REGULATION ON INVESTMENT SERVICES AND ACTIVITIES

Year 2024 / Number 05

(Consolidated text as of 29/01/2026 – Update III)

Central Bank of the Republic of San Marino Regulation No. 2024-05 on Investment Services and Activities - Update III

INDEX

PART I INTRODUCTION

TITLE I PREAMBLE Article I.I.1 – Legislative Sources............................................................................ 15 Article I.I.2 – Definitions ....................................................................................... 15

TITLE II OBJECTIVES AND STRUCTURE OF THE PROVISION Article I.II.1 – Purposes.. ...................................................................................... 29 Article I.II.2 – Preparation ..................................................................................... 29 Article I.II.3 – Structure ......................................................................................... 29 Article I.II.4 – References… .................................................................................... 30

TITLE III SUBJECTS, EXCLUSIONS, AND LIMITED OPERATIONALITY INVESTMENT FIRMS Article I.III.1 – Exclusions from the scope of application........................................ 30 Article I.III.2 – Limited operationality investment firms .......................................... 32

PART II ACTIVITIES OF INVESTMENT FIRMS

TITLE I PREAMBLE Article II.I.1 – Legislative Sources ......................................................................... 35 Article II.I.2 – Administrative Sanctions .................................................................. 35

TITLE II EXERCISABLE ACTIVITIES Article II.II.1 – Reservation on investment services and activities .......................... 35 Article II.II.2 – Unlicensed activity ......................................................................... 36 Article II.II.3 – Ancillary services exercisable ....................................................... 36 Article II.II.4 – Other connected or instrumental activities exercisable .................... 37 Article II.II.5 – Further activities exercisable subject to authorization .................... 38 Article II.II.6 – Savings collection instruments ....................................................... 38

PART III AUTHORIZATION

TITLE I PREAMBLE Article III.I.1 – Legislative Sources ....................................................................... 39 Article III.I.2 – Administrative Sanctions ................................................................ 39

TITLE II AUTHORIZATION FOR CONSTITUTION Article III.II.1 – Signatories of the application ...................................................... 39 Article III.II.2 – Form of the application .................................................................. 39 Article III.II.3 – Content of the application ............................................................ 39 Article III.II.4 – Declaration of controlling subjects ............................................... 40 Article III.II.5 – Beneficial owners .......................................................................... 40 Article III.II.6 – Methods of submitting the application .......................................... 41 Article III.II.7 – Term of the decision ..................................................................... 41 Article III.II.8 – Suspension of the term .................................................................. 41

Article III.II.9 – Interruption of the term .................................................................. 42

TITLE III MINIMUM REQUIREMENTS Article III.III.1 – Criteria for drafting the articles of association ........................... 42 Article III.III.2 – Legal type ................................................................................... 44 Article III.III.3 – Headquarters of the firm ............................................................ 44 Article III.III.4 – Share capital ............................................................................... 44 Article III.III.5 – Locked deposit ............................................................................ 45 Article III.III.6 – Requirements for promoters ....................................................... 45 Article III.III.7 – Requirements for senior management .......................................... 46 Article III.III.8 – Activity program .......................................................................... 46

TITLE IV INTERMEDIATE COMPLIANCE Article III.IV.1 – Constitution of companies .......................................................... 47 Article III.IV.2 – Transmission of the articles of association .................................. 47

TITLE V LICENSING TO BEGIN OPERATIONS Article III.V.1 – Preamble ...................................................................................... 48 Article III.V.2 – Terms of the application .............................................................. 48 Article III.V.3 – Form of the application .................................................................. 48 Article III.V.4 – Content of the application ............................................................ 48 Article III.V.5 – Variations and integrations to the activity program ....................... 49 Article III.V.6 – Methods of submitting the application .......................................... 49 Article III.V.7 – Term of the decision ..................................................................... 49 Article III.V.8 – Reiteration of the application ....................................................... 50 Article III.V.9 – Minimum requirements .................................................................. 50 Article III.V.10 – Inspections ................................................................................. 50 Article III.V.11 – Notification of start of operations ............................................... 50

TITLE VI ACTIVITIES OF FOREIGN SUBJECTS

Chapter I Branches of Foreign Investment Firms Article III.VI.1 – Requirements for authorization ................................................... 51 Article III.VI.2 – Authorization application ............................................................ 51 Article III.VI.3 – Activity program .......................................................................... 52 Article III.VI.4 – Requirements for branch managers .............................................. 53 Article III.VI.5 – Authorization procedure ................................................................ 53 Article III.VI.6 – Applicable provisions ................................................................... 54

Chapter II Provision of services without establishment Article III.VI.7 – Scope of the discipline .................................................................. 55 Article III.VI.8 – Conditions for authorization ....................................................... 56 Article III.VI.9 – Authorization application ............................................................ 56 Article III.VI.10 – Authorization procedure ............................................................ 57 Article III.VI.11 – Applicable provisions .................................................................. 57

Chapter III Representative Offices Article III.VI.12 – Prohibition on exercising reserved activities ............................. 58 Article III.VI.13 – Requirements ............................................................................ 58 Article III.VI.14 – Procedure .................................................................................. 58

TITLE VII VARIATION, WAIVER, AND REVOCATION OF AUTHORIZATION Article III.VII.1 – Request for variation .................................................................. 59 Article III.VII.2 – Waiver of authorization ............................................................. 60 Article III.VII.3 – Revocation of authorization ....................................................... 60

PART IV SENIOR MANAGEMENT

TITLE I REFERENCE Article IV.I.1 – Provisions applicable to senior management of investment firms .. 62

PART V OWNERSHIP STRUCTURES

TITLE I PREAMBLE Article V.I.1 – Legislative Sources ....................................................................... 63 Article V.I.2 – Administrative Sanctions .................................................................. 63

TITLE II REQUIREMENTS

Chapter I Honesty Article V.II.1 – Requirements ................................................................................ 63 Article V.II.2 – Certification methods ..................................................................... 64 Article V.II.3 – Foreign certificates ........................................................................ 64 Article V.II.4 – Validity requirements for certificates ............................................. 65 Article V.II.5 – Exempted subjects ......................................................................... 65

Chapter II Sound and Prudent Management Article V.II.6 – Requirements ................................................................................ 65 Article V.II.7 – Information note ............................................................................. 67 Article V.II.8 – Attached documentation .................................................................. 68

TITLE III AUTHORIZATION FOR ACQUISITION OF SIGNIFICANT PARTICIPATIONS Article V.III.1 – Scope of application ..................................................................... 68 Article V.III.2 – Subjects obliged ........................................................................... 69 Article V.III.3 – Authorization application ............................................................. 70 Article V.III.4 – Declaration of controlling subjects ............................................... 70 Article V.III.5 – Term of the decision ..................................................................... 71 Article V.III.6 – Evaluation criteria ......................................................................... 71

TITLE IV COMMUNICATION OBLIGATIONS Article V.IV.1 – Ownership structures .................................................................... 72 Article V.IV.2 – Voting agreements ........................................................................ 72

TITLE V INTERVENTION POWERS Article V.V.1 – Revocation of authorization .......................................................... 73 Article V.V.2 – Annulment of shareholder resolutions ............................................ 73 Article V.V.3 – Order to alienate the participation ................................................. 73 Article V.V.4 – Verification of the permanence of requirements ............................. 73

PART VI BALANCE SHEET

TITLE I PREAMBLE Article VI.I.1 – Legislative Sources ....................................................................... 75 Article VI.I.2 – Administrative Sanctions ................................................................ 75

TITLE II GENERAL RULES Article VI.II.1 – General obligations ...................................................................... 75 Article VI.II.2 – Composition of the balance sheet ................................................. 75 Article VI.II.3 – Audit obligations for Sanmarinese investment firms and foreign investment firm branches .................................................. 76 Article VI.II.4 – Certification of the audit firm and auditors .................................. 76 Article VI.II.5 – Reference .................................................................................... 76

PART VII PRUDENTIAL SUPERVISION

TITLE I PREAMBLE Article VII.I.1 – Legislative Sources ..................................................................... 77 Article VII.I.2 – Administrative Sanctions ............................................................. 77 Article VII.I.3 – Extension of organizational adequacy requirements ..................... 77

TITLE II OWN FUNDS Article VII.II.1 – Composition of own funds ......................................................... 77 Article VII.II.2 – Qualified participations in non-financial enterprises .................... 79

TITLE III CAPITAL ADEQUACY

Chapter I General Requirement Article VII.III.1 – Own funds requirements ........................................................... 80 Article VII.III.2 – Requirement related to fixed overheads ..................................... 81 Article VII.III.3 – Requirement related to credit risk ............................................. 82

Chapter II Overall Requirement related to K Factors Article VII.III.4 – Overall requirement related to K factors and applicable coefficients ................................................................................... 82

Chapter III Specific Requirement related to K Factors RtC Article VII.III.5 – Specific requirement related to K factors RtC ........................... 83 Article VII.III.6 – Measurement of AUM for the calculation of K-AUM .................. 84 Article VII.III.7 – Measurement of CMH for the calculation of K-CMH .................. 84 Article VII.III.8 – Measurement of ASA for the calculation of K-ASA ................... 85 Article VII.III.9 – Measurement of COH for the calculation of K-COH ................... 85

Chapter IV Specific Requirement related to K Factors RtM Article VII.III.10 – Specific requirement related to K factors RtM ........................ 86 Article VII.III.11 – Calculation of K-NPR ............................................................. 87

Chapter V Specific Requirement related to K Factors RtF Article VII.III.12 – Specific requirement related to K factors RtF .......................... 87

SECTION I COUNTERPARTY DEFAULT OF TRADING Article VII.III.13 – Scope of application ............................................................... 88 Article VII.III.14 – Calculation of K-TCD ............................................................. 89 Article VII.III.15 – Calculation of the exposure value ............................................ 89 Article VII.III.16 – Replacement cost ...................................................................... 90 Article VII.III.17 – Potential future exposure ......................................................... 90 Article VII.III.18 – Real guarantees ........................................................................ 93 Article VII.III.19 – Compensation (netting) ............................................................ 94 Article VII.III.20 – Credit valuation adjustment ..................................................... 95

SECTION II DAILY TRADING FLOW Article VII.III.21 – Measurement of DTF for the calculation of K-DTF .................. 96

Chapter VI Concentration Risk Article VII.III.22 – Monitoring obligations ............................................................ 97 Article VII.III.23 – Calculation of the exposure value ............................................ 97 Article VII.III.24 – L