What are Fideicomisos and How Do They Function?
Fideicomisos are legal and financial instruments through which an individual, known as the fideicomitente, transfers assets or rights to another entity, called the fiduciary, for administration in the best interest of a third party, known as the fideicomisario. These instruments can be established by both physical and legal entities for various purposes, including asset management and patrimonial protection.
Who is Adolfo González Olhovich and Why is He Relevant?
Adolfo González Olhovich is the president of the Consejo de Click Seguridad Jurídica, a position that makes him an influential voice in the discussion surrounding fideicomisos in Mexico. His insights are valuable due to his expertise and understanding of the market dynamics.
The Significance of Fideicomisos in Mexico
The fideicomiso market in Mexico is valued at 14 billion pesos in assets, with CIBanco managing 26% of this total. These instruments have gained popularity due to their versatility and the fiscal benefits they offer, particularly in estate planning and succession.
Types of Fideicomisos
Common types of fideicomisos in Mexico include administrative, investment, guarantee, and testamentary fideicomisos. Each type has specific characteristics tailored to various financial and patrimonial needs.
How to Establish a Fideicomiso
- Define the Objective: Determine the purpose of the fideicomiso, such as securing a child’s future or managing an inheritance.
- Choose the Fiduciary: Select a financial institution offering fiduciary services, as they possess the necessary legal and administrative expertise.
- Define the Fideicomiso Assets: Decide which assets or funds will be included in the fideicomiso.
- Establish the Fideicomiso Contract: Draft the key document with the help of the institution and legal advisors, specifying the fideicomitente, fiduciary, and transferred assets.
- Set Rules: Clearly outline how the assets will be managed, invested, distributed, or used. For example, allocate monthly funds to a child until age 25, use funds for a daughter’s education, or manage and distribute property rental income to a spouse.
- Identify Beneficiaries and Conditions: Determine who the beneficiaries are and under what conditions they will receive benefits.
- Sign the Contract: Once all details are clear and documented, sign the contract. From this point, assets transfer to the fideicomiso, and your instructions are executed.
Regulatory Measures and Their Impact on the Fideicomiso Market
Adolfo González Olhovich believes that the CNBV’s management intervention and transfer of fideicomisos to Nafin were appropriate actions. These measures reflect timely intervention, non-systemic risk, and provide certainty to market participants.
However, he acknowledges that operational restrictions on these institutions affect the Mexican financial system, particularly the fideicomiso market. CIBanco manages over 3 billion pesos and participates in more than 89% of Mexico’s securities transactions.
The Need for a Fideicomiso Law in Mexico
González Olhovich advocates for a Fideicomiso Law to regulate the market, integrating lessons learned over the years as a fideicomiso leader.
Key Questions and Answers
- What is a fideicomiso? A legal and financial instrument where an individual (fideicomitente) transfers assets or rights to a fiduciary for administration in the best interest of a third party (fideicomisario).
- What are the common types of fideicomisos in Mexico? Administrative, investment, guarantee, and testamentary fideicomisos.
- How do I establish a fideicomiso? Define the objective, choose a fiduciary, define assets, establish a contract with rules and beneficiaries, and sign the contract.
- What impact did the CNBV’s intervention have on the fideicomiso market? The intervention provided certainty to market participants and reflected timely actions, non-systemic risk.
- Why is a Fideicomiso Law necessary in Mexico? A regulatory framework will integrate lessons learned and provide a solid foundation for the fideicomiso market.
