Resolution JPRM-2022-014-G — Designation of External Auditors for the Central Bank of Ecuador

MONETARY POLICY AND REGULATION BOARD

Republic of Ecuador

RESOLUTION No. JPRM-2022-014-G

THE MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public servants and persons acting under state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 of the same instrument states that Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first clause of Article 303 of the Constitution of the Republic determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and shall be implemented through the Central Bank of Ecuador;

That, Article 47.1 of the Organic Code of Monetary and Financial created the Monetary Policy and Regulation Board as part of the Executive Branch, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, Article 47.6, numeral 20, of the same Code, regarding the functions of the Monetary Policy and Regulation Board, among others, establishes: “20. Approve the policy for the selection and rotation of external auditors and designate the external auditor of the Central Bank of Ecuador, upon proposal of the Audit Committee; (...)”;

That, Article 57.1 of the same Code, regarding external auditing, in its pertinent part, states: “The financial statements of the Central Bank of Ecuador shall be audited, at least once a year, in accordance with International Auditing Standards by independent external auditors, who must have recognized international experience. The Monetary Policy and Regulation Board shall designate the external auditors upon proposal of the Audit Committee. The external auditor shall be designated for the period determined by the Monetary Policy and Regulation Board, which shall have a duration of no less than three (3) years. (...)”;

That, by Resolution No. JPRM-2021-006-A, dated December 17, 2021, the Monetary Policy and Regulation Board issued the Regulation of the Audit Committee of the

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MONETARY POLICY AND REGULATION BOARD

Republic of Ecuador

RESOLUTION No. JPRM-2022-014-G Page | 2

Central Bank of Ecuador, which establishes in letters a and b of Article 9, as functions of the Audit Committee, regarding External Auditing, among others: “a) To be informed of and provide an opinion on the terms of reference for the selection of external auditors prepared by the Central Bank of Ecuador; b) To propose to the Monetary Policy and Regulation Board the list of independent external auditors with recognized international experience, previously qualified by the Superintendency of Banks; (...)”;

That, by Resolution No. JPRM-2022-001-A, dated January 10, 2022, the Monetary Policy and Regulation Board designated the members of the Audit Committee of the Central Bank of Ecuador;

That, by Resolution No. JPRM-2022-006-G, dated February 11, 2022, the Monetary Policy and Regulation Board issued the “Standard for the Hiring of External Auditors of the Central Bank of Ecuador”;

That, by Resolution No. JPRM-2022-012-G, dated March 28, 2022, the Monetary Policy and Regulation Board reformed the Standard for the Hiring of External Auditors of the Central Bank of Ecuador;

That, by Administrative Resolution No. BCE-GG-002-2022, dated February 18, 2022, the General Management of the Central Bank of Ecuador issued the “Instruction for the Hiring of External Auditors of the Central Bank of Ecuador”, and by Administrative Resolution No. BCE-GG-008-2022, dated March 29, 2022, reformed said instruction;

That, the Monetary Policy and Regulation Board, in a mixed ordinary session on April 11, 2022, reviewed Report No. CABCE-002-2022, dated April 8, 2022, sent via Memorandum No. BCE-JPRM-2022-0026-M, of the same date, by the President of the Audit Committee of the Central Bank of Ecuador to the President of the Monetary Policy and Regulation Board, regarding the proposal of said Committee for the designation of the external auditor of the Central Bank of Ecuador;

In exercise of its functions and in accordance with Article 47.7 of the Organic Code of Monetary and Financial, the Monetary Policy and Regulation Board:

RESOLVES

Art. 1.- Accept the proposal of the Audit Committee of the Central Bank of Ecuador, contained in Report No. CABCE-002-2022, dated April 8, 2022, and designate the company KRESTON

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MONETARY POLICY AND REGULATION BOARD

Republic of Ecuador

RESOLUTION No. JPRM-2022-014-G Page | 3

AUDIT SERVICES ECUADOR CIA. LTDA., to perform the external audit of the Central Bank of Ecuador corresponding to the economic years 2021, 2022, and 2023.

TRANSITIONAL PROVISION.- The General Management of the Central Bank of Ecuador shall arrange for the performance of all acts necessary for the implementation of the hiring of the external auditor designated in this resolution, complying with the established norms and procedures.

FINAL PROVISION.- This resolution shall enter into force from its issuance, without prejudice to its subsequent publication in the Official Register.

The General Management of Documentation and Archive of the Central Bank of Ecuador is tasked with publishing it on the institutional website.

NOTIFY.- Given in the Metropolitan District of Quito, on April 11, 2022.

THE PRESIDENT

(Signature) Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on April 11, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY

(Signature) Law. MARÍA ALEXANDRA GUERRERO DEL POZO