Technical Standards for Information Transfer for the Supervision of Investments of the Pension System — SSF — SV

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

CONSIDERING:

I. That by Legislative Decree No. 614, of December 20, 2022, published in the Official Journal No. 241, Volume No. 437, of December 21, 2022, the Comprehensive Law of the Pension System was issued, by which the Pension System for workers in the private, public, and municipal sectors was created, comprising the set of norms and measures that Pension Fund Administrators will apply.
II. That Article 42 of the Comprehensive Law of the Pension System establishes that Pension Fund Administrators, in the exercise of their functions, may contract services with other companies, such as those for information processing and others related to their operations.
III. That Article 78 of the Comprehensive Law of the Pension System establishes that the value of the quota in which each Pension Fund is expressed will be determined daily based on the economic or market value of the investments.
IV. That Article 82 of the Comprehensive Law of the Pension System establishes the investment regime for the resources of the Pension Funds that each Pension Fund Administrator must comply with.
V. That the second paragraph of Article 2 of the Law on Supervision and Regulation of the Financial System requires that members of the financial system comply with current regulations and the adoption of the highest standards of conduct in the development of their business, acts, and operations in accordance with what is established therein.
VI. That Article 32 of the Law on Supervision and Regulation of the Financial System establishes that the Superintendence may require supervised entities direct access to all data, reports, or documents regarding their operations through the means and form that it defines.
VII. That Article 35 of the Law on Supervision and Regulation of the Financial System establishes that directors, managers, and other officials holding positions of direction or administration in the members of the financial system must conduct their business, acts, and operations complying with the highest ethical standards of conduct, and must ensure the efficient functioning of systems for recording, processing, storage, transmission, production, security, and control of information flows.

TECHNICAL STANDARDS FOR THE TRANSFER OF INFORMATION FOR THE SUPERVISION OF INVESTMENTS OF THE PENSION SYSTEM

CHAPTER I
OBJECT, SUBJECTS, AND TERMS
Object
Art. 1.- These Norms aim to define the guidelines that will be applied in the process of transfer and exchange of information between the subjects obligated to comply with these Norms and the Superintendence of the Financial System, related to securities market operations and the purchases and sales made by Pension Fund Administrators, both with resources from the Pension Funds they administer and with their own resources. Subjects Art. 2.- The subjects obligated to comply with the provisions established in these Norms are:
a) Stock exchanges constituted in El Salvador and registered with the Superintendence of the Financial System; b) Brokerage Houses through which Pension Fund Administrators buy or sell securities with the resources of the pension funds; and c) Pension Fund Administrators.

Terms
Art. 3.- For the purposes of these Norms, the terms indicated below have the following meaning:
a) AFP: Pension Fund Administrator; b) Senior Management: Executive President, Executive Director, General Manager, or whoever acts in their place, and the executive positions that report to them;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-56
TECHNICAL STANDARDS FOR THE TRANSFER OF INFORMATION FOR THE SUPERVISION OF INVESTMENTS OF THE PENSION SYSTEM Approval:
30/12/2022
Validity: 30/12/2022 c) Central Bank: Central Reserve Bank of El Salvador; d) Exchange(s): Stock exchange or exchanges constituted in El Salvador and registered with the Superintendence of the Financial System; e) Houses: Brokerage Houses; f) Code: The one that identifies each of the entities that provide services related to the Pension System; g) Fund(s): Pension Fund(s); h) SP Law: Comprehensive Law of the Pension System; i) Primary Market: That in which issuers and buyers participate directly or through brokerage houses, in the purchase and sale of securities offered to the public for the first time, in accordance with the Securities Market Law; j) Secondary Market: That in which securities are traded for the second or more times. In it, issuers are no longer the offerors of said securities, in accordance with the Securities Market Law; k) SP: Pension System; and l) Superintendence: Superintendence of the Financial System.
CHAPTER II
ON THE INFORMATION ABOUT INVESTMENTS REQUIRED FROM PENSION FUND ADMINISTRATORS

Art. 4.- The directors and administrators of the AFPs must inform in writing to Senior Management about any investment they have made in instruments in which the investment of the Funds with their own resources is authorized. This information must be reported to the Superintendence on the next business day after the investment is made. Art. 5.- Each AFP will present to the Superintendence the detail of its operations, which will include the daily movement of securities. This information will be sent in accordance with what is established in the Technical Norms for the Request of Information to Pension Fund Administrators for Control (NSP-41) issued by the Central Bank through its Norms Committee.
CHAPTER III
ON THE INFORMATION REQUIRED FROM STOCK EXCHANGES

Art. 6.- Exchanges must have mechanisms for the electronic sending of the daily information required by the Superintendence, related to stock market operations carried out in the primary and secondary markets, as well as with repurchase operations, identifying the transactions carried out by the AFPs; they must also allow the Superintendence real-time access, at the level of

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-56
TECHNICAL STANDARDS FOR THE TRANSFER OF INFORMATION FOR THE SUPERVISION OF INVESTMENTS OF THE PENSION SYSTEM Approval:
30/12/2022
Validity: 30/12/2022 consultation, to their stock market information systems or through computer applications, via Internet or by electronic data transmission.
Notwithstanding the foregoing, the sending of information may be replaced by access through objects such as tables, views, or any mechanism that displays the information to be consulted by the Superintendence with the same periodicity, safeguarding the integrity of the information. The variables related to stock market operations to be reported by the exchanges or made available to the Superintendence will be in accordance with what is established in Annex No. 1 of these Norms. Transmission Schedule of Information Art. 7.- In the event that there is sending of information to the Superintendence in accordance with the previous article, stock exchanges will transmit daily to the Superintendence all information on stock transactions, no later than 15:45 hours on the day the operation is executed; if access is through objects such as tables, views, there shall be no time restrictions for consultation. Art. 8.- Both the daily sending of the information on the exchange's operations, as well as remote access to the stock market information systems, will not represent any cost to the Superintendence under any concept.

Technical Details for the Submission of Information to the Superintendence Art. 9.- The Superintendence will send to the exchanges, with a copy to the Central Bank, within a maximum period of thirty days after the date of entry into force of these Norms, the technical details related to the sending of the information requested in Annex No. 1 of these Norms. The technical details will be limited to the collection of information in accordance with the regulations in these Norms. Exchanges that currently already provide information to the Superintendence in accordance with what is required in the aforementioned annex will continue to deliver it by the same means.
CHAPTER IV
ON THE INFORMATION REQUIRED FROM BROKERAGE HOUSES

Art. 10.- The houses, when representing the AFPs in the purchase or sale of securities belonging to the Fund, must inform the Superintendence about the natural or legal persons with whom the AFPs carry out said transactions.

The variables related to stock market operations to be reported by the houses will be in accordance with what is established in Annex No. 2 of these Norms.
In the event that there are corrections to the information sent, they must be reported to the Superintendence.

Technical Details for the Submission of Information to the Superintendence Art. 12.- The Superintendence will send to the houses, with a copy to the Central Bank, within a maximum period of thirty days after the date of entry into force of these Norms, the technical details related to the sending of the information requested in Annex No. 2 of these Norms. The technical details will be limited to the collection of information in accordance with the regulations in these Norms.
CHAPTER V
OTHER PROVISIONS AND VALIDITY

On the Information Required from the Central Bank Art. 13.- The transfer of all information necessary for the valuation of investments in the instruments detailed in letters a) and b) of Article 161 of the SP Law will be in the form established prior to the validity of the referred law. On the Economic Value or Market Value of the Investments of the Pension Funds Art. 14.- The valuation of the instruments in which the Pension Funds are invested, referred to in the third paragraph of Article 78 of the SP Law, will be in the form established prior to the validity of the referred law. Sanctions Art. 15.- Non-compliance with the provisions contained in these Norms will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System. Repeal Art. 16.- Technical Norms for the Transfer of Information for the Supervision of Investments of the Pension Savings System

DETAIL OF THE INFORMATION TO BE TRANSFERRED BY THE EXCHANGES TO THE SUPERINTENDENCE

The minimum information to be required will be the following:
No
FIELD NAME
DESCRIPTION
1 Operation Date Date of negotiation of the operation.
2 Operation Number
Sequential number with which the exchange identifies the transaction of the reported instrument 3 Buying House Code assigned by the exchange to the buying house 4 Selling House Code assigned by the exchange to the selling house 5 Security Code Code used by the exchange to identify the issuance and the series or tranche of the instrument. 6 ISIN Code ISIN code of the instrument. 7 Operation Type Code used by the exchange to identify the type of operation (to today, spot, or forward). 8 Term Term in business days for the settlement of the instrument. 9 Market Type Code used by the exchange to identify the type of Market in which the transaction was carried out, that is, primary, secondary, international, or repurchases, for fixed and variable income. 10 Nominal Value Traded nominal value of the instrument. 11 Number of Securities Number of securities or quantity of sheets traded, both of fixed and variable income:

For physical securities, the number of sheets.
For dematerialized securities, the number 1 will be placed
12 Price For fixed income securities, the negotiated price of the instrument as a percentage of its par value must be specified. For variable income securities, the unit price of the instrument will be specified. 13 Yield Gross yield of the stock market operation, according to what is calculated according to the methodologies used by the stock exchange of

DETAIL OF THE INFORMATION TO BE TRANSFERRED BY THE EXCHANGES TO THE SUPERINTENDENCE

The minimum information to be required will be the following:
No
FIELD NAME
DESCRIPTION values.
14 Traded Amount Total amount of the transaction, that is, the total nominal amount by the price paid.
15 House Commission Amount of commissions paid to the Brokerage House.
16 Exchange Commission Amount of commissions paid to the Stock Exchange.
17 Selling Client Code Code assigned by the exchange by type of selling client.
18 Buying Client Code Code assigned by the exchange by type of buying client.
19 Number of Securities Quantity of securities:

Fixed income instruments and repurchases: quantity of sheets traded.
Variable income instruments: quantity of shares or participation units of investment funds traded
Dematerialized instruments will place 1.
20 Accrued Interest Amount of accrued interest from the negotiation date or last coupon payment, until the settlement date of the instrument.
21 Settlement Date Settlement date of the stock operation.
22 Repurchase Term Repurchase term in days.
23 Maturity Date Date of repurchase or maturity of the repurchase operation.

PENSION FUND ADMINISTRATORS TRANSACTIONS THROUGH BROKERAGE HOUSES The information to be required will be the following:
a) Code and Name of the Reporting House: specifying the code assigned by the exchange and the corporate name of the House that made the purchase or sale bid of securities. b) Date: date to which the reported information corresponds. c) Sheet Number: number of the reported sheet, as well as the total number of sheets of the report, 1/n. d) The operations related to the purchases and sales of the securities will be reported as follows:
i) In column (1), Buyer Client Type, the code used by the exchange to identify the type of client must be specified, highlighting the following: 04, for transactions with Pension Fund resources and 05, for AFP transactions with own resources; ii) In column (2), Buyer, the name of the natural or legal person, national or foreign, who made the purchase bid of the security will be specified; iii) In column (3), Buyer Identification Document, the Tax Identification Number will be specified in the case of national natural or legal persons. The passport number, for foreign natural persons and the Tax Identification Number of the legal representative, for foreign companies; iv) In column (4), Seller Client Type, the code that the exchange uses to identify the type of client must be specified, highlighting the following: 04, for transactions with Fund resources and 05, for AFP transactions with own resources; v) In column (5), Seller, the name of the natural or legal person, national or foreign, who made the sale bid of the security will be specified; vi) In column (6), Seller Identification Document, the Tax Identification Number will be specified, in the case of national natural or legal persons; the passport number, for foreign natural persons and the Tax Identification Number of the legal representative, for foreign companies. vii) In column (7), Operation Number, the sequential number with which the respective exchange identifies the transaction of the reported instrument will be specified; viii) In column (8), Market, the market where the transaction was carried out must be reported. It can be primary (P), secondary (S), repurchases (R) and International (I). ix) In column (9), Instrument Code, the ISIN code of the instrument must be specified; x) In column (10), Number of Securities, the quantity of securities of the same series, tranche, and issuance, traded in the same operation will be specified; xi) In column (11), Number of Sheets, the range of the number of

PENSION FUND ADMINISTRATORS TRANSACTIONS THROUGH BROKERAGE HOUSES sheets of the same series, tranche, and issuance traded in the same operation (From A1), when applicable; xii) In column (12), Nominal Value, the total nominal value of the securities traded will be specified; xiii) In column (13), Price, in the case of fixed income securities, the agreed price of the security, as a percentage of its par value, must be specified. For variable income securities, the unit price of the instrument will be specified, in United States dollars; xiv) In column (14), Traded Amount, in the case of fixed income securities, the total value of the transaction will be reported, as a percentage of the par value, excluding accrued interest and commissions of the Brokerage House and the Exchange. For variable income securities, the total traded amount will be specified; xv) In column (15), Accrued Interest, the interest that the exchange reports in the transaction of the reported instrument will be reported; xvi) In column (16), Total Traded Amount, the total value of the transaction will be reported, which, in the case of fixed income securities, will include the percentage of its par value, plus accrued interest. The commissions of the house and the exchange should not be included. For variable income instruments, the total traded amount will be equal to the quantity of instruments traded multiplied by the price of the transaction.

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