Norm Reforming Article 4 of the Standard on the Integration of the Nicaraguan Capital Market with Other Foreign Markets

RESOLUTION NO. CD-SIBOIF-1338-1-OCT11-2022 Date: October 11, 2022 STANDARD REFORMING ARTICLE 4 OF THE STANDARD ON THE INTEGRATION OF THE NICARAGUAN CAPITAL MARKET WITH OTHER FOREIGN MARKETS

The Board of Directors of the Superintendency of Banks and Other Financial Institutions.

CONSIDERING

I

That Article 214 of Law No. 587, "Securities Market Law," published in La Gaceta, Official Gazette No. 222, of November 15, 2006, contained in Law No. 974, Law of the Nicaraguan Legal Digest of the Banking and Finance Sector, published in La Gaceta, Official Gazette No. 164, of August 27, 2018, and its amendments (Legal Digest Law), establishes that the Board of Directors of the Superintendency of Banks and Other Financial Institutions may issue general norms to regulate transactions with foreign securities traded on stock exchanges, issued by foreign issuers, provided they comply with the requirements regarding information and registration in their country of origin and when these requirements are at least equivalent to those required in Nicaragua.

II

That in the exercise of the power established in Article 214 of the aforementioned Law No. 587, on February 15, 2022, the Standard on the Integration of the Nicaraguan Capital Market with Other Foreign Markets was approved, contained in Resolution No. CD-SIBOIF-1296-5-FEB15-2022, published in La Gaceta No. 38, of February 25, 2022, which aims to regulate the trading mechanisms of securities through remote operators, within the framework of agreements or conventions signed among themselves, both between the Superintendencies or Commissions regulating the securities markets, as well as between the stock exchanges of the different countries involved in the trading.

III

That it is necessary to reform Article 4 of the aforementioned standard to include within its scope those securities issued by foreign governments or central banks that, according to the legal framework of their respective countries of origin, the registration requirement is not carried out before regulatory bodies, but are registered ("listed") for trading on their respective stock exchanges.

IV

That in accordance with the considerations expressed above and based on the powers established in Article 6, letter b) and Article 208, of the aforementioned Law No. 587, "Securities Market Law."

In exercise of its powers,

HAS ISSUED

The following,

CD-SIBOIF-1338-1-OCT11-2022

STANDARD REFORMING ARTICLE 4 OF THE STANDARD ON THE INTEGRATION OF THE NICARAGUAN CAPITAL MARKET WITH OTHER FOREIGN MARKETS

FIRST: Article 4 of the Standard on the Integration of the Nicaraguan Capital Market with Other Foreign Markets, contained in Resolution No. CD-SIBOIF-1296-5-FEB15-2022, published in La Gaceta No. 38, of February 25, 2022, is hereby amended, which shall read as follows:

Article 4. Special Provision.- In accordance with what is provided in Article 214 of Law No. 587, securities issued by foreign issuers may be traded on stock exchanges authorized by the Superintendency, provided they comply with the requirements regarding information and registration in their country of origin and when these requirements are at least equivalent to those required in Nicaragua. Consequently, such securities may be the subject of public offering in the primary and secondary markets of Nicaragua, without requiring their inscription in the Securities Register of the Superintendency. For the purposes of this standard, it shall be understood that securities issued by foreign issuers comply with the requirements established in Article 214 of Law No. 587, when the following conditions concur:

a) That they come from member countries of IOSCO and/or member countries of the Association of Capital Markets of the Americas (AMERCA).

b) That they are registered in the securities registers of the homologous regulatory entities or listed for trading on the stock exchanges of their country of origin, with which the Superintendency and the stock exchanges authorized to operate in Nicaragua, respectively, have signed agreements or conventions for the integration of capital markets, under the terms of this standard; and

c) That they are traded through a Remote Trading System (SRNV).

The trading of foreign securities that do not meet the aforementioned characteristics shall continue to be subject to the provisions of the regulations governing the matter on trading of securities in the secondary market.

SECOND: This standard shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Gazette.

(S) Legible Magaly María Sáenz Ulloa (S) Illegible (Luis Ángel Montenegro E) (S) Illegible Fausto Reyes (S) Illegible (Silvio Moisés Casco Marenco) (S) Illegible (Ervin Antonio Vargas Pérez).

SAÚL CASTELLÓN TÓRREZ Ad Hoc Secretary of the Board of Directors SIBOIF