GENERAL PROVISIONS GOVERNING SELF-CORRECTION PROGRAMS

Published in the Official Gazette of the Federation on October 20, 2014. Updated with modifications published in the same Gazette on November 28, 2018, and September 10, 2021.

The National Banking and Securities Commission, based on the provisions of Articles 151, 152, and 153 of the Law to Regulate Financial Groups, Articles 109 Bis 9, 109 Bis 10, 109 Bis 11, and 109 Bis 12 of the Credit Institutions Law, Articles 395 Bis, 395 Bis 1, 395 Bis 2, and 395 Bis 3 of the Securities Market Law, Articles 86 Bis 3, 86 Bis 4, 86 Bis 5, and 86 Bis 6 of the Investment Funds Law, Articles 94 Bis 1, 94 Bis 2, 94 Bis 3, and 94 Bis 4 of the General Law of Organizations and Auxiliary Credit Activities, Articles 136 Bis 3, 136 Bis 4, 136 Bis 5, and 136 Bis 6 of the Popular Savings and Credit Law, Articles 108 Bis, 108 Bis 1, 108 Bis 2, and 108 Bis 3 of the Law to Regulate the Activities of Savings and Loan Cooperative Societies, Articles 119 Bis, 119 Bis 1, and 119 Bis 2 of the Credit Unions Law, Articles 56 Bis 1, 56 Bis 2, and 56 Bis 3 of the Law to Regulate Credit Information Societies, as well as Articles 4, fractions I and XXXVI, 9 Bis 1, 9 Bis 2, 9 Bis 3, 9 Bis 4, and 16, fraction I of the Law of the National Banking and Securities Commission, and

CONSIDERING

That with the publication of the "Decree Reforming, Adding, and Repealing Various Provisions in Financial Matters and Issuing the Law to Regulate Financial Groups" in the Official Gazette of the Federation on January 10, 2014, which includes modifications made to the Credit Institutions Law, Securities Market Law, Investment Funds Law, General Law of Organizations and Auxiliary Credit Activities, Popular Savings and Credit Law, Law to Regulate the Activities of Savings and Loan Cooperative Societies, Credit Unions Law, Law to Regulate Credit Information Societies, and the Law of the National Banking and Securities Commission, as well as the Law to Regulate Financial Groups, there is now the possibility for those entities and persons subject to the supervision of the National Banking and Securities Commission that have violated applicable regulations to submit to the authorization of said Commission a self-correction program containing the manner in which they will correct the non-compliance incurred or prevent future non-compliances;

That it is indispensable to incorporate a regulatory framework related to the requirements that financial entities and persons subject to the supervision of the National Banking and Securities Commission must observe when presenting their respective self-correction programs, as well as to follow up on the implementation and execution of authorized programs and report progress both within the entities and to the Commission itself, and

That with the described regulations, it is intended to generate discipline in the markets, thereby reducing administrative sanction procedures, thus promoting the voluntary compliance with regulations by entities, has resolved to issue the following:

GENERAL PROVISIONS GOVERNING SELF-CORRECTION PROGRAMS

Chapter I

General Provisions

Article 1. These provisions aim to establish the form, terms, and procedures that Entities and persons subject to the supervision of the Commission must observe regarding Self-Correction Programs submitted in accordance with applicable laws.

Article 2. For the purposes of these provisions, the following terms shall be understood, in singular or plural:

I. Commission: The National Banking and Securities Commission.

II. Correction: The set of activities that Entities undertake to adjust their operations to the applicable regulatory framework and, where applicable, to prevent future irregularities or non-compliances.

III. Entities: Controlling societies of financial groups, credit institutions, representative offices of foreign financial entities, self-regulatory organizations, brokerage houses, representative offices of brokerage houses, stock exchanges, investment advisors, securities depository institutions, central counterparties, price providers, securities rating agencies, societies that administer systems to facilitate securities transactions, investment funds, investment fund operating societies, investment fund share distribution societies, investment fund share valuation societies, general warehouse receipts, credit unions, exchange houses, exchange centers, money transmitters, multiple-object financial societies, popular financial societies, community financial societies, savings and loan cooperative societies, credit information societies subject to the Commission's supervision, financial technology institutions, societies authorized to operate with novel models subject to the Commission's supervision, as well as other institutions and public trusts that carry out financial activities, regarding which the Commission exercises supervisory powers.

IV. Irregularities or Non-compliances: Acts or omissions of a continuous or instantaneous nature, carried out by Entities in violation of the Laws, for which the Commission is responsible for imposing sanctions.

V. Continuous Irregularity or Non-compliance: Those whose consummation extends over time, such that their effects continue at the moment the request for authorization of the Self-Correction Program is submitted.

VI. Instantaneous Irregularity or Non-compliance: Those whose consummation is exhausted at the moment it is carried out, such that their effects have ceased when the request for authorization of the Self-Correction Program is submitted.

VII. Laws: The Law to Regulate Financial Groups, Credit Institutions Law, Securities Market Law, Investment Funds Law, General Law of Organizations and Auxiliary Credit Activities, Popular Savings and Credit Law, Credit Unions Law, Law to Regulate the Activities of Savings and Loan Cooperative Societies, Law to Regulate Credit Information Societies, Law to Regulate Financial Technology Institutions, Law of the National Banking and Securities Commission, or other applicable provisions to Entities and persons subject to the Commission's supervision, the non-compliance with which corresponds to be sanctioned by the latter.

VIII. Self-Correction Program: The plan that the General Manager or equivalent of the Entity presents to the Commission to implement a Correction.

Article 3. Entities may submit to the authorization of the Commission a Self-Correction Program when, in the course of their activities, the Entity itself detects Irregularities or Non-compliances provided for in the Laws.

Irregularities or Non-compliances shall not be subject to a Self-Correction Program when:

I. They are detected by the Commission, in the exercise of its inspection and surveillance powers, before the submission by the Entities of the respective Self-Correction Program, as well as those for which the sanction corresponds to be imposed by authorities other than the Commission.

It shall be understood that the Irregularity or Non-compliance was previously detected by the Commission, in the case of surveillance powers, when the Entity has been notified of said Irregularity or Non-compliance; in the case of inspection powers, when it has been detected during the course of the inspection visit, or corrected subsequently after a requirement has been issued during the visit;

II. They correspond to the subject of an ongoing inspection visit by the Commission and until it concludes.

III. They correspond to any of the crimes contemplated in the Laws governing the Entities.

IV. They refer to any of the infractions considered as serious in terms of the Laws governing the Entities.

V. Compliance with the Laws has been subject to a deadline, such that a Self-Correction Program implies the granting of an extension for such compliance.

VI. The Entities have intended or accepted their consummation.

VII. The Entities have made recurrent and unjustified use of said programs regarding the same process.

Chapter II

Content of Self-Correction Programs

Article 4. Entities requesting authorization from the Commission for the Self-Correction Program must present the draft of said program, which must contain at least the following:

I. A mention of the Irregularities or Non-compliances committed, indicating the Laws and provisions considered violated, as well as specifying the conditions of manner, time, and place in which they occurred;

II. A detailed indication of the circumstances that originated the Irregularity or Non-compliance and whether there is knowledge of whether it caused damage or harm to the Entity itself or to third parties, indicating whether it has already been compensated. In all cases, necessary supporting documentation shall be attached;

III. If applicable, information on the suspension of the action or omission that motivated the violation of the norm;

IV. The detail of the activities that will make up the Correction, which must be aimed at achieving effective regularization and shall be subject to the following:

a) If the Irregularity or Non-compliance is of a continuous nature and, due to its characteristics, the actions constituting the Correction cannot be executed immediately, a detailed schedule must be included indicating execution deadlines and the persons responsible for implementing the referred activities. Additionally, measures aimed at preventing new Irregularities or Non-compliances may be included;

b) If the Irregularity or Non-compliance is of a continuous nature and the activities integrating the Correction can be executed immediately, it is sufficient to indicate the persons responsible for implementing the referred activities and the execution deadline, and measures aimed at preventing new Irregularities or Non-compliances may also be indicated;

c) If the Irregularity or Non-compliance is of an instantaneous nature, the activities constituting the Correction may only be of a preventive nature, being applicable what is stated in items a) or b) above, as appropriate, regarding execution deadlines and the persons responsible for their implementation.

When several Irregularities or Non-compliances indicate that there is a structural problem, the Self-Correction Program must focus on correcting the root of the problem, that is, contain an integral Correction.

In all cases, the activities that will make up the Correction must be reasonable and maximize the effectiveness and speed of their execution.

V. The person or area responsible for following up on the implementation of the Self-Correction Program, including the manner and deadlines for reporting progress to the board of directors and the General Manager or the organs or persons equivalent in the Entity, as well as to the Commission itself.

The respective request, as well as the draft of the Self-Correction Program, must be signed, the first by the General Manager or equivalent, and the second by the president of the audit committee of the Entity or whoever exercises the surveillance functions. Additionally, regarding the draft of the program, the document containing the opinion, considerations, recommendations, suggestions, or indications of said committee or of whoever exercises the surveillance functions must be attached.

Chapter III

Procedure

Article 5. The Commission shall refrain from analyzing the Self-Correction Program if it falls under any of the circumstances referred to in Article 3 of these provisions, and therefore it must be declared inadmissible.

Article 6. The Commission shall notify the interested party when the draft of the Self-Correction Program does not contain any of the requirements referred to in these provisions, or shall order modifications or corrections if it does not comply with what is established in the Laws or is inadequate to achieve an efficient Correction. The Entity shall have a period of five business days counted from the respective notification to remedy such deficiencies. This period may be extended only once for up to five additional business days, with prior authorization from the Commission.

If the deficiencies are not remedied within the aforementioned period, the draft referred to in the preceding paragraph shall be considered not submitted, and consequently, the respective Irregularity or Non-compliance committed shall not be subject to another Self-Correction Program.

Article 7. The Commission shall have a period of twenty business days counted from the submission of the request for authorization of the Self-Correction Program or from the submission of the response to the notice of prevention or of modifications or corrections, to resolve what corresponds. This period shall be calculated from the submission of the last promotion relative to the request for authorization or from the last response to the notice of prevention, modifications, or corrections.

If the Commission does not issue the respective resolution within the period referred to in the preceding paragraph, it shall be deemed authorized in all its terms, for all legal effects.

Article 8. The Self-Correction Program must be presented to the board of directors or equivalent organ of the Entity, in the session immediately following the request for authorization submitted to the Commission, which must be accredited to the Commission within a period of twenty calendar days counted from the respective session.

Article 9. The Commission shall refrain from imposing the sanctions provided for in the Laws, for the Irregularities or Non-compliances whose correction is contemplated in the Self-Correction Programs that the Commission itself has authorized, and only during the validity of said programs. Likewise, during such period, the statute of limitations for imposing sanctions shall be interrupted, resuming when it is determined that the Irregularities or Non-compliances subject to the Self-Correction Program were not remedied or the preventive measures were not complied with, as appropriate.

Chapter IV

Follow-up on Self-Correction Programs

Article 10. The person or area in charge of the surveillance of the Entity must present a final report to the Commission, through the Vice Presidency in charge of its supervision, within ten business days following the day on which the deadline or execution date of the correction activities contained in the Self-Correction Program has concluded.

Article 11. The Commission, in terms of the Supervision Regulation of the National Banking and Securities Commission, may, at any time, verify the degree of progress and compliance of the Self-Correction Program.

If, as a result of the reports from the person or area in charge of the surveillance of the Entity or in terms of the Supervision Regulation of the National Banking and Securities Commission itself, the Commission determines that the Irregularities or Non-compliances subject to the Self-Correction Program were not remedied within the established period or that the preventive measures established were not complied with, it shall impose the corresponding sanction, which may increase the amount thereof by up to forty percent in accordance with what is established in the Laws.

Chapter V

Final Provisions

Article 12. The Entity intending to modify the Self-Correction Program must submit its request for authorization to the Commission, which shall be subject to what is stated in these provisions.

In all cases, the General Manager or equivalent shall present to the person or area exercising the surveillance functions in the Entity, in terms of the respective Laws, the proposals for modification to the Self-Correction Program, in order to incorporate measures aimed at including or modifying actions that help to correct the Non-compliance or irregularity in question more efficiently.

Article 13. In no case shall the application of these provisions exempt Entities from their obligation to compensate for damages and losses that may have been caused.

Article 14. Natural persons and other legal entities, other than Entities, that by the development of their activities are subject to the supervision of the Commission, may also request authorization regarding Self-Correction Programs when they detect Irregularities or Non-compliances in violation of the Laws.

The persons referred to in the preceding paragraph must comply with what is established in these provisions insofar as applicable to them, considering their regulatory regime, mainly regarding who exercises the surveillance functions and the General Manager or equivalent.

TRANSITIONAL PROVISION

SINGLE. These Provisions shall enter into force the day following their publication in the Official Gazette of the Federation.

TRANSITIONAL PROVISION

(Resolution modifying the General Provisions Governing Self-Correction Programs, published in the Official Gazette of the Federation on November 28, 2018)

SINGLE. This Resolution shall enter into force the day following its publication in the Official Gazette of the Federation.

TRANSITIONAL PROVISION

(Resolution modifying the General Provisions Governing Self-Correction Programs, published in the Official Gazette of the Federation on September 10, 2021)

SINGLE. This Resolution shall enter into force the day following its publication in the Official Gazette of the Federation.

CONSIDERING

(Published on November 28, 2018)

That in accordance with Article 78 of the General Law of Regulatory Improvement and with the purpose of reducing the compliance cost of this modifying resolution, the National Banking and Securities Commission, through a resolution published in the Official Gazette of the Federation on April 12, 2018, reformed the "General Provisions Applicable to Entities and Persons Referenced in Articles 3, Fractions IV, V, VI, VII, and VIII, and 4, Fraction XXX, of the Law of the National Banking and Securities Commission, as well as to the general public, in the delivery and receipt of documents at the National Banking and Securities Commission" to eliminate the requirement to present in the procedures carried out before the National Banking and Securities Commission, the Unique Population Registry Key of those who promote them;

That on March 9, 2018, the Decree Issuing the Law to Regulate Financial Technology Institutions and Reforming and Adding Various Provisions of the Credit Institutions Law, Securities Market Law, General Law of Organizations and Auxiliary Credit Activities, Law for Transparency and Ordering of Financial Services, Law to Regulate Credit Information Societies, Law for Protection and Defense of Financial Services Users, Law to Regulate Financial Groups, Law of the National Banking and Securities Commission, and Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin was published in the Official Gazette of the Federation, and

That the Law to Regulate Financial Technology Institutions establishes the possibility for financial technology institutions and societies authorized to operate with novel models subject to the supervision of the National Banking and Securities Commission, that have violated applicable regulations, to submit to the authorization of said Commission a self-correction program containing the manner in which they will correct the non-compliance incurred, has resolved to issue the following:

CONSIDERING

(Published on September 10, 2021)

That in accordance with Article 78 of the General Law of Regulatory Improvement and with the purpose of reducing the compliance cost of this modifying resolution, the National Banking and Securities Commission, through the issuance of the "Resolution modifying the General Provisions Applicable to General Warehouse Receipts, Exchange Houses, Credit Unions, and Regulated Multiple-Object Financial Societies", published in the Official Gazette of the Federation on April 26, 2018, proceeded to eliminate the obligation for Regulated Multiple-Object Financial Societies to present to the Commission the Opinion of the Independent Expert Auditor on deferred taxes and worker participation in profits;

That financial entities and persons subject to the supervision of the National Banking and Securities Commission have the possibility to submit to the authorization of said Commission a self-correction program when, in the course of their activities, they detect irregularities or non-compliances with what is provided in the laws governing them or in other applicable provisions, subject to the general provisions issued by said supervisory authority, and

That with the purpose of providing legal certainty to entities and persons subject to the supervision of the National Banking and Securities Commission regarding the compliance with the activities provided for in the authorized self-correction program, it is necessary to establish the deadline for them to inform the supervisory authority of their compliance, has resolved to issue the following:

REFERENCES

1) Reformed by Resolution published in the Official Gazette of the Federation on November 28, 2018.
2) Reformed by Resolution published in the Official Gazette of the Federation on September 10, 2021