Panama's securities market is entering a decisive phase of updating its legislation. The Securities Market Superintendency (SMV) is organizing the feedback received during the public consultation process to build a draft document for technical discussions with the sector. Superintendent Maruquel Murgas de González announced the intention to have the document ready by April to begin working tables with guilds and market participants, seeking a consensus before it is sent to the Ministry of Economy and Finance. The SMV insists that the securities market should not be seen merely as a space for transactions, but as a channel that connects savings with productive investment. Every initiative driven by the entity aims to preserve confidence, integrity, and stability of the financial system in a rapidly innovating environment. This approach explains why the SMV has expanded its agenda beyond traditional regulation. Closed-end investment companies closed 2025 with net assets of $7,175 million, 14% more than in 2024, while investment advisors managed $15,038 million, an increase of 31%. In the case of pension funds, managed resources reached $920 million, also with a 14% growth. The expansion is also observed in collective investments. Most of this comes from Latin America, and the managed portfolios continue to expand, consolidating the country as a regional investment management hub. In parallel, the growth of investment advisors and the participation of institutional investors show a market that is becoming more structured and specialized, with a greater corporate presence in financial decision-making. At an institutional level, the SMV has reinforced its focus on financial education and preventive supervision. However, this growth also poses challenges: expanding the investor base, strengthening the local market, and adapting regulation to a constantly changing financial environment. With the draft planned for April and the start of technical tables, the Panamanian securities market enters a definition stage. During the last year, the entity has worked on projects related to risk management, data protection, and financial crime prevention, in addition to strengthening its participation in international forums and technical cooperation programs. At the same time, it has begun to interact with new actors in the financial ecosystem. In 2025, it increased investor alerts about unauthorized offers in digital environments, as part of a strategy to anticipate risks and protect the public. Furthermore, it has promoted tools such as the thematic bonds guide, aimed at guiding issuers interested in developing instruments linked to sustainability, a segment gaining space in international markets. The overall balance shows a market growing in size, participation, and complexity. Investment companies continue to grow, with assets exceeding $7 billion, largely driven by the real estate sector, which maintains a significant weight within these portfolios. In the intermediation segment, the volume traded reached significant levels, surpassing $180 billion. However, the most revealing data is its composition: the majority of these operations are carried out in international markets, confirming Panama's role as a regional financial platform connected to the outside. This positioning is also reflected in the origin of the clients. The Securities Market Superintendency (SMV) is organizing the feedback received during the public consultation process, with the goal of building a draft to serve as a basis for technical discussions with the sector. Superintendent Maruquel Murgas de González announced that the intention is to have that document ready in April, to initiate working tables with guilds and market participants, in search of a consensus before its submission to the Ministry of Economy and Finance. The objective is no small feat. In that same year, companies disbursed more than $3.7 billion between capital, dividends, and interest, reflecting the fulfillment of obligations and the generation of flows to those who invest in the market. The market's growth is also better appreciated when compared to the previous year. Currently, more than 300 issuers are registered, confirming a trend in which the capital market is positioning itself as an alternative to traditional credit. This movement translates into activity. At the end of 2025, the SMV reported 301 registered issuers, a 6% increase from 2024. Transactions made by brokerage houses totaled $182,018 million, 28% more than the previous year, while the total portfolio managed by these entities reached $80,566 million, with a 27% year-on-year increase. The expansion was also reflected in other segments. The update of Panama's Securities Market Law, in force since 1999, enters a decisive phase. At the close of 2025, the SMV supervised more than 2,300 participants between companies and authorized persons, reflecting a broader and more diversified system. One of the most visible changes is the increase in the number of companies using the securities market to finance themselves. Through the Finhub, in coordination with other regulators, the SMV has guided fintech entrepreneurs on how to structure their business models within the regulatory framework at an early stage of development. Market on the rise This update process occurs in parallel to a market that continues to expand. The result of this process will mark the rules under which the system will operate in the coming years. The current legislation was designed in a very different financial context than the current one, and the market itself has raised the need to update it to incorporate new technologies, business models, and international standards. According to the SMV, the process is part of a broader institutional modernization strategy. In 2025, issuances totaled more than $2.4 billion, with a relevant element: more than half corresponded to new issuers. In other words, the growth comes not only from the same players but from a base that continues to expand. But beyond the amount issued, there is a data point that summarizes the system's functioning: how much returns to investors.
