Regulatory Alerts2024-11-05 | CD-SIBOIF-1474-3-NOV5-2024Norm on the Update of Social Capital of Risk Rating Agencies
The Board of Directors of the Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-1474-3-NOV5-2024 to update the minimum social capital requirement for risk rating agencies. The resolution increases the mandatory capital from C$2,147,000.00 to C$2,175,000.00, effective upon publication in the Official Gazette. Agencies with authorized capital below this new minimum must update and fully pay the difference within seven calendar days following their next Ordinary Shareholders' General Assembly.
Page 1 of 2 Resolution No. CD-SIBOIF-1474-3-NOV5-2024 Dated November 5, 2024
NORM ON THE UPDATE OF SOCIAL CAPITAL OF RISK RATING AGENCIES
The Board of Directors of the Superintendence of Banks and Other Financial Institutions,
CONSIDERING
I
That Article 170, second paragraph of Law No. 587, “Capital Markets Law,” published in La Gaceta, Official Gazette No. 222, of November 15, 2006, contained in Law No. 1175, “Law of the Nicaraguan Legal Digest on Banking and Finance Matters,” published in La Gaceta, Official Gazette No. 153, of August 20, 2024 (Legal Digest Law), establishes that the minimum social capital of risk rating agencies shall be established by the Board of Directors of the Superintendence of Banks and Other Financial Institutions through a general norm on the matter.
II
That by Resolution No. CD-SIBOIF-579-2-ABR1-2009, dated April 1, 2009, published in La Gaceta, Official Gazette No. 89, of May 15, 2009, the Board of Directors of this Superintendence approved the “Norm on Risk Rating Agencies,” which in its Article 5 establishes that the minimum social capital of risk rating agencies shall be one million two hundred thousand córdobas (C$1,200,000.00). Likewise, said article provides that the Board of Directors may update the amount of social capital by means of a general application norm at least every two years in case of exchange rate variations of the national currency.
III
That by Resolution No. CD-SIBOIF-1346-2-NOV22-2022, dated November 22, 2022, the minimum social capital required for risk rating agencies was last updated to two million one hundred forty-seven thousand córdobas (C$2,147,000.00).
IV
That according to the considerations set forth above and based on the powers established in Article 6, letter b) of the aforementioned Law No. 587; and Article 3), numerals 3) and 13) and Article 10, numeral 4) of Law No. 316, “Law of the Superintendence of Banks and Other Financial Institutions,” contained in the Legal Digest Law.
In exercise of its powers,
HAS ISSUED
The following:
Page 2 of 2 Resolution No. CD-SIBOIF-1474-3-NOV5-2024 NORM ON THE UPDATE OF SOCIAL CAPITAL OF RISK RATING AGENCIES
Article 1. Update of Social Capital.- The minimum social capital required for risk rating agencies is updated to two million one hundred seventy-five thousand córdobas (C$2,175,000.00).
Article 2. Term.- Risk rating agencies that, upon the entry into force of this norm, have authorized capital below the minimum social capital established in the preceding article, must update it and have it subscribed and paid no later than within seven (7) calendar days after the next Ordinary General Assembly of Shareholders.
Article 3. Repeal.- The Norm on the Update of Social Capital of Risk Rating Agencies, contained in Resolution No. CD-SIBOIF-1346-2-NOV22-2022, dated November 22, 2022, published in La Gaceta, Official Gazette No. 226, of December 1, 2022, is hereby repealed.
Article 4. Effectiveness.- This Norm shall enter into force upon its publication in La Gaceta, Official Gazette.
(F) Legible Magaly María Sáenz Ulloa (F) Illegible (Luis Ángel Montenegro E) (F) Illegible Fausto Reyes (F) Illegible (Silvio Moisés Casco Marenco) (F) Illegible (Ervin Antonio Vargas Pérez) (f) Illegible Secretary.
SAÚL CASTELLÓN TÓRREZ Ad Hoc Secretary of the Board of Directors SIBOIF