Resolution SBS No. 1325-2018: Approves Special Norms for the Implementation of Law No. 30607

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 1 / 9 Lima, April 5, 2018 S.B.S. Resolution No. 1325-2018 The Superintendent of Banking, Insurance and Private Pension Fund Administrators CONSIDERING:
That, through Law No. 30607, Law that Modifies and Strengthens the Functioning of Municipal Savings and Credit Caisses, the provisions applicable to the aforementioned companies were modified through Supreme Decree No. 157-90-EF, Law No. 29523 – Law for the Improvement of the Competitiveness of Municipal Savings and Credit Caisses of Peru, and Law No. 26702 – General Law of the Financial System and of the Insurance System and Organic Law of the Superintendence of Banking and Insurance, hereinafter General Law; That, pursuant to what is established in Law No. 30607, it is necessary to adapt the regulatory provisions issued by the Superintendence applicable to Municipal Savings and Credit Caisses, hereinafter CMAC and/or incorporate the provisions necessary to implement the new requirements for the aforementioned companies, which introduces Law No. 30607; That, for the purpose of collecting opinions from the public in general regarding the proposal to modify the regulations, the prepublication of the draft resolution was ordered, under the provisions of the Thirty-second Final and Complementary Provision of the General Law and Supreme Decree No. 001-2009-JUS; With the approval of the Adjunct Superintendencies of Banking and Microfinance, of Risks, of Economic Studies and of Legal Advice; and, In exercise of the powers conferred by paragraphs 7 and 9 of article 349 of the General Law; RESOLVES:
First Article.- Approve the Special Norms for the implementation of Law No. 30607, according to the following text:

“SPECIAL NORMS FOR THE IMPLEMENTATION OF LAW NO. 30607
Article 1.- The authorization to function as a Municipal Savings and Credit Caisse (hereinafter,
CMAC) from the entry into force of Law No. 30607, as established in article 286 of the General Law of the Financial System and of the Insurance System and Organic Law of the

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 2 / 9 Superintendence of Banking and Insurance – Law No. 26702 and its modifying norms (hereinafter General Law), entails the power to carry out the operations and services indicated in paragraphs 11, 12, 13, 20, 21, 22, 23, 28, 29, 40 and 41 of article 221 of the General Law. From the second year of operation, the CMAC that wishes to carry out new operations and services, in addition to those indicated in the previous paragraph, with prior authorization of the Superintendence, may carry out together all the operations and services indicated in paragraphs 2, 3b, 17, 19, 24, 26, 35 and 39 of article 221 of the General Law. Regarding the operation of paragraph 3b, it will only correspond to the granting of loans with collateral. From the third year of operation, with prior authorization of the Superintendence, in addition to the operations and services indicated in the previous paragraphs, the CMAC may carry out together all the operations and services referred to in paragraphs 3b, 4, 5, 6, 7, 8, 9, 10, 14, 15, 18, 25, 32, 33, 36, 38 and 43 of article 221 of the General Law. Regarding the operation of paragraph 3b, it will correspond to the granting of unsecured loans. For this purpose, CMACs that wish to carry out the operations and services indicated in the second and third paragraphs of this article must submit to the Superintendence a request for the development of the new operations and services signed by the Joint Management or the General Manager, attaching the following documentation:
a. Certified copy of the agreement of the competent social body where the decision to carry out the requested operations and services is recorded. b. Study of market, financial and management feasibility that includes, at minimum, the following points:
i. Description of the new operations and services.
ii. Target market, situation and perspectives of the market to which it plans to enter, analysis of
the competition and estimation of potential demand.
iii. Channels and marketing strategies.
iv. Description of the operational processes associated with the new operations and services.
v. Description of the changes in the business, operational or computer environments of the
company.
vi. Information on the areas responsible for executing the processes associated with the
new operations and services.
vii. Measures adopted to ensure that there is suitable personnel for the management of
the new operations and services.
viii. Estimation of the required investment and cost-benefit evaluation of the new
operations and services.
c. Draft modification of the company's bylaws, if applicable, for the case of
operations and services that only require a development request; or draft project of modification of the company's bylaws, if applicable, for the cases of operations and services that require development and implementation authorization; d. Report from the Risk Unit, or equivalent area, containing an evaluation of the risks associated with the new operations and services. This report must include the minimum content indicated in paragraph 3 of Circular G-165-2012, referred to risk reports for new products or significant changes in the business, operational or computer environment. e. Report from the compliance officer containing the evaluation of the level of exposure to AML/CFT risks according to what is indicated in article 23 of the Regulation on the Management of

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 3 / 9 Risks of Money Laundering and Financing of Terrorism approved by SBS Resolution No. 2660-2015 and its modifications. f. Development and implementation schedule, when applicable, which includes the expected launch date. g. Other information that the Superintendence might require or that the company considers necessary to submit for evaluation. After obtaining the authorization for the development of operations and services, for the issuance in series of financial instruments and for the issuance of instruments representing subordinated debt, the specific norms issued by the Superintendence for such operations must be taken into account. For the case of the operations and services referred to in paragraphs 2 and 7 of article 221 of the General Law, CMACs must additionally submit a request for implementation authorization signed by the Joint Management or General Manager, attaching the following documentation:
a. Draft modification of the company's bylaws, if applicable. b. Manuals of Policies and Procedures, as well as Organization and Functions, modified according to the new operations and services.
c. Report from the Risk Unit, or equivalent area, containing an updated evaluation
of the risks associated with the new operations and services. This Report must include the minimum content indicated in paragraph 3 of Circular No. G-165-2012, referred to risk reports for new products or for significant changes in the business, operational or computer environment. d. Report containing a description regarding the technological infrastructure and information systems that will support the new operations and services. This report must contain the security measures and business continuity strategies implemented or planned. e. Report from the compliance officer describing the actions and/or changes developed in the AML/CFT risk prevention and management system and that have arisen from the evaluation of the level of exposure to AML/CFT risks to which the new operations and services would be exposed. f. Report with the opinion of the Internal Audit Unit on the carrying out of the new operations and services. g. Other information that the Superintendence might require or that the company considers necessary to submit for evaluation. The implementation request must be submitted only when the authorization for the development of the operations and services referred to in paragraphs 2 and 7 of article 221 of the General Law is obtained. In the case of the operation provided for in paragraph 2 of article 221 of the General Law, the prior opinion of the Central Reserve Bank of Peru (hereinafter, Central Bank) must be requested for the development authorization. For this purpose, once the complete documentation mentioned above is received and the corresponding evaluation is carried out, the Superintendence will send the Central Bank the mentioned documentation, for the purpose that said control body issues its opinion. To evaluate the granting of the resolution of development authorization, the Superintendence will take into account complementary evaluation factors such as the entity's solvency levels, the solidity of corporate governance and the risk management system, among other criteria that

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 4 / 9 it considers relevant.
In the cases of operations and services that only require development authorization, the implementation of the new operation and new service may be evaluated by the Superintendence subsequently to the launch of the operation and service. In this sense, they must remain at disposal of the Superintendence, the Manuals of Policies and Procedures and of Organization and Functions modified according to the new operations and services, as well as the Report with the opinion of the Internal Audit Unit on the carrying out of the new operations and services. 1 CMACs constituted from the entry into force of Law No. 30607 that have more than three (3) years of operation and present assets greater than 75,000 Tax Units (UIT), may carry out directly and without prior authorization of the Superintendence the operations referred to in paragraphs 1, 3a, 30a and 34 of article 221 of the General Law. CMACs constituted from the entry into force of Law No. 30607 that do not meet the requirement mentioned above must request prior authorization from the Superintendence to carry out said operations as established in articles 3 and 9, as applicable, of the Regulation for the Expansion of Operations approved by SBS Resolution No. 4465-2016 and its modification (hereinafter, Regulation for the Expansion of Operations). 2 The other operations and services indicated in article 221 of the General Law that are not included in article 286 of said Law may also be carried out by CMACs constituted from the entry into force of Law No. 30607 from the third year of having operating authorization, with prior authorization of the Superintendence considering for this purpose what is established in article 3 of the Regulation for the Expansion of Operations. 3 For all new operations carried out by CMACs, the regulatory provisions issued by the Superintendence associated with risk management in new products and significant changes must be complied with, as applicable. 4
Article 2 5
.- CMACs constituted before the entry into force of Law No. 30607 and that have more than three (3) years of operation, may carry out the new operations and services established in article 286 of the General Law modified by Law No. 30607. For the issuance in series of financial instruments and for the issuance of instruments representing subordinated debt, the specific norms issued by the Superintendence for such operations must also be taken into account. CMACs constituted before the entry into force of Law No. 30607 that have more than three (3) years of operation and present assets greater than 75,000 UIT, may carry out directly and without prior authorization of the Superintendence the operations referred to in paragraphs 1, 3a, 30a and 34 of article 221 of the General Law. CMACs constituted before the entry into force of Law No. 30607 that have more than three years of operation and that 1 Paragraph modified by SBS Resolution No. 02350-2023 of July 18, 2023. 2 Paragraph incorporated by SBS Resolution No. 02350-2023 of July 18, 2023. 3 Paragraph modified by SBS Resolution No. 1049-2021 of April 08, 2021. Subsequently, paragraph modified by SBS Resolution No. 02350-2023 of July 18, 2023. 4 Paragraph incorporated by SBS Resolution No. 02350-2023 of July 18, 2023. 5 Article replaced by SBS Resolution No. 02350-2023 of July 18, 2023.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 5 / 9 do not meet the requirement of having assets greater than 75,000 UIT must request prior authorization from the Superintendence to carry out said operations as established in the articles 3 and 9, as applicable, of the Regulation for the Expansion of Operations. For all new operations carried out by CMACs, the regulatory provisions issued by the Superintendence associated with risk management in new products and significant changes must be complied with, as applicable.
Article 3.- The Joint Management of CMACs must be composed of three (3) members
designated by the Board of Directors, as indicated by article 15 of Supreme Decree No. 157-90-EF and its modifications (hereinafter Special Law). Within the framework of the provisions contemplated in said article, CMACs may designate a General Manager who carries out the tasks established for the Joint Management, for which they must have the express authorization of the Superintendence. The Joint Management or the General Manager are designated for an indefinite term, being subject to the Special Law, General Law and its regulatory norms. For the authorization of designation of a General Manager in a CMAC, it must submit a request for authorization addressed to the Superintendence, signed by the president of the Board of Directors, accompanied by the following information:
a. Copy of the Board of Directors minutes where such decision is recorded; b. Report that supports the viability of having a General Manager and the expected impact on the Corporate Governance of the CMAC, and in which reference is made to the modifications that will be made in the organizational structure, internal norms, powers and internal procedures for this purpose.
Article 4.- The Shareholders' General Meeting of CMACs, as long as third-party shareholders
do not participate with voting rights, is composed of the Municipal Council, which forms its shareholder base and exercises shareholder rights. In those cases where more than one Municipal Council is a shareholder of a CMAC, each Municipal Council must designate one (1) representative for its participation in the sessions of the Shareholders' General Meeting. In those cases where third-party shareholders with voting rights participate, their participation in the Shareholders' General Meeting is governed by what is indicated in the General Law and the General Law of Corporations.
Article 5 6
.- In accordance with articles 4 and 4-A of the Special Law, after applying the priority established in paragraphs 1 and 2 of article 66 of the General Law, a minimum of fifty percent (50%) of the profits of each fiscal year that correspond to the Municipal Councils must be capitalized; this capitalization percentage may be raised to seventy-five percent (75%) if the corporate governance and risk management of the CMAC do not meet all the standards detailed below:
a) The CMAC has at least five (5) nominated directors.
6 Article replaced by SBS Resolution No. 3301-2020 of December 29, 2020, effective from 01.01.2021.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 6 / 9 b) Regarding Joint Management, it is complete with titular members. Exceptionally, two (2) Acting Managers may be allowed for a maximum term of six (6) months of acting. c) The CMAC does not present requirements for provisions, liquidity or capital, of a regulatory or prudential nature, issued by the Superintendence, pending attention. d) The CMAC complies with what is established in the Regulation for the Requirement of Effective Equity for Additional Risks, approved by SBS Resolution No. 3953-2022, and the Regulation for the Requirement of Conservation Buffers, by Economic Cycle and by Risk by Market Concentration, approved by SBS Resolution No. 3954-2022. 7 e) The indicator “Ordinary Capital of Level 1 referred to in article 184 of the General Law divided between Total Risk-Weighted Assets and Contingents” defined in paragraph 15.9 of
article 15 of the Regulation on Subordinated Debt Applicable to Companies of the Financial
System approved by SBS Resolution No. 3950-2022, is greater than 5.125%. 8 To determine the capitalization percentage that corresponds to the Municipal Councils, the Internal Audit Unit of the CMAC must prepare a report in which it evaluates the compliance of each of the standards mentioned above, with a cutoff date of December 31 of the previous year. This report must be approved by the Board of Directors and sent to the Superintendence no later than the fifteenth (15) of February, together with the Board of Directors minutes where its approval is recorded. In addition to the report prepared by the Internal Audit Unit, the Superintendence may consider, for the purpose of determining the capitalization percentage, that the performance of the Shareholders' General Meeting, Board of Directors and Joint Management or General Manager of the CMAC is in accordance with the powers, functions and provisions established in the Special Law, General Law and its regulatory norms. Within a period not exceeding thirty (30) calendar days from the receipt of the report mentioned above, the Superintendence may rule on the evaluation carried out by the Internal Audit Unit, in which case, it will be understood that the results of said evaluation are in conformity. The capitalization percentage of profits must be adjusted to the results of the aforementioned evaluation of the Internal Audit Unit or, if applicable, to the pronouncement of the Superintendence, which has a binding nature. The Shareholders' General Meeting must proceed to formalize the corresponding agreement in the Meeting referred to in article 114 of the General Law of Corporations.” Second Article.- Repeal the Regulation on the conversion to joint-stock companies and shareholding of municipal savings and credit caisses approved by SBS Resolution No. 410-1997, and make modifications to the norms indicated below, for the adequate implementation of Law No. 30607:

1. Incorporate as article 61 in Chapter VI “Final and Transitional Provisions” of the
   Regulation for the constitution, reorganization and establishment of companies and representatives of the Financial and Insurance Systems, approved by SBS Resolution No. 10440-2008, the following text:
   7 Literal replaced by SBS Resolution No. 468-2023, published on February 14, 2023.
   8 Literal replaced by SBS Resolution No. 468-2023, published on February 14, 2023.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 7 / 9 “Article 61°.- Corporate reorganization processes in which a Municipal Savings and Credit Caisse participates - In the corporate reorganization processes referred to in Chapter V of this Regulation in which a Municipal Savings and Credit Caisse participates, during the authorization stage, in the draft agreement of corporate reorganization respective, reference must be made to the composition of the board of directors, considering the way in which the entities designate the directors, both by the Municipal Councils shareholders and by third-party shareholders and entities other than the Municipal Councils shareholders, considering what is established in article 3 of the Regulation for the Election of Representatives to the Board of Directors of Municipal Savings and Credit Caisses.”
2. Modify the Internal Audit Regulation approved by SBS Resolution No. 11699-2008 and
its modifying norms, according to the following:
a. Modify the second paragraph of article 1 of the Internal Audit Regulation, in the following terms:
“Article 1°.- Scope
(...)
In the case of Municipal Savings and Credit Caisses (CMAC), the Popular Credit Caisse of Lima, the Guarantee Fund for Small Industry Loans (FOGAPI), the National Bank, the Agricultural Bank, the Development Financial Corporation (COFIDE), the MIVIVIENDA S.A. Fund, the Derramas, the Benefit Caisses under control of the Superintendence and the Fund of Municipal Savings and Credit Caisses (FOCMAC), the present Regulation will apply as long as it does not conflict with the specific regulations that regulate the activity of these companies.” b. Modify the third paragraph of article 5 of the Internal Audit Regulation, in the following terms:
“Article 5°.- Independence of the Internal Audit Unit (...)
The IAU must have access to the information it requires to fulfill its functions and the development of its audits, without limitation that could affect its conclusions, including that which derives from board minutes and its Committees, and from any other governing body, management or administrative level. In the case of CMACs and FOCMAC, the IAU must have internal regulations that establish the difference of the functions that correspond to it with respect to those applicable to the Institutional Control Body (OCI), which are subject to the norms of the National Control System.”
c. Modify paragraph f) of article 6 of the Internal Audit Regulation, in the following
terms:
“Article 6.- Functions of the Internal Audit Unit (...) f) Evaluate the timely and adequate implementation of recommendations and measures to overcome observations issued by the Superintendence, external auditors, as well as those made by the IAU itself.” (...).”

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 Fax: (511) 6309239 8 / 9 d. Incorporate numeral 18 into the Annex of the Internal Audit Regulation, in the following terms:

“ENTERPRISES INDICATED IN LETTERS A, B AND C OF ARTICLE 16 OF THE GENERAL LAW (EXCEPT GUARANTEE AND SURETY COMPANIES), BANCO DE LA NACIÓN, BANCO AGROPECUARIO, MIVIVIENDA FUND AND DEVELOPMENT FINANCIAL CORPORATION (COFIDE):
(…)
18) In the case of CMACs, verification of compliance with Supreme Decree No. 157-90-EF and its modifying norms and the regulations issued by the Superintendency, which must include at least what is provided in articles: 8 (do not consider 8-A and 8-B), 11 and 12 of the aforementioned Supreme Decree No. 157-90-EF, as well as the first final complementary provision of Law No. 30607.”

e. Incorporate as the final paragraph of Article 16 of the Internal Audit Regulation, the following:

“Article 16.- Minimum Content of the Plan
(…)
In the case of CMACs, the annual internal audit work plan must be formulated so that there is no duplication with respect to the functions assigned to the Internal Control Office (OCI), which is subject to the norms of the National Control System.”

f. Consider the only transitional provision of the Internal Audit Regulation as the first transitional provision and incorporate a second transitional provision into the Internal Audit Regulation, according to the following:

“TRANSITIONAL PROVISIONS
(…)
SECOND: The requirements contemplated in the Regulation will be applicable to the Peruvian Federation of Municipal Savings and Credit Caisses (FEPCMAC) as long as it is under the supervision of the Superintendency, in accordance with what is established in article 21 of Supreme Decree No. 157-90-EF and its modifying norms.”

3. Substitute the fourth paragraph of Article 30 of the Regulation for the Management of Liquidity Risk approved by Resolution SBS No. 9075-2012 and its modifying norms, with the following:

“The limits established in letters c) and d) will not apply to enterprises of the financial system that have less than two years counted from the resolution of authorization to operate; for Municipal Savings and Credit Caisses that have less than two years counted from the authorization to receive time deposits and savings, as well as in custody; or for enterprises of the financial system that have a Collection Indicator less than 15%, unless their assets represent more than 1% of the total assets of the financial system. The Collection Indicator will be calculated as follows:

Collection Indicator = Public Deposits / Total Liabilities

Where:

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 Fax: (511) 6309239 9 / 9 Public Deposits: the sum of Accounts 2101, 2102 and 2103 of the Accounting Manual for Financial System Enterprises. Total Liabilities: Total Liabilities of Form “A” Financial Position Statement of the Accounting Manual for Financial System Enterprises, of the previous month.”

Third Article.- This resolution will enter into force from the day following its publication in the Official Newspaper “El Peruano”, except for what is provided in article 5 of the Special Norms for the Implementation of Law No. 30607 which will enter into force for the capitalization of profits corresponding to the closing of the 2018 fiscal year.

Register, communicate and publish.

SOCORRO HEYSEN ZEGARRA
Superintendent of Banks, Insurance and Private Pension Fund Administrators