Law 11 of 2002 Amending Articles 17 and 18 of Decree-Law 1 of 1999 Regarding Registration and Supervision Fees

O.G. 24484 LEGISLATIVE ASSEMBLY LAW No. 11 Of January 30, 2002 Amending Articles 17 and 18 of Decree-Law 1 of 1999, through which registration and supervision fees for regulated entities and other procedures before the National Securities Commission are established THE LEGISLATIVE ASSEMBLY DECREES: Article 1. Article 17 of Decree-Law 1 of 1999 shall read as follows: Article 17: Registration Fees Persons requesting the following registrations or licenses from the Commission shall be subject to the payment of the following fees: (1) Public offerings and securities subject to registration in accordance with numeral 2 of article 69: Zero point zero fifteen percent (0.015%) of the initial offering price of the securities, with a minimum of five hundred balboas (B/.500.00) and a maximum of fifty thousand balboas (B/.50,000.00). Securities publicly offered by the State in the Republic of Panama shall be subject to this fee, even if they are not subject to registration with the Commission. (2) Notification of Public Tender Offer for Shares: Ten thousand balboas (B/.10,000.00). (3) Stock exchange: Ten thousand balboas (B/.10,000.00). (4) Central securities depository: Seven thousand five hundred balboas (B/.7,500.00). (5) Brokerage house: Five thousand balboas (B/.5,000.00). (6) Investment advisor: One thousand balboas (B/.1,000.00) for legal entities and five hundred balboas (B/.500.00) for natural persons. (7) Investment manager: One thousand balboas (B/.1,000.00). (8) Principal executive: Two hundred fifty balboas (B/.250.00). (9) Securities brokers and analysts: Two hundred fifty balboas (B/.250.00). (10) Investment company: Five hundred balboas (B/.500.00). This fee shall be calculated per investment company and not per the funds or sub-funds it may have. (11) Notification of private investment company: One thousand balboas (B/.1,000.00). (12) Registration according to article 103 of this Decree-Law: Ten thousand balboas (B/.10,000.00). (13) Application for termination of securities registration: Five hundred balboas (B/.500.00). (14) Certifications and authentications of documents: One balboa (B/.1.00). (15) Certificate of registration with the Commission: Ten balboas (B/.10.00). (16) Cancellation of Licenses for Securities Brokers, Investment Advisors, Principal Executives: One hundred fifty balboas (B/.150.00). (17) Cancellation of Public Securities Offerings: Five hundred balboas (B/.500.00). (18) Cancellation of Licenses for Stock Exchanges and Central Securities Depositories: Two thousand five hundred balboas (B/.2,500.00). (19) Cancellation of Licenses for Brokerage Houses and investment management companies: One thousand balboas (B/.1,000.00). (20) Examination fee for Securities Brokers, Principal Executives, Investment Advisors, Analysts, Investment Company Managers: Fifty balboas (B/.50.00). (21) Registration of Custodians, Paying Agents or Commission Agents: Two thousand five hundred balboas (B/.2,500.00). (22) Registration of Risk Rating Entities operating in the Republic of Panama: Five hundred balboas (B/.500.00).

Article 2. Article 18 of Decree-Law 1 of 1999 shall read as follows: Article 18: Supervision Fees The following registrations with the Commission shall be subject to the annual payment of a supervision fee as detailed below: (1) Registered securities: Zero point zero ten percent (0.010%) of the market value of registered securities in circulation, with a minimum of five hundred balboas (B/.500.00) and a maximum of fifteen thousand balboas (B/.15,000.00) per registered issue. Securities publicly offered by the State in the Republic of Panama shall be subject to this fee, even if they are not subject to registration with the Commission. Paragraph (transitory). The application of the supervision fee for registered securities described in the preceding section shall be effective for securities registered in circulation in the year 2002, with payment due in the year 2003. Starting from securities registered in circulation in the year 2003, with payment due in the year 2004, the supervision fee shall be established as follows: Registered securities: Zero point zero ten percent (0.010%) of the market value of registered securities in circulation, with a minimum of five hundred balboas (B/.500.00) and a maximum of fifteen thousand balboas (B/.15,000.00) per registered issue. Securities publicly offered by the State in the Republic of Panama shall be subject to this fee, even if they are not subject to registration with the Commission. (2) Stock exchange: Zero point zero zero twenty percent (0.0020%) of the annual amount of securities transactions carried out, with a minimum of five thousand balboas (B/.5,000.00) and a maximum of thirty thousand balboas (B/.30,000.00). (3) Central securities depository: Zero point zero zero ten percent (0.0010%) of the amount resulting from the year-end securities custody inventory plus the year-start securities custody inventory divided by two, with a minimum of two thousand five hundred balboas (B/.2,500.00) and a maximum of thirty thousand balboas (B/.30,000.00). (4) Brokerage house: Zero point zero zero twenty-five percent (0.0025%) of the annual amount of securities transactions carried out, with a minimum of two thousand five hundred balboas (B/.2,500.00) and a maximum of twenty-five thousand balboas (B/.25,000.00). (5) Investment advisor: Five hundred balboas (B/.500.00) for legal entities and two hundred fifty balboas (B/.250.00) for natural persons. (6) Investment manager: Five hundred balboas (B/.500.00). (7) Principal Executive: One hundred twenty-five balboas (B/.125.00). (8) Securities brokers and analysts: One hundred twenty-five balboas (B/.125.00). (9) Investment company: Zero point zero zero ten percent (0.0010%) of the average net asset value of the investment company during the year, corresponding to participation units registered with the Commission and sold in the Republic of Panama, with a minimum of five hundred balboas (B/.500.00) and a maximum of five thousand balboas (B/.5,000.00). This fee shall be calculated per investment company and not per the funds or sub-funds it may have. (10) Annual certification of private investment company: Five hundred balboas (B/.500.00). (11) Risk Rating Entities operating in the Republic of Panama: Two hundred fifty balboas (B/.250.00). The National Securities Commission is expressly empowered to establish surcharges for supervised entities that do not pay the corresponding supervision fees on time.

Article 3. The amounts of the fees referred to in the preceding articles must bear a strict relation to the costs that the Commission must incur to fulfill its functions in a rational and efficient manner, in accordance with its budget. For this purpose, the Executive Body, upon recommendation of the Commission, may reduce, at its discretion, the amount of the applicable fee. However, if at the end of a fiscal year there are balances remaining from the payment of fees, the Commission shall transfer said balances to a special account to be used to cover expenses corresponding to subsequent fiscal years. If balances exist for two consecutive fiscal periods, the Executive Body must reduce the fees in the ways it deems appropriate, so that such balances do not occur in subsequent fiscal years.

Article 4. This Law modifies articles 17 and 18 and repeals article 19 of Decree-Law 1 of July 8, 1999, and any other provision contrary to it.

Article 5. This Law shall enter into force from its promulgation.

COMMUNICATE AND COMPLY. Approved in third debate, in the Justo Arosemena Palace, Panama City, on the days of December of the year two thousand one.

The President, Rubén Arosemena Valdés

The Secretary General, José Gómez Núñez

NATIONAL ASSEMBLY BILL: LAW: NOMENCLATURE:YEAR_MONTH_DAY_LETTER_ORIGIN MINUTES OF THE SAME DAY: A, B, C, D MINUTES OF VARIOUS DAYS: V 2001_P_008.PDF 011 OF 2002 PLENARY MINUTES 2001_12_27_A_PLENO.PDF 2001_12_28_A_PLENO.PDF