Technical Standards for the Authorization and Registration of Stock Exchanges, Licensees and Stockbrokers in the Public Registry of the Superintendence of the Financial System to Provide Services in the Product and Service Exchanges

CNBCR-06/2012 NRP-03
TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCK EXCHANGES, LICENSEES AND STOCKBROKERS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN THE PRODUCT AND SERVICE EXCHANGES. Approval:
08/06/2012
Validity: 27/06/2012

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

CONSIDERING:

I. That Article 3, letter h) of the Law on Supervision and Regulation of the Financial System, establishes that it is the competence of the Superintendence of the Financial System to authorize the registrations, registry entries, modifications and cancellations of the persons, institutions and operations that are subject to such requirement, in accordance with the laws on the matter.

II. That Article 7, paragraph three of the Law on Supervision and Regulation of the Financial System, establishes that the Stockbrokers, Stock Exchanges and the Licensees referred to in the Law on Product and Service Exchanges are subject to the supervision of the Superintendence of the Financial System.

III. That Article 37, paragraph two of the Law on Supervision and Regulation of the Financial System, establishes that the supervised entities, as well as their shareholders or partners, must provide all the necessary information to keep the public records mentioned in the laws governing them updated, within the deadlines and in the manner established.

IV. That Article 78, letter k) of the Law on Supervision and Regulation of the Financial System, establishes that the Superintendence will organize and keep updated the records that the laws entrust to it regarding the Licensees, Agents and Stock Exchanges referred to in the Law on Product and Service Exchanges.

V. 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 the Superintendence, the Licensees, Agents and Stock Exchanges must comply with the requirements established in the applicable regulations for their authorization.

VI. That Article 115 of the Law on Supervision and Regulation of the Financial System establishes that the Licensees, Agents and Stock Exchanges referred to in the Law on Product and Service Exchanges, which are currently providing their services, within one year from the validity of the aforementioned Law, must register in the registry and comply with the requirements established in Article 82 of said Law and in the technical regulations issued to that effect by the Central Bank of Reserve of El Salvador.

THEREFORE,

in virtue of the normative 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 STOCK EXCHANGES, LICENSEES AND STOCKBROKERS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN THE PRODUCT AND SERVICE EXCHANGES

CHAPTER I
OBJECT, SUBJECTS AND TERMS

Object
Art. 1.- These Standards aim to establish the requirements that Stock Exchanges, Licensees and Stockbrokers referred to in the Law on Product and Service Exchanges 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) Stock Exchanges, Licensees and Stockbrokers that are operating in a Product and Service Exchange registered with the Superintendence of the Financial System; and b) Persons interested in obtaining authorization as Stock Exchanges, Licensees and Stockbrokers.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: (2) a) Administrators: The members of the Board of Directors, directors or executive presidents and managers, or those who exercise their functions, as well as the auditors and liquidators of Stock Exchanges and Licensees; b) Stockbroker or Brokers: Natural persons whom the Product and Service Exchanges recognize as having the capacity to carry out brokerage operations on behalf of a Stock Exchange or a Licensee and before the Exchange; c) Exchanges or Exchange: Product and Service Exchanges; d) Licensees or license holders: National or foreign persons authorized by the Exchanges to carry out negotiations of products and services appropriate in accordance with the Law on Product and Service Exchanges; e) Stock Exchange(s): National or foreign legal entities authorized by the Exchanges to carry out intermediation activities and provision of services for their own or third parties in accordance with the Law on Product and Service Exchanges; f) Registry: Public Registry of the Superintendence of the Financial System; and g) Superintendence: Superintendence of the Financial System.

CHAPTER II
REQUIREMENTS FOR THE AUTHORIZATION AND REGISTRATION OF STOCK EXCHANGES AND LICENSEES IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

Regarding Stock Exchanges and Licensees
Art. 4.- Stock Exchanges must be constituted as anonymous societies and in accordance with what is established in Article 19 of the Law on Product and Service Exchanges.

Art. 5.- Stock Exchanges may carry out intermediation of products or services for their own or third parties, and Licensees may only do so but only for their own products or services.

Art. 6.- For Stock Exchanges and Licensees to be able to intermediation and provide the services referred to in the Law on Product and Service Exchanges, they must be previously authorized and registered in the Registry that the Superintendence keeps for such purposes.

Requirements for the authorization and registration of Stock Exchanges and Licensees with the Superintendence Art. 7.- To be authorized as Stock Exchanges and Licensees, they must comply with the following requirements:
a) Possess authorization from an Exchange to operate as a Stock Exchange or as a Licensee; b) That their shareholders, executives, administrators and Brokers do not hold any of these positions in other Stock Exchanges or Licensees; c) That their shareholders, directors or administrators are not debtors of the financial system for credits to which a cleaning reserve of fifty percent or more of the balance has been constituted while such situation persists; d) That their directors or administrators have not been directors of a company that in the last six years, had been suspended as an Exchange, Stock Exchange or Licensee, provided that there was a final judicial sentence or administrative resolution issued by the competent body; e) That their shareholders, executives or administrators have not been judicially proven to participate in activities related to drug trafficking, terrorist financing and money laundering and asset laundering; and f) 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 its shareholders, executives or administrators through the information systems it has available.

Ineligibilities
Art. 8.- The following may not be shareholders, directors or administrators of Stock Exchanges and Licensees or license holders due to ineligibility:
a) Minors; b) Insolvent or bankrupt persons while they have not been rehabilitated, and those who have been judicially qualified as responsible for culpable or fraudulent bankruptcy; c) Those who have been convicted of any type of crime; d) Those who are legally incapacitated; e) Those who are directors of other Exchanges; and f) Shareholders of other exchanges who own more than ten percent of the share capital of other product exchanges.

Content of the application
Art. 9.- For the registration of Stock Exchanges and Licensees in the Registry of the Superintendence, the interested parties must submit a signed application, which must contain the following information: (2) a) Name, trade name or denomination of the Stock Exchange or Licensee; (3) b) Taxpayer Registry Number and Tax Identification Number of the Stock Exchange or Licensee; (3) c) Address and telephone number of the Stock Exchange or Licensee, website if it has one, and contact email address; (3) d) Information on each of the shareholders, referring to: full name, nationality, profession or occupation, domicile, Unique Identity Document number, Tax Identification Number, which will be required in cases defined by the Tax Administration, percentage of shareholding participation of each shareholder and Taxpayer Registry Number, in the case that they are registered as such in the corresponding registry. In the case of foreign national shareholders, a legible copy of the valid passport or residence card must be presented; (3) e) Amount of subscribed and paid-up social capital; f) Full name, age, nationality, profession or occupation, domicile, Unique Identity Document number, of each of the directors and administrators. In the case of directors and administrators of foreign nationality, a legible copy of the valid passport or residence card must be presented; and (3) g) Place to receive any kind of notifications and the designation of persons commissioned for such effect. If the application is signed by the legal representative or attorney-in-fact of the shareholders, their full name, age, and nationality must be stated, and in the case that the persons signing the application do not present it personally, the signatures appearing in it must be authenticated by a notary.

Documents that must be attached to the application Art. 10.- The application for registration of Stock Exchanges and Licensees must be accompanied by the following information:
a) Certification issued by an Exchange, stating that it is authorized to operate as a Stock Exchange or as a Licensee; b) Legible copy of the granting by the constituted society, of the guarantee required by Article 22 of the Law on Product and Service Exchanges for the fulfillment of the operations carried out; c) Legible copy of the testimony of the public deed of constitution and of its modifications if any, as well as the corresponding bylaws if applicable, duly registered and deposited in the Commerce Registry as appropriate, when applicable; d) Legible copy of the legal instrument of creation when applicable; e) Legible copy of the agreement of the highest governing body, in which the intermediation and provision of services in the Product Exchanges as Licensees is authorized; f) Legible copy of the Tax Identification Number and the Taxpayer Registry Number of the Stock Exchange or Licensee, which will be required in cases defined by the Tax Administration; (3) g) Certification of the credentials of the Board of Directors and administrative attorneys, indicating the term of office of its members; h) Copy of the Commerce Registration; i) Legible copy of the agreement appointing the external auditor, in the case that it has not been appointed in the constitutive act, which must be previously registered in the Commerce Registry; j) Legible copies of the Unique Identity Document, the Tax Identification Number which will be required in cases defined by the Tax Administration and the Taxpayer Registry Number, if they are registered as such in the respective Registry, for each of the shareholders, legal representatives, attorneys-in-fact, directors and administrators; (3) k) Legible copy of the valid passport in the case of directors, administrators, attorneys-in-fact or shareholders of foreign nationality; l) Curriculum Vitae of each of the directors and administrators, as well as a legible copy of the documentation supporting the information described in their curriculum; (3) m) Sworn declaration by each of the shareholders, directors and administrators, which must be authenticated by a notary and prepared in accordance with the format established in Annex No. 1 of these Standards; n) In the case that the shareholders are legal entities, they must also attach the following documents, insofar as applicable:
i. Notarially certified copy of their current social pact and of the last credential of the election of their governing body;

ii. Certification of the list of shareholders. Such certification must be signed by whoever has the legal representation of the applicant and must be authenticated by a notary; and
iii. If the current social pact establishes that for the constitution of any type of society, the legal representative of the applicant needs authorization from any higher body, a notarially certified copy of the certification of the point of the minutes in which such agreement is recorded must be presented; and
o) Organizational chart of the Stock Exchange or Licensee, indicating the name of its administrators and their respective positions. (3) When any of the certificates has been issued abroad, the applicants must also attach the documents by virtue of which it is proven that the person or entity that issued such certificate is legally authorized to operate in the corresponding country. In the case of foreign Stock Exchanges or Licensees, documentation must be presented that accredits that they are duly registered in the Commerce Registry, in compliance with what is established in Articles 358 and 359 of the Commercial Code. (3) 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)

Availability of information
Art. 11.- Stock Exchanges and Licensees must keep in their offices available to the Superintendence, the information related to the operationality of the business detailed below:
a) Document stating the development of procedures for the attention, receipt of operation instructions, execution, notification of closed orders, registration and complaint of client operations; b) Format of orders taken from clients and the operation receipts delivered to clients; c) Document stating the handling of privileged information, conflict of interest and prevention of market manipulation; d) The internal controls they will carry out for the handling of client information and the procedure manuals which must include internal control mechanisms; and e) Description of the computer equipment and their respective programs.

Procedure for the authorization and registration of Stock Exchanges and Licensees (2) Art. 12.- Upon receipt of the application for authorization and registration of Stock Exchanges and Licensees, in accordance with what is established in Articles 9 and 10 of these Standards, the Superintendence will proceed to verify compliance with the requirements defined in the Law on Product and Service Exchanges and these Standards, having up to twenty business days for the authorization or denial of the authorization and registration of Stock Exchanges and Licensees. (2) If the application is not accompanied by the complete and duly formatted information detailed in Articles 9 and 10 of these Standards, the Superintendence, due to the lack of necessary requirements, may require the applicants to present the missing documents within a period of ten business days counted from the day following the notification, a period that may be extended at the request of the applicants, when there are reasons justifying it. (2) The Superintendence in the same notice will indicate to the applicants that if they do not complete the information within the aforementioned period, it will proceed without further procedure to archive the application, leaving them free to present a new application. (2) If after the analysis of the documentation presented in accordance with Articles 9 and 10 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 applicants once to remedy the deficiencies communicated to them or present additional documentation or information requested by them. (2) The applicants will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or present the information required by the Superintendence. (2) The Superintendence may, through a reasoned resolution, extend by up to another ten business days the period indicated in the previous paragraph, when the nature of the observations or deficiencies notified so requires. (2)

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

Suspension of the period (2)
Art. 12-B.- The twenty-day period indicated in the first paragraph of Article 12 of these Standards, will be suspended for the days that elapse between the notification of the requirement to complete information or documentation referred to in the second and fifth paragraphs of said Article, until the interested parties remedy the observations required by the Superintendence. (2) Once the complete and duly formatted documentation is presented, the Superintendence will proceed to respond to the application for authorization and registration of the Stock Exchange or Licensee. (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 period 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 Stock Exchange or Licensee, the registration will proceed in the corresponding Registry of the Superintendence.

CHAPTER III
REQUIREMENTS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKERS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

Regarding Stockbrokers
Art. 14.- To legalize the representation of Brokers in the operations carried out in the Exchanges, Stock Exchanges and Licensees must grant them a power of attorney through a public deed, which must be registered in the Commerce Registry. When the legal representative of the Stock Exchange or Licensee acts as a Broker, the power of attorney mentioned in the previous paragraph will not be necessary, provided that this power has been granted in their appointment. (3)

Art. 15.- For a Broker to be able to participate in intermediation operations in an Exchange, they must be previously authorized and registered in the Registry that the Superintendence keeps for such purposes.
No Stockbroker may act as such in two or more Stock Exchanges and Licensees simultaneously.

Requirements for the authorization and registration of Brokers with the Superintendence Art. 16.- To be authorized and registered as a Stockbroker, the following requirements must be met:
a) Be of legal age;

CNBCR-06/2012 NRP-03

NORMAS TÉCNICAS PARA LA AUTORIZACIÓN E INSCRIPCIÓN DE LOS PUESTOS DE BOLSA, LICENCIATARIOS Y AGENTES DE BOLSA EN EL REGISTRO PÚBLICO DE LA SUPERINTENDENCIA DEL SISTEMA FINANCIERO PARA BRINDAR SERVICIOS EN LAS BOLSAS DE PRODUCTOS Y SERVICIOS.

Aprobación:
08/06/2012
Vigencia: 27/06/2012

b) Be Salvadoran or foreign, with experience and knowledge in the intermediation of products and services; c) Possess higher education studies or have passed at least the third year of university studies; d) Have a power of attorney granted by a Stock Exchange or a Licensee, to carry out intermediation operations in an Exchange, which must be duly registered in the Commerce Registry; e) Possess a credential accrediting them as an Agent, issued by an Exchange; f) Pass the Agent training course and take a knowledge exam at an Exchange, obtaining a minimum score of seven points out of a total of ten; g) Have no criminal records; h) Not be insolvent or bankrupt unless rehabilitated; i) Not have been judicially qualified as responsible for culpable or fraudulent bankruptcy; j) Not have been convicted of any type of crime; k) Not be a debtor of the financial system for credits to which a 50% or more of the balance has been constituted as a soundness reserve while such situation persists; l) That their registration as an Agent in the Registry of the Superintendence has not been cancelled, resulting from an Administrative Sanctioning Procedure; m) That they have not been sanctioned as a Director or Administrator by the Superintendence, in companies with the quality of Exchanges or Stock Exchanges; n) That their participation in activities related to drug trafficking, terrorism financing, and money and asset laundering has not been judicially proven; and o) What is established in Article 82 of the Financial System Supervision and Regulation Law.

The Superintendence will verify compliance with the requirements related to the Agent's credit situation through the information systems it has available.

Content of the Application
Art. 17.- 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 Stock Exchange or the Licensee, specifying in said application the following information:
a) Full name of the Agent, age, nationality, profession or occupation, address, Unique Identity Document number and Tax Identification Number, which will be required in cases defined by the Tax Administration. In the case of foreign Agents, a legible copy of the valid passport or residence card must be presented; (3)

CNBCR-06/2012 NRP-03
NORMAS TÉCNICAS PARA LA AUTORIZACIÓN E INSCRIPCIÓN DE LOS PUESTOS DE BOLSA, LICENCIATARIOS Y AGENTES DE BOLSA EN EL REGISTRO PÚBLICO DE LA SUPERINTENDENCIA DEL SISTEMA FINANCIERO PARA BRINDAR SERVICIOS EN LAS BOLSAS DE PRODUCTOS Y SERVICIOS.

Aprobación:
08/06/2012
Vigencia: 27/06/2012

b) Date and number of the Board of Directors meeting minutes in which authorization as an Agent was received from an Exchange, as well as the number of the credential granted to the Agent; c) Date of the power of attorney granted by the Stock Exchange or the Licensee to the Stock Agent through a public deed, to act on their behalf, as well as the date of its registration in the Commerce 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 the designation of the persons commissioned for such effect. (1)

Documents that must be attached to the application Art. 18.- The application for authorization and registration of Agents must be accompanied by the following personal information:
a) Legible copies of the Unique Identity Document and the Tax Identification Number of the Agent, which will be required in cases defined by the Tax Administration; (3) b) Legible copies of the Passport and the Tax Identification Number for foreign agents; c) Curriculum Vitae, as well as legible copies of documentation supporting the information described in their curriculum; d) Legible copy of the documents accrediting the level of university studies required in these Standards; e) Legible copy of the credential as an Agent granted by an Exchange and the power of attorney granted through a public deed by a Stock Exchange or Licensee to the Stock Agent, duly registered in the Commerce Registry; f) Accredit through the corresponding document, having presented before an Exchange training courses as Stock Agents and a knowledge exam on the functioning and practices of intermediation operations of Products and Services in an Exchange, as well as on the laws and regulations applicable in said matter; obtaining a minimum score of seven points out of a total of ten; g) Valid certificate of no criminal records at the date of submission of the application to the Superintendence; and (3) h) Sworn declaration by the Agent, which must be authenticated by a notary and prepared in accordance with the format established in Annex No. 2 of these Standards.

The application and documentation may be submitted through the means made available by the Superintendence, which may be electronic. In any case, the time limit referred to in the first paragraph of Article 19 of these Standards will begin to run from the next business day after the application has been submitted. (2)

Aprobación:
08/06/2012
Vigencia: 27/06/2012

Procedure for the authorization and registration of Stock Agents (2) Art. 19.- Upon receipt of the application for authorization and registration of Agents, in accordance with what is established in Articles 17 and 18 of these Standards, the Superintendence will proceed to verify compliance with the requirements defined in the Law on Product and Service Exchanges, having up to twenty business days to authorize or deny the authorization of Agents. (2) (3) If the application is not accompanied by the complete and duly formatted information detailed in Articles 17 and 18 of these Standards, the Superintendence, due to the lack of necessary requirements, may require the applicants to present the missing documents within a period of ten business days counted from the day following the notification, a period that may be extended at the request of the applicants, when there are reasons justifying such extension. (2) The Superintendence, in the same notice, will indicate to the applicants that if they do not complete the information within the aforementioned period, 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 17 and 18 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 applicants once to remedy the deficiencies communicated or present additional documentation or information requested. (2) The applicants will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or present the information requested by the Superintendence. (2) The Superintendence may, through a reasoned resolution, extend by up to another ten business days the period indicated in the previous paragraph, when the nature of the observations or notified deficiencies so requires. (2)

Extension Period (2)
Art. 19-A.- Applicants may submit to the Superintendence an application for extension of the periods indicated in the fifth paragraph of Article 19 of these Standards, before the expiration of said period, stating the grounds for the request and proposing, if applicable, the relevant evidence. (2) The extension period may not exceed ten business days and will start from the next business day following the expiration date of the original period. (2)

Aprobación:
08/06/2012
Vigencia: 27/06/2012

Suspension of the Period (2)
Art. 19-B.- The twenty-day period indicated in Article 19 of these Standards will be suspended for the days that elapse between the notification of the request to complete information or documentation referred to in the second and fifth paragraphs of said article, until the interested parties remedy the observations required by the Superintendence. (2) Once the complete and duly formatted documentation is presented, the Superintendence will proceed to respond to the application for authorization and registration of the Stock Agent. (2) Art. 20- The Superintendence will proceed to notify the interested parties of the resolution of the Board of Directors referred to in Article 19, which authorizes or denies the application, within a maximum period 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 Stock Agent, the registration in the corresponding Registry of the Superintendence will proceed.

CHAPTER IV
UPDATE OF INFORMATION IN THE REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

Update of information in the Registry of the Superintendence Art. 21.- Stock Exchanges and Licensees will communicate to the Superintendence any change related to the information in the Public Registry concerning their companies and their Agents, no later than within three business days following the occurrence of the event, submitting the documentation within a period of thirty days subsequent to the event motivating the change; however, this period may be extended at the request of Stock Exchanges or Licensees in justified cases. (3)

Art. 22.- When an Agent ceases to provide services to a Stock Exchange or Licensee, whether because they resign or are dismissed; it will be the responsibility of these parties to effect the revocation of the power granted to the Agent through a public deed, which must be registered in the Commerce Registry. (3) The Stock Exchange or Licensee must communicate and submit documentation to the Superintendence regarding the cessation of an Agent's activities within the timeframes established in Article 21 of these Standards. The documentation to be submitted will be the following: (3) a) Legible copy, notarially certified, of the instrument stating the revocation of the power to the Agent, duly registered in the Commerce Registry; b) Repealed; and (3)

Aprobación:
08/06/2012
Vigencia: 27/06/2012

c) Repealed. (3)

Change of Labor Relationship of an Agent (3)
Art. 22-A.- If the cessation of the Agent's activities is due to a change of labor relationship with another Stock Exchange or Licensee, without prejudice to what is established in Article 22 of these Standards, the new contracting Stock Exchange or Licensee, within the timeframes established in Article 21 of these Standards, must inform of said situation and submit an application for modification of the registry entry to the Superintendence, through a note signed by its legal representative or attorney-in-fact, attaching the documents required in letters e) and h) of Article 18 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. (3) Once the aforementioned documents are presented in complete form by the corresponding Stock Exchange or Licensee, the Superintendence will resolve in accordance with what is provided in Articles 19, 19-A, 19-B, and 20 of these Standards, within a period of ten business days. (3) The Agent may not act in the name and on behalf of the contracting Stock Exchange or Licensee, nor carry out activities as an Agent, while their Registry in the Superintendence has not been modified. (3)

Art. 22-B.- If the cessation of activities is not due to a change of labor relationship, but to the termination thereof by resignation or dismissal, the Agent will have a period of one year to rejoin a Stock Exchange or Licensee to act as such; during this 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 Financial System Supervision and Regulation Law. The aforementioned period will be counted from the date of resignation or dismissal. Notwithstanding the foregoing, the Superintendence may proceed to cancel the Registry in accordance with what is established by the prevailing legal framework. (3) If during the period referred to in the previous paragraph, the Agent shows interest in having the registry entry reactivated, the new contracting Stock Exchange or Licensee must submit to the Superintendence an application for modification of the registry entry, in accordance with what is established in Article 22-A of these Standards. (3) Once the one-year period mentioned in the previous paragraphs has elapsed and if the Agent has not joined a new Stock Exchange or Licensee, 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 rejoining a Stock Exchange or Licensee, will maintain their right to

Aprobación:
08/06/2012
Vigencia: 27/06/2012

have a new authorization managed for them, for which the contracting Stock Exchange or Licensee will proceed to comply with what is established in Articles 16, 17, and 18 of these Standards. (3)

Registry of Stock Agents to be kept by Stock Exchanges and Licensees.
Art. 23.- Stock Exchanges and Licensees will keep a registry of their Agents, which must contain at minimum the following information:
a) Full name of the Agent, profession, general information about the Agent, such as: Tax Identification Number, which will be required in cases defined by the Tax Administration, Unique Identity Document number, address, telephone, nationality. In the case of foreign Agents, a legible copy of the valid passport or residence card must be presented; (3) b) Date and number of the Board of Directors meeting minutes in which authorization as an Agent was received from an Exchange; c) Number of the credential granted by the Board of Directors of an Exchange; d) Date of the power of attorney granted by the Stock Exchange or the Licensee to the Stock Agent through a public deed, to act on their behalf; as well as the date of its registration in the Commerce Registry; e) Date and number of the Board of Directors Session of the Superintendence in which the Board of Directors of the Superintendence registered the Agent in the Public Registry; f) Date of the Agent's entry into the Stock Exchange or Licensee; g) Date of registration in the Commerce Registry of the revocation of the power granted to the Stock Agent by the Stock Exchange or the Licensee, as applicable; h) Date of the Agent's withdrawal; and i) Signature of the Agent.

CHAPTER V
OTHER PROVISIONS AND VALIDITY

Submission of Information (3)
Art. 24.- The documentation submitted to the Superintendence, in compliance with what is provided in these Standards, must conform to the corresponding legal formalities, especially regarding the following: (3) a) The copies presented must be legible and certified by an authorized notary in El Salvador. In the cases of copies of the Unique Identity Document and the Tax Identification Number, which will be required in cases defined by the Tax Administration, notarial certification will not be required; (3) b) The signatures appearing in all types of documentation issued in El Salvador must be authenticated by a Salvadoran notary duly authorized to exercise such function, in accordance with the Notary Law; and (3) c) The documentation presented from abroad, both the copies and the signatures appearing therein, must be authenticated or certified by a foreign notary or official, as applicable, following the procedure for legalization of signatures or respective apostille. (3) In the case that the documents are not in the Spanish language, they must be translated in accordance with what is established in the Law on the Practice of Notarial Law of Voluntary Jurisdiction and Other Proceedings (3).

Compliance with Requirements
Art. 25.- Stock Exchanges and Licensees are responsible for verifying that Broker Agents comply with the requirements established in these Standards. (3)

Transitory
Art. 26.- For the Registration in the Superintendence of Stock Exchanges, Licensees, and Agents operating at the date of validity of these Standards and to comply with the timeframe defined in Article 115 of the Financial System Supervision and Regulation Law, the Superintendence will request from the Product and Service Exchange, certification of the authorization granted to Stock Exchanges, Licensees, and Stock Agents. For the purpose of completing the registration information in the Superintendence, Stock Exchanges, Licensees, and Agents will have a maximum period of 60 business days from August 2, 2012, to submit to the Superintendence the application and the information related in Articles 9, 10, 17, and 18 of these Standards, as applicable. (3) For the case of Stock Agents, who at the date of validity of these Standards are authorized by an Exchange to exercise said position; they will not be required to comply with letter c) of Article 16 of these Standards. (3)

Sanctions (2)
Art. 26-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. 27.- Unforeseen aspects in regulatory matters in these Standards will be resolved by the Central Reserve Bank of El Salvador, through its Standards Committee. (2)

Validity
Art. 28.- These Standards will enter into force on the twenty-seventh day of June two thousand twelve.

Aprobación:
08/06/2012
Vigencia: 27/06/2012

MODIFICATIONS:
(1) Modification approved based on the generic procedure agreed by the Standards Committee of the Central Reserve Bank in Session CN-01/2016, of February 24, 2016.
Modification validity starting from September 5, two thousand seventeen.
(2) Modifications to Articles 2, 3, 9, 10, 12, 13, 18, 19, 20, 27 and incorporation of Articles 12-A, 12-B, 19-A, 19-B, and 26-A, approved by the Central Bank through its Standards Committee, in Session CN-11/2021, of August 31, two thousand twenty-one, with validity starting from September 17, two thousand twenty-one. (3) Modifications to Articles 9, 10, 14, 17, 18, 19, 21, 22, 23, 25, and 26, in Annexes No. 1 and No. 2, incorporation of Articles 22-A and 22-B, and substitution of Article 24, approved by the Central Reserve Bank of El Salvador through its Standards Committee, in Session No. CN-07/2022, of August 31, two thousand twenty-two, with validity starting from September 19, two thousand twenty-two.

Aprobación:
08/06/2012
Vigencia: 27/06/2012

Annex No. 1

STOCK EXCHANGES AND LICENSEES
MODEL OF SWORN DECLARATION FOR SHAREHOLDERS, DIRECTORS AND ADMINISTRATORS, OF THE COMPANY.

In the city of San Salvador, at the _______ hours of the day ________ of _______ of two thousand __.

Before me, _______ notary of the domicile of ______, appears the gentleman _________ of __________________ years, (profession or trade) _______, of the domicile _____________ whom I know (or do not know), holder of (or identified by) Unique Identification Document number (or passport number), who acts in his own name, and TELLS ME: That in his capacity as Stock Broker of the company ________________________, UNDER OATH 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 classified 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 fifty percent sanitation reserves have been constituted. F) That his registration as a Stock Broker in the Registry of the Superintendence has not been cancelled, derived from an Administrative Sanctioning Procedure for non-compliance with financial laws and norms. G) That it has not been judicially proven that he participated in activities related to drug trafficking, money laundering and assets, terrorism financing and proliferation of weapons of mass destruction. The undersigned notary makes note: that he explained to the appearing party what is established in the Penal Code, regarding the crime of ideological falsity, regulated in article two hundred and eighty-four. Thus expressed the appearing party to whom I explained the legal effects of this notarial act, which consists of _____ sheet(s) front and back; and having read to him what was written by me, in a single act without interruption and in its entirety, he ratifies its content and we sign. I CERTIFY. (3) The Sworn Declaration must comply with what is established in the Notary Law.

CNBCR-06/2012 NRP-03
TECHNICAL NORMS FOR THE AUTHORIZATION AND REGISTRATION OF STOCK EXCHANGES, LICENSEES AND STOCK BROKERS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN THE PRODUCT AND SERVICE EXCHANGES. Approval:
08/06/2012
Validity: 27/06/2012
Annex No. 2

STOCK BROKERS
MODEL OF SWORN DECLARATION FOR STOCK BROKERS

In the city of San Salvador, at the _______ hours of the day ________ of _______ of two thousand __.

Before me, _______ notary of the domicile of ______, appears the gentleman _________ of ________________ years, (profession or trade) _______, of the domicile _____________ whom I know (or do not know), holder of (or identified by) Unique Identification Document number (or passport number), who acts in his own name (or on behalf of, in this case indicate if it is a legal representative or attorney and relate the representation according to the case, at this moment or at the end), and TELLS ME: That in his capacity as shareholder, director or administrator of the company ________________________, UNDER OATH MAKES THE FOLLOWING DECLARATIONS: A) That he is not a minor. B) That he is not insolvent or bankrupt. C) That he has not been judicially classified as responsible for culpable or fraudulent bankruptcy. D) That he has not been convicted of any type of crime. E) That he is not legally incapacitated. F) That he is not a shareholder, director or administrator of another Stock Exchange or Licensee. G) That he is not a shareholder with more than ten percent of the share capital of other Product and Service Exchanges. H) That he is not a debtor of the financial system for credits to which fifty percent sanitation reserves have been constituted. I) That he has not been a director of a company that has been suspended as a Product and Service Exchange, Stock Exchange and Licensees through a final judicial sentence or final administrative resolution issued by the competent authority in the last six years. J) That it has not been judicially proven that he participated in activities related to drug trafficking, money laundering and assets, terrorism financing and proliferation of weapons of mass destruction. The undersigned notary makes note: that he explained to the appearing party what is established in the Penal Code, regarding the crime of ideological falsity, regulated in article two hundred and eighty-four. Thus expressed the appearing party to whom I explained the legal effects of this notarial act, which consists of _____ sheet(s) front and back; and having read to him what was written by me, in a single act without interruption and in its entirety, he ratifies its content and we sign. I CERTIFY. (3) The Sworn Declaration must comply with what is established in the Notary Law.

Technical Standards for the Authorization and Registration of Stock Exchanges, Licensees and Stockbrokers in the Public Registry of the Superintendence of the Financial System to Provide Services in the Product and Service Exchanges

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