Trust legislation and regulations governing trust activities were revised and enacted, respectively in 1984 and 1985, following in general the concepts for trusts under Anglo common law. Among other things, it offers complete segregation of assets entrusted from those of the trustee and the requirement of prior licensing by a regulatory body for persons or entities dedicated to providing trust services.
The law creating the National Securities Commission was enacted in 1970. This Law has sustained substantial amendments through Decree Law No.1 of July 1, 1999, whereby a new autonomous National Securities Commission is created and the securities market in Panama is regulated.
This is a very extensive and important piece of legislation regulating registration procedures for locally traded papers, under greater supervision and reporting requirements to the Commission, as well as foreign traded securities, including mutual funds, offered or managed from Panama.
Leasing activities have been regulated also by special legislation, with distinct incentives for the leasing of vessels engaged in international operations; leasing contracts are also exempted from stamp tax.
Offshore Captive Insurance and Reinsurance Activities:
New and revised legislation for these activities was enacted recently, clearly defining the ground rules and requisites necessary for application of a corresponding license for tax free operations. These, as well as local insurance operations, are regulated and supervised by the Insurance and Reinsurance Superintendency, under the Ministry of Commerce and Industry.