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History of the Licensed Commercial Broker

History

History of the Licensed Commercial Broker

Commercial brokers are as old as commerce itself; a profession whose main purpose is to facilitate business.

Business dealings in ancient Egyptian, Phoenician, Greek and Roman civilizations always included a commodity expert who performed a variety of tasks:

a) Certification of merchandise inventories for the public record on clay tablets or papyrus.

b) As a general merchandise expert, the public broker, as he was called, appraised the value of merchandise traded during business transactions.

c) He often spoke several languages and was used as a mediator by foreign merchants who wanted to buy and sell goods efficiently in the area. They were also useful to local merchants who were not familiar with the foreign sellers or with the quality and prices of goods they offered. Under such circumstances the business broker acted as mediator.

In ancient Rome a broker held legal office and could be either a Roman citizen or a foreigner, and their actions were regulated by the "Population Law".

The Licensed Commercial Broker in Mexico

Upon publication of the first Mercantile Code known as the Lares Law in 1854, the Ministry of Development was given powers to regulate Brokers, followed by the first Regulations and Tariffs published in July, 1854, which remained in effect until the Commerce Code was instituted in 1884.

The modern Commerce Code was published on September 15, 1889, giving the Ministry of Development the authority to grant brokerage licenses in the Federal District.

The Law of State Departments dated May 13, 1891, assigned the regulating of Licensed Brokers to the Department of the Interior under Secretary Benito Gómez Farias who instituted the Mexico City Licensed Commercial Brokers Regulations on November 1, 1891.

The Organic Law of Secretariats and State Departments then gave control of Licensed Commercial Brokers to the Department of Commerce and Industry, then successively to the Department of National Economy and the Department of Industry and Commerce. Afterwards, the Organic Law of Federal Public Administration which came into effect on January 1, 1977 turned that control over to the Department Of Commerce presently named  Department Of Commerce and Industrial Development.

 Nowadays, with the implementation of the Federal Licensed Commercial Brokers Law and its Regulations which came into effect on January 28, 1993, the provisions of the Commerce Code governing Licensed Commercial Brokers were abolished and the broker's powers were expanded under a new federal law governing Licensed Commercial Brokers in Mexico.

 The most prominent objectives of these new laws include the following:

-- Easier access to legal certification services.

-- Expedited legalization of documents, contracts, covenants, and business operations in general.

-- Reduction in the cost of commercial transactions.