New Regulation on Communal and Savings Funds Strengthens Local Financing and Financial Inclusion

The Financial Policy and Regulation Board of Ecuador has approved Resolution No. JPRF-F-2025-0154, through which the legal framework governing community savings and loan funds within the popular and solidarity financial sector is comprehensively reformed. This regulation aims to promote economic inclusion, ensure institutional transparency, and strengthen sustainable local financing, moinly in rural and urban-marginal areas.

Among the main provisions, it establishes that the funds must be constituted as legal entities and must obtain prior authorization from the Superintendency of Popular and Solidarity Economy (SEPS). Their operations will be limited to individuals with verifiable common purposes, such as members of a neighborhood, association, cooperative, or institution.

The regulation sets a maximum asset limit of USD 400,000 and restricts activities exclusively to savings and credit operations among members. It also explicitly prohibits the collection of public funds, the opening of more than one office, and mass advertising.

Additionally, the regulation mandates a public registry, internal policies on ethics, good governance, and anti-money laundering measures. Finally, it establishes a 12-month moratorium on the creation of new funds, authorizing only the ongoing regularization processes.

At Quevedo & Ponce, we offer specialized legal services to community organizations, rural associations, cooperative networks, and local development entities, providing guidance in the legal incorporation, regulatory compliance, and operational regularization of communal savings funds.

Our firm in Quito brings over five decades of experience in public financial law and a strong commitment to the advancement of inclusive, solidarity-based economic models.

Contact our team for a comprehensive legal assessment of your communal or solidarity-based savings fund.