General Resolution SMV No. JD-7-20 Extending Submission Deadlines for Monthly and Quarterly Reports in July 2020

Promulgated in Official Gazette No. 29074 of July 22, 2020.

REPUBLIC OF PANAMA BOARD OF DIRECTORS SECURITIES MARKET SUPERINTENDENCE

General Resolution SMV No. JD-7-20 Of July 14, 2020

“Extending the deadlines for the submission of monthly and quarterly reports by entities with licenses issued by the Securities Market Superintendence, whose original submission date falls within the month of July 2020, as part of the temporary measures adopted in response to the National Emergency State declared by the Cabinet Council as a consequence of COVID-19”

The Board of Directors of the Securities Market Superintendence,

in exercise of its legal powers, and

CONSIDERING:

That Law 67 of September 1, 2011, reformed Decree-Law 1 of July 8, 1999, and created the Securities Market Superintendence as an autonomous body of the State, with legal personality, own assets, and administrative, budgetary, and financial independence.

That the Board of Directors, in accordance with Articles 5, 6, 10 (items 1, 5, and 20), 19, and 20 of the Single Text of the Securities Market Law (hereinafter: Single Text), acts as the Highest Consultative, Regulatory, and Policy-Setting Body of the Superintendence and has among its attributes: to adopt, reform, and revoke agreements that develop the provisions of the Securities Market Law, as well as to issue resolutions of general application, which must be published in the Official Gazette and enter into force from their promulgation, unless the Board of Directors establishes another date.

That the Superintendence, by virtue of Article 3 of the Single Text, has the general objective of regulating, supervising, and auditing the activities of the securities market carried out 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 for the supervision of securities market activities, the Single Text establishes the duty to report information to the Superintendence by its regulated entities, whether licensed or registered; additionally, it attributes to the Superintendence the determination of the form and periodicity in which such reports will be made, for which various Agreements have been adopted.

That in this sense and through various Agreements adopted by this Board of Directors, the Superintendence implemented the Electronic System for Information Submission (SERI) as a means to comply with the periodic reporting of a series of reports by the regulated entities.

That it is public knowledge the National Emergency State declared by the Cabinet Council, as well as the sanitary and security measures that have been adopted to prevent and control the spread of the COVID-19 disease.

That in Executive Decree No. 507 of March 24, 2020, personnel of the Securities Market Superintendence and financial institutions were exempted from the curfew, so that they continue to provide their services, but in all cases, strictly complying with the instructions issued in this regard by the health authority, in particular: maintaining physical distance and the number of people allowed in each physical space.

That this Superintendence has been adopting measures to mitigate the risk of possible contagion, which preserve at all times the health and safety of its officials and users, but which also allow guaranteeing the continuity of its administrative functions in this National Emergency State and, therefore, the provision of services in the securities market.

That taking into account the current and unprecedented situation facing the country, and the duty and responsibility to stay home to avoid contagion and the spread of COVID-19, the Superintendence has decided to extend the deadlines for the submission of monthly and quarterly reports

2 by entities with licenses issued by this Regulator, whose original submission date falls within the month of July 2020, in such a way that these regulated entities can comply timely, in due form and content, with said duty of periodic reporting and the Superintendence can have the necessary information for its correct supervision.

That it is important to keep in mind the provisions of Article 251 of the Single Text, regarding the prohibition of making, or causing to be made, false or misleading statements in a report or in any other document presented to the Superintendence; without prejudice to the fact that this constitutes a very serious offense in light of Article 269 (item 1, letter e) of the Single Text.

In merit of the above, the Board of Directors of the Securities Market Superintendence, in exercise of its legal powers,

RESOLVES:

ARTICLE ONE: EXTEND the deadline for the submission of the following reports by entities with licenses issued by the Securities Market Superintendence, as follows:

1. Until July 31, 2020, for the submission of monthly reports by those entities whose original submission date falls within the month of July 2020.
2. Until July 31, 2020, for the submission of quarterly reports by those entities whose original submission date falls within the month of July 2020.

ARTICLE TWO: CLARIFY that what is provided in the previous article of this resolution does not exempt entities with licenses from the duty to immediately inform the Securities Market Superintendence of any important fact or relevant circumstance that affects or may affect the development or continuity of their operations or the interests or rights of investors or the requirements established by the Securities Market Law for the development of their activities, respectively.

ARTICLE THREE: VALIDITY. This resolution will enter into force from its promulgation in the Official Gazette.

LEGAL BASIS: Articles 3, 5, 6, 10 (items 18 and 20), 19, 20, 251, 269 (item 1, letter e) and concordant provisions of the Single Text of the Securities Market Law.

NOTIFY, PUBLISH, AND COMPLY,

(signed) (signed) Eduardo Lee Luis Chalhoub President of the Board of Directors Secretary of the Board of Directors. /aatencio.