Circular 04-2019 Guidelines for the Implementation of the Risk-Based Approach

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Panama, May 31, 2019
Circular No. SMV- 04- 2019

To:
Chief Executives and
Compliance Officers
City.

Reference: Guidelines for the Implementation of the Risk-Based Approach.

Dear Sirs:

By means of this communication, we inform the Chief Executives and Compliance Officers of the Obligated Entities (Securities Houses, Investment Advisors, Investment Administrators, Pension and Retirement Fund Administrators, Severance Fund Administrators, Investment Societies, Self-Managed Investment Societies) that, based on Law 23 of April 27, 2015, in its Article 20, which contemplates the powers of the Supervisory Bodies, specifically regarding the adoption of the Risk-Based Supervision Approach, we have prepared the "Guidelines for the Implementation of the Risk-Based Approach," which develop for each obligated entity the principles we recommend applying in this matter.

Via email, we will be sending the link so that, through the Superintendence's website, you can access this information, according to the type of license corresponding to you, as follows:

Guidelines for the Implementation of the Risk-Based Approach.

• Sector: Securities House.
• Sector: Investment Advisors.
• Sector: Fund Administrator.
• Sector: Investment Administrators.
• Sector: Investment Societies.

We urge the proper use of all principles and processes presented in the respective guidelines.

Sincerely,

[Signature]
Marelissa Quintero de Stanziola
Superintendent.

iba/drt

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