Background on the Current Situation
Following recent interventions by financial authorities into three Mexican institutions, including CIBanco which holds the largest share of Mexico’s fiduciary business, concerns have resurfaced regarding the high concentration of this financial sector.
Sofom’s Proposal for a Trust Law
In response to this situation, the Sociedad Financiera de Objeto Múltiple (Sofom) Click Seguridad Jurídica has proposed a Trust Law to establish a clear regulatory framework for the administration and operation of trusts.
Current Trust Landscape in Mexico
According to data from the National Banking and Securities Commission (CNBV), as of April 2025, the Mexican financial system managed over 11 trillion pesos in trusts. Approximately 80% of this total was concentrated in multiple banks, 18% in development banks, and the remainder among other intermediaries. CIBanco alone managed around 26% of the total, equivalent to over 3 trillion pesos.
Importance of Trust Regulation
Adolfo González Olhovich, president of Click Seguridad Jurídica’s Council, emphasized that trusts can offer legal guarantees to investors but would benefit from regulations setting compliance standards and incorporating lessons learned.
“If trusts are properly utilized as mediation instruments, Mexico can offer a more agile guarantees system than Switzerland’s. No well-designed trust structure has failed to meet its commitments. However, the current context necessitates specific legislation that provides greater certainty and mitigates risks,” González stated.
Key Proposals for Trust Regulation
One of the main proposals for this initiative is the implementation of mandatory certifications for fiduciaries, institutions that receive and manage assets according to a trust agreement. Currently, there is no regulatory requirement for such certifications.
“Today, fiduciaries are not obligated to have specific certifications, which represents a weakness in terms of professionalization and control,” González warned.
Additionally, he highlighted the significance of mandatory qualifications for fiduciary operations by recognized agencies.
“Currently, only six entities are qualified, including us as the sole non-bank institution with a rating in this market,” González pointed out.
Opportunities for Sofoms in the Fiduciary Market
Following the Secretariat of Finance’s announcement to temporarily transfer fiduciaries from CIBanco and Intercam to development banks, González noted that there is an opportunity to reorganize Mexico’s fiduciary market.
“Undoubtedly, this process of reorganizing the fiduciary market opens new opportunities. Sofoms have a comparative advantage over banks, even those from the G7 countries with the highest risk levels in anti-money laundering matters,” González affirmed.
According to the 2023 National Money Laundering and Terrorism Financing Risk Assessment, prepared by the Financial Intelligence Unit (UIF), fiduciary Sofoms were classified with a low or medium risk level in anti-money laundering matters.
In contrast, multiple banks are among institutions with the highest risk levels.
This difference can be partly attributed to the smaller volume of operations managed by Sofoms compared to other financial system entities, which facilitates their supervision and reduces exposure to illicit activities.
“We encourage society to learn more about trusts and contribute to building a stronger market, primarily through legislation that regulates their administration and prevents bad practices,” González emphasized.
Key Questions and Answers
- What is the current concern regarding trusts in Mexico? The high concentration of fiduciary business, with CIBanco holding a significant portion, has raised concerns following recent financial authorities’ interventions.
- What is Sofom’s proposal? Sofom suggests a Trust Law to establish a clear regulatory framework for trust administration and operation.
- Why are mandatory certifications for fiduciaries important? Currently, there is no regulatory requirement for such certifications, representing a weakness in professionalization and control.
- How do Sofoms compare to traditional banks in terms of risk? According to the UIF’s 2023 assessment, Sofoms have a lower risk level in anti-money laundering matters compared to multiple banks.
- What opportunities does the reorganization of the fiduciary market present? The temporary transfer of fiduciaries from CIBanco and Intercam to development banks opens opportunities for Sofoms, which have a comparative advantage over traditional banks.
