Circular 10-161

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Ciudad de México. Tel.: 5255 1454-6000 www.gob.mx/cnbv MEXICO, D.F., November 23, 1992.
CIRCULAR 10-161

TO SECURITIES HOUSES:
The Secretariat of Finance and Public Credit, with the prior opinion of this National Securities Commission, based on the provisions of articles 8 and 22, fraction VIII of the Securities Market Law, has deemed it appropriate to authorize, as a complementary activity to those proper to securities houses, the service of custody and administration on behalf of third parties, of investments consisting of interest-bearing bank money deposits.

Likewise, it resolved that the aforementioned activity be subject to the general provisions issued for such effect by this Agency, to which effect our Honorable Board of Directors, in its session corresponding to November 19, 1992, agreed on the issuance of the following provisions:

First.- The complementary activity in question may only be carried out by securities houses that are part of financial groups, regarding interest-bearing bank money deposits that are constituted at the credit institution belonging to the same financial group. Under no circumstances shall such activity involve the performance of operations reserved for credit institutions.

Second.- The resources applied to the bank deposits, without any exception, shall be delivered directly by the securities house to the corresponding credit institution, so that it registers them in the name of the investor on whose behalf and order the investment is made.

Notwithstanding the foregoing, the securities house in charge of the custody and administration of the deposit must reflect such operation in its client statements.

Third.- The National Securities Commission, upon justified request, will issue the respective approval in each case, to which effect the provision of the indicated service must be agreed upon in the brokerage intermediation contract that the securities houses authorized for this purpose enter into or have entered into with their clientele.