JPRF-A-2021-006 — Validation of the Appointment of the Technical Secretary of the JPRF

Financial Policy and Regulation Board Resolution No. JPRF-A-2021-006 THE FINANCIAL POLICY AND REGULATION BOARD

CONSIDERING:

That, in Article 13 of the Organic Code of Monetary and Financial Law, Book I, reformed by the Reformatory Law to the Organic Code of Monetary and Financial Law for the Defense of Dollarization, published in the Official Register Supplement No. 443, of May 3, 2021, the Financial Policy and Regulation Board (JPRF) was created as part of the Executive Function, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation;

That, the final clause of the aforementioned Article 13 provides that: "The President of the Monetary Policy and Regulation Board, the Superintendent of Banks, the Superintendent of Companies, Securities and Insurance, the Superintendent of Popular and Solidarity Economy, the President of the Board of Directors of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund; and, a delegate of the body in charge of public finances, shall participate in the deliberations of the Financial Policy and Regulation Board, with voice but without vote.";

That, Article 14.1 numeral 22 of the Organic Code of Monetary and Financial Law (COMYF) provides that, for the performance of its functions, the Financial Policy and Regulation Board must comply with the following duties and exercise the following powers, among others, "22. Appoint the Technical Secretary of the Financial Policy and Regulation Board;";

That, in the session of November 22, 2021, the Financial Policy and Regulation Board resolved to appoint Esp. Nelly Del Pilar Arias Zavala, to perform the functions of TECHNICAL SECRETARY of the JPRF. (Unnumbered Resolution of Appointment dated November 22, 2021);

That, the convocation made to said session was carried out exclusively to the members with voting rights, namely: María Paulina Vela, Catalina Pazos and Iván Velástegui; without summoning the authorities provided for in the final clause of Article 13 of the Organic Code of Monetary and Financial Law;

That, for the convocation to have legality and validity, all members (including the non-voting authorities) must be present since the norm does not distinguish whether the participation of these authorities must occur only for the issuance of regulation with general effects, and not so for adopting decisions of an internal or administrative nature;

That, where the Law does not distinguish in principle, such distinction should not be made: "Ubi lex non distinguit, nec nos distinguere debemus";

That, the aforementioned internal resolution suffers from a defect in the convocation susceptible to validation, since said act is not contrary to the Constitution nor to the law; it does not violate the purposes for which the legal system granted competence to the JPRF; it was issued within the powers and competence that the COMYF attributes to the JPRF; it does not determine actions impossible to be fulfilled; and, it does not originate in facts that constitute a criminal offense declared in a final judicial sentence;

That, under these circumstances, the infringement of the legal system (lack of convocation to the non-voting authorities) is curable, in accordance with Article 105 of the Organic Administrative Code;

Financial Policy and Regulation Board Resolution No. JPRF-A-2021-006 Page 2 of 2

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That, prior to adopting this validation resolution, all authorities provided for in the final clause of Article 13 of the COMF have been summoned;

That, the Technical Secretary of the Financial Policy and Regulation Board, through Memorandum No. JPRF-SETEC-2021-0006-M of December 27, 2021, submits to the President of the JPRF, the legal analysis regarding the validation of the session carried out by the members of the JPRF with voice and vote, contained in Report No. JPRF-CJ-2021-0006 of December 27, 2021;

That, the Financial Policy and Regulation Board, in an extraordinary session held by technological means, summoned on December 27, 2021, on December 30, 2021, knew and approved the text of the following resolution; and,

In exercise of its functions,

RESOLVES:

SINGLE ARTICLE.- Validate the Unnumbered Resolution of Appointment dated November 22, 2021, through which Esp. Nelly Del Pilar Arias Zavala was appointed to perform the functions of TECHNICAL SECRETARY of the Financial Policy and Regulation Board.

FINAL PROVISION.- This resolution shall enter into force from the present date, without prejudice to its publication in the Official Register.

COMMUNICATE.- Given in the Metropolitan District of Quito, on December 30, 2021.

THE PRESIDENT, Mgs. María Paulina Vela Zambrano

Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, reviewed and signed the preceding resolution, in the Metropolitan District of Quito, on December 30, 2021.- I CERTIFY.

TECHNICAL SECRETARY Dr. Nelly Arias Zavala