**Table 8: Size and Ownership of Five Largest Leasing CFCs (December 2005)**

||**Gross Leasing Assets**<br>**(Col$ billion)**|**Market Share**<br>**Ownership**|
|---|---|---|
|Leasing Colombia|2,321|44%<br>Grupo Sindicato|
|Leasing de Occidente|890|17%<br>Grupo Aval|
|Leasing de Credito|643|12%<br>Helm Financial Services|
|Leasing del Valle|400|8%<br>Grupo Aval|
|Leasing Bolivar|282|5%<br>Grupo Bolivar|

_Source: Superintendencia Financiera and own analysis._

# **_C. Specific Reform 2: Collective Investment Schemes_**

**Recommendation: Introduce a specialized vehicle whose exclusive responsibility would be the management of collective investment schemes** . These schemes in Colombia have historically developed in a fragmented piece-meal manner<sup>20</sup> . This led to the co-existence of several types of funds subject to different – banking or securities – regulations<sup>21</sup> in spite of the common underlying characteristics of this activity<sup>22</sup> (see Table and Figure below). The proposed reform would introduce a specialized entity operating under international regulatory standards whose mandate would be to consolidate and manage such collective investment schemes (i.e. FCO, FCE, FV and FI)<sup>23</sup> . In addition, this entity could manage FPVs together with AFPs and insurance companies<sup>24</sup> , as well as those FMIs whose management is sub-contracted to third parties. Fiduciarias and comisionistas de bolsa would no longer be allowed to directly manage collective investment schemes, but they (as well as banks) could own this specialized entity and could agree to distribute its products and/or those of third party providers.

**Table 9: Types of Collective Investment Schemes by Provider**

|**Type of financial institution**|**Fondos de Pensiones**<br>**Voluntarias(FPV)**|**Fondos Comunes**<br>**Ordinarios(FCO)**|**Fondos Comunes**<br>**Especiales(FCE)**|**Fondos de**<br>**Valores(FV)**|**Fondos de**<br>**Inversión(FI)**|**Fondos Mutuos de**<br>**Inversión(FMI)**|
|---|---|---|---|---|---|---|
|**AFPs**<br>**Fiduciarias**<br>**Insurance Companies**|**X**<br>**X**<br>**X**|**X**|**X**|||**X**|
|**Comisionistas de Bolsa**||||**X**||**X**|
|**Sociedades Administradoras d**|**e Fondos de Inversión (SAF**|**I)**|||**X**||

_Source: Superintendencia Financiera_

> 20 Closed employer/employee-sponsored plans called _Fondos Mutuos de Inversión_ (FMI) were created in 1959; _Sociedades Administradoras de Fondos de Inversión_ (SAFI) managing _Fondos de Inversión_ (FI) were created in 1980; comisionistas de bolsa managing _Fondos de Valores_ (FV) were established in 1990; _Fondos Comunes Ordinarios_ (FCO), _Fondos Comunes Especiales_ (FCE) and voluntary pension funds ( _Fondos de Pensiones Voluntarias_ or FPV) managed by fiduciarias were introduced prior to the 1990’s. 21 These include, for example, differences in licensing procedures, minimum capital requirements, investment limits, internal controls, conduct rules, firewalls in relation to other provider activities etc.

> 22 Investment pools related to the social security system and managed by AFPs (i.e. _Fondos de Pensiones Obligatorios_ and _Fondos de Cesantía_ ) are excluded from the definition of collective investment schemes. 23 Alternatively, this specialized entity could be based on an amended version of the SAFI, which is a type of exclusive fund management firm.

24 Given its current structure (capped salary contributions with a tax exemption if held for at least 5 years), an FPV can also be considered as a type of collective investment scheme with tax benefits.

21