Legal basic circular update

The Colombian Financial Superintendency (SFC) has unveiled the updated version of the Legal Basic Circular, the outcome of a comprehensive streamlining process consolidating over five decades of financial regulation. This reform is part of the agency’s Regulatory Optimization strategic initiative, aimed at simplifying, modernizing, and improving the accessibility of regulatory provisions without compromising technical rigor. Notable updates include relaxed requirements for accessing the regulatory sandbox for financial innovation and a simplified authorization process for sustainable bond issuance. Redundant, obsolete, and unclear provisions were eliminated, in alignment with the principles outlined in CONPES 3816 and Law 2085 of 2021. The result is a more agile supervisory framework that better responds to the current dynamics of the Colombian financial market.