In order to prevent a repetition of cases such as that of Financial Pacific, the Superintendency of Securities is preparing legislation which incorporates an obligation to comply with good corporate governance practices.

Although details of the proposal have not yet been released, the Superintendence authorities indicated that “… it is related to general corporate governance recommendations, such as having an audit committee, a risk committee, having an independent director, among other things.

The goal, explained the head of the Superintendence, Marelissa Quintero, is to establish “… a set of basic good practices that attempt to shield the system in order to avoid situations such as Financial Pacific and for investors ‘to see in Panama a serious outline.'”

Prensa.com reports that “…. In 2003, the Superintendent issued an agreement that securities issuers will use the principles of corporate governance, but these are voluntary recommendations. However, intermediaries, who are supervised and regulated by the Superintendency of Securities must meet these requirements with the new regulations in which they are working. “

Source: Prensa.com