Resolution JPRM-2022-019-M: Reforming the Standard Regulating Auxiliary Payment Systems

MONETARY POLICY AND REGULATION BOARD

Republic of Ecuador

RESOLUTION No. JPRM-2022-019-M

THE MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public servants and persons acting by virtue of state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 thereof states that the Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first paragraph of Article 303 of the Constitution of the Republic determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive faculty of the Executive Branch and shall be implemented through the Central Bank of Ecuador;

That, Article 47.1 of the Organic Code of Monetary and Financial Law created the Monetary Policy and Regulation Board as part of the Executive Branch, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, Article 47.6 of the same Code, regarding the functions of the Monetary Policy and Regulation Board, among others, establishes: "(...) 1. Formulate policy in the monetary sphere and observe its application by the Central Bank of Ecuador to preserve the integrity and sustainability of the dollarization monetary system and the financial system, in accordance with the provisions of this Code; (...) 12. Regulate the central payment system, as well as the regulation, permission, registration, surveillance, and supervision of auxiliary payment systems; (...)";

That, Article 103 of the Organic Administrative Code contemplates that expiration is a cause for the extinction of the administrative act, and it operates when the resolutive condition is verified or the term provided in the same administrative act or its specific regime is fulfilled;

That, Article 128 of the Organic Code thereof establishes: "Normative act of an administrative nature. It is any unilateral declaration made in the exercise of an administrative competence that produces general legal effects, which is not exhausted with its compliance and directly."

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MONETARY POLICY AND REGULATION BOARD

Republic of Ecuador

RESOLUTION No. JPRM-2022-019-M Page | 2

That, Article 99 of the Statute of the Legal and Administrative Regime of the Executive Branch, in its pertinent part, states: "Normative acts may be repealed or reformed by the competent authority to do so when deemed convenient. (...)";

That, the Monetary Policy and Regulation Board, through Resolution No. JPRM-2022-010-M, of March 11, 2022, issued the "Standard Regulating Auxiliary Payment Systems";

That, the Third Transitional Provision of the "Standard Regulating Auxiliary Payment Systems" prescribes: "THIRD: The Central Bank of Ecuador within a period of three (3) months, will proceed to reclassify the service categories granted to authorized auxiliary payment systems, according to the categories established in its resolution or, failing that, revoke its authorization.";

That, the Monetary Policy and Regulation Board, in an ordinary session by mixed modality, on July 7, 2022, reviewed the request for extension of time and proposal sent via Memorandum No. BCE-BCE-2022-0131-M, of June 7, 2022, by the General Manager of the Central Bank of Ecuador to the President of the Monetary Policy and Regulation Board; as well as, the legal report No. BCE-CGJ-076-2022, of June 6, 2022; and,

In exercise of its functions and in accordance with Article 47.7 of the Organic Code of Monetary and Financial Law, the Monetary Policy and Regulation Board, resolves:

REFORM THE "STANDARD REGULATING AUXILIARY PAYMENT SYSTEMS", ISSUED THROUGH RESOLUTION NO. JPRM-2022-010-M, OF MARCH 11, 2022

SINGLE ARTICLE.- Substitute the third transitional provision of Resolution No. JPRM-2022-010-M, of March 11, 2022, with the following text:

"THIRD: The Central Bank of Ecuador within a period of seven (7) months, will proceed to reclassify the service categories granted to authorized auxiliary payment systems, according to the categories established in its resolution or, failing that, extinguish the administrative act of authorization by expiration."

SINGLE TRANSITIONAL PROVISION.- The Central Bank of Ecuador will inform the Monetary Policy and Regulation Board regarding the compliance with the third transitional provision of Resolution No. JPRM-2022-010-M, of March 11, 2022.

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MONETARY POLICY AND REGULATION BOARD

Republic of Ecuador

RESOLUTION No. JPRM-2022-019-M Page | 3

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

The Director of Documentary Management and Archive of the Central Bank of Ecuador is tasked with its publication on the institutional website.

COMMUNICATE.- Given in the Metropolitan District of Quito, on July 7, 2022.

THE PRESIDENT

(Signature) Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on July 7, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY

(Signature) Attorney MARÍA ALEXANDRA GUERRERO DEL POZO