Board Resolution No. 130/2014 Approving Regulations for the Direct Sale of Securities to Natural Persons via Electronic Means

BOARD RESOLUTION NO. 130/2014

SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVES THE REGULATIONS FOR THE DIRECT SALE OF SECURITIES TO NATURAL PERSONS THROUGH ELECTRONIC MEANS

HAVING SEEN:

Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB). Law No. 1834 of March 31, 1998 on the Securities Market. Law No. 164 of August 8, 2011, General Law on Telecommunications, Information and Communication Technologies. The BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005 and its subsequent modifications. The Open Market Operations (OMA) Regulations approved by Board Resolution No. 127/2003 of November 11, 2003 and its subsequent modifications. The Report BCB-GOM-SOMA-INF-2014-87 of September 15, 2014, from the Monetary Operations Management. The Report BCB-GAL-SANO-INF-2014-425 of September 26, 2014, from the Legal Affairs Management.

CONSIDERING:

That Article 6 of Law No. 1670 empowers the BCB to execute monetary policy and regulate the money supply and credit volume in accordance with its monetary program, being able to issue, place, and acquire securities and carry out other open market operations for this purpose.

That in virtue of the attributions conferred by subsections a), d), and o) of Article 54 of Law No. 1670 and items 1), 4), and 29 of Article 11 of the BCB Statute, the BCB Board of Directors is empowered to issue norms and adopt general decisions so that the BCB fulfills the functions, competencies, and powers assigned by Law, as well as to issue norms for the open market operations carried out by the BCB and approve the BCB Regulations, by two-thirds vote of all its members.

That Article 7 of Law No. 1834 establishes that both issuances by the BCB and the TGN are exempt from the public offering authorization by the Superintendence of Pensions, Securities, and Insurance (SPVS), being sufficient their own legal norms that support their issuance and public offering.

That Article 78 of Law No. 164, General Law on Telecommunications, Information and Communication Technologies, determines that the juridical act or business carried out by a natural or legal person in a digital document and approved by the parties through digital signature, celebrated through electronic media or other of greater technological advancement, the electronic data message, and the digital signature have juridical and probative validity.

That Article 12 of the Open Market Operations Regulations empowers the BCB Board of Directors to authorize other mechanisms to carry out open market operations.

That the Report BCB-GOM-SOMA-INF-2014-87 from the Monetary Operations Management recommends to the BCB Board of Directors approve the mechanism for the Direct Sale of Securities to Natural Persons through Electronic Means, in order to expand the direct sales channels for BCB Bonds to give the same savings opportunities to all potential clients regardless of their time availability and the financial entity in which they have deposited their resources, as well as to approve the Regulations for the Direct Sale of Securities to Natural Persons through Electronic Means.

That the Report BCB-GAL-SANO-INF-2014-425 from the Legal Affairs Management establishes that there is no legal impediment for the BCB Board of Directors to approve the mechanism for the Direct Sale of Securities to Natural Persons through Electronic Means, as well as its respective regulation.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the Regulations for the Direct Sale of Securities to Natural Persons through Electronic Means, in its 3 (three) Chapters and 8 (eight) Articles, which shall enter into force from the date of its approval.

Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, September 30, 2014

• Reynaldo Yujra Segales Abraham Perez Alandia Varo Rodriguez Rojas Ronal Polo Rivero

ANNEX REGULATIONS FOR THE DIRECT SALE OF SECURITIES TO NATURAL PERSONS THROUGH ELECTRONIC MEANS

CHAPTER I General Provisions

Article 1. (Object).- The purpose of these Regulations is to establish the conditions for the direct sale of securities to natural persons through electronic means implemented by the BCB.

Article 2. (Definition).- The direct sale of securities to natural persons through electronic means is a mechanism by which natural persons can acquire BCB securities remotely through a web-based sales system provided by the BCB for this purpose.

Article 3. (Access Restrictions to the Mechanism).- Access to this mechanism, by virtue of its purpose, is restricted exclusively to natural persons who acquire securities for their own account and are holders of an account in a financial entity participating in an ACH Electronic Funds Transfer Clearinghouse in which the BCB also participates.

CHAPTER II Conditions for the Direct Sale of Securities to Natural Persons through Electronic Means

Article 4. (Securities Offered).- The securities offered through this mechanism will be the same as those offered through the Direct Sale to Natural Persons and Sales through Placement Agents mechanisms.

Article 5. (Conditions).- The conditions regarding terms, interest rates, minimum and maximum sales amounts, and others inherent to the securities will be those determined by the Open Market Operations Committee for the offering of securities for Direct Sale to Natural Persons and Sales through Placement Agents.

Article 6. (Operational Procedures).- The operational procedures for placement, transfer, early redemption, and maturity of the securities will be specified in an Operational Guide approved by General Management.

Article 7. (Other Operational Aspects).- The BCB Open Market Operations Committee may define and implement any operational aspect not foreseen in these Regulations.

CHAPTER III Registration of the Issuance of Securities

Article 8. (Issuance Registration).- The securities issued by the BCB for their direct sale to natural persons through electronic means will be represented by book entries and must be registered with the Securities Depository Entity through the corresponding legal documents or instruments and in accordance with the norms, procedures, characteristics, and conditions of securities issuance specific to the BCB.