COVID-19: Measures adopted by the SMV regarding Regulated Entities

In accordance to General Resolution SMV No. JD-2-20 of 16 March 2020, issued by the Board of Directors of the Superintendence of the Securities Market (the “SMV”), it was resolved to inform that the modality of remote working can be implemented by the regulated entities that have license or registry issued by the SMV, for the compliance with established requirements in adopted Agreements, respectively. The regulated entities that adopt this modality of work shall (i) inform to their clients and the SMV to the email address: [email protected], (ii) guarantee the development and continuity of the operations and attention to their clients, and (iii) apply the relevant measures to preserve the confidentiality and integrity of their clients’ information.

Inspection and Supervision Measures

In virtue of Announcement No. 7 of 1 April 2020, the SMV informed the following:

  • The SMV is active in its extra situ supervision labors and the online service, in accordance with the rules established by the declared state of health care emergency declared due to COVID-19, in compliance with General Resolution SMV No. JD-2-20 of 16 March 2020 and Resolution No. SMV-117-20 of 25 March 2020.
  • The inspection and supervision measures in situ, in the offices of the regulated entities, shall return after the present term, with a risk prevention approach in order to oversee application of prudential measures, as well as those for preventing money laundering, financing of terrorism and financing of proliferation of weapons of mass destruction, mainly; as well as validation, verification and control of those incidents detected by extra situ supervision. However, if the urgent implementation of any in situ inspection is necessary, the SMV informs that it will adopt the coordination mechanisms for its effective fulfillment.
  • That it is a priority of the SMV the protection of the rights and interests of public investors, by the regulated entities and other securities market participants, who can send their complaints, consultation and requests, etc. via electronic means to the email address: [email protected].

Preventive Measures

By means of Announcement No. 9 of 7 April 2020, the SMV recognizes that the situation that is faced by our country due to COVID-19 virus, as well as the rest of the World, has forced companies to perform their activities in a different form than usual.

Having the stock market industry an important role through its stock exchanges and intermediaries in the different jurisdictions where they operate, the SMV recommends to brokerage houses to take the following measures:

  • Strengthen its contingency and risk mitigation measures, both operative and transactional.
  • Comply with norms established for the Panamanian capital markets, for the functioning and development of its operations.
  • Comply with prevention and informing, in accordance to what is established in Agreement 6-2015, of any attempt to the system for activities classified as money laundering and financing of terrorism.

The SMV reiterates to its regulated entities to take into account these provisions already known, and, in particular, to apply additional checks that the present situation requires (state of emergency/quarantine), in order to operate and make its daily functions based on new working modalities, which in no case exempts the brokerage houses to comply with established laws and regulations.