Among expressed the profound solidarity of Mexico with

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Among the
regulations that investment advisers must comply with are those related to the
prevention of money laundering and financing of terrorism.

There are
several activities that within the financial sphere have to comply with various
regulations to carry out their functions by said regulations. The stock market
is a sector that plays a very important role in the economies of the countries
and that in many of them, like the Latin Americans, should, from my point of
view, have more significant activity and favor the access of a higher number of
participants in it. How can this inclusion be achieved? Are better education
and financial diffusion required?

Within one
of the activities related to investment decisions, the Mexican Securities
Market Law provides that people who, without being intermediaries of the
securities market, provide professional and frequent portfolio management
services by making choices. Investment in the name and on behalf of third
parties, as well as providing expert and professional investment advice on
securities, analysis, and issuance of investment recommendations individually
will have the character of investment advisors.

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Speaking of
the requirements that must meet those people to perform their function are to
register with the National Banking and Securities Commission (CNBV). In the
case of individuals, they must prove that they have good reputation and
creditworthiness, regarding the general provisions issued by the CNBV, as well
as having the certification before a self-regulatory body recognized by the
CNBV. In the case of legal persons, they must be public companies regarding
current legislation, or corporations or limited liability companies under the
General Law of Commercial Companies and comply with various requirements.

Among the
regulations that investment advisers have to comply with-perhaps you already
imagined, dear reader-are also those related to the prevention of money
laundering and financing of terrorism. By the way, this issue of terrorism was
discussed during the recent Summit on Violent Extremism held in Washington, DC.

Secretary of the Interior, Miguel Ángel Osorio Chong, participated in the
Summit on behalf of Mexico, who expressed the profound solidarity of Mexico with
the families of the victims of acts of terrorism, while condemning these
inhumane acts. He also pointed out that in recent years the world has witnessed
the effects of violent extremism and intolerance, and lamented the improper use
of technology for the recruitment of people and the raising of funds by
terrorist organizations. He also expressed his concern about the global
trafficking of illicit goods that allows them to expand their operational

About the
prevention of money laundering and financing of terrorism, investment advisers
must comply with measures very similar to those applied to the various entities
of the financial sector, such as:

and identify your customers.

operations to the Financial Intelligence Unit.

of training programs.

automated systems.

where appropriate, through its board of directors, a representative who works
in the company, which will perform, at least, functions similar to those of the
compliance officer.

advisers perform a function to a certain extent unknown to the general public
and of great importance for making investment decisions that will have an
essential and direct impact in some positive cases and others – let’s hope they
are the least- negative way in people’s finances. These advisors also have a
very important function to take care that money from illicit origin does not
participate in any investment. Donald Trump said: “Sometimes the best
investments are those that are not made.” What do you think dear reader?

Categories: Management


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