Resolution JPRM-2024-026-A: Termination of Moisés Nikolay Trujillo Avilés as External Member of the Audit Committee of the Central Bank of Ecuador

RESOLUTION NO. JPRM-2024-026-A THE MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador stipulates that public servants and persons acting under state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 of the same Constitution states that Public Administration constitutes a service to the community governed by principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, Article 47.1 of the Organic Code of Monetary and Financial Affairs creates the Monetary Policy and Regulation Board as part of the Executive Function, responsible for formulating monetary policy, as the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, numerals 15 and 26 of Article 47.6 of the Organic Code of Monetary and Financial Affairs, among other functions of the Monetary Policy and Regulation Board, determine: “15. Establish and regulate the functioning of committees that may be necessary for the operation of the Bank; (…) 26. Those others conferred by law.”;

That, Article 47.7 of the aforementioned Code states: “The acts of the Monetary Policy and Regulation Board enjoy the presumption of legality and shall be expressed through resolutions that shall have mandatory force (…)”;

That, Article 57.2 of the Organic Code of Monetary and Financial Affairs establishes that the Monetary Policy and Regulation Board shall designate and determine the attributes and functions of the Audit Committee that will assist it in the oversight of financial reports, internal audit, external audit, and internal control systems, for which it will approve the corresponding regulation;

That, by Resolution No. JPRM-2021-006-A, dated December 17, 2021, the Monetary Policy and Regulation Board approved the Regulation of the Audit Committee of the Central Bank of Ecuador, reformed by Resolutions No. JPRM-2022-030-A, dated December 19, 2022, No. JPRM-2024-012-M, dated July 10, 2024, No. JPRM-2024-016-A, dated August 26, 2024, and JPRM-2024-024-A dated November 18, 2024;

That, Article 4 of the aforementioned resolution determines: “The Audit Committee of the Central Bank of Ecuador shall be composed of three members with voice and vote, designated by the Monetary Policy and Regulation Board, at least two (2) of whom shall have relevant experience in accounting or auditing, and one (1) of whom may be a member of the Monetary Policy and Regulation Board. (…) The members of the Audit Committee, other than the member of the Monetary Policy and Regulation Board, shall be referred to as external members (…)”;

That, Article 7 of the aforementioned regulation establishes that “The functions of the external members of the Audit Committee of the Central Bank of Ecuador shall end before the period for which they were designated, when they incur in the following causes: (…) 6. At the request of two members of the Monetary Policy and Regulation Board, whose decision must be adopted unanimously (…) Once the Monetary Policy and Regulation Board identifies that any of the external members of the Audit Committee of the Central Bank of Ecuador has incurred in one of the preceding causes, within a term of five (5) days, it shall issue the corresponding resolution terminating the designation (…)”;

That, Article 10 of the aforementioned reformed regulation determines that “In the event that a member of the Monetary Policy and Regulation Board is designated as a member of the Audit Committee, this person shall act as President of the Audit Committee of the Central Bank of Ecuador. (…)”;

That, by Resolution No. JPRM-2023-022-A, dated November 20, 2023, the Monetary Policy and Regulation Board designated Moisés Nikolay Trujillo Avilés as a member of the Audit Committee of the Central Bank of Ecuador, replacing Cristina Alexandra Trujillo Calero, for the remaining time to complete the period for which she was designated, that is until January 10, 2026;

That, through Memoranda No. BCE-BCE-2024-0263-M and No. BCE-BCE-2024-0275-M dated November 21 and 29, 2024, respectively, the General Manager of the Central Bank of Ecuador submitted Reports No. BCE-SATH-352-2024 dated November 20, 2024, No. BCE-GJ-039-2024 dated November 21, 2024, and its extension with No. BCE-GJ-040-2024 dated November 28, 2024, reports which in their pertinent part indicate that “(…) the manner of termination of functions of the external members of the Audit Committee is through the issuance of a resolution, in accordance with Article 47.7 of the Organic Code of Monetary and Financial Affairs and the second paragraph of Article 7 of the Regulation of the Audit Committee of the Central Bank of Ecuador, within a term of five days, counted from when the Monetary Policy and Regulation Board identified that one of the external members of the Committee has incurred in one of the causes. (…) in the event that any of the nine causes for the termination of functions of the external members of the Audit Committee occur, the Monetary Policy and Regulation Board is the competent body for the knowledge and treatment of said causes; that is, it is the body fully empowered to (i) determine the existence of any of the causes; and, also to (ii) resolve the cessation of functions of the member who has incurred in any of them (…)”;

That, through Memoranda No. BCE-JPRM-2024-0139-M and No. BCE-JPRM-2024-0140-M dated December 6, 2024, the members of the Monetary Policy and Regulation Board proposed the application of numeral 6 of Article 7 of the Regulation of the Audit Committee of the Central Bank of Ecuador to terminate the functions of the Master Moisés Nikolay Trujillo Avilés, as member and current President of the Audit Committee of the Central Bank of Ecuador, in order to comply with the new composition of the Audit Committee contained in current regulations;

That, the Monetary Policy and Regulation Board in ordinary session with mixed modality, on December 12, 2024, considered the request of two of its members, related to the termination of functions of an external member of the Audit Committee of the Central Bank of Ecuador; and,

In exercise of its functions and in attention to Article 47.7 of the Organic Code of Monetary and Financial Affairs, the Monetary Policy and Regulation Board:

RESOLVES

Article 1.- Terminate the designation of the Master Moisés Nikolay Trujillo Avilés, as external member of the Audit Committee of the Central Bank of Ecuador, in application of the cause provided for in numeral 6 of Article 7 of the Regulation of the Audit Committee of the Central Bank of Ecuador.

Article 2.- The Monetary Policy and Regulation Board and the Central Bank of Ecuador express their gratitude for the work and contribution provided by the Master Moisés Nikolay Trujillo Avilés, in the exercise of his functions as external member and president of the Audit Committee of the Central Bank of Ecuador.

GENERAL PROVISION.- The Financial Administrative Management of the Central Bank of Ecuador, through its Sub-directorates, will execute the pertinent administrative actions to implement this resolution.

FINAL PROVISION.- This resolution will enter into force from its issuance, without prejudice to its publication in the Official Register.

It is entrusted to its publication on the institutional website, to the General Secretariat of the Central Bank of Ecuador.

NOTIFY AND PUBLISH.- Given in the Metropolitan District of Quito, on December 12, 2024.

THE PRESIDENT Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Doctor Tatiana Maribel Rodríguez Cerón - President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on December 12, 2024.- I CERTIFY. ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO