COLOMBIA: BVC Approves Rules for Private Capital Funds Trading

Friday January 12 2018

On 10^th January 2018, the Bolsa de Valores de Colombia (BVC) has approved rules which allow trading in Private Capital Funds (FCP) on the Exchange. These rules establish a separate set of regulations governing Private Capital Funds, which up until now were governed by the same rules as those applicable to Collective Investment Funds.

Once in place these rules will require the investor to prove to the management company, before setting up the fund, that it knows the investment criteria and the risks it took into account in order to make the investment decision.

In addition, the management companies will have to establish for each FCP a regulation that at least specifies the purpose of the fund, its conditions of portfolio diversification according to the risk profile that corresponds to it and its liquidity requirements.

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