On October 16 of 2015, the Ministry of Finance and Public Credit issued the Decree 2031, in order to modify the regime of promotion and advertising of the products and services provided by foreign reinsurance companies, particularly regarding the opening of representation offices in Colombia, contained in Decree 2555 of 2010. This amendment was adopted in response to the requirement for more flexible regulation, for purposes of facilitate the entry of new foreign reinsurance companies in the country, and improve the market competition.
According to Decree 2031, the article 4.1.1.1.2 lit, b) num. 2) of Decree 2555 was modified in the sense that the foreign reinsurance companies that are registered in the Registry of Foreign Reinsurance Companies and Foreign Reinsurance Brokers (“REACOEX” as per its Spanish acronym), do not have to request an authorization to incorporate a representation office in Colombia, provided that the authorization would be automatically granted with the registration in the REACOEX.
Consequently, the foreign reinsurance companies registered in the REACOEX that desire to promote or advertise its products and services shall not require to obtain the authorization from the Colombian Finance Superintendence to incorporate a representation office, just inform the Colombian Finance Superintendence about the opening of the referred representation office.
Finally, it is important to point out that the automatic authorization implies the obligation to maintain in force the registration in the REACOEX; therefore, the foreign reinsurance companies should accomplish with the requirements to maintain the referred registration in force, in order to have a representation office in Colombia to promote and advertise its products and services.
