Contributed By Baker McKenzie S.A.S.
Local trusts are used in Colombia as instruments to manage properties or businesses with a specific purpose or to grant guaranties or collaterals, considering that trustees are professional regulated entities.
Only those companies duly authorised by the Colombian financial authority (Superintendencia Financiera de Colombia, or SFC) may offer trust services and act as trustees. Such entities are subject to supervision and special regulations.
Colombian law sets forth a number of legal duties for trustees, which cannot be delegated on third parties or waived. These include the following:
Regarding the use of corporate fiduciaries or other professional fiduciaries, there are no civil or commercial regulations establishing a higher standard of conduct or additional supervision or regulations.
Colombian law authorises individuals residing in Colombia and legal entities created under the laws of Colombia (ie, a 'resident of Colombia') to invest and hold assets outside Colombian territory without the need of obtaining further permits or authorisations. However, said residents of Colombia must comply with foreign exchange regulations.
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