June 2, 1994
TO: INTERNATIONAL COMMITTEE NO. 9-94
RE: MEXICO ISSUES FINAL REGULATIONS FOR ESTABLISHING AFFILIATES
IN MEXICO
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Attached for your information is the English version of the
"Regulations for the Establishment of Affiliates of Foreign
Financial Institutions" that were published in Mexico's Diario
Oficial on April 21, 1994.
During the NAFTA negotiations the Institute obtained,
through the Treasury Department, confirmation from the Mexican
government that after NAFTA was implemented a U.S. firm could
establish a wholly-owned affiliate in Mexico to sponsor, advise,
and distribute Mexican mutual funds. The new regulations
prescribe the requirements for applications to establish these
affiliates.
Institute staff members plan to meet this summer with
representatives of Mexico's Comision Nacional De Valores to
discuss issues that concern members interested in managing
Mexican mutual funds. We expect to discuss both issues arising
under these regulations as well as the extent to which mutual
funds organized in Mexico will be permitted to invest in non-
Mexican securities. (It appears that current law prohibits
investment in non-Mexican securities by Mexican mutual funds.)
If you have concerns about the new regulations or about any other
issues relating to the management of Mexican mutual funds, please
call me at 202-326-5826.
We will keep you informed of developments.
Mary S. Podesta
Associate Counsel - International
Attachment