Circular SMV-06-2018: Implementation of the Electronic Information Submission System (SERI) for Self-Regulatory Organizations

Panama, February 22, 2018. Circular SMV-06-2018

To Self-Regulatory Organizations:

Topic: Implementation of the Electronic Information Submission System (SERI).

Through this Circular, instructions are detailed for Self-Regulatory Organizations (Stock Exchange and Securities Clearing House) regarding the submission of mandatory reports and their frequency, which must be sent to the Superintendence of the Securities Market through the Electronic Information Submission System (SERI). At the same time, the procedure applicable in cases where the Resubmission of Reports is appropriate is detailed.

Mandatory use forms and their frequency:

STOCK EXCHANGE
Reports (Template)	Frequency	Delivery Method
Daily Operations Report	Daily	SERI
Transaction Report	Monthly	Physical
DS-18 Structure	Monthly, by the 15th day of the following month at the latest.	SERI
Interim Financial Statements	Quarterly, by the end of the two months following the close of the quarter.	PDF-SERI
Audited Annual Financial Statements	Within three months following the close of the fiscal year.	PDF-SERI and Physical

SECURITIES CLEARING HOUSE
Reports (Template)	Frequency	Delivery Method
Daily Operations Report	Daily.	SERI
Quarterly Custodied Securities Report (RVC-T)	By the fifteenth (15) day of January, April, July, and October, covering information at the end of March, June, September, and December respectively.	SERI
Annual Custodied Securities Report (RVC-A)	By the fifteenth (15) day of January of the following year.	Physical
DS-18 Structure	Monthly, by the 15th day of the following month at the latest.	SERI
Interim Financial Statements	Quarterly, by the end of the two months following the close of the quarter.	PDF-SERI
Audited Annual Financial Statements	Within three months following the close of the fiscal year.	PDF-SERI and Physical

50th Street, P.H. Global Plaza Building, 8th Floor. Tel.: (507) 501-1700 Fax: (507) 501-1709 www.supervalores.gob.pa P.O. Box 0832-2281 WTC Panama, Republic of Panama.

---

Panama, February 22, 2018. Circular SMV-06-2018

Daily and quarterly transaction reports must be submitted through the "Web Service" system of SERI agreed upon by both parties (Stock Exchange and Securities Clearing House).

It should be noted that when the last day of the term falls on a non-working day, it is understood to be extended to the next business day.

Regarding the DS-18 Structure form template, it is available in the SERI section of the Superintendence's website, which can be accessed directly through the following link: http://www.supervalores.gob.pa/seri/formularios-seri/301-informacion-general/7994-formularios-seri-autorreguladas.

Information to be submitted starting from January 15, 2018, will only be done through the "SERI System". Similarly, inquiries may be sent to ses@supervalores.gob.pa

Regarding the Information Resubmission procedure, we deem it appropriate to inform you that Agreement 8-2017 of December 27, 2017, in Article 6, regulates the "Information Resubmission System," referring to Investment Advisors, Investment Managers, Pension and Retirement Fund Administrators, and Severance Fund Administrators; however, by analogy, the procedure contained in this aforementioned article will apply to Self-Regulatory Organizations until it is regulated in subsequent Agreements.

Article 6 of Agreement 8-2017 of December 27, 2017, quotes the following textually:

"Article 6. (Information Resubmission System).

In the event of making any correction or if there is any inconsistency in the submitted financial information, Investment Advisors, Investment Managers, Pension and Retirement Fund Administrators, and Severance Fund Administrators will have a period of fifteen (15) business days once the mandatory period has ended; to send the corrected forms through the Electronic System for Information Submission (SERI); requesting the resubmission of information does not exempt from the sanction that may be imposed.

Entities subject to regulation and supervision by the Superintendence must draft a formal letter, previously requesting authorization to resend the specific form(s). This will be presented physically, and depending on the matter, it must be addressed to the Supervision of Intermediaries Directorate or the Illicit Operations Prevention Directorate.

Such letter must contain at minimum, the following: a) Date of preparation of the request. b) Name or Nomenclature of the form, c) Period of the form to be resubmitted. d) Detailed justification, indicating the error contained and the changes contained in the new form. This explanation must include, without limitation: (explanatory comparative table of transactions, records, others, and their respective records)

---

Panama, February 22, 2018. Circular SMV-06-2018

c) Name, ID/passport, signature, and email address of the Principal Executive.

The Superintendence will communicate with the petitioner, so that they proceed with the submission of the form(s) through the electronic platform.

INFORMATIVE PARAGRAPH: Notwithstanding what is established in this article, the regulated and supervised entity, if it subsequently perceives any error or omission, has the obligation to correct and send the information or forms previously submitted, regardless of the period established as mandatory to submit the previously requested information."

For the submission of corrections to the Daily Operations Report, a request must be made by the next business day at the latest, via email. For the resubmission of the rest of the Forms, they will have a period of 15 business days, and their request will be made through a formal letter as indicated in Article 6 of Agreement 8-2017 of December 27, 2017.

In turn, we remind you that the user of the self-regulatory entities (Stock Exchange and Securities Clearing House) must be the Principal Executive and in their absence, the Compliance Officer. Nevertheless, the Principal Executive has the authority to delegate their operational users within the self-regulatory organization for the preparation, drafting, and submission of the aforementioned forms.

We inform Self-Regulatory Organizations that the information submitted to the Superintendence of the Securities Market through the Electronic Information Submission System (SERI) represents a Declaration under oath, and any violation thereof is covered under articles 251 and 254 of the Securities Market Law, whereby the submitted information must be truthful, accurate, and with the established frequency.

Regarding the Guide for the use of the Electronic System for Information Submission of supervised entities, we state that it can be reviewed at the following link: http://www.supervalores.gob.pa/files/SERI/Guias/Guia_SERI2_2017.pdf

This instruction revokes the content of Circular SMV-01-2018 dated January 3, 2018.

Legal Basis: Law Decree 1 of July 8, 1999, Agreement 7-2003 of July 4, 2003, and Agreement 11-2013 of December 23, 2013.

Sincerely,

[Signature] Loraine Chavarría de Sinclair Acting Superintendent of the Securities Market

/lsamudio