REGULATION ON INVESTMENT SERVICES AND ACTIVITIES

Year 2024 / Number 05

(Consolidated text as of 29/01/2026 – Update III)

Central Bank of the Republic of San Marino Regulation No. 2024-05 on Investment Services and Activities - Update III

INDEX

PART I INTRODUCTION

TITLE I PREAMBLE
Article I.I.1 – Legislative Sources............................................................................ 15
Article I.I.2 – Definitions ....................................................................................... 15

TITLE II OBJECTIVES AND STRUCTURE OF THE PROVISION
Article I.II.1 – Purposes.. ...................................................................................... 29
Article I.II.2 – Preparation ..................................................................................... 29
Article I.II.3 – Structure ......................................................................................... 29
Article I.II.4 – References… .................................................................................... 30

TITLE III SUBJECTS, EXCLUSIONS, AND LIMITED OPERATIONALITY INVESTMENT FIRMS
Article I.III.1 – Exclusions from the scope of application........................................ 30
Article I.III.2 – Limited operationality investment firms .......................................... 32

PART II ACTIVITIES OF INVESTMENT FIRMS

TITLE I PREAMBLE
Article II.I.1 – Legislative Sources ......................................................................... 35
Article II.I.2 – Administrative Sanctions .................................................................. 35

TITLE II EXERCISABLE ACTIVITIES
Article II.II.1 – Reservation on investment services and activities .......................... 35
Article II.II.2 – Unlicensed activity ......................................................................... 36
Article II.II.3 – Ancillary services exercisable ....................................................... 36
Article II.II.4 – Other connected or instrumental activities exercisable .................... 37
Article II.II.5 – Further activities exercisable subject to authorization .................... 38
Article II.II.6 – Savings collection instruments ....................................................... 38

PART III AUTHORIZATION

TITLE I PREAMBLE
Article III.I.1 – Legislative Sources ....................................................................... 39
Article III.I.2 – Administrative Sanctions ................................................................ 39

TITLE II AUTHORIZATION FOR CONSTITUTION
Article III.II.1 – Signatories of the application ...................................................... 39
Article III.II.2 – Form of the application .................................................................. 39
Article III.II.3 – Content of the application ............................................................ 39
Article III.II.4 – Declaration of controlling subjects ............................................... 40
Article III.II.5 – Beneficial owners .......................................................................... 40
Article III.II.6 – Methods of submitting the application .......................................... 41
Article III.II.7 – Term of the decision ..................................................................... 41
Article III.II.8 – Suspension of the term .................................................................. 41

Article III.II.9 – Interruption of the term .................................................................. 42

TITLE III MINIMUM REQUIREMENTS
Article III.III.1 – Criteria for drafting the articles of association ........................... 42
Article III.III.2 – Legal type ................................................................................... 44
Article III.III.3 – Headquarters of the firm ............................................................ 44
Article III.III.4 – Share capital ............................................................................... 44
Article III.III.5 – Locked deposit ............................................................................ 45
Article III.III.6 – Requirements for promoters ....................................................... 45
Article III.III.7 – Requirements for senior management .......................................... 46
Article III.III.8 – Activity program .......................................................................... 46

TITLE IV INTERMEDIATE COMPLIANCE
Article III.IV.1 – Constitution of companies .......................................................... 47
Article III.IV.2 – Transmission of the articles of association .................................. 47

TITLE V LICENSING TO BEGIN OPERATIONS
Article III.V.1 – Preamble ...................................................................................... 48
Article III.V.2 – Terms of the application .............................................................. 48
Article III.V.3 – Form of the application .................................................................. 48
Article III.V.4 – Content of the application ............................................................ 48
Article III.V.5 – Variations and integrations to the activity program ....................... 49
Article III.V.6 – Methods of submitting the application .......................................... 49
Article III.V.7 – Term of the decision ..................................................................... 49
Article III.V.8 – Reiteration of the application ....................................................... 50
Article III.V.9 – Minimum requirements .................................................................. 50
Article III.V.10 – Inspections ................................................................................. 50
Article III.V.11 – Notification of start of operations ............................................... 50

TITLE VI ACTIVITIES OF FOREIGN SUBJECTS

Chapter I Branches of Foreign Investment Firms
Article III.VI.1 – Requirements for authorization ................................................... 51
Article III.VI.2 – Authorization application ............................................................ 51
Article III.VI.3 – Activity program .......................................................................... 52
Article III.VI.4 – Requirements for branch managers .............................................. 53
Article III.VI.5 – Authorization procedure ................................................................ 53
Article III.VI.6 – Applicable provisions ................................................................... 54

Chapter II Provision of services without establishment
Article III.VI.7 – Scope of the discipline .................................................................. 55
Article III.VI.8 – Conditions for authorization ....................................................... 56
Article III.VI.9 – Authorization application ............................................................ 56
Article III.VI.10 – Authorization procedure ............................................................ 57
Article III.VI.11 – Applicable provisions .................................................................. 57

Chapter III Representative Offices
Article III.VI.12 – Prohibition on exercising reserved activities ............................. 58
Article III.VI.13 – Requirements ............................................................................ 58
Article III.VI.14 – Procedure .................................................................................. 58

TITLE VII VARIATION, WAIVER, AND REVOCATION OF AUTHORIZATION
Article III.VII.1 – Request for variation .................................................................. 59
Article III.VII.2 – Waiver of authorization ............................................................. 60
Article III.VII.3 – Revocation of authorization ....................................................... 60

PART IV SENIOR MANAGEMENT

TITLE I REFERENCE
Article IV.I.1 – Provisions applicable to senior management of investment firms .. 62

PART V OWNERSHIP STRUCTURES

TITLE I PREAMBLE
Article V.I.1 – Legislative Sources ....................................................................... 63
Article V.I.2 – Administrative Sanctions .................................................................. 63

TITLE II REQUIREMENTS

Chapter I Honesty
Article V.II.1 – Requirements ................................................................................ 63
Article V.II.2 – Certification methods ..................................................................... 64
Article V.II.3 – Foreign certificates ........................................................................ 64
Article V.II.4 – Validity requirements for certificates ............................................. 65
Article V.II.5 – Exempted subjects ......................................................................... 65

Chapter II Sound and Prudent Management
Article V.II.6 – Requirements ................................................................................ 65
Article V.II.7 – Information note ............................................................................. 67
Article V.II.8 – Attached documentation .................................................................. 68

TITLE III AUTHORIZATION FOR ACQUISITION OF SIGNIFICANT PARTICIPATIONS
Article V.III.1 – Scope of application ..................................................................... 68
Article V.III.2 – Subjects obliged ........................................................................... 69
Article V.III.3 – Authorization application ............................................................. 70
Article V.III.4 – Declaration of controlling subjects ............................................... 70
Article V.III.5 – Term of the decision ..................................................................... 71
Article V.III.6 – Evaluation criteria ......................................................................... 71

TITLE IV COMMUNICATION OBLIGATIONS
Article V.IV.1 – Ownership structures .................................................................... 72
Article V.IV.2 – Voting agreements ........................................................................ 72

TITLE V INTERVENTION POWERS
Article V.V.1 – Revocation of authorization .......................................................... 73
Article V.V.2 – Annulment of shareholder resolutions ............................................ 73
Article V.V.3 – Order to alienate the participation ................................................. 73
Article V.V.4 – Verification of the permanence of requirements ............................. 73

PART VI BALANCE SHEET

TITLE I PREAMBLE
Article VI.I.1 – Legislative Sources ....................................................................... 75
Article VI.I.2 – Administrative Sanctions ................................................................ 75

TITLE II GENERAL RULES
Article VI.II.1 – General obligations ...................................................................... 75
Article VI.II.2 – Composition of the balance sheet ................................................. 75
Article VI.II.3 – Audit obligations for Sanmarinese investment firms and foreign investment firm branches .................................................. 76
Article VI.II.4 – Certification of the audit firm and auditors .................................. 76
Article VI.II.5 – Reference .................................................................................... 76

PART VII PRUDENTIAL SUPERVISION

TITLE I PREAMBLE
Article VII.I.1 – Legislative Sources ..................................................................... 77
Article VII.I.2 – Administrative Sanctions ............................................................. 77
Article VII.I.3 – Extension of organizational adequacy requirements ..................... 77

TITLE II OWN FUNDS
Article VII.II.1 – Composition of own funds ......................................................... 77
Article VII.II.2 – Qualified participations in non-financial enterprises .................... 79

TITLE III CAPITAL ADEQUACY

Chapter I General Requirement
Article VII.III.1 – Own funds requirements ........................................................... 80
Article VII.III.2 – Requirement related to fixed overheads ..................................... 81
Article VII.III.3 – Requirement related to credit risk ............................................. 82

Chapter II Overall Requirement related to K Factors
Article VII.III.4 – Overall requirement related to K factors and applicable coefficients ................................................................................... 82

Chapter III Specific Requirement related to K Factors RtC
Article VII.III.5 – Specific requirement related to K factors RtC ........................... 83
Article VII.III.6 – Measurement of AUM for the calculation of K-AUM .................. 84
Article VII.III.7 – Measurement of CMH for the calculation of K-CMH .................. 84
Article VII.III.8 – Measurement of ASA for the calculation of K-ASA ................... 85
Article VII.III.9 – Measurement of COH for the calculation of K-COH ................... 85

Chapter IV Specific Requirement related to K Factors RtM
Article VII.III.10 – Specific requirement related to K factors RtM ........................ 86
Article VII.III.11 – Calculation of K-NPR ............................................................. 87

Chapter V Specific Requirement related to K Factors RtF
Article VII.III.12 – Specific requirement related to K factors RtF .......................... 87

SECTION I COUNTERPARTY DEFAULT OF TRADING
Article VII.III.13 – Scope of application ............................................................... 88
Article VII.III.14 – Calculation of K-TCD ............................................................. 89
Article VII.III.15 – Calculation of the exposure value ............................................ 89
Article VII.III.16 – Replacement cost ...................................................................... 90
Article VII.III.17 – Potential future exposure ......................................................... 90
Article VII.III.18 – Real guarantees ........................................................................ 93
Article VII.III.19 – Compensation (netting) ............................................................ 94
Article VII.III.20 – Credit valuation adjustment ..................................................... 95

SECTION II DAILY TRADING FLOW
Article VII.III.21 – Measurement of DTF for the calculation of K-DTF .................. 96

Chapter VI Concentration Risk
Article VII.III.22 – Monitoring obligations ............................................................ 97
Article VII.III.23 – Calculation of the exposure value ............................................ 97
Article VII.III.24 – L