Panamanian stock market officials are evaluating increased controls on securities houses operating in the country, through the figure of corporate governance.
The Superintendency of Securities in Panama is analyzing the possibility of demanding that the stock brokers fulfill norms of corporate governance, as banks and insurers already do.
Limiting the debt of an issuer and an obligation to rate emissions are two of the requirements proposed by the regulator which have not been well received by the Panamanian securities market.
The proposal by the Superintendency of the Securities Market was subject to public consultation, and now "... these comments must be analyzed and classified, and in the upcoming board meetings they will be evaluated in an objective way," said the head of the institution, Marelissa Quintero.
The new regulation under public consultation states that all issues of securities registered with the Superintendency of Securities Market must have a risk rating.
The aim of the new regulations proposed by the Superintendency of Securities (SMV) is to provide more information on the emissions market for investors, so that they can"...
Between January and June registrations of securities issues amounted to $4.2 billion, up from the $2.944 billion recorded in 2015.
If the number of new issues registered with the Panamanian Stock Exchange continues to grow as it did in the first half of the year, the figure at the end of 2016 will be the highest in historical terms, surpassing the record of 2013, when $3.579 billion was recorded.
Analysis of the current state of the Panamanian capital market, including the confidence threatened by various financial setbacks, and the opportunities to make the much needed structural changes.
Martesfinanciero.com reviews three episodes which have shocked the Panamanian financial market in recent weeks: "These events have shaken the financial system and put market players on alert.
The Superintendency of Securities is working on a proposal that would make mandatory to have a risk rating on each debt issuance registered in the panamanian market.
The initiative put forward by the authorities of the Panamanian stock market comes days after the collapse of the Panamanian RG Hotels Company, which in 2012 issued bonds with unrated debt risk, leaving investors who bought these securities unprotected.
The business sector recognizes the need to implement the standards required to be removed from the gray list, but is calling for flexibility so that businesses are not harmed.
Without calling into question the need for the country to implement and enforce the rules on transparency, financial sector companies are insisting that authorities provide them with greater flexibility in order to minimize the impact the changes will have on their businesses.
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