JPRF-A-2021-002 — Validation of Administrative Resolutions of the JPRF

Financial Policy and Regulation Board
Resolution No. JPRF-A-2021-002
THE FINANCIAL POLICY AND REGULATION BOARD
CONSIDERING:

That, in Article 13 of the Organic Monetary and Financial Code, Book I, reformed by the Law reforming the Organic Monetary and Financial Code for the defense of dollarization, published in the supplement of the Official Register No. 443, of May 3, 2021, the Financial Policy and Regulation Board was created as part of the Executive Function, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health care service policy and regulation;

That, said Article 13 provides that the Financial Policy and Regulation Board shall be composed of three full-time members. The Financial Policy and Regulation Board shall elect from among its members a President and a Substitute President, for a term of two years, who may be reelected. And the final paragraph adds that: "The President of the Monetary Policy and Regulation Board, the Superintendent of Banks, the Superintendent of Companies, Securities and Insurance, the Superintendent of the Popular and Solidarity Economy, the President of the Board of Directors of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund; and, a delegate of the entity governing public finances, shall participate in the deliberations of the Financial Policy and Regulation Board, with voice but without vote;";

That, Article 14.1 numbers 20 and 22 of the COMYF provides that, for the performance of its functions, the Financial Policy and Regulation Board must comply with the following duties and exercise the following powers, among others, "20. Issue the operating regulations of the Financial Policy and Regulation Board and the Code of Ethics" and "22. Appoint the Technical Secretary of the Financial Policy and Regulation Board;";

That, in the session of October 14, 2021, the JPRF resolved to regulate the minimum elements that will be contained in the resolutions of this collegiate body (Unnumbered Resolution) and to elect economist María Paulina Vela Zambrano as President and economist Catalina Pazos Chimbo as Substitute President, for a term of two years, in accordance with current regulations (Resolution No. JPRF-A-2021-001 of October 14, 2021);

That, in the session of November 11, 2021, the JPRF approved the Code of Ethics of the Financial Policy and Regulation Board (Resolution No. JPRF-2021-0001);

That, the summonses issued for said sessions were made exclusively to the members with voting rights, namely: María Paulina Vela, Catalina Pazos, and Iván Velástegui, without summoning the authorities provided for in the final paragraph of Article 13 of the COMYF;

That, for the summons to have legality and validity, all members (including non-voting authorities) must be present, since the norm does not distinguish whether the participation of these authorities must occur only for the issuance of regulation with general effects, and not so for adopting decisions of an internal or administrative nature;

That, where the Law does not distinguish in principle, such distinction should not be made: "Ubi lex non distinguit, nec nos distinguere debemus";

That, the aforementioned internal resolutions suffer from a defect in the summons susceptible to validation, since none of said acts are contrary to the Constitution and the law; they do not violate the purposes for which the legal order granted competence to the JPRF; they were issued within the powers and competence attributed to the JPRF by the COMYF; they do not determine actions impossible to be fulfilled; and, they do not originate in facts that constitute a criminal offense declared in a final judicial sentence;

Resolution No. JPRF-A-2021-002

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That, under these circumstances, the infringement of the legal order (failure to summon non-voting authorities) is curable, in accordance with Article 105 of the Organic Administrative Code;

That, prior to adopting this validation resolution, all authorities provided for in the final paragraph of Article 13 of the COMF have been summoned;

That, the Technical Secretary of the Financial Policy and Regulation Board, through memorandum No. JPRF-SETEC-2021-0002-M of December 8, 2021, submits to the President of the JPRF, the legal analysis regarding the validations of the sessions carried out by the members of the JPRF with voice and vote, contained in report No. JPRF-CJ-2021-0002 of December 8, 2021;

That the Financial Policy and Regulation Board, in an ordinary session held by technological means, summoned on December 8, 2021, on December 10, 2021, knew and approved the text of the following resolution; and,

In exercise of its functions,

RESOLVES:

SINGLE ARTICLE.- Validate the following resolutions:

a) Unnumbered Resolution of October 14, 2021 of the JPRF that regulates the minimum elements that will be contained in the resolutions of this collegiate body;

b) Resolution No. JPRF-A-2021-001 of October 14, 2021 by which economist María Paulina Vela Zambrano was elected as President and economist Catalina Pazos Chimbo as Substitute President, for a term of two years, in accordance with current regulations; and,

c) Resolution No. JPRF-2021-0001 of November 11, 2021 by which the Code of Ethics of the Financial Policy and Regulation Board was approved.

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

NOTIFY.- Given in the Metropolitan District of Quito, on December 10, 2021.

THE PRESIDENT,
Mgs. María Paulina Vela Zambrano

Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, processed and signed the preceding resolution in the Metropolitan District of Quito, on December 10, 2021.- I CERTIFY.

TECHNICAL SECRETARY
Dr. Nelly Arias Zavala