Regulatory Alerts2024-02-13 | CD-SIBOIF-1429-4-FEB13-2024Norm on the Update of Social Capital of Securities Clearing Houses
The Board of Directors of the Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-1429-4-FEB13-2024 to update the minimum social capital requirement for Securities Clearing Houses to C$10,194,000.00. Existing clearing houses must pay the difference within seven calendar days after their next Ordinary Shareholders' General Assembly, while newly authorized entities must meet the updated capital at the time of constitution. This resolution repeals the previous update from February 2022 and enters into force upon notification.
Page 1 of 2 Resolution No. CD-SIBOIF-1429-4-FEB13-2024 Dated February 13, 2024
NORM ON THE UPDATE OF SOCIAL CAPITAL OF SECURITIES CLEARING HOUSES
The Board of Directors of the Superintendence of Banks and Other Financial Institutions,
CONSIDERING
I
That Article 142, letter "d" of Law No. 587, "Securities Market Law," contained in Law No. 974, "Law of the Nicaraguan Legal Digest on Banking and Finance Matters," published in La Gaceta, Official Journal No. 164, of August 27, 2018, and its updates (Legal Digest), establishes that the minimum subscribed and paid-up social capital required for Securities Clearing Houses shall be five million córdobas (C$5,000,000.00).
II
That the same Article 142, in its letter "d," empowers the Board of Directors of the Superintendence of Banks and Other Financial Institutions to adjust the minimum social capital for Securities Clearing Houses every two years according to the variation in the official exchange rate of the national currency.
III
That through the Norm on the Update of Social Capital of Securities Clearing Houses, contained in Resolution No. CD-SIBOIF-1296-4-FEB15-2022, dated February 15, 2022, published in La Gaceta, Official Journal No. 38, of February 25, 2022, the minimum social capital required for Securities Clearing Houses was last updated to nine million nine hundred eleven thousand five hundred córdobas (C$9,911,500.00).
IV
That in accordance with the considerations set forth above and based on Article 6, letter "b" of Law No. 587, "Securities Market Law"; and Article 3, numerals "3" and "13" of Law No. 316, "Law of the Superintendence of Banks and Other Financial Institutions," contained in the Legal Digest.
In exercise of its powers,
HAS ISSUED
The following:
Resolution No. CD-SIBOIF-1429-4-FEB13-2024 NORM ON THE UPDATE OF SOCIAL CAPITAL OF SECURITIES CLEARING HOUSES
Article 1. Update of Social Capital.- The minimum social capital required for Securities Clearing Houses is updated to ten million one hundred ninety-four thousand córdobas (C$10,194,000.00).
Page 2 of 2
Article 2. Deadline.- Securities Clearing Houses currently operating, which at the entry into force of this norm have a minimum subscribed and paid-up social capital below that established in the preceding article, must have it paid no later than seven (7) calendar days after the next Ordinary General Assembly of Shareholders.
Securities Clearing Houses that are authorized to be constituted and operate in the country after the entry into force of this Norm must comply with the updated social capital at the time of their constitution.
Article 3. Repeal.- The Norm on the Update of Social Capital of Securities Clearing Houses, approved by the Board of Directors of the Superintendence through Resolution No. CD-SIBOIF-1296-4-FEB15-2022, dated February 15, 2022, published in La Gaceta, Official Journal No. 38, of February 25, 2022, is hereby repealed.
Article 4. Validity.- This Norm shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Journal.
(S) Legible Magaly María Sáenz Ulloa (S) Illegible (Luis Ángel Montenegro E) (S) Illegible Fausto Reyes (S) Illegible (Silvio Moisés Casco Marenco) (S) Illegible (Ervin Antonio Vargas Pérez) (s) Illegible Secretary.
SAÚL CASTELLÓN TÓRREZ Ad Hoc Secretary of the SIBOIF Board of Directors