JPRF-G-2022-028 — 90-Day Extension for the Completion of the Return Process of the Administration of Closed Supplementary Pension Funds to Their Participants

Resolution No. JPRF-G-2022-028
THE FINANCIAL POLICY AND REGULATION BOARD
CONSIDERING:
That, Article 226 of the Constitution of the Republic of Ecuador incorporates the principle of legality regarding State institutions, their agencies, dependencies, public servants, and persons acting by virtue of a State power; That, through the Organic Law Reforming the Organic Monetary and Financial Code for the Defense of Dollarization, published in the First Supplement of the Official Register No. 443 of May 3, 2021, the Organic Monetary and Financial Code was reformed; That, Article 13 of the Organic Monetary and Financial Code, Book I, created the Financial Policy and Regulation Board, part of the Executive Function, as a public law legal entity, with administrative, financial, and operational autonomy, responsible for formulating credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation; That, Article 14.1 of the aforementioned Code, Book I, in number 19, states that it is the responsibility of the Financial Policy and Regulation Board to "Regulate the constitution, organization, functioning, liquidation, and registration of supplementary pension funds and their investments, as well as the minimum requirements to hold the position of administrators; (...)"; That, Article 158 of the Organic Administrative Code prescribes that "(...) Terms may only be fixed in days and deadlines in months or years. The fixing of terms or deadlines in hours is prohibited. (...)"; That, the Reform Law to the Social Security Law and the Law of the Institute of Ecuadorian Social Security Bank for the return of Supplementary Fund Administration to Participants, whose pertinent part states that "(...) the effective transition to the new administration will not exceed ninety (90) days, except for justified reasons communicated by the Financial Policy and Regulation Board, in which case it will be extended for an additional period of ninety (90) days. (...)"; That, General Provision Third of Section V "On the Process of Return of the Administration of Closed Supplementary Pension Funds to Participants", Chapter XL "On Closed Supplementary Pension Funds", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, prescribes that: "The effective transition to the new administration of the CSF must be implemented within a period not exceeding ninety (90) days, counted from the date of issuance of this resolution, unless the Superintendency of Banks, for duly justified reasons, requests the Financial Policy and Regulation Board for an additional extension of ninety (90) days (...)"; That, on April 26, 2022, the Acting General Superintendent of the Superintendency of Banks submitted to this Financial Policy and Regulation Board the letter No. SB-IG-2022-0111-O, in which it details which CSFs have requested an extension of the period established in the aforementioned resolution and which are in the process of designating
representatives and administrators; and states that "(...) in order to safeguard pension resources and participants' benefit rights, we request that the extension be granted, in accordance with what is established in Resolution No. JPRF-F-2021-005 of December 17, 2021."

Resolution No. JPRF-G-2022-028

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That, the Technical Secretariat of the Financial Policy and Regulation Board, through memorandum No. JPRF-SETEC-2022-0046-M of May 13, 2022, submitted to the President of the Board the Technical-Legal Report No. JPRF-CTCJ-2022-003 of May 13, 2022, as an addendum to Technical-Legal Report No. JPRF-CTCJ-2022-002 of May 3, 2022, in response to what was resolved by the Financial Policy and Regulation Board in the extraordinary session of May 6, 2022, regarding the request contained in letter No. SB-IG-2022-0111-O submitted by the Superintendency of Banks on April 26, 2022, which issues a favorable opinion for the present act; That, the Financial Policy and Regulation Board, in an ordinary session held via technological means convened on May 14, 2022 and carried out via video conference on May 17, 2022, reviewed and resolved on memorandum No. JPRF-SETEC-2022-0046-M of May 13, 2022, issued by the Technical Secretariat and its attachments; and, In exercise of the attributions and duties conferred by Article 14.1 of the Organic Monetary and Financial Code, the Financial Policy and Regulation Board, RESOLVES:
Sole Article.- Grant an extension of ninety (90) days counted from the expiration of the period established in General Provision Third of Section V "On the Process of Return of the Administration of Closed Supplementary Pension Funds to Participants", Chapter XL "On Closed Supplementary Pension Funds", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, for the implementation of the effective transition of the new administration of the Closed Supplementary Funds. FINAL PROVISION.- This Resolution shall enter into force from the present date, without prejudice to its publication in the Official Register. Publish this Resolution on the website of the Financial Policy and Regulation Board, within a maximum term of two days from its issuance. NOTIFY.- Given in the Metropolitan District of Quito, on May 17, 2022. THE PRESIDENT, Mgs. María Paulina Vela Zambrano The aforementioned resolution was processed and signed by Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, in the Metropolitan District of Quito, on May 17, 2022.- I CERTIFY. TECHNICAL SECRETARY Dr. Nelly Arias Zavala