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.
When hiring a new employee, it is essential for every employer to consider that our labor law stipulates that if the employer terminates the contract before the scheduled start date of the employment relationship, they must compensate the worker for the damages caused, which cannot be less than one month’s salary, except in contracts agreed […]
Private interest foundations offer a range of advantages that complement corporations and trusts as estate planning instruments. Limitations of Corporations and Trusts in Estate Planning Using a holding corporation as an estate planning vehicle generally requires one of two options for transferring wealth to future generations: (i) drafting a will to pass on corporate shares […]
During the design phase of a real estate project, attention is often focused on architectural aspects. However, while architects play a key role in the project’s success, there are other equally important factors that must be considered from the beginning. Beyond the architectural design, it is essential to integrate a legal team specialized in horizontal […]
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 […]
