In depth

Relevant aspects of the Regulatory Proposal include the following:

1. Establishes the procedure under which financial products portability may be carried out, as well as the duties of the participating entities.
2. Requires the issuance of a portability certificate, which must be generated by the Origin Entity where the FC holds the products. The certificate must be digital, in a structured and interoperable format, in accordance with the parameters to be determined by the SFC.
3. The Destination Entity to which the FC requests the transfer of the product subject to financial products portability shall have 10 business days from the date of the FC’s request to issue a portability offer.
4. The FC shall have five business days to accept the offer made by the Destination Entity.
5. If a guarantee exists and it is in force, the Origin Entity and the Destination Entity may agree on the mechanisms for subrogation or assignment of such guarantee.
6. The financial products portability process must be free of charge, and no penalties may be imposed on the FC.
7. The offer made by the Destination Entity to the FC shall be binding upon the Destination Entity for the offer period.
8. Participating entities must report to the SFC information regarding portability requests received, addressed, and rejected, in accordance with the terms and conditions to be determined by the SFC.

The implementation period for the Regulatory Proposal shall be 24 months from the date of publication of the final Decree. 

Current situation

1. The Regulatory Proposal on financial products portability is essential to comply with Article 94 of Law 2294 (National Development Plan 2022–2026), which mandates the National Government, to issue regulations on this matter, under principles of gratuity and absence of penalties for financial consumers.
2. The URF is pending the issuance of the Open Finance Decree, which will establish a mandatory model for financial institutions in Colombia. Certain provisions of the Regulatory Proposal are expected to be aligned and subject to open finance regulatory framework.
3. Currently, financial consumers rely on other institutions offering to purchase their credit portfolios in order to switch products. The Regulatory Proposal would enable consumers to proactively seek more favorable alternatives on their own initiative.
4. At present, there are no express regulatory obligations applicable to financial institutions in relation to portability activities, which positions the Regulatory Proposal as a pioneering initiative within the existing regulatory framework, although its scope could potentially consider other types of financial products and entities.

Spanish version