Investment companies are specialised institutions in carrying out financial operations through the acquisition of medium- and long-term internal or external resources, to promote the creation or expansion of enterprises or financing of projects for commercial and infrastructure activities, in different areas such as: energy; real estate; road infrastructure; and local development. Resources may be invested directly, acquiring shares or participations, or indirectly, granting credits for the reorganisation and development, as well as projects to promote the development of the various activities.
Under this law, the Superintendence of Banks and Other Financial Institutions is the public institution which authorises, supervises and oversees the constitution and operation of investment companies. However, they must also comply with other requirements established in other laws and other regulations of general application issued by the Board (Consejo Directivo) of the Superintendence.
In addition, these investment companies will be supervised by the Financial Analysis Unit (UAF) that oversees financial and other institutions to prevent money laundering activities. Therefore, the same should register as such and comply with all reporting obligations indicated under the Law for the creation of the UAF and its regulations.
The initial share capital of an investment company may not be less than C$800 million ($30 million) divided into nominative and inconvertible bearer shares.
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