Where a firm outside Colombia deals with a client or a counterparty located in Colombia, its activities will typically be considered promotion of financial/capital-market products and thus will be subject to Colombian regulations on such activity. The service provider will need to consider whether they are triggering a local licensing obligation and also whether they comply with Colombian marketing rules.

A general restriction applies to any entity organized outside of Colombia whose corporate purpose is the offering of financial and/or securities-related services or products (“Promotion Restriction”). The law defines “promotion or advertising” as any communication or message made directly to a person or transmitted through any means of communication, which is aimed at, or has the actual effect of, initiating (directly or indirectly) the delivery of financial or capital-market activities.

Broadly, the Promotion Restriction prohibits foreign entities from advertising or promoting financial or capital market services/products in Colombia or specifically targeting residents of Colombia for such purposes. In particular, such entities are prohibited from the following:

• Sending employees, contractors, representatives or agents to Colombia or retaining the services of residents of Colombia for the purpose of carrying out promotion or advertising activities of the entity or its services/products
• Performing, directly or indirectly, any promotional or advertising activities in Colombia in connection with the foreign entity

  Foreign entities may only promote or advertise their financial and/or capital-market services in Colombia or target individuals or companies in Colombia under either of the following circumstances:

• If they have set up a representative office (oficina de representación)
• If the Foreign Entity seeks to promote capital-market services/products, the foreign entity has signed a correspondent agreement (contrato de corresponsalía) with a local broker-dealer (sociedad comisionista de bolsa) or a financial corporation (corporación financiera)