The Central Bank of Uruguay (BCU) presented a draft package of legislative proposals to the Senate’s Agriculture, Livestock and Fisheries Committee aimed at bringing companies that channel savings into productive investment within the central bank’s regulatory and supervisory perimeter, with a focus on strengthening investor protection. The BCU argued that the current legal framework leaves certain firms, including those in the livestock sector, outside its remit because they neither conduct financial intermediation nor make a public offering of securities, but instead invite investment in real-economy assets. The draft proposals would broaden the regulatory perimeter by reinforcing the BCU’s powers to supervise and regulate any natural or legal person that, regardless of its main activity, makes a public call for investment with an expectation of return. The central bank framed the reform as fraud-preventive and noted design principles including alignment with national conditions, cost efficiency, stronger retail investor protection, and tiered requirements to avoid abrupt regulatory change and undue burdens on firms. The BCU will send the proposal to the Ministry of Economy and Finance for consideration on whether to forward it to the Legislative Branch.
Central Bank of Uruguay 2025-06-12
Central Bank of Uruguay submits draft legislative proposals to expand supervision over firms publicly soliciting investment in productive assets
The Central Bank of Uruguay (BCU) proposed reforms to extend regulatory oversight to companies soliciting investment in real-economy assets, including the livestock sector. The draft aims to enhance investor protection by allowing BCU to supervise entities making public investment calls, regardless of their primary activity. The proposal emphasizes fraud prevention, alignment with national conditions, and tiered regulatory requirements to minimize disruption.