Colombia: Market access reforms

Author: | Published: 24 Aug 2015
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Brigard Urrutia


Calle 70A # 4 - 41 Bogot√°


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Maria Camila Ordoñez Luis Gabriel Morcillo
A Resolution was passed last July in an effort to transform market access for local and foreign companies willing to list their securities on the Colombian Stock Exchange and the Securities Trading System for Foreign Securities. The Colombian Superintendence of Finance enacted External Resolution 020 of 2015 to facilitate the registering procedure before the Colombian Registry of Securities and Issuers (RNVE).

Resolution 020 defines and determines the criteria, benefits and procedures that issuers with regular participation on the Colombian capital markets should undertake to reduce filing and approval periods to list securities in Colombia. Such regulation has determined that local and foreign issuers (that fulfil the particular requirements set out in the External Resolution), could be considered 'known and recurrent issuers' and therefore, be able to automatically register new securities in the National Registry of Issuers and Securities and to automatically obtain the public offering's authorisation from the Colombian Superintendence of Finance.

Under this regulation, the company must credit the following issues to have access to these benefits: (i) be registered in the RNVE; (ii) have undertaken at least three offerings in the local markets for a total approximate amount of $260 million during the last three years; and (iii) have one of its securities trading in the Colombian Stock Exchange.

This new market access mechanism will allow local and foreign companies to skip complex and long-lasting processes in order to issue and offer their securities, and publicly offer their securities after only two days following the submission of the documents required by local regulations to the Colombian Superintendence of Finance. In this sense, the External Resolution represents a new regulatory tendency by which Colombian authorities are implementing appropriate ways to facilitate the access of local and foreign companies to Colombian capital markets.

Maria Camila Ordoñez and Luis Gabriel Morcillo