The CNBV published an update to the loan follow-up template whereby the classification of entities is based on the calculation of borrower size.

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The authority must be notified of how additional provisions reported in the template are calculated and the information submitted should include at a minimum the origin of the provisions, the method used to calculate them, the amount, and when the provisions will be required.

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New accounting codes and concepts were added to report amounts associated with operational risk.  Also, the result of valuing financial instruments, currencies, and metals at fair value must now be included under “Resultado de Compraventa” (Purchase-Sale Result).

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New codes for interest rates were added impacting report validations.

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Overview: Mexican Securities Law defines market abuse, including insider trading and manipulation, and sets the penalties for this behavior in the following articles:

• Article 221 extends the rules on insider information to service providers, including securities firms or their directors, executive officers and employees.
• Article 247, subsection IV pertains to stock exchanges’ internal regulations and listing, maintenance and cancellation/suspension requirements. It mentions “…including parameters that prevent disorderly market conditions or price manipulation.”
• Article 362 states: “Any knowledge of relevant events that have not been disclosed to the public by the issuer through the stock exchange where its shares are being traded shall constitute inside information for purposes of this Law.”
• Article 363, subsections I to IX, defines who has access to inside information on an issuer.
• Article 364 defines what individuals who have insider information are prohibited to do with that information.
• Article 365 bans anyone mentioned in Article 363, subsection I to IX “from acquiring, directly or indirectly, any securities issued by an issuer to which they are related or any negotiable instruments representing such securities, during a term of three months from the last transfer they executed on the aforementioned securities or negotiable instruments.”
• Article 370 defines and bans market manipulation.
• Article 371 requires entities to establish guidelines, policies and control mechanisms pertaining to securities transactions entered into by individuals with inside information, including directors, executive officers and employees.
• Article 380 establishes a prison sentence for anyone who transfers inside information to a third parties or parties or makes recommendations based on inside information.
• Article 382 establishes a prison sentence for market manipulation.
• Article 383 establishes a prison sentence for anyone who discloses false information on securities or an issuer through “prospectuses, supplements, brochures, reports, disclosure of relevant events and other informative documents and, in general, of any mass media.” This also applies to anyone who conceals or fails to disclose any relevant information or events that must be disclosed to the public or to other shareholders or securities holders, except when their disclosure has been deferred in terms of this Law.
• Article 392. This sets out penalties for infringements to the provisions of Article 365.