Circular 36/2010 — Commission Registration

Wednesday, November 24, 2010 OFFICIAL GAZETTE (Second Section) 53

CIRCULAR 36/2010, addressed to credit institutions, limited object financial societies, and multiple object financial societies regulated, regarding general provisions on the registration of commissions.

At the margin a logo, which says: Bank of Mexico.

CIRCULAR 36/2010

TO CREDIT INSTITUTIONS, LIMITED OBJECT FINANCIAL SOCIETIES AND MULTIPLE OBJECT FINANCIAL SOCIETIES REGULATED:

SUBJECT: PROVISIONS ON THE REGISTRATION OF COMMISSIONS

The Bank of Mexico, with the object of promoting the sound development of the financial system, as well as protecting the interests of the public and considering:

a) That on May 25, 2010, the Decree that reforms, among others, the Law for the Transparency and Ordering of Financial Services was published in the Official Gazette of the Federation, through which Article 6 of said Law was modified, regarding the registration of commissions for payment and credit services that financial entities must carry out at the Central Bank, in order to grant it powers to veto new commissions or the increase of existing ones, and

b) That it is opportune to update the regulation issued by this Central Institute on the matter of commission registration, as well as incorporate the procedure to implement the referred veto power, in order to thereby provide greater certainty and legal security to Financial Entities regarding the regulations they must observe during the commission registration process and the exercise of the Bank of Mexico's power to formulate observations, publish them, and, if applicable, veto them, in terms of the aforementioned Article 6 of the referred Law.

Based on Articles 28 of the Political Constitution of the United Mexican States, paragraphs sixth and seventh; 24, 26 and 36 of the Bank of Mexico Law; 4, 6 and 22 of the Law for the Transparency and Ordering of Financial Services; 48 of the Credit Institutions Law; 4th, 8th paragraphs fourth and seventh, 10 first paragraph, 12 Bis in relation with 20 fraction XI; 14 Bis in relation with 17 fraction I; 14 Bis 1 first paragraph in relation with 25 Bis 1 fraction IV and 25 Bis 2 fraction II of the Internal Regulations of the Bank of Mexico, which provide for the powers of the Bank of Mexico to issue provisions through the General Directorate of Payment Systems and Risks; the General Legal Directorate; and the General Directorate of Financial System Affairs, respectively, as well as the Sole Agreement on the Attachment of Administrative Units of the Bank of Mexico, fractions III, X and XII; has resolved to issue the following:

GENERAL PROVISIONS ON THE REGISTRATION OF COMMISSIONS

1. DEFINITIONS

For brevity, the following terms, in singular or plural, shall be understood as:

Credit: Loans or financings that Financial Entities grant to the general public whose amount is less than the equivalent in national currency to 900,000 UDIS, as well as Guaranteed Housing Credits for any amount, in both cases documented through adhesion contracts.

Guaranteed Housing Credits: Guaranteed housing credits referred to in the Law on Transparency and Promotion of Competition in Guaranteed Credit.

Commission: Any charge, regardless of its denomination or different modality other than interest, that a Financial Entity charges a client for operations related to Credits and Payment Services.

Business Day: Days of the week in which Financial Entities are not obliged to close their doors or suspend operations, in terms of the calendar published annually by the National Banking and Securities Commission in the Official Gazette of the Federation.

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Financial Entity: The following: (i) credit institutions; (ii) limited object financial societies, and (iii) regulated multiple object financial societies.

Disposal Means: Debit cards associated with demand money bank deposits or ATM access; credit cards issued under a credit opening contract; prepaid bank cards; checks and fund transfer orders, including services known as direct debit and recurring charges.

Payment Services: Operations related to the use of Disposal Means and cash.

UDI: The unit of account whose value in national currency is published by the Bank of Mexico in the Official Gazette of the Federation, in accordance with Articles Third of the "Decree by which obligations that may be denominated in Investment Units are established and various provisions of the Federal Tax Code and the Income Tax Law are reformed and added", published in the Official Gazette of the Federation on April 1, 1995, and 20 Ter of the Federal Tax Code.

2. REGISTRATION OF COMMISSIONS BEFORE THE BANK OF MEXICO

2.1 SUBMISSION OF THE REQUEST

2.1.1 The registration of Commissions kept by the Bank of Mexico in terms of the Law for the Transparency and Ordering of Financial Services, is integrated by the following: i) the Commissions that Financial Entities have registered with the Bank of Mexico before the entry into force of these Provisions; ii) the Commissions that are registered in accordance with the procedure established in this section, and iii) the modification made to the Commissions mentioned in the aforementioned subsections i) and ii).

2.1.2 For the purposes of the provisions in subsections ii) and iii) of section 2.1.1, Financial Entities must submit their registration requests in writing to the Sub-Management of Money Market, Deposit and Commission Information of the Bank of Mexico, using the format attached as Annex 1.

Such requests must be formulated by persons with sufficient powers to do so, so it is the responsibility of Financial Entities to ensure that the persons presenting them have such powers.

2.1.3 The registration requests that Financial Entities present to the Bank of Mexico must contain at least the following information:

I. In the case of new Commissions or modifications to existing Commissions:

a) The name of the Commission; b) The act or fact that would generate the Commission; c) The amount the Commission would amount to, or, if applicable, the calculation method. In the case of modifications, both the current amount or method and the one intended to be used must be indicated; d) The currency in which the Commission would be denominated; e) The periodicity with which the Commission would be payable; f) The commercial name of the Credit Product or Payment Service to which the Commission would be applicable, and g) The channels through which the operation related to the Credit or Payment Service subject to the Commission could be carried out, such as the counters of its branches, ATMs, the Internet website, the telephone, or bank commissionaires.

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II. In the case of Commissions applicable to new products, in addition to the provisions in the previous fraction, Financial Entities must present to the referred Sub-Management of the Bank of Mexico the characteristics of these, such as: the type of product, its commercial name, the services it offers, the channels that would be used to offer them, as well as whether they would be directed to individuals or legal entities.

In addition to what is provided in fractions I and II of this section, the Bank of Mexico may request Financial Entities to provide information regarding, among other aspects, the costs they would incur in relation to the Credits and Payment Services whose Commission is intended to be registered, as well as the justification for their charge and amount.

2.2 RECEIPT OF THE REQUEST

2.2.1 Registration requests for the reduction of the amount of existing Commissions

Registration requests for the reduction of the amount of existing Commissions that Financial Entities present to the Bank of Mexico will be considered received when, within a maximum period of two Business Days counted from their presentation, the Bank does not communicate to them that there are errors or omissions in the respective information or that such information is insufficient, in terms of section 2.4.

2.2.2 Registration requests for new Commissions or increases to existing ones

Registration requests for new Commissions or increases to existing ones that Financial Entities present to the Bank of Mexico will be considered received when, within a maximum period of five Business Days counted from their presentation, the Bank does not communicate to them that there are errors or omissions in the respective information or that such information is insufficient, in terms of section 2.4.

2.3 REGISTRATION OF COMMISSIONS

At the latest on the expiration date of the deadlines referred to in the aforementioned sections 2.2.1 and 2.2.2, as applicable, the Bank of Mexico may communicate to the Financial Entity in question that the request complies with the provisions of section 2.1, indicating the date on which the Commission was registered.

In the event that the Bank of Mexico has not issued such communication nor made any requirement in terms of the provisions of section 2.4, the respective Commission will be understood as registered upon the expiration of the deadline indicated in sections 2.2.1 and 2.2.2, as applicable.

The deadlines referred to in section 3 will begin to run from the date of registration of the Commission.

2.4 REQUIREMENT OF A NEW REQUEST

When the information that Financial Entities present when requesting the registration of a Commission is insufficient or contains errors or omissions, the Bank of Mexico, within a period not greater than two or five Business Days, depending on whether they are requests referred to in sections 2.2.1 or 2.2.2, respectively, counted from the date of its receipt, will communicate such situation, so that they present a new request in terms of section 2.1 to remedy the insufficiency or the errors or omissions, as applicable.

3. PROCEDURE FOR OBSERVATIONS AND, IF APPLICABLE, VETO ON NEW COMMISSIONS OR THE INCREASE OF THE AMOUNT OF EXISTING ONES

From the moment the respective Commission has been registered in terms of the provisions of section 2.3, the Bank of Mexico will have a maximum period of fifteen Business Days to formulate observations on new Commissions or the increase of existing ones. For this purpose, the following procedure shall apply:

a) In the event that the Bank of Mexico intends to formulate observations and, if applicable, exercise its right of veto, it will communicate this to the Financial Entity in question at the latest within ten Business Days following the date on which the Commission was registered in terms of section 2.3.

b) The Financial Entity will have a maximum period of three Business Days to manifest what it deems appropriate through a written document signed by authorized persons, which must be delivered to the Management of Authorizations, Consultations and Legal Control of the Bank of Mexico, located

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at Avenida 5 de Mayo number 2, Centro Neighborhood, Postal Code 06059 in Mexico City, Federal District. This period will be calculated from the date of receipt or sending of the communication issued by the Bank of Mexico in accordance with the previous subsection, depending on whether the communications are written or sent via electronic means, respectively.

When the Bank of Mexico considers it appropriate, it may receive within the aforementioned three Business Days a scanned version of the original written document containing the response the Financial Entity makes to the respective requirement, through any of the email addresses designated for this purpose by the Central Institute itself, if applicable, in the communication referred to in subsection a) of this section, considering as the presentation date of the written document the date on which it is received.

The foregoing will be conditioned on the fact that, within a period not greater than two Business Days following the receipt of the aforementioned email, the Financial Entity delivers to the aforementioned Management the original written document mentioned, duly signed.

c) In the event that the Financial Entity: i) does not provide within the period provided for in the previous subsection b) the information or elements that, in the judgment of the Bank of Mexico, justify avoiding the observation of the Commission, or ii) does not communicate its decision to withdraw its request, the observation will be formulated at the latest on the expiration date of the period indicated in the first paragraph of this section.

The Bank of Mexico may veto at any time the Commissions that it has observed and published in terms of the provisions of Article 6 of the Law for the Transparency and Ordering of Financial Services.

4. PUBLICATION OF COMMISSIONS, OBSERVATIONS AND VETO

The Bank of Mexico will publish through its electronic page on the worldwide network (Internet) identified with the domain name: www.banxico.org.mx, the registered Commissions, as well as the observations it formulates on them and, if applicable, the corresponding veto.

5. COMMUNICATIONS FROM THE BANK OF MEXICO

The communications that the Bank of Mexico sends to Financial Entities in accordance with these Provisions may be made in writing or through electronic means.

To ensure the integrity of the communications issued by the Bank of Mexico in accordance with section 3 and sent to Financial Entities through electronic means, as well as to accredit the identity of the signatories, such communications will be signed by competent officials through electronic signatures generated based on the system designed and administered by the Bank of Mexico called "Extended Security Infrastructure" (IES).

The document in which, among other aspects, the characteristics and functions of the components of the IES are described, as well as the manuals for its use, are found on the page that the Bank of Mexico has on the Internet referred to above, in the "Payment Systems" section, item "Services" topic "Electronic Signature", in which the computer program called "WebSec" is also found, which is required to be installed to access the content of the communications that the Bank of Mexico sends them via electronic means, as well as to verify their authenticity.

Regarding this, Financial Entities, through their General Director, the head of the legal area, or the head of any other area related to the presentation of commission registration requests, must inform the Bank of Mexico of the name and email address of the persons who will be responsible for receiving the communications that the Bank of Mexico sends them via electronic means.

For this purpose, Financial Entities must present to the aforementioned Management of Authorizations, Consultations and Legal Control a communication using the format attached as Annex 2, accompanied by a certified copy of the deed in which the powers of those who sign such communication are recorded or a certification of their appointments issued by the secretary or assistant secretary of the Board of Directors.

Financial Entities must deliver the aforementioned communication and documentation, at least five Business Days in advance of the date on which they intend to begin presenting commission registration requests.

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ANNEX 1

MODEL OF COMMUNICATION

"(LETTERHEAD OF THE FINANCIAL ENTITY)"

Mexico, D.F., ___ of _________ of ___.

BANK OF MEXICO Sub-Management of Money Market Information, Deposits and Commissions Avenida 5 de mayo No. 1, Centro Neighborhood, C.P. 06059, Mexico, D.F.

(DENOMINATION OF THE FINANCIAL ENTITY) requests to modify the commission registration kept by the Bank of Mexico in terms of the Law for the Transparency and Ordering of Financial Services, in accordance with the provisions of section 2.1.3 of the "GENERAL PROVISIONS ON THE REGISTRATION OF COMMISSIONS", as follows:

"(FREE TEXT)"

Sincerely

(NAME, POSITION AND SIGNATURE OF OFFICIALS WITH SUFFICIENT POWERS TO FORMULATE THE REQUEST)

Attachments: (AS APPLICABLE)

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ANNEX 2

MODEL OF COMMUNICATION

"(LETTERHEAD OF THE FINANCIAL ENTITY)"

Mexico, D.F., ___ of _________ of ___.

BANK OF MEXICO Management of Authorizations, Consultations and Legal Control Avenida 5 de Mayo number 2, Centro Neighborhood, C.P. 06059, Mexico, D.F.

By this means, I inform you that my represented entity (FULL DENOMINATION OF THE FINANCIAL ENTITY, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS) knows and accepts the content of Circular 36/2010 of November 18, 2010, which contains the "GENERAL PROVISIONS ON THE REGISTRATION OF COMMISSIONS".

Consequently, my represented entity expresses its conformity to receive the communications and the requirements provided for in section 3 of said Provisions, in the terms indicated therein, so that it hereby makes known the name and email address of the persons authorized to receive them.

Register Register Name Email 1.- 2.- 3.- . . .

For this purpose, I declare that I have the powers provided for in section 5 of the referred Provisions, which is accredited with a copy of the public deed(s) in which the respective powers are recorded, or with the certification of the appointment issued by the secretary or assistant secretary of the Board of Directors, which is attached to this communication.

(FULL DENOMINATION OF THE FINANCIAL ENTITY INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP to which it belongs) hereby recognizes and accepts that the communications and requirements sent via electronic means to any of the persons authorized to receive them, as well as those that this Central Bank receives from them and from other authorized persons, will have full legal validity and produce all legal effects.

Sincerely

(NAME AND SIGNATURE OF THE GENERAL DIRECTOR, THE HEAD OF THE LEGAL AREA OR THE HEAD OF ANY OTHER AREA RELATED TO THE PRESENTATION OF REGISTRATION REQUESTS OF COMMISSIONS, SPECIFYING THEIR POSITION OR POST)

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TRANSITORY PROVISIONS

FIRST. This Circular will enter into force on December 3, 2010.

On the indicated date, Circular 18/2007 published in the Official Gazette of the Federation on December 11, 2007, which established the "General provisions referred to in Article 6 of the Law for the Transparency and Ordering of Financial Services on the matter of commission registration", will be repealed.

SECOND. Registration requests received by this Central Institute before the entry into force of this Circular will continue their processing in terms of Circular 18/2007, without prejudice to the veto power of the Bank of Mexico.

Mexico, D.F., November 18, 2010.- BANK OF MEXICO: The General Director of Payment Systems and Risks, David Aarón Margolín Schabes.- Rubric.- The General Legal Director, Héctor Reynaldo Tinoco Jaramillo.- Rubric.- The General Director of Financial System Affairs, José Gerardo Quijano León.- Rubric.

For any inquiries regarding the content of this Circular, please go to the Management of Authorizations, Consultations and Legal Control, located at Avenida 5 de Mayo number 2, Centro Neighborhood, Mexico, Federal District, C.P. 06059, or to the phones 5237.2308, 5237.2317 or 5237.2000 Ext. 3200.

It is informed that for the insertion of documents in the Official Gazette of the Federation, the following requirements must be met:

Letter or document addressed to the Deputy General Director of the Official Gazette of the Federation, requesting the publication of the document, with two legible copies.

Document to be published in original with seal, handwritten signature and date of issuance, without alterations and accompanied by two legible copies. In case it is not a judicial notice, the document to be published must be printed on letterhead paper and the seal will not be necessary.

In the case of public bidding or financial statements, documentation must be delivered in writing and on magnetic media, in any Word processor.

The payment for publication rights must be made through the e5cinco payment scheme of the SAT at a bank counter or through the Internet, with the reference key 014001743 and the chain of the dependency 22010010000000. The payment receipt must be presented (the original returned by the bank institution or the original printout of the payment made on the Internet), accompanied by a simple copy.

The original payment will be safeguarded by this Directorate.

By disposition of the Tax Administration Service, it is no longer possible to receive payments for publications through the SAT form 5. The only authorized payment method to carry out procedures is through the e5cinco scheme of the SAT. You can consult all information regarding this payment system on the page of the Ministry of the Interior, www.gobernacion.gob.mx, selecting the e5cinco logo located on the right margin of the same.

Publications will be scheduled as follows:

Bids received on Wednesday, Thursday, and Friday will be published on the following Tuesday, and those received on Monday and Tuesday, on the following Thursday.

Notices, edicts, and final liquidation balances, five business days, after the date of receipt and payment, while financial statements, according to the available space for publication, given their length.

Under no circumstances will documentation be received if the requirements are not met.

Phones: 50 93 32 00 and 51 28 00 00, extensions 35078, 35079, 35080 and 35081; fax extension 35076.

All original documents delivered to the Official Gazette of the Federation will be safeguarded in its archives.

SINCERELY

OFFICIAL GAZETTE OF THE FEDERATION

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