Resolution JPRF-F-2025-0171: Reforms to Paragraph I "Thresholds" of the Codification of Monetary, Financial, Securities and Insurance Resolutions

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador Resolution No. JPRF-F-2025-0171

THE FINANCIAL POLICY AND REGULATION BOARD

CONSIDERING:

That Article 82 of the Constitution enshrines the right to legal certainty, which is based on respect for the Constitution and the existence of prior, clear, public norms applied by competent authorities;

That Article 226 of the Magna Carta provides that State institutions, their agencies, dependencies, public servants, and persons acting by virtue of a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the law;

That Article 227 of the Constitution determines that the Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, participation, and others;

That Article 309 of the Magna Carta states that "the National Financial System is composed of the public, private, and popular and solidarity sectors (...)". Each of these sectors will have specific and differentiated control norms and entities, which will be responsible for preserving their security, stability, transparency, and solidity;

That Article 425 of the Supreme Norm establishes that the hierarchical order of application of norms shall be as follows: the Constitution, treaties and international conventions; organic laws; ordinary laws; regional norms and other district ordinances; decrees and regulations; ordinances; agreements and resolutions; and other acts and decisions of the public powers;

That the Organic Law of Public Integrity, published in the Official Register Third Supplement No. 68 of June 26, 2025, reformed Article 13 of the Organic Code of Monetary and Financial Law, Book I, where it created the Board of Monetary and Financial Policy and Regulation as a unified entity for monetary, credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation. This new body will be the highest governing body of the Central Bank of Ecuador and will assume the competencies currently exercised by the Board of Monetary Policy and Regulation and the Board of Financial Policy and Regulation.

That the Tenth Transitional Provision of the aforementioned organic law states that the current members of the Board of Financial Policy and Regulation will cease their functions in advance only when the National Assembly appoints the new members of the Board of Financial and Monetary Policy and Regulation, in accordance with the procedure provided in the Organic Code of Monetary and Financial Law.

That the Fourth Transitional Provision of the Organic Law for the Strengthening of Protected Areas establishes that the structure and functions of the Board of Financial Policy and Regulation, established in the Organic Code of Monetary and Financial Law prior to June 26, 2025, will remain in effect until the appointment of the members of the Board of Financial and Monetary Policy and Regulation by the National Assembly;

That Article 13 of the Organic Code of Monetary and Financial Law, Book I, prior to the reforms introduced by the Organic Law of Public Integrity and the Organic Law for the Strengthening of Protected Areas, created the Board of Financial Policy and Regulation, part of the Executive Function, as a public law legal entity responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation;

Resolution No. JPRF-F-2025-0171

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador |

That Article 14.1 prior to the reforms of June 26, 2025, of the aforementioned Code, establishes that for the performance of its functions, the Board of Financial Policy and Regulation must fulfill the following duties and exercise the following faculties, among which are: 1. Regulate the creation, constitution, organization, activities, operation, and liquidation of financial, securities, insurance, and prepaid comprehensive health care service entities; (...)

That Article 145 of the Organic Code of Monetary and Financial Law provides that control bodies may revoke the authorization to exercise financial activities for the following causes, among them, not carrying out the minimum number of operations determined by the control body during a period of at least six consecutive months;

That, through Resolution No. 217-2016-F of March 14, 2016, the Board of Monetary and Financial Policy and Regulation issued the General Norm for the Constitution, Organization, and Issuance of the Authorization to Exercise Financial Activities and Operating Permits of Entities of the Public and Private Financial Sectors. This norm regulates the revocation of the authorization to exercise financial activities for the causes provided in Article 145 of the Organic Code of Monetary and Financial Law. It also establishes the criteria by which it is considered that an entity has not met the minimum number of operations in a period of six consecutive months, establishing specific quantitative parameters to determine such non-compliance.

That the Technical Secretary of the Board of Financial Policy and Regulation, through Memorandum No. JPRF-ST-2025-0058-M of September 12, 2025, submits to the President of the Board the Technical-Legal Report No. JPRF-CTCJ-2025-008 of September 12, 2025, issued by the Technical Coordination of Financial System Policy and Regulation and the Legal Coordination of Financial Policy and Norms, which concludes that it is the competence of the control bodies to define the minimum number of operations during a period of at least six consecutive months to revoke the authorization to exercise financial activities, in accordance with what is provided in Article 145 of Book I of the COMF, therefore recommending the reform of the aforementioned Article 33, in order to restore coherence between secondary legislation and the organic law, and strengthen legal certainty in banking resolution processes, as well as the respective draft resolution;

That the Board of Financial Policy and Regulation, in an ordinary session held by technological means, convened on September 12, 2025, and carried out via video conference on September 15, 2025, reviewed the Memorandum No. JPRF-ST-2025-0058-M of September 12, 2025, issued by the Technical Secretary of the Board; as well as the Technical-Legal Report No. JPRF-CTCJ-2025-008 of September 12, 2025, issued by the Technical Coordination of Financial System Policy and Regulation and the Legal Coordination of Financial Policy and Norms, and the corresponding draft resolution;

That the Board of Financial Policy and Regulation, in an ordinary session held by technological means, convened on September 12, 2025, and carried out via video conference on September 15, 2025, reviewed and approved the following Resolution; and,

In exercise of its functions,

RESOLVES:

SOLE ARTICLE.- Delete paragraphs two, three, and four of Article 33 Paragraph I "Thresholds", Subsection IV "Of the Thresholds for Private Banks", Section IV "Of the Constitution, Organization, and Issuance of the Authorization to Exercise Financial Activities and Operating Permits of Entities of the Private Financial Sector", of Chapter I "Constitution, Organization, and Issuance of the Authorization to Exercise Financial Activities and Operating Permits of Entities of the Public and Private Financial Sectors", of Title II "National Financial System" of Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions.

FINAL PROVISION.- This Resolution will enter into force from the present date, without prejudice to its publication in the Official Register, and will be published on the institutional website of the Board of Financial Policy and Regulation within a maximum term of two days from its issuance.

COMMUNICATE.- Given in the Metropolitan District of Quito, on September 15, 2025.

THE PRESIDENT,
Master María Paulina Vela Zambrano

The aforementioned Resolution was processed and signed by Master María Paulina Vela Zambrano, President of the Board of Financial Policy and Regulation, in the Metropolitan District of Quito, on September 15, 2025.- I CERTIFY.

TECHNICAL SECRETARY,
Master Luis Alfredo Olivares Murillo