Colombia has three main authorities responsible for supervising/regulating its financial, securities and capital market institutions.

First, the Ministry of Finance and Public Credit, through its financial regulation unit (URF) is responsible for preparing and adopting regulations on the requirements, restrictions and guidelines for the operation of the financial, insurance and securities markets in Colombia, within the limits set forth by the Constitution of Colombia and its framework laws. Under the Constitution, activities involving the collection, management, use and investment of resources collected from the public are activities of public interest and thus, subject to special supervision by the State.

The Constitution states that the president of Colombia is the authority responsible for the supervision, surveillance and control of anyone carrying out financial activities or activities involving securities markets or insurance, as well as any other activity related to the management, use or investment of resources obtained from the public (Article 189.24, Colombian Constitution).

The Constitution also entitles the president of Colombia to intervene in financial, capital market and insurance activities and any other activity related to the management, use or investment of resources that come from the savings of third parties.

Law 35/1993 sets forth the objectives that the intervention in financial, securities market and insurance activities must have, which includes, among others: (i) the protection of the public interest and the rights of consumers; (ii) the safeness and transparency of contracts and markets; (iii) the promotion of free markets and efficiency among financial entities; (iv) the democratization of credit; (v) the avoidance of excessive risk concentration; and (vi) the promotion of solidary financial institutions.

Second, the office of the Financial Superintendent of Colombia (Superintendencia Financiera de Colombia or SFC) is the main public authority responsible for inspecting, supervising and, to an extent, regulating financial, insurance and securities institutions. The SFC is responsible for –among others–the day-to-day supervision of regulated entities, authorizing those activities requiring financial licenses and enforcing violations of financial regulation and the law in general by regulated entities (and in some instances, by unregulated parties).

Third, the Colombian Central Bank (Banco de la República), as the monetary authority under the Constitution, is responsible for the macro-supervision of the banking industry. Although it is not a frontline regulator like the SFC, it does have a role under Articles 371 to 373 of the Constitution. In addition, the Central Bank is the main authority for foreign exchange regulation.