The International Organization of Securities Commission has suspended the country's right to vote as a member because it has not yet signed the agreement to provide information on stock market investigations.
The IOSCO's decision to suspend voting rights for the country as a member of the organization comes after the entity warned the authorities, repeatedly, about the need for regulation which would provide information to banks and financial institutions from other markets in cases of investigations.
With the industrial sector leading the way, Panamanian companies are increasingly going to the local stock market for their financing.
"According to the registry of the Superintendency of Securities Market (SMV), up to early May there were $440 million in securities belonging to different companies, and another $1.033 billion were in the process of being registered," noted an article in Laestrella.com.pa.
Wealth creation at the individual level is key to the development of a country, and investment in securities is an effective way to do it.
During the forum held at the Universidad Latina in Panama on the stock market and the Democratization of Capital, there were two notable examples of success, not only for the companies involved, but also from the benefit of having a stock market culture, essential for a country’s inhabitants:
The transition of the Comisión Nacional de Valores (National Securities Commission) to the new entity has been affected by administrative and legal difficulties which are causing confusion.
The process is suffering from legal and administrative complications in the absence of a regulation in the new law regulating the securities market, which has led to administrators not making decisions nor responding to consultations, among other problems.
In 2009, the market traded almost $44 billion, 34% more than the volume traded in 2008.
At present, there are 52 stock brokers operating in the country. Most of the new entrants in 2009 were foreign-owned operations.
Juan Martans, President of the National Securities Commission (CNV), explained to Prensa.com that "international transactions account for the largest share of traded volume. They have increased in the past years, including two with financial crisis, showing that Panama is still an important place from where to transact securities".
The proposal submitted by a colombian group was unsuccessful, so the process is once again open for bids.
The bid submitted by the colombian group did not meet seller or Bank Superintendent expectations.
Edith Castillo wrote in Prensa.com: "In the beginning, the possibility of selling the banking and security operations in a single package was suggested, but there has been a change in plans, and now Stanford Securities will be sold separately.
The profitability information provided by the pension operators is under review by the National Securities Commission (CNV).
Prensa.com reports: "The deputy president of the CNV, Juan Manuel Martans, explained that as the regulatory entity, they want to ensure that the investment portfolio are being adequately evaluated by the companies that are managing the pension funds.
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