Credicorp Capital Peru SAA and Banco GNB Sudameris SA, which both have Colombian operations, will have to move their corporate registrations to countries whose jurisdictions are recognized by Colombia before a new law governing conglomerates comes into force Sept. 21, El Tiempo reported.

The holding companies are registered in Bermuda and Luxembourg, respectively, whose jurisdictions are not acknowledged by Colombia, Financial Superintendent Jorge Castaño Gutiérrez said. Both companies intend to relocate their corporate registrations, with Credicorp Capital planning to transfer to Peru.

In addition, foreign companies in Colombia will have 90 days from the enforcement of the financial conglomerates law to certify that regulations in the countries where they are registered are equivalent to those of Colombia.

Other conglomerates that will have to undergo the equivalence of supervisory norms certification for their Colombian operations include Chile-based Itaú CorpBanca; Canada-based Bank of Nova Scotia, which is the parent company of Banco Colpatria Multibanca Colpatria SA and its financial subsidiaries as well as Colfondos SA Pensiones y Cesantias; and Brazil's BTG Pactual Holding SA.

Meanwhile, Colombia no longer recognizes Citibank - Colombia SA as a conglomerate following the transfer of its consumer and small and medium-sized enterprise business to Banco Colpatria Multibanca Colpatria SA, Castaño Gutiérrez said.

The Financial Conglomerates Act is in line with international best practice and follows other financial regulatory reforms passed in recent years, including new rules to move toward Basel III standards, Fitch Ratings previously said.

The new law empowers Colombian regulator SFC to manage risks at the holding company level, reorganize financial groups, increase capital requirements, if necessary, and authorize new investments.