COSTA RICA Law and Practice Contributed by: Douglas Soto, Miguel Elizondo-Soto and Osvaldo Madrigal Méndez, Zurcher, Odio & Raven
insolvency or bankruptcy, respec - tively, or has already been declared insolvent or bankrupt, even when said processes have been termi - nated by conciliation or judicial or extrajudicial arrangement. It should also be indicated if the natural per - son or entity in which the person has held a key position is in a process of administration and reorganisation by judicial intervention or if the person has lawsuits for pending debts, in the country or abroad, or if the entity is a delinquent debtor in the local financial system or abroad; and (b) experience – this assessment must cover at least the following factors – (i) experience in relevant areas of finan - cial activity; (ii) specific experience in financial enti - ties, particularly performing positions in management or senior manage - ment bodies; (iii) academic training in relevant areas for the activity carried out by the entity; (iv) specific complementary training in relevant areas for the activity de - veloped by the financial institution, such as certifications from local or foreign institutions; and (v) the number of years of experience, as well as academic and profes - sional training, in congruence with the relevant activities of the financial entity. • Assessment test – the regulated entities must include an assessment test within the hiring and interview process to determine whether a candidate has the skills, work style, knowledge and personality to succeed in the required position according to the market,
goals, team integration and experience of the entity. The compliance with this pre-employment pro - cess must be supported and evidenced in an individual file for further regulatory review if needed. On a case-by-case basis, affidavits and official certifications shall support the com - pliance with the aforementioned requirements. The regulated entity must inform SUGEF once a director or senior manager has been appointed. This designation is not subject to regulatory approval, as the supervisory regime follows a risk-based model whereby the regulator has the authority to execute a later review if needed, according to the circumstances and based on compliance with the aforementioned guidelines on the suitability policy, assessment tests and performance test. According to the Regulation of Corporate Gov - ernance, the board of directors must supervise the performance of the senior management team, and must take any necessary actions when actions and consequences are not aligned with the expectations of the board. These include complying with company values, risk appetite and risk culture. Consequently, the regulated entities must approve a performance evaluation policy, applicable on a regular basis, for each member of the management body and senior management, once hired, to identify and valu - ate weakness points and to execute a mitigation plan to correct such discrepancies. 4.3 Remuneration Requirements The remuneration requirements are regulated in the Regulation of Corporate Governance, CONASSIF 4-16, according to which the board of directors, the senior management team and members of the control bodies are subject to
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