Approval of Corporate and Accounting Supervision Policy

August 24, 2021

On August 12, 2021, External Circular No. 100-000013 of 2021 is published in the Official Gazette of Colombia, providing for Corporate and Accounting Supervision Policies, as follows:

1. General supervision policy guidelines

The guidelines provided are based on the three fundamental pillars of the Superintendency’s general Supervision Policy, namely: (i) pedagogy; (ii) regulatory compliance, and (iii) timely and early action to make the Superintendency much closer to companies.

2. Pedagogy

The Superintendency of Companies will focus on providing feedback to the supervised parties on their knowledge of corporate and accounting standards, eventually resulting in regulatory compliance and the dissemination of good business practices.

3. Regulatory compliance

The aim is to verify that the existing regulations on corporate and accounting matters are adopted and applied in favor of the growth of companies, the generation of employment, and a harmonious relationship with their stakeholders.

The activities to be developed are: verification of compliance through supervision, whether inside or outside the workplace, ex-officio, or at the request of a party to gather relevant information and documentation or carry out other actions that may be necessary. In addition, ex-ante supervision activities must be carried out, verifying the corporate procedures when the regulations require them.

4. Timely and early action

Timely and early actions by the supervisor in corporate and accounting matters are essential to mitigate adverse effects on the supervised parties due to corporate and accounting rules non-compliance and critical administrative, legal, financial, and accounting situations that may put them or reveal insolvency risks, thus threatening the productivity, competitiveness, and sustainability of companies.

5. Supervision policy target

The addressees of the External Circular must understand the corporate and accounting supervision policy, which is aimed at preserving the economic public order for the benefit of all supervised entities to become more competitive through pedagogy, regulatory compliance, and timely and early action.

Source: Diario Oficial 23/08/21