Financial Institutions Regulation

Counseling for financial organizations

Providing legal counsel to financial organizations requires a comprehensive approach embracing not only assistance in considerations of strictly regulatory nature, but one that in addition encompasses the whole range of fields where such companies carry out their business.

Rebaza, Alcázar & De Las Casas lawyers posses vast experience in providing advice to local and international financial and banking companies in all their fields of activity, as has been described in the sections above on Mergers & Acquisitions, Stock Markets, and Corporate Financing and Reorganization.

Our knowledge and skills in these fields are perfectly matched by our lawyers’ experience in all other topics required to provide financial organizations with expert advice. These areas cover the whole scope of topics from requirements for organizing financial institutions in Peru through conventional bank operations, trust funds, leasing transactions, to assisting in derivatives transactions, and counseling on the entire range of the various bank regulatory issues faced by financial organizations in their daily activities.

Rebaza, Alcázar & De Las Casas’ comprehensive advice to financial organizations includes the following areas:

  • Advice to Banks, Financing Companies, Microfinance entities, Rural and Municipal S&L’s, and Leasing Companies
  • Organization and establishment of banks and other licensed financial entities
  • Regulation pf banking transactions
  • Banking secrecy
  • Deposit Insurance Fund
  • Risk Rating Agencies
  • Legal Reserv
  • Guarantees
  • Operational limits
  • Transactions and Services
  • Credits
  • Factoring
  • Discounting
  • Portfolio sales and purchases
  • Financial leasing
  • Escrow and Guarantee trust funds
  • Banking commissions
  • Foreign trade financing
  • Wind-up of financial entities
  • Derivatives
    1. Options
    2. Swaps
    3. Futures
    4. Forwards

Mutual Funds

As a collective investment arrangement, mutual funds have become some of the most significant institutional investors in the Peruvian capital markets. Mutual funds gained major local market recognition in the 1990s. They provide a substantial investment option to both individuals and companies holding surplus resources, while also meeting institutional investors’ demand for movable securities.

The lawyers at Rebaza , Alcázar & De Las Casas Abogados have frequently advised mutual funds on regulatory, supervision, guarantee, participant, and regulated investment issuances, among others.

Investement Funds

After Legislative Decree 862 was passed in Congress, investment funds emerged as an interesting option for project structuring. In other markets lacking prudential regulation or strict supervision, investment funds have become tools for developing a vast range of projects including real estate developments, and even high risk and volatile investments –such as junk bonds—through acquisition and sale of companies under corporate reorganization.

At Rebaza , Alcázar & De Las Casas Abogados, our lawyers have been frequently provided legal counsel for Investment Funds in fields ranging from alternative structuring options to regulatory and supervision issues, guarantees, participants, regulated investments, taxation, and other related issues.

Pension Funds and Insurance Companies

Pension Funds (AFP’s in Peru) and Insurance Companies take portfolio positions in both debt and equity. As of October 31, 2004, Pension Funds managed a total of approximately 24.8 million Nuevos Soles (US$7.6 million). In view of such strong liquidity, a range of new products—designed under a framework of regulations recently approved by the Bank and Insurance Superintendent (SBS)—that broaden the scope for private placements of security investment options for institutional investors have been devised. These options combine underlying assets originating in both local and foreign economic activities, when the majority component of such products is of domestic origin.