Norm on Updating the Share Capital of Investment Fund Management Companies

Resolution CDMF-VIII-4-25
Dated March 12, 2025

NORM ON UPDATING THE SHARE CAPITAL OF INVESTMENT FUND MANAGEMENT COMPANIES

The Monetary and Financial Board,

CONSIDERING

I

That Article 156 of Law No. 1232 “Law on the Administration of the Monetary and Financial System”, published in La Gaceta, Official Journal No. 241, of December 30, 2024 (hereinafter Law No. 1232), establishes that “...all those faculties, competencies, powers, attributions, and duties established in other laws, prior to the effectiveness of this Law, attributed to the Board of Directors of the Central Bank and to the Board of Directors of the Superintendence of Banks... are transferred to the Monetary and Financial Board.”

II

That Article 75, letter a), of Law No. 587, “Capital Markets Law”, contained in Law No. 1175, “Law of the Nicaraguan Legal Digest on Banking and Finance Matters”, published in La Gaceta, Official Journal No. 153, of August 20, 2024, establishes that the minimum share capital of investment fund management companies is one million six hundred thousand córdobas (C$1,600,000.00). Likewise, said article empowers the Board of Directors to adjust the minimum share capital of these companies every two years, in accordance with the variation of the official exchange rate of the national currency.

III

That the amount indicated in the preceding consideration for Investment Fund Management Companies was included in Resolution No. CD-SIBOIF-847-1-AGOST8-2014, containing the Norm on Management Companies and Investment Funds, published in La Gaceta, Official Journal No. 180, of September 24, 2014; which also established in its Art. 4, letter b), based on Art. 103 of Law No. 587, that for the administration of real estate investment funds or real estate development investment funds, management companies must have a minimum share capital of four million córdobas (C$4,000,000.00).

IV

That through the Norm on Updating the Share Capital of Investment Fund Management Companies, contained in Resolution No. CD-SIBOIF-1365-2-MAR7-2023, dated March 7, 2023, published

in La Gaceta, Official Journal No. 52 of March 21, 2023, the minimum share capital required for companies that manage financial investment funds was updated to three million two hundred thirty-five thousand five hundred córdobas (C$3,235,500.00); and to five million five hundred thirty-five thousand five hundred córdobas (C$5,535,500.00) for companies that manage investment funds in non-financial assets, such as real estate funds or real estate development investment funds.

V

That in accordance with the considerations set forth above and based on Article 6, letter b) of the Capital Markets Law; and Article 17, clause A), numerals 1) and 3) of the aforementioned Law No. 1232.

In exercise of its faculties,

HAS ISSUED

The following:

NORM ON UPDATING THE SHARE CAPITAL OF INVESTMENT FUND MANAGEMENT COMPANIES

Article 1. Update of share capital.- The minimum share capital required for companies that manage financial investment funds is updated to three million two hundred sixty-two thousand córdobas (C$3,262,000.00); and to five million five hundred eighty thousand five hundred córdobas (C$5,580,500.00) for companies that manage investment funds in non-financial assets, such as real estate funds or real estate development investment funds.

Article 2. Deadline.- Investment fund management companies that are currently operating and that, upon the entry into force of this norm, have a minimum subscribed and paid share 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.

For investment fund management companies that are authorized to be constituted and operate in the country after the entry into force of this norm, compliance with the updated share capital must be carried out at the time of their constitution.

Article 3. Repeal.- The Norm on Updating the Share Capital of Investment Fund Management Companies, contained in Resolution No. CD-SIBOIF-1365-2-MAR7-2023, dated March 7, 2023, published in La Gaceta, Official Journal No. 52, of March 21, 2023, is repealed.

Article 4. Effectiveness.- This norm shall enter into force upon its publication in La Gaceta, Official Journal.

(f) Legible, Ovidio Reyes R. President of the Board of Directors; (f) Illegible, Luis Ángel Montenegro Espinoza, Vice President of the Board of Directors; (f) Illegible, Bruno Gallardo, Minister of Finance, Owner Member; (f) Illegible, Roberto Rivas, Non-executive Owner Member; (f) Illegible, Hugo Ortega, Non-executive Owner Member. The undersigned Ruth Elizabeth Rojas Mercado, Secretary of the Monetary and Financial Board, certifies that it conforms to its original, with which it was duly compared. (f) Illegible, RUTH ELIZABETH ROJAS MERCADO, Secretary of the Monetary and Financial Board.