New BRP Country Manual Asset Management – Paraguay
BRP has published its latest update concerning the Country Manual Asset Management for Paraguay
| 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:
Presenting the Company in general terms (i.e. the history of the company, its track record, the sectors/areas within it operates, its opinions on market trends and generically its capabilities) as well as the provision of macroeconomic analysis and financial research is now only permitted on a one-to-one basis (without using any kind of public advertisement or means of mass communication) when indirectly performed via/with locally licensed intermediaries/distributors onshore in Paraguay (at target). Accordingly, the Country Manual Asset Management Behaviour Template (CM AM BT) now provides the answer “Grey zone/YES – Permitted on a one-to-one basis (without using any kind of public advertisement or means of mass communication)”.
It is highlighted that road shows are not permitted in Paraguay (at target) as it is considered marketing/promotion of investment services by a foreign (non-licensed) entity. The CM AM BT therefore now provides the answer “NO”.
The concept of “reverse solicitation” is still not formally recognized in Paraguay. As a result, transactions and investment services requested at the client’s own initiative are only permitted in relation to investment services on a cross-border basis into Paraguay (remote) and/or in relation to financial products either onshore in or on a cross-border basis into Paraguay (at target/remote).
Finally, the marketing and introduction of investment services and mandates (such as discretionary mandates and advisory services) of a foreign (non-licensed) investment firm is no longer permitted (either directly performed or indirectly via/with a locally licensed entity, as it does not exempt the foreign investment firm from licensing requirements). The CM AM BT therefore now provides the answer “NO” for the relevant 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, December 16th, 2024