Technical Standards for the Authorization and Registration of Stockbroker Agents in the Public Registry of the Superintendence of the Financial System to Provide Services in Stock Exchanges

CNBCR-06/2012 NRP-04
TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES Approval: 08/06/2012 Validity: 27/06/2012

The STANDARDS COMMITTEE OF THE CENTRAL BANK OF RESERVE OF EL SALVADOR,

CONSIDERING:
I. That Article 6, letter k) of the Securities Market Law, establishes that the Public Stock Registry will have a special Registry of Stockbroker Agents.
II. That Article 5, letter b) of the Law on Supervision and Regulation of the Financial System, establishes that it is the competence of the Superintendence of the Financial System with respect to the Securities Market: to authorize, modify, suspend, or cancel the entry in the Public Stock Registry of Stockbroker Agents.
III. That Article 7, third paragraph of the Law on Supervision and Regulation of the Financial System establishes that Stockbroker Agents are subject to the supervision of the Superintendence of the Financial System.
IV. That Article 37, second paragraph of the Law on Supervision and Regulation of the Financial System, establishes that supervised entities, as well as their shareholders or partners, must provide all necessary information to keep the public registries mentioned in the laws governing them updated, within the deadlines and in the manner established.
V. That Article 78, letter f) of the Law on Supervision and Regulation of the Financial System, establishes that the Superintendence will organize and keep updated the registries entrusted to it by the laws regarding Stockbroker Agents authorized by the Superintendence of the Financial System.
VI. That Article 82, letter a) of the Law on Supervision and Regulation of the Financial System, establishes that to be and remain registered in the Registry of Stockbroker Agents, natural persons must meet the requirements established in the applicable regulations for their authorization.
VII. That Article 115 of the Law on Supervision and Regulation of the Financial System establishes that Stockbroker Agents, who are currently providing their services, within one year from the validity of the aforementioned Law, must register in the registry and meet the requirements established in Article 82 of said law and in the technical regulations issued for this purpose by the Central Bank of Reserve of El Salvador.

THEREFORE, by virtue of the regulatory powers conferred by Article 99 of the Law on Supervision and Regulation of the Financial System,

AGREES to issue the following:

TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES

CHAPTER I
OBJECT, SUBJECTS AND TERMS

Object
Art. 1.- These Standards aim to establish the requirements that Stockbroker Agents must meet to be authorized and registered in the corresponding Registry of the Superintendence of the Financial System.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Standards are: (2) a) Brokerage Houses registered with the Superintendence of the Financial System, which have expressed their interest to the Superintendence to obtain authorization for a natural person to act as a Stockbroker Agent, on behalf of said House; b) Stockbroker Agents who are already operating in a Stock Exchange registered with the Superintendence of the Financial System, to act on behalf of a Brokerage House.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Agent(s): Stockbroker Agents, understood as the representative of a Brokerage House authorized to carry out operations on its behalf in a Stock Exchange; b) Stock Exchange(es): Stock Exchanges constituted in El Salvador and registered with the Superintendence of the Financial System; c) House: Brokerage House; d) Registry: Public Registry of the Superintendence of the Financial System; and e) Superintendence: Superintendence of the Financial System.

CHAPTER II
REQUIREMENTS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

Regarding Stockbroker Agents
Art. 4.- Agents will act in a Stock Exchange, on behalf and in the name of the House that appoints them and under the responsibility of said Houses.

Art. 5.- Without prejudice to what is established in Article 4 of these Standards and in accordance with Article 61 of the Securities Market Law, Stockbroker Agents and the House they represent will be jointly liable, up to slight negligence, for the lack of correct and adequate information provided to investors to carry out investments and for the advice they provide.

Art. 6.- To legalize the representation of Agents in negotiations carried out in the Stock Exchanges, the Houses must grant them a power of attorney through a public deed, which must be registered in the Commercial Registry.
When the legal representative of the entity acts as an Agent, the power of attorney mentioned in the previous paragraph will not be necessary, provided that this authority has been granted in their appointment.

Art. 7.- An Agent who is interested in participating as a client in the operations carried out in the Stock Exchange may not represent themselves, but may do so through the intermediation of another Agent, for which the Agent participating in operations must inform in writing the general manager, attorney-in-fact, or legal representative of the House for which they work no later than the next business day after the operation has been carried out. (1) When operations are carried out through an Agent who works for the same House in which they work, they must have prior written authorization from the general manager, attorney-in-fact, or legal representative of the House. In any case, the operations in which the Agent participates as a client will be reported to the Superintendence no later than the next business day after they have been carried out.

Art. 8.- For an Agent to participate in the securities market, they must be previously authorized and registered in the Registry kept for such purposes by the Superintendence.
No Agent may act as such in two or more Houses simultaneously.

Requirements for the authorization and registration of Agents with the Superintendence Art. 9.- To be authorized and registered as a Stockbroker Agent, the following requirements must be met:
a) Be of legal age; b) Hold a university degree; c) Have knowledge and mastery of stock and financial topics, such as:

i) Financial operations and instruments; ii) Financial terminology of stock markets; iii) Portfolio management, risks, fixed and variable income investments, and other instruments; d) Have sufficient power of attorney granted by a House, to operate in a Stock Exchange as their duly registered representative in the Commercial Registry; e) Possess a credential accrediting them as a Stockbroker Agent, issued by a Salvadoran Stock Exchange; f) Possess an Agent number duly registered in a Salvadoran Stock Exchange; g) Take a knowledge exam at a Stock Exchange, obtaining a minimum score of seven points out of a total of ten; h) Have no criminal record; i) Not be insolvent or bankrupt unless rehabilitated; j) Not have been judicially qualified as responsible for culpable or fraudulent bankruptcy; k) Not have been convicted of any intentional crime; l) Not be a debtor of the financial system for credits to which a 50% or more of the balance has been constituted as a provision for soundness while such situation persists; m) That their registration as a Stockbroker Agent in the Registry of the Superintendence has not been cancelled, derived from an Administrative Sanctioning Procedure; n) That their participation in activities related to drug trafficking, terrorist financing, and money and asset laundering has not been proven judicially; and o) What is established in Article 82 of the Law on Supervision and Regulation of the Financial System. The Superintendence will verify compliance with the requirements related to the credit situation of the Stockbroker Agent through the information systems it has available.

Content of the Application
Art. 10.- For the authorization and registration of Agents in the Registry of the Superintendence, it is necessary to submit an application signed by the legal representative or attorney-in-fact of the House, specifying in said application the following information:
a) Full name, age, nationality, profession or occupation, address, Personal Identity Document number, and Tax Identification Number of the Agent; b) Date and number of the Board of Directors meeting minutes of the Stock Exchange in which authorization was obtained to perform the functions of Agent as well as their assigned code; c) Date of the power of attorney granted by public deed by the House to the Agent to act on their behalf, as well as the date of registration of said power in the Commercial Registry;

d) Signature of the legal representative or attorney-in-fact on the application, including their full name and nationality; and e) Place to receive any kind of notifications and designation of the persons commissioned for this purpose.

Documents to be attached to the application
Art. 11.- The application for authorization and registration of Agents must be accompanied by the following personal information:
a) Legible copies of the Personal Identity Document and the Tax Identification Number; b) Curriculum Vitae, as well as legible copies of documentation accrediting their experience and knowledge in the securities market; c) Legible copy of documents accrediting higher education studies completed; d) Legible copy of the credential as an Agent issued by a Stock Exchange; e) Legible copy of the power of attorney granted by public deed by a House to the Agent, duly registered in the Commercial Registry. In the case where the Agent acts as the legal representative of the House, they must present a legible copy of the instrument in which the power of representation to negotiate on its behalf is granted; f) Accredit through the corresponding document, having presented before a Stock Exchange, an exam on the functioning and practices of the Stock Exchange and stock market in general, as well as the laws and regulations applicable in this matter, obtaining a minimum score of seven points out of a total of ten; g) Valid certificate of no criminal record at the date of submission of the application to the Superintendence; and (2) h) Sworn declaration of the Agent, which must be authenticated by a notary and be prepared in accordance with the format established in Annex No. 1 of these Standards. For Agents of foreign nationality, copies of the Passport and the Tax Identification Number must be presented, duly legible. The application and documentation may be submitted through the means made available by the Superintendence, which may be electronic. In any case, the deadline referred to in the first paragraph of Article 12 of these Standards will begin to run from the next business day after the application has been submitted. (2)

Authorization procedure for Agents in the Public Registry of the Superintendence of the Financial System (2) Art. 12.- Upon receipt of the application for authorization and registration of Agents in the Public Registry, in accordance with what is established in Articles 10 and 11 of these Standards, the Superintendence will proceed to verify compliance with the requirements defined in these Standards, having a deadline of up to twenty business days for the authorization or denial of Agents in the Public Registry. (2)

If the application is not accompanied by complete and proper information, as detailed in Articles 10 and 11 of these Standards, the Superintendence, due to the lack of necessary requirements, may require the applicant to present the missing documents within a deadline of ten business days counted from the day following the notification, a deadline that may be extended at the request of said applicant when there are reasons justifying it. (2) The Superintendence in the same notice will indicate to the applicant that if they do not complete the information within the aforementioned deadline, it will proceed without further procedure to archive the application, leaving them free to submit a new application. (2) If after the analysis of the documentation presented in accordance with Articles 10 and 11 of these Standards, the Superintendence has observations or when the documentation or information presented is not sufficient to establish the facts or information intended to be accredited; the Superintendence will notify the respective applicant only once to remedy the deficiencies communicated or present additional documentation or information requested by the Superintendence. (2) The applicant will have a maximum deadline of ten business days counted from the day following the notification, to resolve the observations or present the additional information required by the Superintendence. (2) The Superintendence may, through a reasoned resolution, extend by up to another ten business days, the deadline indicated in the previous paragraph, when the nature of the observations or deficiencies notified so requires. (2)

Extension Deadline (2)
Art. 12-A.- The interested party may submit to the Superintendence an application for extension of the deadline indicated in the fifth paragraph of Article 12 of these Standards, before the expiration of said deadline, stating the grounds on which it is based and proposing, if applicable, the relevant proof. (2) The extension deadline may not exceed ten business days and will start from the next business day after the expiration date of the original deadline. (2)

Suspension of the Deadline (2)
Art. 12-B.- The twenty-business-day deadline indicated in the first paragraph of Article 12 of these Standards, will be suspended for the days that elapse between the notification of the request for information or documentation referred to in the second and fifth paragraphs of said article, until the observations required by the Superintendence are remedied. (2) Once the complete and proper documentation is presented, the Superintendence

will proceed to respond to the application for authorization and registration of Agents in the Public Registry of the Superintendence of the Financial System. (2)

Art. 13.- The Superintendence will proceed to notify the interested parties of the resolution of the Board of Directors referred to in Article 12, which authorizes or denies the application, within a maximum deadline of three business days from the date the resolution is issued. (2) In the event that the Board of Directors issues a favorable resolution for the authorization of the Agent, the registration in the corresponding Registry of the Superintendence will proceed.

Archiving of Proceedings Initiated by Registration Application Art. 13-A.- The Superintendence will proceed without further procedure to archive the proceedings initiated in the registration procedure detailed in these Standards, when the following situations arise: (1) a) That the House has not remedied the observations or has not presented the information required, in accordance with Articles 10, 11, and 12 of these Standards; or (1) b) That the House submits a letter to the Superintendence, informing the desire to withdraw the application, at any time. (1) In any case, the interested parties will maintain their right to submit a new application to the Superintendence, which will give rise to a new procedure. (1)

CHAPTER III
UPDATE OF INFORMATION OF STOCKBROKER AGENTS IN THE REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

Update of information in the Registry of the Superintendence Art. 14.- Houses will communicate to the Superintendence any change related to the information in the Public Registry of their Agents, no later than within three business days following the occurrence of the event, sending the documentation within a maximum deadline of thirty subsequent days, however this deadline may be extended at the request of the Houses in justified cases. In the event that mergers occur between Houses, the legible copy of the power of attorney referred to in letter e) of Article 11 of these Standards must be updated in the Registry of the Superintendence. (1)

Art. 15.- When an Agent ceases to provide their services to a House, whether because they resign or are fired, it will be the responsibility of said House to notify the Superintendence on the next business day following the event and to effect the revocation of the power of attorney granted to the Agent through a public deed, which must be registered in the Commercial Registry. (1)

The House referred to in the previous paragraph must send to the Superintendence within a maximum deadline of thirty days from the last day of work of the Agent, the following documentation: (1) a) Legible copy, notarially certified, of the instrument stating the revocation of the power of attorney to the Agent duly registered in the Commercial Registry; and (1) b) Settlement of the Agent's obligations issued by the House to the Agent, or the justification for why the settlement is not granted to them. This is without prejudice to the responsibilities established for the Agent in the Securities Market Law. (1)

Change of Labor Relationship of an Agent
Art. 15-A.- If the cessation of the Agent's work with a House is due to a change of labor relationship with another, without prejudice to what is established in Article 43 of the Regulations of the Securities Market Law and Articles 14 and 15 of these Standards; the hiring House must inform this situation to the Superintendence no later than the next business day after the Agent's start of work and send within a maximum deadline of one month counted from the authorization of the change by the Stock Exchange where they will operate, an application for modification of the registry entry through a note signed by their legal representative or attorney-in-fact, attaching the following documents: (1) (3) a) The documents required in letters e) and h) of Article 11 of these Standards and the other documents established in said article will only be presented when they have been modified with respect to those previously presented in the authorization application; and (1) b) Legible copy of the authorization for the Agent's change of House granted by a Stock Exchange. (1) (3) Once the aforementioned documents are presented completely and the Superintendence has received the documentation in accordance with what is established in Article 15 of these Standards, by the corresponding House, said Superintendence will resolve in accordance with what is provided in Articles 12, 12-A, 12-B, and 13 of these Standards within a deadline of ten business days. (1) (2) The Agent may not act on behalf and in the name of the hiring House, nor carry out activities as an Agent, while their Registry in the Superintendence has not been modified. (1)

Art. 15-B.- If the cessation of work is not due to a change of labor relationship, but to the termination thereof due to resignation or dismissal, the Agent will have a deadline of one year to rejoin a House to act as such, during which period the Superintendence will suspend the registry entry to operate as an Agent in accordance with what is established in Article 15, letter m) of the Law on Supervision and Regulation of the Financial System. The aforementioned deadline will be counted from the date of resignation or dismissal. Notwithstanding the above, the Superintendence may

CNBCR-06/2012 NRP-04

TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES

Approval: 08/06/2012
Validity: 27/06/2012

proceed to cancel the Registry in accordance with what is established by the current legal framework. (1) If during the period referred to in the preceding subsection, the Agent shows interest in having the registry entry reactivated, the new contracting House must submit to the Superintendence a request to modify the registry entry, in accordance with what is established in Article 15-A of these Standards. (1) Once the one-year period mentioned in the preceding subsections has elapsed and if the Agent has not joined a new House, the Superintendence will proceed to cancel the registry entry and the authorization to operate as an Agent. Notwithstanding the foregoing and considering that the cancellation was not an act resulting from a sanction imposed by the Superintendence, the interested party, upon joining a House again, will maintain their right to have a new authorization processed, for which the contracting House will proceed to comply with what is established in Articles 9, 10, and 11 of these Standards. (1) In the case of Agents who were authorized by an Exchange before June 27, 2012, in accordance with what is established in Article 20 of these Standards, compliance with subsection b) of Article 9 of these Standards will not apply. (1) In any case, the Agent may not carry out operations or perform any activity as an Agent while their Registry in the Superintendence is suspended or cancelled. (1)

Registry of Agents to be maintained by Brokerage Houses Art. 16.- Houses will maintain a registry of their Agents, which will contain as a minimum the following information:
a) Full name of the Agent, profession, and general information, such as:
Tax Identification Number, Unique Personal Identity Document number, address, telephone, nationality; b) Agent Code, date, and number of the Board of Directors meeting minutes in which authorization from an Exchange was granted; c) Date on which the power of attorney granted by a House to the Agent via public deed was registered in the Commerce Registry; d) Date and number of the session of the Board of Councilors of the Superintendence in which the Agent was registered in the Public Registry; e) Date of the Agent's entry into the House; f) Date of registration in the Commerce Registry of the revocation of the power granted by the House; g) Date of the Agent's withdrawal; and h) Signature of the Agent.

CNBCR-06/2012 NRP-04

TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES

Approval: 08/06/2012
Validity: 27/06/2012

CHAPTER IV
OTHER PROVISIONS AND VALIDITY

Certification of photocopies and authentication of signatures Art. 17.- Any photocopy presented to the Superintendence in compliance with what is provided in these Standards must be certified by an authorized notary in El Salvador. Similarly, signatures appearing in any type of documentation must be authenticated by an authorized notary in El Salvador. Notwithstanding the foregoing, if the documentation presented originates from abroad, both the photocopies and the signatures contained therein may be authenticated or certified, as applicable, by a foreign notary or official, in which case the respective procedure for legalizing signatures or apostille must be followed.

Proof of training for Agents
Art. 18.- Agents registered in the Superintendence's Registry must demonstrate a minimum of 40 hours of training on topics related to the securities market, every two years. The House must submit to the Superintendence the documentation proving compliance with the provisions of this article, within 30 business days following the expiration of the stipulated period. (1)

Compliance with requirements
Art. 19.- Houses are responsible for verifying that Agents comply with the requirements established in these Standards.

Transitory
Art. 20.- For the Registration in the Superintendence of Agents who are operating on the date of validity of these Standards and to comply with the period defined in Article 115 of the Financial System Supervision and Regulation Law, the Superintendence will request from the Stock Exchange a certificate of the list of active agents who are registered and authorized by it; including as a minimum the full name, agent code, and name of the House for which they operate on its behalf. For the purpose of completing the registration information in the Superintendence, Houses will have a maximum period of 60 business days from August 2, 2012, to submit to the Superintendence the request and the information related to Articles 10 and 11 of these Standards. In the case of Agents who, on the date of validity of these Standards, are authorized by an Exchange to exercise said position; they will not be required to comply with subsection b) of Article 9 of these Standards.

CNBCR-06/2012 NRP-04

TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES

Approval: 08/06/2012
Validity: 27/06/2012

Sanctions (2)
Art. 20-A.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Financial System Supervision and Regulation Law. (2)

Unforeseen aspects
Art. 21.- Aspects not provided for in the regulatory matter of these Standards will be resolved by the Central Bank through its Standards Committee. (2)

Validity
Art. 22.- These Standards will enter into force on June 27, 2012.

MODIFICATIONS:

(1) Modifications approved by the Standards Committee of the Central Reserve Bank of El Salvador, in Session No. CN-12/2016, dated December 23, 2016, with validity starting from January 20, 2017.
(2) Modifications to Articles 2, 11, 12, 13, 15-A, and 21 and incorporation of Articles 12-A, 12-B, and 20-A, approved by the Central Bank through its Standards Committee, in Session CN-11/2021, dated August 31, 2021, with validity starting from September 17, 2021. (3) Modifications to Article 15-A, approved by the Central Bank through its Standards Committee, in Session CN-07/2025, dated August 28, 2025, with validity starting from September 12, 2025.

CNBCR-06/2012 NRP-04

TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES

Approval: 08/06/2012
Validity: 27/06/2012

Annex No. 1

STOCKBROKER AGENTS

MODEL OF SWORN DECLARATION FOR STOCKBROKER AGENTS

In the city of San Salvador, at _______ hours on the _______ day of _______ of the year 20__.

Before me, _______ notary from the domicile of ______________, appears the gentleman _______ of _______ years old, (profession or trade) _______, from the domicile _____________ whom I know (or do not know), holder of (or identified by) Unique Personal Identity Document number (or passport number) ________, with Tax Identification Number ________, who acts in his own name, and HE SAYS: That in his capacity as Stockbroker Agent of the company ____________________, UNDER OATH HE MAKES THE FOLLOWING DECLARATIONS:

A) That he is of legal age. B) That he is not insolvent or bankrupt. C) That he has not been judicially qualified as responsible for culpable or fraudulent bankruptcy. D) That he has not been convicted of any intentional crime. E) That he is not a debtor of the financial system for credits to which a 50% soundness reserve has been constituted. F) That his registration as a Stockbroker Agent in the Registry of the Superintendence has not been cancelled, resulting from an Administrative Sanction Procedure. G) That it has not been judicially proven that he participated in activities related to drug trafficking, terrorism financing, money laundering, and asset laundering. The notary states: that he explained to the appearing party what is established in the Penal Code, regarding the crime of ideological falsity, regulated in Article 284. Thus the appearing party expressed himself, whom I explained the legal effects of the present notarial act, which consists of _____ page(s) front and back; and having been read to him by me in a single act without interruption and in its entirety, he ratifies its content and we sign. I CERTIFY.

The Sworn Declaration must comply with what is established in the Notary Law.

Technical Standards for the Authorization and Registration of Stockbroker Agents in the Public Registry of the Superintendence of the Financial System to Provide Services in Stock Exchanges

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