With the External Circular, the SFC sets the criteria and parameters that: (i) trust management companies; (ii) pension and severance funds; (iii) stockbroker companies; (iv) investment management companies; and (v) financial conglomerates regarding with the calculation of the minimum levels of technical equity of foreign subordinated entities that manage assets and use a separate reporting basis or that are consolidated through an entity that does not have technical equity requirements established in Decree 2555 of 2010, must observe in order to comply with the solvency ratio and other equity requirements.

Additionally, the External Circular stablished the guidelines for reporting the information on the requirements of ownership of capital instruments and the weighting methods for investments in trusts or funds. 

In order to implement the provisions of the standard, the SFC stablished a -implementation plan- that must be followed by the aforementioned entities with the purpose of ensuring a correct implementation of the standard. Likewise, the rule provides a mandatory trial period, during which the entities must report the information in accordance with the guidelines defined in the standard.

Finally, the External Circular repealed Chapter XIII-12 "Solvency Ratio of asset managers" along with the information reporting formats related to this chapter.

Bearing in mind that these rules may modify the capital requirements and solvency ratio calculation of asset managers we invite our colleagues and customers to review the External Circular of the SFC.