Agreement 1-2017 (January 4, 2017) Modifying Agreement 5-2016 Regarding the Compliance Period for the Adoption and Effective Implementation of the Uniform Chart of Accounts

REPUBLIC OF PANAMA SECURITIES MARKET SUPERINTENDENCE Agreement 1-2017 (From January 4, 2017) "Modifying Agreement 5-2016 of August 10, 2016 regarding the Compliance Period for the Adoption and Effective Implementation of the Uniform Chart of Accounts¹"

THE BOARD OF DIRECTORS

In exercise of its legal powers and

CONSIDERING

That through Law 67 of September 1, 2011, the Securities Market Superintendence (hereinafter the "Superintendence") is created as an autonomous entity of the State, with legal personality, own assets, and administrative, budgetary, and financial independence, with exclusive competence to regulate and supervise issuers, investment companies, intermediaries, and other participants in the securities market in the Republic of Panama.

That pursuant to what is established in Article 121 of Law 67 of 2011, the National Assembly issued the Single Text comprising Decree-Law 1 of 1999 and its reforming laws and Title II of Law 67 of 2011, reformed by Law 12 of April 3, 2012, and Law 56 of October 2, 2012 (hereinafter the "Securities Market Law").

That in accordance with what is established in Article 3 of the Securities Market Law, the Superintendence shall have the general objective of regulating, supervising, and overseeing the activities of the securities market developed in the Republic of Panama or from it, promoting legal certainty for all market participants and guaranteeing transparency, with special protection of investors' rights.

That Article 10 of the Securities Market Law empowers the Board of Directors to adopt, reform, and revoke agreements that develop the provisions of the Securities Market Law.

That Article 60 of the Securities Market Law (Single Text) establishes that securities firms must keep their books, records, and other documents of operations in the manner prescribed by the Securities Market Superintendence.

That through Agreement 8-2000 of May 22, 2000, the National Securities Commission, now the Securities Market Superintendence, adopts the norms applicable to the form and content of Financial Statements and other financial information that registered persons or those subject to reporting must periodically submit to the Superintendence in accordance with the Securities Market Law.

That through Agreement 8-2005 of June 20, 2005, the National Securities Commission, now the Securities Market Superintendence, establishes the criteria for imposing administrative fines for delay in the presentation of Financial Statements and Reports to the Superintendence.

That through Agreement 3-2015 of June 10, 2015, "Modifying certain provisions of Agreement 4-2011 of June 27, 2011, relating to Interim and Annual Audit Declarations, and to Reports on Client Investment Accounts of Securities Firms," the Securities Market Superintendence adopts the principle established in IFRS, related to the fact that every intermediary must present financial information that allows users of financial statements to evaluate the nature and financial repercussions of the activities developed, as well as the economic environment in which it operates.

That through Agreement 5-2016 of August 10, 2016, "Adopting the Uniform Chart of Accounts for Securities Firms regulated and supervised by the Securities Market Superintendence," the Securities Superintendence established the use of a Uniform Chart of Accounts (PUC) for the submission of reports, statements, and Financial Statements structured under said Plan, with the purpose of having uniformity in the recording of commercial and financial operations carried out by securities firms subject to the Superintendence's supervision.

That in working sessions of the Securities Market Superintendence, the need has been manifested to extend the compliance period for the adoption and implementation of the Uniform Chart of Accounts by securities firms, in accordance with the request made by the Advisory Council of the Board of Directors.

That Article 326 of the Securities Market Law establishes that the provisions of Title XIV "Administrative Procedure for the Adoption of Agreements" shall not apply when the actions to be taken grant an exemption or eliminate a restriction.

That with the modification of the compliance period for the adoption and effective implementation of the Uniform Chart of Accounts by securities firms, the Superintendence would be granting an exemption to said regulation.

That in virtue of the foregoing, the Board of Directors of the Securities Market Superintendence, in exercise of its legal powers;

AGREES

ARTICLE ONE: MODIFY ARTICLE THREE of Agreement 5-2016 of August 10, 2016, which shall read as follows:

ARTICLE THREE: (COMPLIANCE PERIOD). Securities firms shall have until July 1, 2017, for the adoption and effective implementation of the Uniform Chart of Accounts. The instructions issued by the Superintendent of the Securities Market regarding the submission of financial information through the Electronic Information Submission System (SERI System) remain in force.

ARTICLE TWO: During the compliance period for the adoption and effective implementation of the Uniform Chart of Accounts, securities firms regulated and supervised by the Securities Market Superintendence must continue with the submission of corresponding financial information through the Electronic Information Submission System (SERI System).

ARTICLE THREE: (VALIDITY). This Agreement shall enter into force the day following its publication in the Official Gazette.

LEGAL BASIS: Single Text of the Securities Market Law.

Given in the city of Panama, on the fourth (4) day of the month of January of two thousand seventeen (2017).

PUBLISH AND COMPLY.

THE PRESIDENT ANTOVANI

THE SECRETARY JOSÉ RAMÓN GARCÍA DE PAREDES