Best Structured Finance Lawyers in Lima

About Structured Finance Law in Lima, Peru

Structured finance law in Lima, Peru, governs complex financial transactions that go beyond conventional lending and borrowing. These arrangements often involve pooling financial assets, such as loans or receivables, and creating securities that are sold to investors. Structured finance is essential for companies and financial institutions seeking innovative funding solutions, risk management strategies, or asset monetization. In Peru, the legal framework supports various structured finance mechanisms, including securitization, syndicated loans and project finance deals, particularly for infrastructure and large-scale projects. The Peruvian financial system offers regulations and protective measures to ensure transparency, investor protection, and market stability, making it a favorable environment for both local and international participants.

Why You May Need a Lawyer

Engaging in structured finance transactions can be legally and financially complex. Here are common situations in which people seek legal help in this field:

• Structuring and documenting complex financing deals for businesses or public entities
• Securitizing assets such as mortgage portfolios, leases, or receivables
• Negotiating syndicated loans or involving multiple lenders and borrowers
• Financing large infrastructure, energy, or real estate projects
• Understanding regulatory compliance under Peruvian financial laws
• Settling disputes or resolving defaults in structured finance agreements
• Cross-border transactions or engaging with international financial institutions
• Assessing tax implications and reviewing risk factors
• Managing insolvency or restructuring obligations within a structured finance framework

Given the stakes and complexities, a qualified lawyer can help ensure compliance, smooth operations and protection of your interests.

Local Laws Overview

Structured finance in Lima, Peru, is primarily governed by the legislation issued by the Superintendencia del Mercado de Valores (SMV), the Peruvian Civil Code, and the general banking law (Ley General del Sistema Financiero y del Sistema de Seguros). Key local law aspects relevant to structured finance include:

• Securitization: Laws allow the creation of special purpose vehicles (SPVs) to isolate assets and issue securities backed by those assets, providing legal certainty for investors.
• Banking and Financial Regulations: All financial operations must comply with anti-money laundering standards, know your customer (KYC) requirements, and disclosure obligations dictated by the SMV and Superintendencia de Banca, Seguros y AFP (SBS).
• Taxation: Transaction structuring must consider value-added tax (IGV), income tax, and withholding tax implications. Certain transactions may qualify for tax exemptions or incentives, particularly in public infrastructure projects.
• Bankruptcy Law: Procedures for insolvency, debt restructuring, and asset recovery are established under local regulations, which impact the enforceability of secured interests and investor rights in the event of default.
• International Agreements: Peruvian law acknowledges and enforces certain international financial agreements and conventions, which is significant for transactions involving foreign investors or cross-border assets.

All structured finance activity is closely monitored by local supervisory bodies to protect market participants and maintain financial stability.

Frequently Asked Questions

What is structured finance, and how is it used in Peru?

Structured finance refers to complex financial products that involve pooling or redistributing risks, often through securitization or syndicated lending. In Peru, it is used to finance large projects, manage risks, and access capital markets.

What entities regulate structured finance transactions in Peru?

The Superintendencia del Mercado de Valores (SMV) regulates securities and capital markets, while the Superintendencia de Banca, Seguros y AFP (SBS) supervises financial institutions and insurance companies involved in structured finance activities.

Are there special vehicles for asset securitization in Peru?

Yes, Peruvian law allows the formation of special purpose vehicles (SPVs), which isolate financial assets and issue securities backed by those assets, a key part of structured finance transactions.

Is foreign participation allowed in Peruvian structured finance?

Foreign investors can participate in most structured finance transactions in Peru, subject to certain regulatory approvals and compliance with local and international standards.

What are some common types of structured finance deals in Peru?

Common transactions include securitizations, syndicated loans, project finance for infrastructure, collateralized debt obligations, and leasing structures.

How are investor rights protected in structured finance deals?

Peruvian laws require disclosure, transparency, and adherence to contractual arrangements. Supervisory agencies monitor compliance and enforce sanctions where necessary to protect investors.

What are the basic tax considerations in structured finance?

Tax impacts depend on the deal structure, including income tax, withholding tax, and value-added tax (IGV). Proper planning is crucial to optimize tax efficiency and avoid unexpected liabilities.

Can structured finance be used for public projects?

Yes, structured finance is often utilized for public infrastructure projects, allowing private investors to fund public works via project finance arrangements.

How are defaults or insolvency handled?

Local bankruptcy law and contractual provisions govern procedures for default, insolvency, and asset recovery. Investor rights and priorities are determined by law and negotiated agreements.

Why should I hire a specialized lawyer for structured finance?

Structured finance transactions involve multiple parties, complex documentation, and significant regulatory requirements. A specialized lawyer ensures legal compliance, risk management and negotiation of favorable terms to protect your interests.

Additional Resources

Several organizations and resources can help you better understand and navigate structured finance in Lima, Peru:

• Superintendencia del Mercado de Valores (SMV): Supervises and regulates capital markets activities, including securitizations and securities offerings.
• Superintendencia de Banca, Seguros y AFP (SBS): Oversees banks, financial institutions, and pension funds involved in structured finance.
• Ministry of Economy and Finance (MEF): Issues policies related to financing of public projects and private investment initiatives.
• Peruvian Bar Association: Provides directories of qualified lawyers specializing in financial and securities law.
• Chambers of Commerce: Useful for finding legal and financial advisors for both local and international businesses.

Next Steps

If you are considering or involved in a structured finance transaction in Lima, Peru, consider the following steps:

• Gather all relevant documents and clearly define your objectives or concerns
• Consult a specialized structured finance lawyer with experience in Peruvian law
• Ensure your legal advisor explains complex terms and local regulatory requirements in simple language
• Work with your lawyer to evaluate all legal, financial, and tax implications of the transaction
• If necessary, seek guidance from regulatory bodies or professional networks for additional support

Early legal advice helps anticipate challenges and ensures your structured finance operations are compliant, efficient and aligned with your goals.