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2016-03-16 | NDMC-05

Added 2026-08-19 · Updated 2026-08-20

Technical Standards for Individual Portfolio Administration

The Central Bank of El Salvador establishes technical standards requiring authorized Brokerage Houses and Specialized Deposit and Custody Societies to obtain prior authorization from the Financial System Superintendence to provide individual portfolio administration services. The regulations mandate specific application documentation, including internal control manuals, conflict of interest policies, and valuation procedures, with a twenty-business-day review period for approvals. Entities must execute individual mandate contracts with investors that define investment policies and risk disclosures, maintain separate accounting for each client, and adhere to strict formatting and modification procedures for these agreements.

El Salvador

Superintendencia del Sistema Financiero

THE COMMITTEE OF STANDARDS OF THE CENTRAL RESERVE BANK OF EL SALVADOR,

CONSIDERING:

I. That Article 60-A of the Securities Market Law establishes that Brokerage Houses may carry out individual portfolio administration operations, and that to carry out such operations they will request prior authorization from the Financial System Superintendence, and must carry out these operations with the diligence of a good merchant in their own business. II. That Article 3 literal b) of the Law on Supervision and Regulation of the Financial System establishes as competence of the Financial System Superintendence to authorize the constitution, operation, start of operations, suspension of operations, modification, revocation of authorization, closure and other acts of the members of the financial system, in accordance with the legal, regulatory or technical provisions established regarding this matter. III. That Article 5 literal a) of the Law on Supervision and Regulation of the Financial System establishes as competence of the Financial System Superintendence to authorize, modify, suspend or cancel the entry in the Public Stock Register of Brokerage Houses. IV. That Article 7 of the Law on Supervision and Regulation of the Financial System establishes that it corresponds to the Financial System Superintendence the supervision of Brokerage Houses, Specialized Societies in the Deposit and Custody of Securities and Brokerage Agents. V. That Article 35 literal c) of the Law on Supervision and Regulation of the Financial System establishes as an obligation of the supervised entities the adoption and updating of policies on ethical standards of conduct, management of conflicts of interest, use of insider information, prevention of conduct that may imply manipulation or abuse of the market, as well as compliance with principles, rules or standards in the management of business that establish to achieve corporate objectives. VI. That Article 11 of the Consumer Protection Law establishes that the economic and social interests of consumers will be protected in the terms established by the aforementioned Law, applying suppletorily what is provided for by civil laws, commercial laws, those that regulate foreign trade and the authorization regime of each product or service. VII. That Article 15 first paragraph of the Special Law for the Prevention, Control and Sanction of Money Laundering, Terrorism Financing and Financing of

THEREFORE, by virtue of the regulatory powers conferred by Article 99 of the Law on Supervision and Regulation of the Financial System,

AGREES, to issue the following:

TECHNICAL STANDARDS FOR INDIVIDUAL PORTFOLIO ADMINISTRATION

CHAPTER I OBJECT, SUBJECTS AND TERMS

Object Art. 1.- These Standards aim to establish the guidelines that entities responsible for carrying out individual portfolio administration operations must comply with, in accordance with applicable laws and international standards in the matter, in such a way as to allow transparency, fairness and competitiveness in the securities market.

Subjects Art. 2.- The subjects obliged to comply with the provisions established in these Standards are: (2) a) Brokerage Houses authorized to provide the individual portfolio administration service; and b) Specialized Societies in the Deposit and Custody of Securities.

Terms Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: (2) a) Individual portfolio administration: According to Article 60-A of the Securities Market Law, it is the set of investments that Brokerage Houses make with the resources of an investor, in their name and ownership, for which the House assumes responsibility in making investment decisions in accordance with what is established in the respective contract;

CHAPTER II AUTHORIZATION REQUIREMENTS TO PROVIDE THE INDIVIDUAL PORTFOLIO ADMINISTRATION SERVICE

Authorization Requirements Art. 4.- The House that wishes to provide the individual portfolio administration service must request the corresponding authorization from the Superintendence. For such purposes, the Legal Representative or Attorney-in-fact of the House must present the application signed to the Superintendence accompanied by the following documentation: a) Certification of the Minutes of the Board of Directors meeting in which it is agreed to request authorization to provide the individual portfolio administration service; b) List of the Agents whom the House has designated as responsible for administering matters related to this activity; c) Internal control procedures manual for the operational functioning of individual portfolio administration, in accordance with what is established in article 19 of these Standards; d) Policies on the management of conflicts of interest and the use of insider information relative to the individual portfolio administration service; this information may be considered in the House's Code of Ethics or Conduct, in case it already has these policies, only the corresponding updates must be attached to the application. Such policies must contain at least the following:

Authorization procedure to provide the individual portfolio administration service (2) Art. 5.- Upon receipt of the application for authorization to provide the individual portfolio administration service, in accordance with what is established in article 4 of these Standards, the Superintendence will proceed to verify compliance with the requirements defined in the Securities Market Law and in these Standards, having up to twenty business days for the authorization or denial of the application. (2) If the application is not accompanied by the complete and properly formatted information detailed in article 4 of these Standards, the Superintendence, due to the lack of necessary requirements, may require the House to present the missing documents within a period of ten business days counted from the day following the notification, a period that may be extended at the request of the House, when there are reasons justifying it. (2)

Extension Period (2) Art. 5-A.- The House may present to the Superintendence an application for extension of the period indicated in the fifth paragraph of article 5 of these Standards, before the expiration of said period, expressing the grounds on which it is based and proposing, if applicable, the relevant proof. (2) The extension period may not exceed ten business days and will begin from the next business day after the expiration date of the original period. (2)

Suspension of the period (2) Art. 5-B.- The period of twenty business days indicated in the first paragraph of article 5 of these Standards, will be suspended for the days that elapse between the notification of the requirement to complete information or documentation referred to in the second and fifth paragraphs of said article, until the interested parties remedy the observations required by the Superintendence. (2) (4)

Once the complete and properly formatted documentation is presented, the Superintendence will proceed to notify the resolution in which it authorizes or denies the application for authorization to provide the individual portfolio administration service, within a maximum period of three business days from the date the resolution is issued. (2)

Update of Information Art. 6.- The House will communicate to the Superintendence any change made to the policies, manual and procedures detailed in article 4 of these Standards within a period

CHAPTER III ON INDIVIDUAL PORTFOLIO ADMINISTRATION

Mandate Contract for Individual Portfolio Administration Art. 7.- To provide the individual portfolio administration service, the House must celebrate a mandate contract for individual portfolio administration with the investor. In the aforementioned contract, the investor will authorize the House for making investment decisions and the administration of the resources provided by the same, for which, it will indicate the investment policy, the parameters, the powers it grants to the House for the administration of the Portfolio, as well as, the rights and obligations of the contracting parties. In said contract, the House must express that it accepts the management requested by the investor and the authorizations granted to carry it out. Likewise, the causes for transfer and liquidation of the portfolios must be recorded. For the case of deposit of securities in administration, the investor must grant the House a mandate so that in its name and representation it carries out operations of deposit of securities in the Custodian. For this, the client must celebrate a Mandate Contract for Deposit of Securities Operations in Administration, in accordance with what is established in the "Technical Standards on the Registration of Clients and Intermediation Contracts Used in the Securities Market by Brokerage Houses" (NDMC-23), approved by the Central Bank through its Committee of Standards. Likewise, the House must comply with the registration of clients, whether natural or legal persons, in accordance with what is established in said Regulation. (4) In no case will this contract be considered as a contract of adhesion, which must be adapted to the profile, requirements and needs of each of the investors. Without prejudice to what is established in the applicable laws and these Standards, the contract will be freely discussed between the parties. In Annex No. 1 of these Standards, there is a standard contract that Houses may consider for the provision of this service. The House must explain to the investor that the securities that make up the portfolio are subject to market fluctuation and other risks inherent to investment, therefore, the results obtained from the liquidation of the securities are subject to variations both up and down and there is the possibility that the initially invested amount is not recovered. The House must leave a record of the above in the respective contract. (2)

Art. 8.- The contract must be in legible characters, so the font size cannot be less than 10 points, and must be delivered to the investor at the moment of

Investment Limits and Excesses Art. 9.- The investor's resources may be invested, in accordance with what is established in the contract and in accordance with what is established in the policy and investment limit defined by it. For this, the procedures and deadlines to regularize the non-compliance with the investment policy must be specified in accordance with what is established in the contract.

Modification to the Contract Art. 10.- In case the investor wishes to modify what is established in the contract and its annexes, change the investment policy, the time horizon of the investments or the management powers granted to the House, it must request such modification in writing and the House may prepare an addendum to the original contract where the modifications are established and these will not enter into force until the corresponding documentation for the addendum has been signed. The signing of the corresponding modifications will not affect the liquidation and cancellation of pending operations to be liquidated that have been carried out previously. In the case of making modifications to the funds or amounts invested, they can be carried out through vouchers where the new amount in administration is detailed.

Powers of the House Art. 11.- The powers of the Houses will be in function of those granted by the investor in the respective contract, according to the objectives and conditions established in it, the House being able to exercise, among others, the following: a) Invest in securities and instruments, according to the modalities allowed by the contract and in accordance with what is established by the applicable norms. In the case of execution of buy and sell orders for securities, these must be carried out in accordance with what is established in the "Technical Standards for the Process and Registration of Buy and Sell Orders for Securities of Brokerage Houses" (NDMC-01), likewise the signature of the order forms executed by the investor or prior acceptance by it will not be necessary; nevertheless, the orders must be signed by the executive responsible for the administration of the portfolio by the House; b) Exercise any charge or economic right that incorporate the securities or financial instruments, such as: capitals, interests, dividends, as well as any type of economic rights generated by such assets; c) Exercise any social rights that incorporate the securities or financial instruments maintained in portfolio, such as: right of preference of

CNBCR- 03/2016 NDMC-05 TECHNICAL STANDARDS FOR INDIVIDUAL PORTFOLIO ADMINISTRATION Approval: 16/03/2016 Validity: 11/04/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 8 of 30 subscription of securities, conversion among other securities offered by the issuer, in accordance with what is established by the client; d) Reinvest the proceeds from the alienation of the sale of securities or financial instruments in accordance with what is established by the applicable regulations; e) Request the subscription and redemption of participation units of investment funds; and f) Open bank and securities deposit accounts at institutions authorized by the Superintendency, for which it must have such faculty granted by the client in the respective contract, for such purposes the House must observe what is established in the Special Law for the Prevention, Control and Sanction of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction, especially regarding investor knowledge. (5) Art. 12.- In the event that the investor authorizes the House to open bank accounts in their name and administered by the House, the following clause must be established in the contract: “The contracting parties agree by this means that the funds delivered by the investor to the House will be deposited in a bank account in the name of the investor and administered by the House, in an entity authorized by the Superintendency of the Financial System to carry out passive operations in the country. For this purpose, the investor authorizes the House to open, close or liquidate the bank account in the name of the investor administered by the House; to deposit and withdraw money, freely endorse checks; provide the banking entity with all the information required for the opening of the bank account; enter into all kinds of contracts, sign forms and documents that are necessary to achieve its purpose.” Likewise, in the event that the investor authorizes the House to invest in bank deposits, the following clause must be included: “The investor authorizes the House to open and close bank deposits in their name, in an entity authorized by the Superintendency of the Financial System to carry out passive operations in the country and in accordance with what is stipulated in article 60-A of the Securities Market Law. For this, the House may provide the banking entity, enter into all kinds of contracts, sign forms and documents that are necessary to achieve its purpose.” Likewise, when the investor grants faculties to the House to open bank accounts and deposits, the causes for the closure of bank accounts and deposits by the House must be established in the respective contract. In this case, the House must explain to the investor the scope of the faculty granted.

Termination of the Contract Art. 13.- The investor may terminate the contract in accordance with the procedures, causes and deadlines for resolution contained therein. When the House decides to terminate the contract after the term has expired, provided that it does not breach what is stipulated in article 965 of the Commercial Code, it must notify the investor with a notice of no less than fifteen business days, justifying its decision. The House will proceed according to the instructions indicated by the client, who must stipulate the liquidation or transfer of the portfolio, which must be carried out in accordance with what is established in Chapters X and XI of these Standards. Likewise, the House may stipulate causes and procedures for early termination in contracts entered into with clients, in accordance with what is established in the current legal framework. CHAPTER IV OBLIGATIONS AND PROHIBITIONS OF THE HOUSE Obligations of the House Art. 14.- The House that administers individual portfolios must comply, at a minimum, with the following obligations: a) Maintain the legal, accounting and financial separation at all times of the securities, bank deposits, cash and pending operations of each investor separate from the rest and from its own property; b) Comply with all obligations contained in the contract; c) Carry out operations with the diligence of a good merchant in its own business, taking into consideration the investor's risk profile, defending at all times the interests of the investor according to its best professional judgment with the objective of increasing the value of the portfolio, in accordance with what is established in the contract; d) Know the investor in accordance with article 25 of these Standards; e) Open for exclusive use of the House, a bank account at an institution authorized by the Superintendency under the ownership of the investor, distinct from those that the House has for its own account, in accordance with article 12 of these Standards. The foregoing, in order to carry out individual portfolio administration operations; f) Deposit the securities in a Depositary authorized by the Superintendency, under the ownership of the investor when applicable. In the case of securities accounts related to individual portfolio administration, the House must open the respective securities accounts at the Depositary, separate from the other securities accounts that the investor may have under its ownership at the Depositary; g) Keep identified at all times the securities, bank deposits, cash and pending settlement operations of each investor; h) Charge commissions in accordance with what is established in the contract; i) Keep a record for each investor in accordance with article 21 of these Standards; j) Inform the client prior to the negotiation of securities, when these present price, yield or other extraordinary characteristics to those observed in the market for this type of security, in order for the client to be able to pronounce themselves regarding the execution of the order; and k) Comply with all those obligations stipulated in the laws, regulations and applicable technical standards.

Securities Accounts Art. 15.- With respect to the securities deposit accounts that the House opens in the name of the investor before the Depositary, in accordance with the Mandate Contract for Securities Deposit Operations in Administration, in accordance with what is established in the “Technical Standards on Client Registration and Intermediation Contracts Used in the Securities Market by Brokerage Houses” (NDMC -23), approved by the Central Bank through its Standards Committee, the Depositary must specify in its securities account records that in said accounts the securities in individual portfolio administration are registered, differentiating them from other accounts that the investor may have at the Depositary. (4)

Prohibitions of the House Art. 16.- The following are prohibitions of the House: a) Multiply transactions unnecessarily and without benefit for the investor with the objective of generating commissions at their expense and to the detriment of the administered portfolio; b) Mix the investor's assets with those of the House or with those of another; c) Guarantee or ensure any yield, nor the capital of the securities that make up the portfolio, nor assume losses, nor grant the investor a yield different from that obtained by the portfolio. In no case, the House will act differently from what is established in the contract and the instructions that have been received in a verifiable and prior manner from the investor; d) Transfer securities owned by the administered portfolio to other portfolios or in favor of the House, unless the operation is carried out in a stock exchange or when transfers are made between accounts owned by the same investor; e) Use the funds or financial instruments obtained by the investor or those obtained as products of the administration of the portfolio for purposes other than those entrusted. At no time may it use said resources to finance or guarantee its own operations or those of third parties; f) Guarantee or make contributions with its own resources to satisfy the investor's liquidity demand. In all cases, liquidity will be a function of the administered portfolio; g) Incorporate abusive clauses into the individual portfolio administration contract, in accordance with what is established in article 17 of the Consumer Protection Law; h) Establish automatic renewal in mandate contracts for individual portfolio administration; i) Others established by the laws, regulations and applicable regulations; and j) Disclose information to third parties regarding the investments, amounts and portfolios administered by its clients, unless said information is required by the competent authorities within the framework of their legal attributes.

Supply of Information to the Client Art. 17.- The House must send the client a statement of account, in physical or electronic version in accordance with what is established in the contract, with a monthly frequency, indicating the management developed and considering the following: a) Bank deposits; b) The composition of the portfolio, indicating the type of title, issuer and maturity; c) Portfolio risk indicator, which determines the measure of risk of the administered portfolio calculated through statistical tools, such as: value at risk (VaR) indicator or other risk indicators; d) Portfolio movement; e) Balances; f) Net profitability; g) Accrued commissions; h) Valuation of the portfolio, in accordance with what is established in article 18 of these Standards; and i) Consign the following literal reason: “The value of the portfolio investments are subject to market fluctuations and other risks inherent to investment in securities, so the value shown and the yields obtained may experience variations both up and down and there is a possibility that the initially invested amount is not recovered.” The investor may request at any time a Statement of Account of their investment portfolio at the facilities of the House. In the respective contract for individual portfolio administration, the investor may establish a lower frequency of sending the statement of account according to their needs. The House must communicate to the investor any event that negatively affects the investments or affects the investment limits of the portfolio it administers within a period of 24 hours, from the time the House had knowledge of the fact. Likewise, the House must ensure that the information delivered to each client is sufficient, timely and truthful.

In the event that electronic means are used for the sending of information, these must guarantee the fidelity, integrity and confidentiality of the information referred to.

Valuation of Investments Art. 18.- For the purposes of establishing the fair value of the investments that make up the portfolio, the House must obtain the respective prices through any of the following sources: a) In the case of financial instruments of local issuers, the prices provided by a specialized agent in securities valuation authorized by the Superintendency; b) In the case of financial instruments of foreign issuers, the prices provided by a specialized agent in securities valuation or an international stock or financial information system such as Bloomberg, Reuters or another recognized by the Superintendency in accordance with article 10 of the Securities Market Law; or c) The prices resulting from the development of its own methodology in accordance with what is established in the “Technical Standards for Specialized Agents in Securities Valuation” (NDMC -09), approved by the Central Bank through its Standards Committee, which for such purposes the Central Bank issues. Said methodology must be previously approved by the Board of Directors. (4)

CHAPTER V INTERNAL CONTROL

Internal Control Art. 19.- The House must define internal control procedures related to individual portfolio administration service operations. The House will have a manual containing the internal control procedures related to the management of the individual portfolio administration service, which must be approved by the Board of Directors of the House, said procedures must consider the following: a) The definition of participants, functions and responsibilities inherent to the individual portfolio administration service; b) Purchase and sale policies, transfers and settlement of the assets that make up the portfolios in administration; and c) Segregation of functions policies. In the event that the House has Internal Control Manuals, it must only update them in accordance with what is established in this article. Conflicts of Interest Art. 20.- The House must establish policies and procedures that allow preventing potential conflicts of interest, considering for this purpose, what is established in the “Technical Standards of Conduct of Entities of the Stock Markets” (NDMC -15), approved by the Central Bank through its Standards Committee. (4) CHAPTER VI ON REGISTRATION AND ACCOUNTING Electronic Registration of Administered Portfolios Art. 21.- For the purposes of facilitating the control of each of the administered portfolios, the House must keep an electronic record for each investor, which must be updated daily. The said record must be reconciled with the statements sent to it and the records of the Depositary, in which the following information must be recorded: a) Bank deposits in the name of the investor, noting the date and time in which they were made; b) Investments made by virtue of the contract; c) Movements of funds received or delivered, if applicable, noting the date and time in which they were made; d) Securities bought or sold, detailing the type of security traded, the quantity of securities, the price paid or received, order number and settlement number of the operation, as well as the date and time in which the operations were made, among others, that are relevant for the investor's knowledge; e) Payment of capital, interest, yields and dividends received; f) Data of the Agent in charge of carrying out the operations; g) Commissions charged; h) Daily valuation of the portfolio in accordance with what is established in article 18 of these Standards; and i) Others that are relevant for the administration of the portfolio. All movements must be credited through the issuance of income and expense vouchers. For this, the House will make available to the investor copies of the forms duly signed by the agent in charge of the administration of the portfolio of the buy and sell orders of the securities that make up the portfolio in administration, in accordance with what is established in the “Technical Standards for the Process and Registration of Buy and Sell Orders of Securities of Brokerage Houses” (NDMC -01). Characteristics of the Electronic Record Art. 22.- The electronic record used must comply with the following minimum characteristics: a) Allow the storage of information in media and formats that ensure its integrity, availability and confidentiality over time; b) Have the general information of the investor and the detailed information in article 21 of these Standards; c) Have fields containing the general information of the client; allowing the House to issue account statements per client on a specific date; d) Have contingency mechanisms that allow the House the continuity of its operations; and e) Have regular and periodic backup procedures that guarantee an effective storage of the investor's information.

Separate Assets and Accounting Art. 23.- The funds that make up the individual portfolios administered by a House constitute an independent and distinct patrimony from the patrimony of the House and the other patrimonies it administers. In this sense, the House must account for the individual portfolio separately from the other patrimonies, having an accounting detail for each investor with whom it signs the commission contract for the administration of the individual portfolio. The securities that make up the administered portfolio are the property of the investor and must be registered with absolute independence from the assets owned by the House. The foregoing, in accordance with current accounting regulations. The House must reconcile the administered portfolio daily with the records of the Depositary. The House has no right of ownership over the goods that compose or that are generated by effect of the individual portfolios, being responsible only for their administration in accordance with the Securities Market Law and these Standards. CHAPTER VII ON COMMISSIONS

Administration Commission Art. 24.- For the individual portfolio administration service, the commission established between the investor and the House will be charged, which must be recorded in the contract in accordance with what is established in article 12-A of the Consumer Protection Law. Said commission may be composed or presented separately or detailed from other commissions to be charged by the House. Only the commissions established in the contract may be charged. The House must publish monthly the commission related to the individual portfolio administration, in accordance with what is established in the “Technical Standards for the Publication of Commissions of Entities that Intervene in the Securities Market” (NCM -05), approved by the Central Bank through its Standards Committee. (3) CHAPTER VIII ON THE KNOWLEDGE AND REGISTRATION OF THE INVESTOR Knowledge of the Investor Art. 25.- The House must ensure that it has sufficient information about the investor, prior to the execution of the commission contract for the administration of the individual portfolio, in accordance with what is established in the chapter regarding obligations with clients and knowledge of clients included in the “Technical Standards on the Process and Registration of Buy and Sell Orders of Securities of Brokerage Houses” (NDMC -01). Risk Profile Art. 26.- The House must determine the profile of the potential investor prior to the execution of the commission contract for the administration of the individual portfolio. Based on the information provided by the investor, interviews conducted and a systematic procedure applied by the House for the knowledge of the investor, a profile of the investor on the alternatives of the securities they wish to invest in must be determined, taking into consideration the risk they wish to assume in them, as well as the knowledge they may have about the securities market, level of studies, occupation or professional activity, volume of investment, leaving a record of the profile in the form that the House must create for each of the investors, which must be signed by them. Art. 27.- To determine the risk profile, the House must apply the procedure established in the chapter regarding obligations with clients and knowledge of clients included in the “Technical Standards on the Process and Registration of Buy and Sell Orders of Securities of Brokerage Houses” (NDMC -01), attaching said profile to the respective contract.

CHAPTER IX TRANSFER OF PORTFOLIOS

Art. 28.- The transfer of portfolio administration to another House shall proceed by client instructions in the following cases: a) By change of portfolio administrator at the client's request; b) By revocation of authorization due to the House's withdrawal from the individual portfolio administration activity; and c) By other causes specifically contemplated in the portfolio administration contract. In all cases, the House shall proceed with the portfolio transfer in accordance with the process established in Article 30 of these Standards. The Superintendent may revoke the authorization to provide the individual portfolio administration service as a result of a sanctioning process carried out by it; the procedure shall be in accordance with these Standards and in conformity with the applicable legal framework. As a result of such revocation, the House must activate the portfolio transfer processes, notifying the client so that they may express their position regarding the transfer or liquidation of their portfolio.

Art. 29.- The House intending to cease providing the portfolio administration service must submit a request for revocation of authorization to the Superintendent, signed by the Legal Representative or Attorney-in-Fact of the House, attaching the following documentation: a) Certification of the minute point where the Board of Directors' agreement is recorded, approving the request to the Superintendent for the revocation of the authorization to provide the individual portfolio administration service; b) Action plan to cease providing the service; which establishes the process to be followed, including notification to clients, the deadline to fulfill obligations, and actions to be taken in case client instructions are not received or the client cannot be contacted; and c) Report on portfolios in administration detailing the following: Composition of the portfolios in administration, considering the types of financial instruments in the portfolio, invested amounts, and the number of clients to whom the House provides the service. Once the action plan presented by the House has been fulfilled, the Superintendent, within a period of fifteen business days, shall proceed to revoke the corresponding authorization. The Superintendent shall verify compliance regarding the transfer process and the action plan. The Superintendent shall verify compliance regarding the transfer and liquidation process with its respective action plan.

Transfer Process Art. 30.- In portfolio transfer processes, the following must be observed: a) The investor must sign a mandate contract for individual portfolio administration with the receiving House, in accordance with what is established by these Standards; b) The investor must instruct the House providing the service to transfer the portfolio to the receiving House selected by them; such instruction must be prepared in accordance with Annex No. 2 of these Standards; c) The transferring House must issue a closing statement for the receiving House on the date of the portfolio transfer, detailing the assets that make up the portfolio, and must deliver a copy of said statement to the investor. In case the transfer process includes physical securities, the transferring House must deliver the securities to the investor and leave a written record of the delivery, detailing: date, investor's name, description of the securities: issuer, type of security (bearer, registered, order), certificate number, certificate holder, nominal value of the certificate, and number of securities delivered; d) The transferring House must send to the Custodian where the securities are located, the transfer instruction issued by the investor, to the destination account that the receiving House has opened for the administration of the investor's portfolio; e) The receiving House will verify the crediting of the securities to the destination account; for this, it will prepare an opening statement of the portfolio detailing the securities that make up the portfolio on the date of the portfolio transfer, according to the destination account and reconciling it with the closing statement by the transferring House; and f) The transferring House shall proceed with the settlement and closure of the bank account in administration by it; and deliver to the client the resulting balance from the settlement and closure of the bank account.

This procedure shall be of a general nature for portfolio transfer procedures. The House transferring the portfolios must communicate to the Superintendent the start of the process related to this article on the next business day after becoming aware of the cause motivating it.

Art. 31.- In the case where the investor does not wish to continue with the individual portfolio administration service provided by the House and wishes to continue with the intermediation services provided by the House, the values of the individual portfolio administration deposit accounts shall be transferred to an intermediation account opened by the House, specifying the respective change in the Custodian's records. The House must deliver to the investor a closing statement on the date of the portfolio transfer, detailing the assets that make up the portfolio. Once the change has been made, the House shall proceed with the settlement and closure of the bank account in administration by the House. Furthermore, the House may not charge any commission for the individual portfolio administration service.

Cessation of House Activities Art. 32.- The House transferring the portfolio shall be responsible for fulfilling its obligations, until the House that acquires the administration has the values that make up the portfolio in its accounts and has received the other values.

CHAPTER X LIQUIDATION OF THE PORTFOLIO

Liquidation of the Portfolio Art. 33.- The portfolio shall be liquidated at the request of the investor and in accordance with the cases contemplated in the contract.

Art. 34.- During the liquidation process, the House must observe the following: a) Communicate in writing to the investor or their beneficiaries, in the manner provided in the contract, that the portfolio has entered the liquidation process; b) Prepare a closing statement detailing the assets that make up the portfolio on the date of the start of the liquidation process; c) Cancel commitments with third parties that have committed the assets of the portfolio; d) Sell the securities or assets of the portfolio under the best conditions for the client, taking into consideration the maturity periods of the investments; e) Settle and close the bank account in administration by the House; and f) Distribute the balances resulting from the liquidation of the securities, depositing them in the account the client established to receive balances according to the contract or in the manner the client requires. Clause a) shall not apply when the portfolio liquidation instruction is at the request of the investor. This procedure shall be of a general nature for the liquidation of portfolios.

CHAPTER XI REQUEST FOR INFORMATION

Sending of Information Art. 35.- The House must inform the Superintendent monthly of the total amounts of the administered portfolios in accordance with what is established in Annex No. 3 of these Standards. Likewise, the House must remit monthly to the Superintendent, within the first ten business days of the month, the liquidations carried out by it, detailing the composition of the liquidated portfolios considering the types of instruments that make up the portfolio. (4)

Related Operations Art. 36.- The House must inform the Superintendent monthly in accordance with what is established in Annex No. 4 of these Standards, regarding the following investments: a) Investments in securities or financial instruments issued by entities that belong to the same financial conglomerate or business group to which the House belongs and that such securities have become part of the investments of the portfolios in administration; b) The subscription or acquisitions of securities in which the House or any entity of the financial conglomerate or business group acts as an agent for the issuance and that such securities have become part of the investments of the portfolios in administration;

c) The securities or financial instruments resulting from the negotiation of the House or entities that belong to the same business group or financial conglomerate of the same, and that such securities have become part of the investments of the portfolios in administration; and d) Operations between the client and other clients of the House.

Technical Details of Sending Information Art. 37.- The Superintendent shall remit to the entities subject to these Standards within a maximum period of one hundred twenty (120) calendar days following the entry into force of these Standards, with a copy to the Central Bank, the technical details related to the sending of the information required in articles 35 and 36 thereof. In no case shall the aforementioned technical details modify what is established in these Standards.

CHAPTER XII OTHER PROVISIONS AND VALIDITY

Sanctions Art. 38.- Non-compliance with the provisions contained in these Standards shall be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System. (2)

Unforeseen Aspects (2) Art. 39.- Aspects not provided for in the regulatory matter in these Standards shall be resolved by the Central Bank through its Standards Committee. (2)

Validity Art. 40.- These Standards shall enter into force as of April 11, 2016.

MODIFICATIONS: (1) Modification approved based on the generic procedure agreed upon by the Standards Committee of the Central Reserve Bank in Session CN-01/2016, of February 24, 2016. Validity of modification as of September 5, 2017. (2) Modifications to articles 2, 3, 4, 5, 7, 8, 38, 39 and incorporation of articles 5-A and 5-B, approved by the Central Bank through its Standards Committee, in Session CN-14/2021, dated October 4, 2021, with validity as of October 21, 2021. (3) Modifications in article 24, approved by the Central Bank through its Standards Committee, in Session CN-09/2023 of September 26, 2023, with validity as of October 11, 2023. (4) Modifications to articles 3, 5-B, 7, 15, 18, 20 and 35, approved by the Central Bank through its Standards Committee, in Session No. CN-05/2025 of June 30, 2025, with validity as of July 15, 2025.

(5) Modifications in Consideration VII, in article 11 and in Annex No. 1, approved by the Central Bank through its Standards Committee, in Session No. CN-04/2026, of May 25, 2026, with validity as of June 9, 2026.

Annex No. 1

STANDARD MANDATE CONTRACT FOR INDIVIDUAL PORTFOLIO ADMINISTRATION We, (NAME OF LEGAL REPRESENTATIVE, ATTORNEY-IN-FACT OR MANAGER OF THE BROKERAGE HOUSE AUTHORIZED FOR THIS PURPOSE), of legal age, employee, of the domicile of (Domicile of LEGAL REPRESENTATIVE of the BROKERAGE HOUSE), who acts in the name and representation of ________________ in their capacity as (LEGAL REPRESENTATIVE, ATTORNEY-IN-FACT OR MANAGER) of _______, Brokerage House, of Salvadoran Nationality and of the domicile of San Salvador, duly authorized by the Superintendent of the Financial System to carry out Individual Portfolio Administration operations under the terms and scope set forth in the Securities Market Law, whom we shall refer to as "the House", with sufficient legal standing to appear in the name of the Society, as evidenced by (Credential, Notarized Copy of Public Deed of Constitution of the House or sufficient Power of Attorney), granted by , in their capacity as ___________________ and therefore, legal representative of the Society, in the city of , granted at _______________ hours on the day _________ of _______ , before the offices of notary , registered in the Commerce Registry at Number _______ of Book ________ of the Registry of Other Commercial Contracts, on the day ____ of _____ of , from which it is evident that I am authorized to act in the name and representation of the Society in contracts such as the present one, in the aforementioned power the authorizing notary certified the legal standing of the legal representative of the society and the legal existence of the House; and on the other hand (Name of "The Client") of legal age, Profession or Trade, of the domicile of (Domicile of the Client), with Unique Identity Document number _______ (In the case of acting on behalf of a legal or natural person, the following data must be completed) with sufficient legal standing to appear in the name of: (indicate the name of the natural person or name of the Society), as evidenced by _________ (Credential, Notarized Copy of Public Deed of Constitution of the House or sufficient Power of Attorney), granted by, in their capacity as and therefore, legal representative of the Society, in the city of , granted at _____________ hours on the day of, before the offices of the notary, registered in the Commerce Registry at Number of book ; whom we shall refer to as "The Client", by means of this document we agree to celebrate this MANDATE CONTRACT FOR INDIVIDUAL PORTFOLIO ADMINISTRATION, which shall be governed by the following clauses:

I. The Client appoints the House as the agent, in accordance with what is established in article 60-A of the Securities Market Law; therefore, the client authorizes the House to make investment decisions and manage the resources provided by the client in accordance with the parameters established in this contract, as well as for the performance of the commercial activities referred to in this contract, attending to the legal, regulatory and normative provisions that govern the securities market. The House may act on behalf of the client in the purchase, sale or other type of negotiation of all kinds of securities in accordance with what is stipulated in this contract, whose negotiation shall be carried out in accordance with what is established in the Securities Market Law and respective regulations.

Annex No. 1

The Brokerage House accepts the aforementioned appointment and the management requested by the Client, maintaining in strict confidentiality the identity of the person on whose behalf they contract, in accordance with the applicable legal framework; and is obliged to act with responsibility, care and diligence, must carry out these operations with the diligence of a good merchant in their own business, faithfully respecting the clauses stipulated here always under the best conditions for the benefit of the Client.

II. The client will deliver to the house for management an initial contribution of US$___________ United States dollars, and may make other contributions at any time. (In case of delivery of financial instruments, the House must describe the characteristics of said instruments such as: Issuer, type of security or type of title, series or tranche, number, nominal value, account of origin). The contracting parties agree by this means that the funds delivered by the investor to the House shall be deposited in a bank account in the name of the client and administered by the House, in an entity authorized by the Superintendent of the Financial System to carry out passive operations in the country. For this purpose, the client authorizes the House to open, close or liquidate the bank account in the name of the client administered by the House; to deposit and withdraw money, issue and endorse checks; provide the bank entity with all the information required for the opening of the bank account; enter into all kinds of contracts, sign forms and documents that are necessary to achieve its purpose. The House undertakes to invest the contributions made by the client only in the investment options defined in this contract. All in accordance with their profile and their investment needs or objectives, taking into account the risk that the Client wishes to assume. Likewise, the Client must also establish any special conditions or circumstances that require the House to take into account during the provision of the individual portfolio administration service (the client must establish the procedures and deadlines to regularize non-compliance with the investment policy or diversification policies and conditions related to the levels of tolerance regarding the levels of loss established and the measures to be implemented, possibly stipulating the liquidation of the same). To determine the client's risk profile, the House must use the procedure established in the Chapter regarding obligations with clients and knowledge of clients established in the "Technical Standards on the Process and Recording of Buy and Sell Orders of Brokerage Houses" (NDMC -01), the House must attach said profile to this contract.

III. Investment policies agreed upon between the client and the House for Individual Portfolio Administration: Financial Instruments Allowed Percentage in Portfolio (Ranges of allowed percentages in portfolio) Fixed Income National Market

Annex No. 1 • Stock Market Papers • CENELI • Treasury Bills • Investment Certificates • Securitization Values • Treasury Bonds • BC Bonds • Others International Market • Treasury Bonds • Eurobonds • Corporate Bonds • Others Equity National Market • Local Shares • Others International Market • International Shares • Exchange Traded Funds (ETFs) • Deposit Receipts (ADRs) • Others Total 100% (This table must be prepared only with the investment options that the client establishes for the administration of the portfolio). If excesses occur beyond the investment limits established in this clause, due to market fluctuations, exchange rate, significant liquidations within the portfolio or for any other justified cause, the House must notify it within _________ (the parties must establish the deadline to receive the notification) business days of the occurrence of the excess and inform their plan to reduce the excess to the Client, who may express their position regarding this reduction plan within three business days following receipt of the communication from the House. The House shall have a period of _________ (the parties must establish the deadline) days, counted from the date the excess occurred, to regularize the established percentages. The House may not make new acquisitions of instruments from the entities or instruments involved in the excess, nor carry out financial operations having these entities as counterparties, until the situation is regularized.

CNBCR- 03/2016 NDMC-05 TECHNICAL STANDARDS FOR INDIVIDUAL PORTFOLIO ADMINISTRATION Approval: 16/03/2016 Validity: 11/04/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 24 of 30 Annex No. 1 In cases where excesses do not stem from the reasons mentioned in the preceding subsections, the House shall be responsible for any damages it may cause, and must in all cases regularize the portfolio situation within a period of thirty days counted from the date the excess occurred. In the event that an investment excess arises and while it persists, the House must inform the client within a period of 24 hours of becoming aware of said situation, according to the communication means established in the present contract. IV. The client authorizes the House to: a) Acquire or purchase securities and instruments in accordance with the parameters established by the client; b) In the event that the client authorizes the House to invest funds in bank deposits, the following clause must be included: “The client authorizes the House to open and close bank deposits in its name, in an entity authorized by the Superintendence of the Financial System to carry out passive operations in the country and in accordance with what is stipulated in Article 60-A of the Securities Market Law. For this purpose, the House may provide the bank entity, enter into all kinds of contracts, sign forms and documents that are necessary to achieve its purpose”; c) Collect and exercise any rights or benefits incorporated in the securities or financial instruments such as the payment of capital, interest, dividends, as well as any other kind of yield, delivery of securities or income generated by such assets; d) Alienate, sell, transfer totally or partially, securities or financial instruments acquired and reinvest the proceeds from such alienation; e) Exercise the subscription preference rights of securities (shares, bonds, among others) or conversion into other securities offered by the issuer, f) Request early redemption, amortization, redemption, payment of the securities or financial instruments; and g) (Other faculties may be suppressed or added that the parties agree upon). V. Due to the volatility present in stock markets, the House can only be responsible for damages to the client that arise from the breach of professional duties that Houses must observe in the performance of their commercial activity, originating from negligence, incompetence, or others. However, since the factors that can affect the performance of securities do not depend on the House, the risks of the investment will be at the client's expense; and in view of the possible events of future facts that can affect the results of investments, which are subject to different degrees of uncertainty, the House and the client accept that even with the best effort of the first, it may always happen that the expected result of the operations differs from the true result without this implying that there should be any compensation for the loss obtained, provided that they occurred under the circumstances and in the manner indicated and with the negotiation mechanisms established in accordance with the Securities Market Law and the corresponding regulations.

CNBCR- 03/2016 NDMC-05 TECHNICAL STANDARDS FOR INDIVIDUAL PORTFOLIO ADMINISTRATION Approval: 16/03/2016 Validity: 11/04/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 25 of 30 Annex No. 1 VI. The House undertakes to: a) Carry out operations with the diligence of a good merchant in its own business, defending the client's interests at all times; b) Open for the management of the respective funds, a bank account in an institution authorized by the Superintendence in the client's name, distinct from those that the House holds for its own account; c) Deposit the securities in a Depositary authorized by the Superintendence, under the ownership of the client when it corresponds to dematerialized securities, or in its absence and regarding securities titles, the House must establish security mechanisms to keep the securities titles safe from disaster, theft, or other contingencies. In the case of securities accounts related to Individual Portfolio Administration, the House must open the respective securities accounts in the Depositary, separate from the other securities accounts that the client may have under its ownership in the Depositary; d) Keep identified at all times the securities, bank deposits, cash, and ongoing operations of each client; e) Keep a record for each client; f) Accredit the movements made in the portfolio, through the issuance of income and expense receipts; and g) Comply with all those obligations stipulated in the laws, regulations, and technical standards applicable. VII. Supply of information The House must send with a periodicity of _________ a statement of account, indicating the management developed, the bank deposits, the assets in the portfolio, their movements, balances, valuation, yield obtained, commissions accrued, and the resulting balance, to __________ (The client must express the postal address or email address or medium that they wish for the sending of information). The House must communicate to the client any relevant fact that negatively affects the investments of the portfolio it administers within a period of 24 hours from when the House had knowledge of the fact. VIII. The following are prohibitions of the House: a) The House may not mix the portfolio's assets with its own or with those of another client; b) Guarantee or ensure any yield, nor the capital of the securities that make up the portfolio; it may not assume losses nor grant the client a yield different from that obtained by the portfolio; c) The House will not transfer securities owned by the administered portfolio to other administered portfolios or in favor of the House, unless the operation is carried out in a stock exchange or when transfers are made between accounts owned by the same client; d) Use the funds obtained by the client or those obtained as a product of the portfolio management for other purposes different from those entrusted, at no time may it use said resources to finance its own or third-party operations; e) Reveal information to third parties regarding the investments, amounts, and portfolios administered of its clients, unless said information is required by the competent authorities within the framework of their legal attributes; and (1)

CNBCR- 03/2016 NDMC-05 TECHNICAL STANDARDS FOR INDIVIDUAL PORTFOLIO ADMINISTRATION Approval: 16/03/2016 Validity: 11/04/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 26 of 30 Annex No. 1 f) Others that establish the laws, regulations, and applicable regulations. (1) IX. The House must incorporate into the present contract the concepts of the services for individual portfolio administration, to be provided under this service, the agreed commissions plus the Tax on the Transfer of Movable Property and for the Provision of Services, hereinafter “VAT”, detailing in the present contract or incorporating the table of the detail of the commissions to be charged as an annex to it. Said detail must consider the criteria under which the commissions are calculated, the form and period in which they will be charged, which must be duly signed by the contracting parties, which may vary having the client as notification, in accordance with the Securities Market Law and the respective regulations, through the publication made in two newspapers of national circulation before which, the commissions that are charged to the client may not be greater than those published. (In case of annex, it must contain a table with the detail of the stipulated information, incorporating in detail the precise data of each of the commissions of the operations that are carried out, describing the base on which the commissions will be applied, as well as the ranges that could generate differences in the charging of said commissions, if they exist) X. Resolution of conflicts or arbitration The parties expressly agree that any conflict, controversy, difference, divergence, or dispute that arises between the parties, and in particular those derived from the application, execution, breach, interpretation, liquidation, resolution, termination, or validity of the present contract, may be submitted to any of the alternative means of dispute resolution in accordance with the Law on Mediation, Conciliation, and Arbitration or to the courts of justice. XI. Grounds for liquidation and transfer of the portfolio (the parties may establish the grounds for the liquidation and transfer of the portfolio) XII. Contract Term The contracting parties accept that the present contract is celebrated for a period of ________(month/year) counted from __________ (date of signing) to __________ (end date). This term may be automatically extended for equal periods, provided that neither of the parties expresses otherwise. In the event that the client wishes to cancel it before its end date, they must manifest in writing to the other party their intention to cancel it, with at least fifteen days' advance notice (the parties may indicate grounds and terms for the termination of the contract). The breach by one of the parties of its obligations contracted under this contract gives the other party the right to terminate or resolve it without the need for judicial intervention, being able to claim from the breaching party the damages and losses that may have arisen. The pending operations to be concluded on the date this contract ceases to have effect for any cause, must be brought to completion by the parties. (Additionally, the parties may stipulate other causes for the resolution of the contract) The early termination of the contract will not affect the processing, liquidation, and cancellation of the ongoing operations that had been agreed upon prior to the written communication, which will continue to be governed by the conditions applicable to them, in accordance with the stipulations of the present contract.

CNBCR- 03/2016 NDMC-05 TECHNICAL STANDARDS FOR INDIVIDUAL PORTFOLIO ADMINISTRATION Approval: 16/03/2016 Validity: 11/04/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 27 of 30 Annex No. 1 The House will only have the right to receive commissions for the operations carried out pending liquidation at the moment of the resolution of the contract and the proportional accrued part of the commissions corresponding to the period started at the moment of the end of the contract. XIII. Compliance with Law The parties declare that it is understood that the present contract must be executed by the House subject to the applicable Salvadoran legislation, especially the Securities Market Law, Consumer Protection Law, and the Commercial Code, Special Law for the Prevention, Control, and Sanction of Money Laundering, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction, as well as the Standards issued by the Central Bank and the other applicable norms. (5) XIV. Annexes If the House incorporates Annexes to this contract, it must declare that: “The following Annexes are integral parts of this Contract….” (The House must detail the annexes and deliver a copy of them to the client, at the moment of signing the contracts). XV. Domicile of the contract “For the legal effects of the present contract, the parties accept and agree to designate as the special domicile the following: ___, to whose authorities they expressly submit” XVI. Clause to define procedure for presentation of complaints, in which it must specify the procedure to be followed by the client for the presentation of complaints, which must be simple, brief, and free; detailing the administrative bodies that will attend the complaint, the responsible executive and reasonable response times, in addition, it must include the delivery to the client of a receipt of receipt of the complaint. XVII. Clause to define Account for the deposit of balances The client expressly authorizes the House so that, in the event that it proceeds to deliver the corresponding balances in concept of yield, liquidation of positions, etc., when applicable, said payment is made by deposit into their (savings or checking) account ______ number, opened at the Bank _______, Institution that is authorized by the Superintendence of the Financial System to carry out passive operations in the country. XVIII. Acceptance of the contract The client expressly declares that the House has read and explained to them in a clear, truthful, timely, and satisfactory manner the obligations and conditions of the present contract and therefore accepts them. XIX. The present contract is signed in two copies, keeping one each of the parties, in the city of _________, at the __________ hours of the day _______ of ________ of the year 201.

Portfolio transfer form between accounts

No. I deliver I receive Name of the House that Transfers

Name of the House receiving the transfer of securities

Date

Name of the Client

Description of the Composition of the portfolio

Issuer Type of value Series or tranche Number from - to Nominal Value

Origin Account Destination Account

Signature of the agent in charge of administration Signature of the Investor of the portfolio

Seal of the House

Annex No. 4 Information relative to Related-Party Operations. No. Name Description 1 Information Date Corresponds to the date of realization of the operation. 2 Concept Establish the name of the entity with which the related operation has been carried out, such as it appears in its minutes or deed of incorporation and in accordance with what is established in article 36 of the present Standards. 3 Portfolio Name of the client. 4 Value Value of the operation as of the report date (current balance of the investment). 5 Percentage Value of the relationship investment amount between the total value of the portfolio (Establishing the percentage %).