Norm Reforming Article 9 of the Norm on Organization and Operation of the Securities Register of the Superintendence of Banks and Other Financial Institutions

Page 1 of 3 Resolution No. CD-SIBOIF-1112-1-MAY16-2019 Dated May 16, 2019

NORM REFORMING ARTICLE 9 OF THE NORM ON ORGANIZATION AND OPERATION OF THE SECURITIES REGISTER OF THE SUPERINTENDENCE OF BANKS AND OTHER FINANCIAL INSTITUTIONS

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I

That on March 9, 2010, the Norm on Organization and Operation of the Securities Register of the Superintendence of Banks and Other Financial Institutions was approved, contained in Resolution No. CD-SIBOIF-618-2-MAR9-2010, published in La Gaceta, Official Gazette No. 91 on May 17, 2010.

II

That Article 7 of Law No. 587, "Capital Markets Law," published in La Gaceta, Official Gazette No. 222, on November 15, 2006, contained in Law No. 974, Law of the Nicaraguan Legal Digest on Banking and Finance, published in La Gaceta, Official Gazette No. 164, on August 27, 2018, and its amendments (Legal Digest Law); establishes that all natural or legal persons who participate directly or indirectly in the securities markets, except investors, as well as acts and contracts related to these markets and the issuance of securities for which a public offering will be made, must be registered in the Securities Register of the Superintendence, in accordance with the general norms issued for this purpose by its Board of Directors. Likewise, it establishes that the information contained in the Register shall be public.

III

That the aforementioned Article 7 also provides that the Board of Directors of the Superintendence shall regulate the organization and operation of the Register, as well as the type of information it deems necessary for this Register and its updates, all to guarantee market transparency and investor protection.

IV

That according to the foregoing and based on the powers established in Article 6, letter b) of the Capital Markets Law and Article 10, numeral 2, of Law 316, Law of the Superintendence of Banks and Other Financial Institutions, and their amendments, both contained in the Legal Digest Law, empower the Board of Directors of the Superintendence of Banks and Other Financial Institutions to issue general norms aimed at regulating the operation of the securities market and promoting adequate, agile, modern, and practical supervision of institutions subject to the supervision and oversight of the Superintendence of Banks and Other Financial Institutions.

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In exercise of its powers,

HAS ISSUED

The following:

Resolution No. CD-SIBOIF-1112-1-MAY16-2019 NORM REFORMING ARTICLE 9 OF THE NORM ON ORGANIZATION AND OPERATION OF THE SECURITIES REGISTER OF THE SUPERINTENDENCE OF BANKS AND OTHER FINANCIAL INSTITUTIONS

FIRST: Article 9 of the Norm on Organization and Operation of the Securities Register of the Superintendence of Banks and Other Financial Institutions, contained in Resolution No. CD-SIBOIF-618-2-MAR9-2010, of March 9, 2010, published in La Gaceta, Official Gazette No. 91 on May 17, 2010, is hereby amended, which shall read as follows:

"Article 9. Suspension of Registry Account.- The suspension of registry accounts shall proceed in the following cases: a) As a result of the application of sanctions established in the Capital Markets Law and corresponding regulations; or b) By voluntary suspension of operations of stock exchange positions, as follows:

1. The person registered in the Register must submit a request to the Superintendent indicating the reasons motivating the suspension of operations, attaching a notarial certification of the minutes of the general shareholders' meeting, board of directors, or competent body that decided to request the suspension. It must also attach an action plan concerning the suspension of operations, which must be approved by the competent corporate body. This plan must include, among other aspects, the actions foreseen for the total cancellation of relationships, negotiations, contracts, and mandates of any nature with its clients, the schedule for the same, and the officials responsible for compliance with said plan.
2. Once the action plan referred to in the preceding numeral is concluded, certificates issued by the corresponding stock exchanges and central securities depositories must be presented indicating that the stock exchange position has no pending liquidations or securities in custody.
3. Once the requirements established in the preceding numerales 1) and 2) are met, the Superintendent will issue a resolution regarding the request for voluntary suspension of operations, establishing the periodic information that the person must submit, as appropriate. The person must be up to date with contributions and payments to the Superintendence as of the date of said resolution.
4. The voluntary suspension of operations may not exceed a period of one year.

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The suspensions of registry accounts shall be recorded in the relevant facts section maintained by the Register for this purpose. The registry account will regain its legal efficacy when the person remedies the cause that originated the suspension of the registry account, or once the stock exchange position resumes operations, as appropriate."

SECOND: This norm shall enter into force upon its notification. (F) Ovidio Reyes R. (F) Illegible (Luis Ángel Montenegro E) (F) Fausto Reyes B. (F) Illegible (Silvio Moisés Casco Marenco) (F) Illegible (Rafael Ángel Avellán Rivas).

RAFAEL ÁNGEL AVELLÁN RIVAS Secretary of the Board of Directors SIBOIF