Published and draft legislation - Peru

Alternative Securities Market

Resolution 023-2018-SMV/01

The Securities Market Authority (SMA), the Peruvian securities market regulator, has published a Resolution amending the Alternative Securities Market (ASM) Regulations, which provides greater flexibility as to the requirements, obligations and information disclosure than in the general regulations, to make it easier for companies meeting the requirements therein to access the securities market.

The regulation seeks to support the development of the Alternative Securities Market as another financing option for market agents and came into force on July 23rd, 2018.

The defining premises of the ASM

The amendments made to the regulations include section 4.2.1., which extends from three to five years the number of consecutive financial periods that must be taken into consideration when deciding whether a company meets the conditions necessary to remain within the scope of the ASM, bearing in mind also the increase in the average annual revenue from the sale of goods or provision of services from PEN 200 million to PEN 350 million.

Risk Rating Report

Although the regulation previously established that the Risk Rating Report had to be included in the appendix to the request for entry onto the ASM's Securities Market Public Register and onto the Securities Exchange Securities Register (SSR), the amendment makes it obligatory for companies to report any change in that rating, which must be flagged up as an "Important Event”.

Corporate governance and financial information

Bearing in mind that the ASM has relaxed its requirements and obligations, companies must complete, at the least, Section A and the "Comply or Explain" assessment in Section B of the "Report on Compliance with the Good Corporate Governance Code”.

Now that the regulation has come into law, issuers will be able to set the frequency with which they present their financial information to the market, which can be on a quarterly or half-yearly basis.