Resolution JPRF-F-2025-0155: Reform of Chapter LXII Regulating Technology Financial Services Entities

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Government Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | Resolution No. JPRF-F-2025-0155 THE FINANCIAL POLICY AND REGULATION BOARD

CONSIDERING:

That Article 82 of the Constitution of the Republic of Ecuador establishes the right to legal certainty, which is based on respect for the Constitution and the existence of prior, clear, public legal norms applied by competent authorities;

That Article 84 of the Fundamental Norm provides that every body with regulatory authority shall have the obligation to formally and materially adapt laws and other legal norms to the rights provided for in the Constitution;

That Article 132, number 6 of the Constitution of the Republic of Ecuador determines that a law is required to: “6. Grant public control and regulatory bodies the authority to issue general norms in matters within their competence, without altering or innovating legal provisions.”;

That Article 226 of the Magna Carta mandates that State institutions, their bodies, dependencies, public servants, and persons acting by virtue of a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the law;

That Article 227 ibid establishes that the Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, participation, and others;

That Article 308 of the Fundamental Law prescribes that financial activities are a matter of public order;

That Article 309 of the Constitution of the Republic of Ecuador indicates that “The National Financial System is composed of the public, private, and popular and solidary sectors (…)”. Each of these sectors will have specific and differentiated control norms and entities, which will be responsible for preserving their security, stability, transparency, and solidity;

That Article 13 of the Organic Monetary and Financial Code, Book I, created the Financial Policy and Regulation Board, part of the Executive Function and as a legal entity of public law, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation;

That Article 14, number 2 of the Code ibid stipulates that it is the responsibility of the Financial Policy and Regulation Board “2. Issue regulations that allow maintaining the integrity, solidity, sustainability, and stability of the national financial, securities, insurance, and prepaid comprehensive health care services systems in accordance with what is provided in Article 309 of the Constitution of the Republic of Ecuador (…)”;

That Article 14.1 of the aforementioned Organic Code orders the Financial Policy and Regulation Board to fulfill the following faculties, among which are: “1. Regulate the creation, constitution, organization, activities, operation, and liquidation of financial entities; (…) 27. Exercise other functions, duties, and faculties assigned to it by this Code and the law.”;

That Article 150 of the Code ut supra prescribes that entities of the national financial system shall be subject to the regulation issued by the Financial Policy and Regulation Board;

That Article 160 of the aforementioned Organic Code determines that the financial system is integrated by the public financial sector, the private financial sector, and the popular and solidary financial sector;

That Article 162, number 5, of the Organic Monetary and Financial Code, Book I, provides that among the entities composing the private financial sector are those of Technology Financial Services.

Resolution No. JPRF-F-2025-0155 Page 2 of 11

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Financial Government Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador |

That the Twenty-Ninth General Provision of the aforementioned normative body provides that in current legislation where reference is made to the “Junta de Política y Regulación Monetaria y Financiera” (Board of Monetary and Financial Policy and Regulation), it shall be replaced by “Junta de Política y Regulación Financiera” (Board of Financial Policy and Regulation);

That the Fifty-Fourth Transitory Provision of the Code ibid establishes that resolutions contained in the Codification of Monetary, Financial, Securities, and Insurance Resolutions of the Board of Monetary and Financial Policy and Regulation, and norms issued by control bodies, shall maintain their validity until the Board of Monetary Policy and the Board of Financial Policy and Regulation resolve what corresponds; within their competencies;

That Article 439.1 of the aforementioned Code ut supra determines that among Technology Financial Services entities are those of Personal Finance and Financial Advisory.

That Article 5 of the Organic Law for the Development, Regulation, and Control of Technology Financial Services (Fintech Law), enumerates Fintech Activities, among which are Technology Financial Services.

That Article 8 of the Law ut supra states that Fintech companies shall be regulated by the Board of Monetary Policy and the Board of Financial Policy and Regulation, as appropriate; and supervised and controlled by the Central Bank of Ecuador, the Superintendency of Companies, Securities, and Insurance, the Superintendency of Banks, or the Superintendency of Popular and Solidary Economy, within the scope of their competencies and according to the regulation issued for this purpose;

That Article 15 of the Organic Administrative Code enshrines the principle of responsibility which establishes that the State shall respond for damages as a consequence of the lack or deficiency in the provision of public services or the actions or omissions of its public services or private law subjects acting in the exercise of a public power delegated by the State and their dependents, controlled entities, or contractors;

That the Technical Secretary of the Financial Policy and Regulation Board, through Memorandum No. JPRF-ST-2025-0038-M of May 15, 2025, submits to the President of the Board the Technical Report No. JPRF-CTSF-2025-0011 and the Legal Report No. JPRF-CJF-2025-023, both dated May 15, 2025, as well as the respective draft resolution;

That the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on May 16, 2025, and carried out via video conference on May 20, 2025, reviewed the Memorandum No. JPRF-ST-2025-0038-M of May 15, 2025, issued by the Technical Secretary of the Board; as well as the Technical Report No. JPRF-CTSF-2025-0011 of May 15, 2025, and the Legal Report No. JPRF-CJF-2025-023, both dated May 15, 2025, issued by the Technical Coordination of Policy and Regulation of the Financial System and by the Legal Coordination of Policy and Financial Norms, respectively, and the corresponding draft resolution;

That the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on May 16, 2025, and carried out via video conference on May 20, 2025, reviewed and approved the following Resolution; and,

In exercise of its functions,

RESOLVES:

ARTICLE FIRST.- In Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, the following modifications shall be made:

1.1. Substitute the text “SUBSECTION I: DEFINITIONS” with “SUBSECTION I: DEFINITIONS AND COMMON PROVISIONS”. 1.2. Substitute the text “SUBSECTION III: DIGITAL CREDIT GRANTING ENTITIES” with “SECTION II: DIGITAL CREDIT GRANTING ENTITIES”. 1.3. Substitute the text “PARAGRAPH I: SCOPE” with “SUBSECTION I: SCOPE”. 1.4. Substitute the text “PARAGRAPH II: ON CAPITAL AND QUALIFICATION” with “SUBSECTION II: ON CAPITAL AND QUALIFICATION”. 1.5. Substitute the text “PARAGRAPH III: POLICIES, PROCEDURES, CONTROLS, SUPERVISION, AND THE EXPERT IN ECONOMY AND INFORMATION SECURITY” with “SUBSECTION III: POLICIES, PROCEDURES, CONTROLS, SUPERVISION, AND THE EXPERT IN ECONOMY AND INFORMATION SECURITY”. 1.6. Substitute the text “PARAGRAPH IV: ON OPERATIONS” with “SUBSECTION IV: ON OPERATIONS”. 1.7. Substitute the text “PARAGRAPH V: ON PORTFOLIO QUALIFICATION, PROVISIONS, NOVATION, REFINANCING, RESTRUCTURING, AND WRITING OFF OBLIGATIONS” with “SUBSECTION V: ON PORTFOLIO QUALIFICATION, PROVISIONS, NOVATION, REFINANCING, RESTRUCTURING, AND WRITING OFF OBLIGATIONS”. 1.8. Substitute the text “SUBSECTION IV: ON RISK MANAGEMENT OF DIGITAL CREDIT GRANTING ENTITIES” with “SUBSECTION VI: ON RISK MANAGEMENT OF DIGITAL CREDIT GRANTING ENTITIES”.

ARTICLE SECOND.- Incorporate as letter a. the following definition in Article 1 of Subsection I “Definitions and Common Provisions”, Section I “Definitions, Qualification, and Operations of Technology Financial Services Entities”, Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions; and renumber the subsequent letters:

“Personal Finance Administration: Is the service by which a legal person manages the user's resources, under a commercial commission contract. This service comprises, among others, financial advisory, budget preparation and control, financial analysis, and the execution of financial strategies, oriented towards the fulfillment of the user's objectives. It may also include professional, independent, and individualized recommendations, within the framework of such management, using digital technologies and/or technological platforms for its provision in real time.

ARTICLE THIRD.- Incorporate the following definition immediately after “automated advisors” which appears in Article 1 of Subsection I “Definitions and Common Provisions”, Section I “Definitions, Qualification, and Operations of Technology Financial Services Entities”, Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions; and, renumber the subsequent letters:

“Financial Advisory: Is the service whose object is to guide and recommend in a professional, independent, and individualized manner to users regarding the management of their resources, budget control, and the contracting or use of financial and securities products and services, without such recommendations implying decision-making by the provider. This service may include comparators and distributors of financial products, automated advisors, and financial planning tools, using digital technologies and technological platforms for its provision in real time.”

ARTICLE FOURTH.- Modify the definition “client” which appears in Article 1 of Subsection I “Definitions and Common Provisions”, Section I “Definitions, Qualification, and Operations of Technology Financial Services Entities”, Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions; with the following text:

“Client/User: Is the natural or legal person who contracts the services regulated in this chapter.”

ARTICLE FIFTH.- Incorporate the following definition immediately after “Digital Credit Granting Entities” which appears in Article 1 of Subsection I “Definitions and Common Provisions”, Section I “Definitions, Qualification, and Operations of Technology Financial Services Entities”, Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions; and, renumber the subsequent letters:

“Personal Finance and/or Financial Advisory Entities: Are legal persons, national or foreign, domiciled in Ecuador, qualified by the Superintendency of Banks to provide personal finance administration and/or financial advisory services, in accordance with what is established in the Organic Law for the Development, Regulation, and Control of Technology Financial Services (Fintech Law) and this norm.”

ARTICLE SIXTH.- Incorporate the following article immediately after Article 1 of Subsection I: “Definitions and Common Provisions”, Section I: “Definitions, Qualification, and Operations of Technology Financial Services Entities”, Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following text:

“Art. 1.1.- Principles.- Personal finance administration and/or financial advisory entities shall, at all times, act in accordance with the principles established in the Organic Law for the Development, Regulation, and Control of Technology Financial Services (Fintech Law): autonomy of will, risk-based regulation, transparency, specialty, loyalty, confidentiality, and data protection, security, incidents, and vulnerabilities.”

ARTICLE SEVENTH.- Replace the word “subsection” with “section” throughout the text corresponding to Section II “Digital Credit Granting Entities”, Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions.

ARTICLE EIGHTH.- Incorporate Section III “On Entities Providing Personal Finance Administration and/or Financial Advisory Services” immediately after Section II “Digital Credit Granting Entities”, Chapter LXII “Norm Regulating Technology Financial Services Entities”, Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following text:

“SECTION III: ON ENTITIES PROVIDING PERSONAL FINANCE ADMINISTRATION AND/OR FINANCIAL ADVISORY SERVICES

SUBSECTION I: COMMON PROVISIONS

Art. 46- Object.- The provisions of this section have as their object to establish specific norms for the qualification, operation, and functioning of entities providing personal finance administration and/or financial advisory services, through the use of digital technologies, in accordance with what is established in the Organic Monetary and Financial Code, Book I, the Organic Law for the Development, Regulation, and Control of Technology Financial Services (Fintech Law), this norm, and other applicable regulations.

Art. 47.- Scope of Application.- This section is applicable to all legal persons, national or foreign, domiciled in Ecuador, that offer personal finance administration and/or financial advisory services through the use of digital technologies, within the framework of what is established in the Organic Law for the Development, Regulation, and Control of Technology Financial Services (Fintech Law).

Art. 48.- Personal Finance Administration and/or Financial Advisory Entities.- For the purposes of this norm, personal finance administration and/or financial advisory entities are classified into: a) Financial Advisory Entities.- Are those qualified entities that provide the financial advisory service through digital technologies, providing users with guidance and recommendations in a professional, independent, and individualized manner, regarding the management of their resources and the contracting or use of financial products and services, without this implying that they are authorized to make decisions or administer resources on behalf of the user. b) Personal Finance Administration Entities.- Are qualified entities to perform the personal finance administration of the user, under a commercial commission contract. These entities are authorized to dispose of them and execute financial transactions on their behalf, within the framework of what is established in the contract. These entities may, additionally, perform the operations of financial advisory entities.

Art. 49.- Minimum Requirements for Qualification.- Personal finance administration and/or financial advisory entities must comply, at least, with the following requirements to qualify before the Superintendency of Banks:

1. Be legally constituted as anonymous societies before the Superintendency of Companies, Securities, and Insurance, in accordance with current regulations.
2. Have a secure, efficient, and robust technological infrastructure that allows for the adequate provision of personal finance administration and/or financial advisory services, guaranteeing operational continuity, information security, and the protection of users' personal and credit data, according to the business model.
3. Accredit that responsible personnel have technical competencies: Third or fourth-level academic degree in economics, finance, administration, or related disciplines, registered in the Secretariat of Higher Education, Science, Technology, and Innovation or its equivalent in the country of origin of the issued title; and, accredit at least three (3) years of general experience or at least two (2) years of specific experience, in financial entities, in the securities market, preferably in risk management or treasury; as well as accredit a good credit history and that they do not have a final judgment for money laundering and/or its precursor crimes.
4. In case of using models, algorithms, or automated tools for the provision of personal finance administration and/or financial advisory services, these must comply with the technical, security, information traceability, and control guidelines established by the Superintendency of Banks.

The qualification of personal finance administration and/or financial advisory entities shall be the responsibility of the Superintendency of Banks, which shall establish, through secondary regulation, the mechanism for compliance with the requirements established in this article and others it deems pertinent.

Art. 50.- Prohibitions.- Personal finance administration and/or financial advisory entities are prohibited from:

1. Guaranteeing returns within the framework of their operation;
2. Operating without the qualification granted by the Superintendency of Banks;
3. Capturing public resources as deposits;
4. Granting credits; and,
5. Performing operations not foreseen in this norm.

SUBSECTION II: FINANCIAL ADVISORY ENTITIES

Art. 51.- Authorized Operation for Financial Advisory Entities.- These entities may provide, through digital technologies and technological platforms, financial advisory services to the user, based on their needs and objectives contemplated at the contractual level; for which they may perform the financial advisory operation, through the following activities:

1. Investigate and analyze market and asset behavior;
2. Evaluate and analyze budgets;
3. Analyze investment and/or debt options;
4. Formulate recommendations for income and expense optimization;
5. Help establish objectives, financial strategies, and action plans; and,
6. Others defined by the control body. In no case shall these entities be authorized to administer resources, make transfers or payments, execute financial orders, nor conclude contracts on behalf or for the account of the user.

Art. 52.- Contractual Relationship.- The contractual relationship derived from the provision of financial advisory services shall be governed by the provisions applicable to the professional services contract, in accordance with current regulations. The responsibility for decisions adopted by the user regarding recommendations issued by the financial advisory service entity shall be exclusively the user's, without it acquiring obligation or responsibility for the results of said decisions.

SUBSECTION III: ON PERSONAL FINANCE ADMINISTRATION ENTITIES

Art. 53.- Minimum Capital.- Personal finance administration entities must have a social capital not less than two hundred thousand United States dollars (USD 200,000.00).

Art. 54.- Authorized Operations of Personal Finance Administration Entities.- Personal finance administration entities may provide the financial advisory service, providing recommendations and guidance on investments, credits, and financial management, in accordance with what is established in the respective contract. For the provision of the personal finance administration service, these entities may perform the following operations:

1. Independent administration of investment portfolios: Gest