The Principle of Reverse Solicitation in Financial Services Companies

The principle of reverse solicitation allows financial services companies to offer their services to clients in foreign jurisdictions without requiring a local license or presence, as long as the client initiates the contact. This is especially relevant for cross-border financial transactions conducted via online platforms, where regulations vary between countries.

In Panama, the legal framework for complex financial products is primarily outlined in Law Decree No. 1 of 1999 and further amendments, including Law No. 67 of 2011. According to Article 58 of this framework, securities traded through correspondent relationships are not considered to be offered in Panama, provided the firm does not promote these securities locally and the transactions are completed outside Panama.

Currently, there are no restrictions in Panama on foreign companies accepting Panamanian clients, as long as the engagement is initiated by the client and no promotional activities take place in Panama. This allows foreign companies to serve Panamanian residents under the principle of reverse solicitation without violating local laws.