New BRP Country Manual Products
Venezuela
BRP has updated
its Country Manual Products for
Venezuela out of Bank’s Country of Establishment (DEF, RO & BT)
| 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 remain accurate and up to date.
Material changes
In alignment with the CM PB, it is highlighted that Venezuelan financial regulations do not appear to apply to financial services provided by means of remote communications (e.g. e-mail, telephone, fax, videoconference) from abroad into Venezuela, as long as the person carrying out such services has not established a permanent establishment and/or a de facto branch in Venezuela or is not engaged in “financial intermediation” in the country (i.e. as long as the foreign (unlicensed) service provider does not conduct business on a “regular/habitual basis” in Venezuela). The CM P BT therefore now provides the answer “YES” to the relevant cross-border scenarios. As there is no official position from the Venezuelan supervisory authorities on what constitutes a “regular/habitual basis”, a cautious approach is recommended.
In further alignment with the CM PB, the provision of marketing activities as well as execution-only and investment advisory services in Venezuela (at target) is considered to be a “Grey zone” and is strictly limited to occasional one-to-one meetings to avoid triggering local licensing and product registration requirements. Therefore, the CM PB now answers the relevant onshore scenarios with “Grey zone”.
In addition, and in line with the CM PB, for the provision of execution-only services, it is now recommended that the order be routed to the country of establishment of the service provider for execution.
In addition, please note that (unlicensed) financial service providers cannot register foreign Securities/Funds for public distribution or distribute locally registered Securities/Funds as this would trigger licensing requirements.
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, April 9th, 2025