Circular 11/2010 — Modifies Circular 1/2006

CIRCULAR 11/2010
Mexico, D.F. on April 12, 2010.
TO THE ADMINISTRATORS OF RETIREMENT FUNDS;
BROKERAGE HOUSES; EXCHANGE HOUSES;
POPULAR SAVINGS AND CREDIT ENTITIES;
CREDIT INSTITUTIONS;
INSURANCE INSTITUTIONS;
SECURITIES DEPOSITORY INSTITUTIONS;
COMPANIES DISTRIBUTING SHARES OF INVESTMENT COMPANIES; LIMITED OBJECT FINANCIAL COMPANIES; MULTIPLE OBJECT FINANCIAL COMPANIES; OPERATING COMPANIES OF INVESTMENT COMPANIES, AND TELECOMM:
SUBJECT: MODIFICATIONS TO CIRCULAR 1/2006

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 2°, 3° fraction I, 24 and 31 of the Bank of Mexico Law; 22 of the Law for Transparency and Order of Financial Services, as well as 8° third and sixth paragraphs, 10, 17 fraction I and 20 fraction IV of the Internal Regulations of the Bank of Mexico, which provide for the Bank of Mexico's authority to participate in the issuance of provisions through the Central Banking Provisions Directorate and the Operational and Payments Systems Directorate, respectively; Sole of the Agreement on the Assignment of Administrative Units of the Bank of Mexico fractions I and IV, with the objective of continuing to promote the proper functioning of payment systems, it is convenient to allow Telecomunicaciones de México (Telecomm) to be constituted as a participant in the Interbank Electronic Payment System (SPEI), has resolved to modify the title, as well as sections 1; 2.1; 3.1 second paragraph; 3.3; 3.6; 3.7 second paragraph, and 3.9, all of the “Rules to which administrators of retirement funds; brokerage houses; exchange houses; popular savings and credit entities; credit institutions; insurance institutions; securities depository institutions; companies distributing shares of investment companies; limited object financial companies; multiple object financial companies, and operating companies of investment companies, that participate in the Interbank Electronic Payment System (SPEI)”, provided for in Circular 1/2006 of May 19, 2006, as well as its modifications, to remain in the following terms:

2

“RULES TO WHICH ADMINISTRATORS OF RETIREMENT FUNDS; BROKERAGE HOUSES; EXCHANGE HOUSES; POPULAR SAVINGS AND CREDIT ENTITIES; CREDIT INSTITUTIONS; INSURANCE INSTITUTIONS; SECURITIES DEPOSITORY INSTITUTIONS; COMPANIES DISTRIBUTING SHARES OF INVESTMENT COMPANIES; LIMITED OBJECT FINANCIAL COMPANIES; MULTIPLE OBJECT FINANCIAL COMPANIES; OPERATING COMPANIES OF INVESTMENT COMPANIES, AND TELECOMM, IN THEIR CAPACITY AS PARTICIPANTS IN THE INTERBANK ELECTRONIC PAYMENT SYSTEM (SPEI)” “1. DEFINITIONS For brevity, in singular or plural, in these Rules it will be understood by:
Retirement Fund Administrators:
...
Liquidation Notice: ...
Brokerage Houses: ...
Exchange Houses: ...
SPEI Account: ...
CLS: ...
Popular Savings and Credit Entities: ...
Credit Institutions: ...
Insurance Institutions: ...
Extended Security Infrastructure
(ESI): ...
Securities Depository Institutions:
...
Payment Instruction: ...
Manual: ...
Data Message: ...
Operator: ...
Payment Order: ...
Participant: the Bank of Mexico, as well as the Administrators of Retirement Funds; Brokerage Houses; Exchange Houses; Popular Savings and Credit Entities; Credit Institutions; Insurance Institutions; Securities Depository Institutions; Companies Distributing Shares of Investment Companies; Limited Object Financial Companies; Multiple Object Financial Companies; Operating Companies of Investment Companies, and Telecomm, once they have signed the contract referred to in section 2, in order to be able to send and receive Payment Orders in terms of what is provided in these Rules. Companies Distributing Shares of Investment Companies:
...
Limited Object Financial Companies:
...
Multiple Object Financial Companies:
...
Operating Companies of Investment Companies:
...
SPEI: ...
Telecomm: to Telecomunicaciones de México, a decentralized public organism with its own assets and legal personality, which is part of the Communications and Transport Sector.
Transfer: ...”
2. INSTRUMENTATION
“2.1 Interested entities wishing to participate in the SPEI must enter into a contract with the Bank of Mexico, for which they must present to the Sub-Management of Instrumentation of National Operations, a certified and simple copy of the deed in which both the powers to exercise acts of dominion and, expressly, the power to designate who may act as operators in the payment systems administered by the Bank of Mexico, of the person(s) who intend(s) to sign it, as well as a simple copy of their official identification(s). The presentation of the documentation referred to in the previous paragraph must be made, at least, ten banking business days in advance of the date on which they intend to begin carrying out operations in the SPEI. In any case, the entity in question must sign the corresponding contract, at least, five banking business days in advance of said date. The signing of the aforementioned contract will imply the acceptance by the interested entity to submit to all and each of the provisions contained in these Rules and in the Manual.”
3. SENDING AND PROCESSING OF PAYMENT ORDERS
“3.1 ...
Therefore, Participants are prohibited from requiring their clients or users, as appropriate, minimum amounts for the sending of Payment Orders.”
“3.3 The receiving Participant of a Payment Order must verify the electronic signature contained in the Liquidation Notice sent by the SPEI and that of the Payment Instruction sent by the sending Participant, which contains the respective Payment Order. If any of the signatures is not authentic, the receiving Participant must consider the Payment Order as invalid and must communicate this immediately to the Management of Processing of National Operations of the Bank of Mexico. In the event that both signatures are authentic, the receiving Participant must consider the Payment Order as valid. Regarding Payment Orders whose beneficiaries are clients of Participating Credit Institutions, these must credit the amount of said Payment Orders to the accounts of such clients, within ten minutes following the receipt of the Liquidation Notice. This deadline will not be mandatory for Payment Orders that Participating Credit Institutions receive between the opening hours of the SPEI specified in the Manual and 08:29:59 hours, regarding which their amount must be credited to the accounts of the clients in question, at the latest by 8:40:00 hours Mexico City time. Regarding Payment Orders of the “Third Party to Counter” type provided for in the Manual, receiving Participants will only be obliged to process those from Participants with whom they have previously agreed to process this type of order. Receiving Participants of “Third Party to Counter” Payment Orders must keep them available to the beneficiary for the period they agree upon, which must not exceed thirty days.” “3.6 The receiving Participant of a Payment Order must return to the sending Participant the amount of said Payment Order within twenty minutes following the receipt of the corresponding Liquidation Notice: i) when it cannot validate any of the numerical data indicated in the Manual as indispensable for the type of payment in question; ii) regarding “Third Party to Counter” Payment Orders, if the agreement provided for in the third paragraph of section 3.3 does not exist, or iii) in the case of Credit Institutions and Telecomm, for any other cause not attributable to the receiving Participant itself, it cannot make the respective resources available to the beneficiary. The deadline mentioned in the previous paragraph will not be mandatory for Payment Orders that Participating Credit Institutions receive between the opening hours of the SPEI specified in the Manual and 08:29:59 hours, regarding which their amount must be returned to the sending Participant in question, at the latest by 8:50:00 hours, Mexico City time. Regarding “Third Party to Counter” Payment Orders whose amount has not been delivered to the beneficiaries during the period indicated in the agreement provided for in the third paragraph of section 3.3, the receiving Participant must effect its return within six days following that in which the aforementioned period expires, or earlier if so agreed with the sending Participant.
Receiving Participants must carry out returns by sending a new Payment Order adjusting to the procedure specified in the Manual. The expenses generated by the return of Payment Orders in the SPEI will be borne by the sending Participant of the original Payment Order. Regarding Participating Credit Institutions, the amount of the returns they receive must be credited to the account of the applicant of the original Payment Order, within ten minutes following the receipt of the corresponding Liquidation Notice.” “3.7 ... Regarding Payment Orders requested by clients of Participating Credit Institutions and users of Telecomm, receiving Participants that do not effect the returns provided for in section 3.6 and in the first paragraph of section 3.9, as appropriate, must pay interest to the sending Participant, which, must deliver them to the client or user who requested the sending of the respective Payment Order on the same day that it receives them. ...” “3.9 Participants may return Payment Orders within the period provided for in the first paragraph of section 3.6, when they belong to one of the optional payment types provided for in the Manual and have previously notified the Management of Processing of National Operations of the Bank of Mexico, that they will not receive Payment Orders of this type. The foregoing will not be applicable to “Third Party to Counter” Payment Orders, in which case they must adjust to what is provided for in the first paragraph of the aforementioned section 3.6. Participants must carry out the notification mentioned in the previous paragraph, with at least one banking business day in advance of the date on which it is intended to take effect, in order for this information to be made known to the other Participants as indicated in the Manual. The Participant’s decision not to accept the cited type of Payment Orders will remain in effect until the next banking business day following that in which the Participant notifies otherwise.” TRANSITORY SOLE. This Circular will enter into force on April 12, 2010.