On May 16, CLB SFC modified internal control system requirements.
CLB SFC issued Circular 008 on internal control system of its supervised entities.
Background
CLB SFC was prompted to do comprehensive review of internal controls given changes in international standards and best practices in the area of internal control systems.
Additionally, by the continuous development of guidelines at the global level to strengthen the corporate governance practices of financial institutions.
To that end, CLB SFC took into account the latest updates to the Integrated internal control framework published by Committee of Sponsoring Organizations of the United States Standards Commission (COSO) and Three lines model by UK's IIA.
Also guidelines defined by the Basel Committee in terms of corporate governance.
Purpose
Purpose is to further transparency and business ethics within the entities supervised in the terms provided in Law 2.195 of 2022 and the implementing regulations.
Additionally, to continue with the alignment with and adoption of the best international practices and promote the development of robust corporate governance structures.
Modifications
CLB SFC replaced Chapter IV of Title I of Part I of the Basic Legal Circular corresponding to the instructions regarding the Internal Control System.
The revised Chapter is provided as an attachment to Circular 008.
Effectiveness
Supervised entities have one year from the issuance of this Circular to comply.
