SUPERVISION OF BROKERS AND ASSET MANAGERS IN CURACAO

New Ordinance will enter into force in 2017

In the course of 2017, the Curaçao ‘Landsverordening toezicht effectenbemiddelaars en vermogensbeheerders’ (National Ordinance on the supervision of securities brokers and asset managers) will come into force.

The primary aim of the new Ordinance is to introduce a supervisory regime for brokers in the securities business and for managers of assets, in order to raise the operation of the capital markets and other financial markets in Curaçao to the next level, as well as to further protect the position of existing and potential investors in these markets against risks. This objective is based on the following considerations:

  • the general public has to be able to have confidence in the expertise, integrity and soundness of the securities brokers and asset managers who offer their services on the financial markets; and
  • the soundness and transparency of the financial sector must be safeguarded in the best way possible so that the financial resources offered via the capital market can be channeled via the best possible route to business and government for their respective financing.

The starting point for the provisions contained in the Ordinance is that certain internationally stipulated minimum requirements are set for securities brokers and asset managers, in order to ensure that the financial markets work effectively, including in respect of investor protection. The supervision exercised by the CBCS (the Central Bank of Curaçao and Sint Maarten) will focus on ensuring that the investor makes his or her decisions based on adequate and accurate information.

Karel Frielink
(Attorney/Lawyer, Partner)

(10 May 2017)

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