JPRM-2022-029-M — Reform of Monetary System Regulations

[Logo: MONETARY POLICY AND REGULATION BOARD] [Logo: Republic of Ecuador]

RESOLUTION NO. JPRM-2022-029-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 of the same Constitution states that Public Administration constitutes a service to the community governed by 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 authority of the Executive Branch and will be implemented through the Central Bank of Ecuador;

That, Article 36, numeral 17 of the Organic Monetary and Financial Code establishes: "Functions. - The Central Bank of Ecuador has the following functions: (...) 17. Act as a centralized depository for the clearing and settlement of securities; (...)";

That, Article 36.1 of the aforementioned Code provides: "The Central Bank of Ecuador may charge commissions or fees for the services it provides and the functions it performs in accordance with the resolutions issued by the Monetary Policy and Regulation Board. Such commissions or fees must be published on the institutional website.";

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

That, Article 47.6 of the same Code, regarding the functions of the Monetary Policy and Regulation Board, establishes: "(...) 5. Establish the policies of the Central Bank of Ecuador and supervise their implementation; (...) 7. Formulate the policy for the operations of the Central Bank of Ecuador; (...) 25. Set the commissions and fees for services of the Central Bank of Ecuador; (...)"

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For the fulfillment of these functions, the Monetary Policy and Regulation Board will issue regulations in matters within its competence, without being able to alter legal provisions.";

That, Article 116 of the aforementioned Code determines that: *"The Central Bank of Ecuador will perform the function of Custodian and Centralized Depository for the clearing and settlement of public and private securities, including those issued by the Central Bank of Ecuador.

The Centralized Securities Depository may provide global custody services under the terms established in this Code."*;

That, Article 130 of the Organic Administrative Code, regarding normative competence of an administrative nature, determines: *"The highest administrative authorities have normative competence of an administrative nature only to regulate the internal affairs of the body under their charge, except in cases where the law provides this competence for the highest legislative authority of a public administration.

The regulatory competence over the actions of persons must be expressly attributed by law."*;

That, Article 60 of Book II "Securities Market Law" of the Organic Monetary and Financial Code establishes that: "(...) Centralized Depositories for the Clearing and Settlement of Securities shall be public institutions or anonymous companies, authorized by the Superintendence of Companies, Securities and Insurance to receive in deposit securities registered in the Public Registry of the Securities Market, take charge of their custody and conservation, and provide clearing and registration of transfer services, and operate as a securities clearing house. (...)";

That, Article 69 of the aforementioned norm determines: "Centralized Depositories for the Clearing and Settlement of Securities will establish the charges or fees they will charge users of their services. Such charges or fees, as well as their modifications, will be communicated to the Superintendence of Companies, Securities and Insurance, and in no case may exceed the limits established by the Superintendence itself.";

That, the Monetary Policy and Regulation Board, through Resolution No. JPRM-2022-020-M, of August 4, 2022, identified the norms of the Codification of Monetary, Financial, Securities and Insurance Resolutions issued by the former Monetary and Financial Policy and Regulation Board, which by competence it

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corresponded to recognize, ratifying "Chapter II: Regulations for the Centralized Securities Depository of the Central Bank of Ecuador" and "Chapter V: Fees, Service Rates and other concepts related to Banking Operations";

That, Article 109, of Section III: "Of the fees", of Chapter II: "Regulations for the Centralized Securities Depository of the Central Bank of Ecuador", contained in Resolution No. JPRM-2022-020-M, of August 4, 2022 "Monetary System Regulations", establishes the current tariff scheme for the services provided by the Centralized Securities Depository of the Central Bank of Ecuador;

That, Article 168 of Section I: "The Central Bank of Ecuador", of Chapter V: "Fees, Service Rates and other concepts related to Banking Operations", contained in the aforementioned Resolution, establishes: "The Central Bank of Ecuador will charge its clients for the provision of banking services, the rates, fees and postage that include the following: (...) CENTRALIZED SECURITIES DEPOSITORY DCV-BCE. The General Manager of the Central Bank of Ecuador must establish the values to be charged for the products and services of the Centralized Securities Depository DCV-BCE";

That, the Monetary Policy and Regulation Board, in an extraordinary session by mixed modality, on November 29, 2022, reviewed the proposal sent via memorandum No. BCE-BCE-2022-0251-M, of November 28, 2022, by the General Manager of the Central Bank of Ecuador to the President of the Monetary Policy and Regulation Board; as well as, Technical Report No. BCE-SGSERV-063/DNDCV-061-2022, of November 28, 2022; and, legal report No. BCE-CGJ-158-2022, of November 28, 2022; and,

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

REFORM THE REGULATION OF MONETARY SYSTEM NORMS ISSUED THROUGH RESOLUTION NO. JPRM-2022-020-M

SINGLE ARTICLE.- Substitute the concept provided in the fifth tariff of the tariff table for the DCV-BCE, corresponding to the service of "SECURITIES IN GUARANTEE", of Article 109, of Section III: "Of the fees", of Chapter II: "Regulations for the Centralized Securities Depository of the Central Bank of Ecuador", of Resolution No. JPRM-2022-020-M, of August 4, 2022, with the following text:

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	Blocking and release of securities by guarantee.
SECURITIES IN GUARANTEE	Per participant, charged to the respective direct depositor, except for stock market repurchase operations	USD 5.00

SINGLE GENERAL PROVISION.- Entrust the execution and compliance of this resolution to the National Directorate of Centralized Securities Depository of the Central Bank of Ecuador.

SINGLE REPEALING PROVISION: Repeal the concept corresponding to: "CENTRALIZED SECURITIES DEPOSITORY DCV-BCE", of Article 168, of Section I: "The Central Bank of Ecuador", of Chapter V: "Fees, Service Rates and Other Concepts Related to Banking Operations", of Resolution No. JPRM-2022-020-M, of August 4, 2022.

FINAL PROVISION. – This resolution will enter into force from the present date, without prejudice to its publication in the Official Registry.

Entrust its publication on the institutional website of the Central Bank of Ecuador to the Documentary Management and Archive Directorate.

COMMUNICATE AND PUBLISH. - Given in the Metropolitan District of Quito, on November 29, 2022.

THE PRESIDENT

[Signature] Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón, in her capacity as President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on November 29, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY

[Signature] Attorney MARÍA ALEXANDRA GUERRERO DEL POZO