMV-approved “Correspondent Agreement”. The CM AM BT therefore provides the answer “Grey zone/YES – Permitted on the basis of a SMV-approved Correspondent Agreement” for the relevant onshore scenarios.
Brand advertising (without mentioning specific information about strategies, financial products and/or investment services) is now permitted. The Country Manual Asset Management Behaviour Template (CM AM BT) therefore now provides the answer “YES” in all scenarios.
It is no longer permitted to market investment strategies by the foreign (non-licensed) investment firm on cross-border basis into Panama (remote), as it is considered to be marketing of the services of a foreign (non-licensed) investment firm. The CM AM BT therefore now provides the answer “NO” in the relevant cross-border scenarios.
It is further highlighted that occasional visits or onshore meetings in Panama (at target) by representatives of a foreign (non-licensed) investment firm are permitted if they are conducted on a generic basis (i.e. without mentioning specific investment services and/or financial products). Accordingly, the CM AM BT now provides the answer “Grey zone/YES – Permitted if limited to generic marketing activities”.
Although the concept of “reverse solicitation” is still not formally recognized in Panama, transactions and investment services requested at the client’s own initiative are now permitted if they are not conducted on a regular basis. Accordingly, the CM AM BT provides the answer “YES” in all scenarios.
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, January 9th, 2025