Resolution JPRF-S-2025-0169 Amending Chapter VII on Maximum Investment Segments and Percentages

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador Resolution No. JPRF-S-2025-0169

THE FINANCIAL POLICY AND REGULATION BOARD

CONSIDERING:

That Article 82 of the Constitution of the Republic of Ecuador stipulates that the right to legal certainty is based on respect for the Constitution and the existence of prior, clear, public legal norms applied by competent authorities;

That Article 84 of the constitutional body stipulates that any organ with normative power shall have the obligation to formally and materially adapt laws and other legal norms to the rights provided for in the Constitution;

That Article 226 of the Magna Carta prescribes that State institutions, their agencies, dependencies, public servants, and persons acting by virtue of a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the law; having the duty to coordinate actions to fulfill their purposes and make effective the enjoyment and exercise of rights recognized in the Constitution;

That Article 227 of the Supreme Norm establishes that public administration constitutes a service to the community that is governed by the principles of effectiveness, efficiency, quality, hierarchy, decentralization, concentration, coordination, participation, planning, transparency, and evaluation;

That the Organic Law of Public Integrity, published in the Third Supplement of the Official Register No. 68 of June 26, 2025, reformed several articles of Book I of the Organic Monetary and Financial Code, among them, it substituted Article 13 and created the Financial and Monetary Policy and Regulation Board, part of the Executive Function, as a public law legal entity, responsible for formulating monetary, credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation;

That the Fourth Transitory Provision of the Organic Law for the Strengthening of Protected Areas, published in the Fourth Supplement of the Official Register No. 80 of July 14, 2025, stipulates that both the structure and the faculties of the Financial Policy and Regulation Board, provided for in the Organic Monetary and Financial Code prior to June 26, 2025, shall remain in force until the members of the Financial and Monetary Policy and Regulation Board are appointed by the National Assembly;

That the Fifteenth Transitory Provision of the General Regulation to the Organic Law of Public Integrity, published in the Third Supplement of the Official Register No. 87 of July 23, 2025, stipulates that the Financial Policy and Regulation Board shall guarantee the continuity of administrative, contractual, judicial, and extrajudicial processes, as well as the various services, programs, projects, and processes already initiated, until they are assumed by the Financial and Monetary Policy and Regulation Board;

That Article 13 of the Organic Monetary and Financial Code, Book I, prior to the reform of June 26, 2025, established that the Financial Policy and Regulation Board is part of the Executive Function, as a public law legal entity, with administrative, financial, and operational autonomy, responsible for formulating credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation;

That Article 14 ibidem, prior to the reform of June 26, 2025, in numbers 1, 2, and 3, determined that, within the scope of the Financial Policy and Regulation Board, it corresponded to formulate insurance policy; as well as, issue regulations that allow maintaining the integrity, solidity, sustainability, and stability of the insurance system; and, issue micro-prudential regulations for the insurance sector; determining that, for the fulfillment of these functions, the referred Board would issue norms in matters proper to its competence, without being able to alter legal provisions; being able to issue norms by segments, economic activities, and other criteria;

Resolution No. JPRF-S-2025-0169

---

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador

That Article 14.1 of the referred Organic Monetary and Financial Code, Book I, in numerals 1, 7, 17, 25, and 27 prior to the reform of June 26, 2025, prescribed that it corresponds to the Financial Policy and Regulation Board, among other faculties, the following: i) regulate the creation, constitution, organization, activities, operation, and liquidation of securities entities; ii) issue the prudential regulatory framework to which securities entities must adhere; iii) dictate norms that regulate insurance and reinsurance; iv) apply the provisions of said organic code and resolve cases not provided for therein, within the scope of its competence; and, v) exercise the other functions, duties, and faculties assigned to it by the Organic Monetary and Financial Code and the law, respectively;

That Article 25.1, numeral 1, of the Organic Monetary and Financial Code, Book I, prior to the reforms provided for in the Organic Law of Public Integrity, prescribes within the functions of the Technical Secretariat of this Board, the elaboration of technical and legal reports that support the regulation proposals that the Financial Policy and Regulation Board will issue;

That Article 22 of the Organic Monetary and Financial Code, Book III “General Insurance Law”, establishes that insurance and reinsurance companies must maintain at all times the general or by-line solvency requirements regulated by the Financial Policy and Regulation Board, considering, among other factors, mandatory investments. Likewise, it empowers the Financial Policy and Regulation Board to issue the necessary regulation to apply the solvency regime to insurance and reinsurance companies, being able to determine the deadlines, conditions, measures, and actions necessary for its application, with the aim of avoiding or attenuating the risk exposure of the aforementioned companies;

That the Fifty-Fourth Transitory Provision of the previously mentioned code determines the transitory regime of resolutions of the Codification of the Monetary and Financial Policy and Regulation Board, establishing that: "(...) Resolutions contained in the Codification of Monetary, Financial, Securities, and Insurance Resolutions of the Monetary and Financial Policy and Regulation Board and norms issued by control bodies, shall maintain their validity until the Monetary Policy and Regulation Board and the Financial Policy and Regulation Board resolve what corresponds, within the scope of their competencies.";

That the Twentieth Transitory Provision of the General Regulation to the Organic Law of Public Integrity states that resolutions contained in the Codification of Monetary, Financial, Securities, and Insurance Resolutions issued by the Financial Policy and Regulation Board and by the Monetary Policy and Regulation Board shall maintain their validity until the Financial and Monetary Policy and Regulation Board adopts the corresponding decisions within the scope of their competencies;

That the Technical Secretary of the Financial Policy and Regulation Board, through Memorandum No. JPRF-ST-2025-0058-M of September 12, 2025, submits to the President of the Board the Technical-Legal Report No. JPRF-CTCJ-2025-006 of September 12, 2025, as well as the respective draft resolution;

That the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on September 12, 2025, and carried out via video conference on September 15, 2025, reviewed the Memorandum No. JPRF-ST-2025-0058-M of September 12, 2025, issued by the Technical Secretary of the Board; as well as the Technical-Legal Report No. JPRF-CTCJ-2025-006 of September 12, 2025, issued by the Technical Secretariat of this Board, and the corresponding draft resolution;

That the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on September 12, 2025, and carried out via video conference on September 15, 2025, reviewed and approved the following Resolution; and,

In exercise of its functions,

Resolution No. JPRF-S-2025-0169

---

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador

RESOLVES:

ARTICLE FIRST.- In the First Transitory Provision of Chapter VII “Norm on the segments and maximum percentages of Mandatory Investment”, of Title III “On the Surveillance, Control and Information of the Private Insurance System”, Book III “Private Insurance System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, substitute the text “six (6) months” with: “one (1) year”.

ARTICLE SECOND.- Incorporate the following text immediately after the first paragraph of the Second Transitory Provision of Chapter VII “Norm on the segments and maximum percentages of Mandatory Investment”, of Title III “On the Surveillance, Control and Information of the Private Insurance System”, Book III “Private Insurance System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions:

“Upon request by insurance companies and reinsurance companies, the Superintendency of Companies, Securities and Insurance will analyze on a case-by-case basis the possibility of granting an extension of deadlines or an additional deadline to insurance companies and reinsurance companies.”

ARTICLE THIRD.- In the Third Transitory Provision of Chapter VII “Norm on the segments and maximum percentages of Mandatory Investment”, of Title III “On the Surveillance, Control and Information of the Private Insurance System”, Book III “Private Insurance System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, substitute the text “six (6) months” with: “one (1) year”.

ARTICLE FOURTH.- Substitute the text of the Fifth Transitory Provision of Chapter VII “Norm on the segments and maximum percentages of Mandatory Investment”, of Title III “On the Surveillance, Control and Information of the Private Insurance System”, Book III “Private Insurance System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following:

“FIFTH.- The Superintendency of Companies, Securities and Insurance shall reform the content of the implementation schedule of this norm; informing thereof by October 31, 2025, both to its regulated subjects and to the organism in charge of formulating policy and the regulation of finance, securities, insurance, and prepaid comprehensive health care services.”

UNIQUE GENERAL PROVISION.- The Superintendency of Companies, Securities and Insurance shall communicate to the respective controlled entities the content of this Resolution.

FINAL PROVISION.- This Resolution shall enter into force from the present date, without prejudice to its publication in the Official Register, and shall be published on the institutional website of the Financial Policy and Regulation Board within a maximum term of two days from its issuance.

COMMUNICATE.- Given in the Metropolitan District of Quito, on September 15, 2025.

THE PRESIDENT,
Mgs. María Paulina Vela Zambrano

The aforementioned Resolution was processed and signed by Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, in the Metropolitan District of Quito, on September 15, 2025.- I CERTIFY.

TECHNICAL SECRETARY,
Mgs. Luis Alfredo Olivares Murillo