Reform to the General Law on Credit Securities and Operations and the General Law on Auxiliary Credit Organizations and Activities

On March 26, 2024, various reforms, additions and repeals to the General Law on Credit Securities and Operations (LGTOC) and the General Law on Auxiliary Credit Organizations and Activities (LGOAAC) were published in the Official Gazette of the Federation.

I. General Law on Securities and Credit Operations

One of the central points of the reform is the addition made to article 5 of the LGTOC, which expressly states that credit instruments may be issued in electronic or optical media or by any other technology through an information system to generate, transmit, receive, deliver or process data messages.

In line with the above, the attributes, circulation and guarantee of the credit instruments were adapted to consider:

(i) That nominative titles are those issued in favor of a person whose name is recorded in the same document or digital file.

(ii) In the case of endorsement of digital registered securities, this will be considered delivered to the purchaser through the information system.

(iii) In the event of granting a guarantee for securities issued by electronic means, this will be done through the aforementioned system.

The reform mentions that the information system refers to the one used to generate, send, receive, archive or process information generated, sent, received or archived by electronic, optical or any other technological means.

As of this reform, certificates of deposit, which are titles that prove the ownership of goods or assets deposited in General Deposit Warehouses and, where appropriate, the creation of a collateral credit on said goods or assets, will only be issued in electronic, optimal or any other technological means, through the cryptographic system(s) of certificates of deposit that the General Deposit Warehouses issuing the title determine.

II. General Law on Auxiliary Credit Organizations and Activities

Now, in accordance with the provisions of the General Law on Credit Instruments and Operations, the cryptographic systems referred to that will be used by the Warehouses must have the minimum security standards that guarantee the confidentiality, availability and integrity of the information and the prevention of fraud and cyber attacks.

General Deposit Warehouses must record the amount paid with the proceeds from the sale of the deposited goods, or with the delivery of the corresponding amounts that the Warehouses have in their possession.

These certificates must be registered in the Single Registry of Certificates, Warehouses and Merchandise (RUCAM), a Registry managed by the Ministry of Economy and which will operate with general rules issued for such purpose by said Ministry.

Finally, it is important to keep the following in mind:

• The Decree entered into force the day after its publication, that is, on Wednesday, March 27, 2024.
• The Federal Executive will have a period of 180 working days, following the aforementioned entry into force, to carry out adjustments to any regulatory provision it deems necessary to comply with what is published in the Decree in question.
• In particular, general deposit warehouses are required to adjust their operations to the provisions of the Decree within a period not to exceed 18 months following the date of entry into force of the Decree. Until this period is met, they may continue to issue the certificate of deposit in physical media.

For more information about this announcement, please contact the following professionals: