Technical Standards for the Authorization and Registration of Investment Administrators of Investment Funds

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

CONSIDERING:
I. That Article 5 of the Investment Funds Law establishes that the Superintendence of the Financial System, within its scope of competence, is the administrative authority responsible for supervising Managers, their operations, and other participants regulated by the same, including the supervision of those in charge of administering the investments of the Investment Funds.
II. That Article 6 of the Investment Funds Law establishes that it corresponds to the Central Reserve Bank of El Salvador, within its scope of competence, to issue the technical standards necessary to allow the application of said Law.
III. That Article 26 of the Investment Funds Law establishes that those in charge of administering the investments of the Investment Funds must be authorized by the Superintendence of the Financial System, in accordance with the Technical Standards issued by the Central Reserve Bank of El Salvador for such effect.
IV. That Article 5, letter a), of the Law on Supervision and Regulation of the Financial System establishes that it corresponds to the Superintendence of the Financial System to authorize, suspend, or cancel the functioning of persons or operations carried out in the stock market, in accordance with the applicable provisions.
V. 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 acting with the due diligence of a good merchant in their own business.
VI. That Article 78, letter c), of the Law on Supervision and Regulation of the Financial System establishes that it corresponds to the Superintendence of the Financial System to organize and keep updated the records relating to the administrators of the members of the financial system, in this case, those in charge of administering the investments of the Investment Funds.

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 THE AUTHORIZATION AND REGISTRATION OF THE INVESTMENT ADMINISTRATORS OF INVESTMENT FUNDS

CHAPTER I
OBJECT, SUBJECTS, AND TERMS

Object
Art. 1.- These Standards aim to establish the requirements that natural persons who work for a Fund Manager must meet, in order to serve as investment administrators of Investment Funds, in order to be authorized and registered in the corresponding Registry of the Superintendence of the Financial System.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Standards are: (1) a) Natural persons seeking to obtain authorization to serve as investment administrators of Investment Funds, and b) Authorized Fund Managers by the Superintendence of the Financial System.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: (1) a) Investment Administrator: Natural person who is employed by a Fund Manager for the purpose of managing the decision-making and execution of investments made with resources from Investment Funds, in accordance with the Internal Regulations and the investment policy of the Investment Fund. This category includes the Investment Manager or whoever acts in their place, according to the organizational structure of the Manager; b) Fund: Investment Fund; c) Manager: Investment Fund Management Company; d) Registry: Public Stock Registry of the Superintendence of the Financial System; and e) Superintendence: Superintendence of the Financial System.

CHAPTER II
AUTHORIZATION AND REGISTRATION OF INVESTMENT ADMINISTRATORS OF INVESTMENT FUNDS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

Regarding investment administrators
Art. 4.- For a natural person to act as an administrator of the Fund's investments, they must work for a Manager registered with the Superintendence, be previously authorized by the Superintendence to perform the function of investment administrator, and be registered in the Registry.

Art. 5.- Investment administrators will be designated by the Manager and must act with diligence, skill, and reasonable care, to observe compliance with the investment policy of the Fund for which they administer the investments, without prejudice to the Manager's responsibility for the administration of the Funds. No investment administrator may have an employment contract with two or more Managers simultaneously.

Requirements for investment administrators
Art. 6.- The Manager, for the purpose of requesting the Superintendence's authorization for the Fund's investment administrator and their registration in the corresponding Registry, must verify that the person for whom authorization is requested meets at least the following requirements:
a) Having signed an employment contract with the Manager; b) Holding a university degree related to the investment administration business, registered or incorporated in the Ministry of Education for degrees obtained in the country. In case the degree was obtained abroad, it must comply with what is established in letter c) of Article 18 of these Standards. If the university degree is different from the investment administration business, at least three years of experience in the investment administration business must be accredited; c) Possessing knowledge and mastery in topics related to investment management and the field of specialization of the nature of the Fund to be administered; d) Not having been judicially qualified as responsible for a negligent or fraudulent bankruptcy; e) Not having been convicted by a final judgment in the country or abroad for having committed or participated fraudulently in the commission of any crime; f) Not having been judicially convicted for their participation in violations of laws and norms of a financial nature; and g) That it has not been judicially proven that they participated in activities related to drug trafficking and related crimes, and with money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction, in the country or abroad. (2) The requirements of letters d), e), f), and g) will extend to the spouses of investment administrators.

The Manager will be responsible for verifying prior to the start of the contractual relationship and during its validity, that the person for whom authorization is requested is competent to perform the function of investment administrator of the Fund and complies with the requirements established in this provision. In case the person does not meet any requirement, the Manager must justify it.

Content of the authorization and registration request for investment administrators Art. 7.- For the authorization and registry entry at the Superintendence of persons requesting authorization to serve as investment administrators, it will be necessary to present to the Superintendence a request signed by the legal representative or attorney-in-fact of the interested Manager, which must contain at least the following information:
a) Full name, age, nationality, profession or occupation, domicile, type and number of personal identification document, and Tax Identification Number of the potential investment administrator; b) Date on which the employment relationship with the Manager began; c) Evaluation and justification by the Manager regarding the person for whom authorization is requested, indicating their competence to perform the investment administration function; and d) Type of Funds and assets that will be administered by the person for whom authorization is requested, for which they have accredited knowledge and experience.

Documents attached to the request
Art. 8.- The authorization and registration request in the Registry must contain the following documentation, which must be certified by a Salvadoran notary, where applicable: (1) a) Legible copies of the personal identification document and the Tax Identification Number; b) Curriculum Vitae; c) Legible copy of documents accrediting their academic degree or education level; d) Copy of the employment contract with the Manager; and e) Sworn declaration, which must be authenticated by a notary and prepared in accordance with the format established in Annex No. 1 of these Standards. The request and documentation may be presented through the means made available by the Superintendence, which may be electronic. (1) In any case, the deadline referred to in the first paragraph of Article 9 of these Standards will begin to run from the next business day after the request has been presented. (1)

Authorization procedure for the Investment Administrator in the Registry of the Superintendence (1) Art. 9.- Upon receipt of the request for registry entry in the corresponding Registry, in accordance with what is established in Articles 7 and 8 of these Standards, the Superintendence will proceed to verify compliance with the requirements defined by the Law and these Standards, having a period of up to ten business days for the authorization or denial of the Investment Administrator. (1) If the request is not accompanied by the complete and proper information detailed in Articles 7 and 8 of these Standards, the Superintendence, due to the lack of necessary requirements, may require the Manager 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 said entity when there are reasons justifying it. (1) The Superintendence in the same notice will indicate to the Manager that if the information is not completed within the aforementioned period, it will proceed without further procedure to archive the request, leaving them with the right to present a new request. (1) If after the analysis of the documentation presented in accordance with Articles 7 and 8 of these Standards, the Superintendence has observations or when the documentation or information presented is not sufficient to establish the facts or information intended to be accredited according to the type of registration process and what is stipulated in Article 26 of the Investment Funds Law; the Superintendence will notify the respective Manager once to remedy the deficiencies communicated or present additional documentation or information requested. (1) The Manager will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or present the additional information required by the Superintendence. (1) The Superintendence may, through a reasoned resolution, extend by up to another ten business days, the period indicated in the previous paragraph, when the nature of the observations or deficiencies notified so requires. (1)

Extension Period (1)
Art. 9-A.- The Manager may present to the Superintendence a request for extension of the period indicated in the fifth paragraph of Article 9 of these Standards, before the expiration of said period, stating the grounds on which it is based and proposing, if applicable, the relevant proof. (1) The extension period may not exceed ten business days and will begin from the next business day following the expiration date of the original period. (1)

Suspension of the Period (1)
Art. 9-B.- The ten-business-day period indicated in the first paragraph of Article 9 of these Standards will be suspended for the days that elapse between the notification of the request for information or documentation referred to in the second and fifth paragraphs of said article, until the observations required by the Superintendence are remedied. (1) Once the documents are presented in due form, the Superintendence will proceed to notify the resolution on the request for authorization of the Investment Administrator in the Registry of the Superintendence. (1)

Art. 10.- The Superintendence will proceed to notify the Manager of the resolution authorizing or denying the request, within a maximum period of three business days from the day the resolution is issued. (1) In the case that the Superintendence issues a favorable resolution for the authorization of the investment administrator, the Registry Entry in the corresponding Registry of the Superintendence will be issued and notified to the requesting entity within a maximum period of three business days, from the date the registry entry was issued. (1).

Validity of the authorization
Art. 11.- The authorization issued by the Superintendence to operate as an investment administrator will be for the time that the employment relationship with the Manager lasts. Notwithstanding the foregoing, said authorization may be suspended or revoked for non-compliance with the corresponding legal and regulatory provisions.

Archiving of proceedings initiated by authorization request Art. 12.- The Superintendence will proceed without further procedure to archive the proceedings initiated in the authorization and registration procedure detailed in these Standards, when the following situations occur:
a) The Manager has not presented the required information within the stipulated period according to what is established in Article 9 of these Standards; and b) The Manager presents a letter to the Superintendence, informing the desire to withdraw the request, at any time. In any case, the interested parties will maintain their right to present a new request to the Superintendence, which will give rise to a new procedure.

Publication of authorized investment administrators Art. 13.- The Superintendence will keep updated on its Website the details of the persons authorized as investment administrators, detailing at least the following information:
a) Name of the investment administrator; b) Registry Entry Number; c) Date of authorization by the Superintendence; d) Name of the Manager for whom they work; and e) Type of Financial or Real Estate Funds administered.

Additionally, the Manager will keep updated on its Website the information referred to in the previous paragraph regarding the investment administrators working for it.

CHAPTER III
UPDATE OF INFORMATION OF INVESTMENT ADMINISTRATORS

Update of information at the Superintendence
Art. 14.- The Manager will communicate to the Superintendence any change related to the information presented for the Registry request of its investment administrators, within three business days following the occurrence of the event, sending the corresponding documentation within a maximum period of five business days subsequent to said communication. This period may be extendable in justified cases, at the request of the Manager. In the case that the Manager is interested in having its investment administrators manage other types of Funds compared to those previously authorized to the investment administrator by the Superintendence, the Manager must send to the Superintendence the respective request attaching the documentation established in Article 8, letter c) of these Standards, in order to support the administrator's capacity to manage the new type of Funds for which authorization is requested. The Superintendence will proceed to resolve the request in accordance with what is established in Articles 9 and 10 of these Standards.

Art. 15.- The decision to appoint or dismiss the investment administrator will correspond to the Manager.
It is the Manager's responsibility to inform the Superintendence of the cessation of the investment administrator's duties and the interim measures that will be taken to replace them, on the next business day following the event, attaching the corresponding supporting documentation. In case of dismissal, the Manager must reason and document the reasons for it. If the withdrawal of the investment administrator is due to a change of Manager, the new hiring entity will be obligated to inform this situation to the Superintendence on the same day the investment administrator begins duties and send a request for

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-12/2015
NDMC-03
TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF THE INVESTMENT ADMINISTRATORS OF INVESTMENT FUNDS Approval: 15/07/2015 Validity: 31/07/2015 modification of the registry entry, attaching a copy of the employment contract and an update of the information related to the Registry within a maximum period of three business days counted from the start of duties of the investment administrator. If the withdrawal is not due to a change of Manager, the investment administrator will have a period of one year to rejoin a Manager to perform the function of investment administrator; during this period, the Superintendence will suspend the registry entry to operate as an investment administrator. If during this period, the investment administrators show interest in having the registry entry reactivated, the new hiring Manager must send to the Superintendence a request for modification of the registry entry, attaching a copy of the employment contract and an update of the information related to the Registry within a maximum period of three business days counted from the start of duties of the investment administrator. Once the one-year period mentioned in the previous paragraph has elapsed and if the investment administrator has not joined a new Manager, the Superintendence will proceed to cancel the registry entry and the authorization to operate as an investment administrator. Notwithstanding the foregoing, the interested party, upon rejoining a Manager, will maintain their right to have a new authorization processed, for which the hiring Manager must initiate the authorization and registration process again.

Responsibilities of the Manager
Art. 16.- The Manager must keep an updated registry available to the Superintendence when requested, which must contain at least the following information:
a) Full name of the investment administrator, profession, type and number of personal identification document, Tax Identification Number, address, phone, and nationality; b) Date and session number in which they obtained authorization to operate as an investment administrator from the Superintendence; c) Date of hiring of the investment administrator; d) Date of withdrawal of the investment administrator, where applicable; and e) Signature of the investment administrator. The Manager is responsible for ensuring that the investments of the Funds are administered only by persons who meet the requirements for authorization and registration in the Registry of investment administrators established in these Standards and who have been registered with the Superintendence. In case that, having been granted the corresponding authorization by the Superintendence, any non-compliance with the requirements for authorization and registration in the Registry of investment administrators occurs, the Manager

it must be communicated to the Superintendence within a maximum period of five business days counted from the date on which the Manager became aware of such circumstance.

Art. 17.- The Manager must design and implement each year a training plan directed at its investment administrators on topics related to their functions, in accordance with international best practices. The training received by the staff must be documented, which must be available to the Superintendence when it so requires.

The investment administrators registered in the Registry must accredit every two years a minimum of forty hours of training on topics related to investment administration. The training received must be documented and included in the registry of investment administrators maintained by the Manager.

CHAPTER IV
OTHER PROVISIONS AND VALIDITY

Submission of Information
Art. 18.- The documentation presented to the Superintendence, in compliance with what is provided in these Standards, must be in Spanish and in accordance with the corresponding legal formalities, especially regarding:
a) The photocopies presented must be legible and certified by a Salvadoran notary, in those cases where the document can be certified; (1) b) The signatures that match in all types of documentation must be legalized by a Salvadoran notary; and c) Public or authentic documents emanating from a foreign country, as well as their photocopies, may be admitted without the need for legalization or apostille, provided that they allow reasonable verification of their authenticity, integrity, and content, in accordance with what is established in Article 4-A of the Administrative Procedures Law. (2)

Prohibition
Art. 19.- Investment administrators may not administer investments of Funds other than the types that have been authorized by the Superintendence; they may also not provide their investment administration services, directly or indirectly, to companies linked to the Manager or the Depositary, to Stockbrokerages, nor to Specialized Agents in Securities Valuation that have been contracted by the Manager, as well as to companies linked to these.

Sanctions
Art. 20.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System.

Unforeseen Aspects
Art. 21.- Aspects not provided for in regulatory matters in these Standards will be resolved by the Central Bank through its Standards Committee. (1)

Validity
Art. 22.- These Standards will enter into force as of the thirty-first of July of two thousand fifteen.

MODIFICATIONS:
(1) Modifications to articles 2, 3, 8, 10, 18 and 21, substitution of article 9, and incorporation of articles 9-A and 9-B, approved by the Central Bank through its Standards Committee, in Session CN-14/2021, of October 4, two thousand twenty-one, with validity as of the day 21 of October of two thousand twenty-one. (2) Modifications to articles 6, 18 and Annex No. 1, approved by the Central Bank through its Standards Committee, in Session CN-05/2026, of June 30, two thousand twenty-six, with validity as of the day 15 of July of two thousand twenty-six.

Annex No. 1

MODEL OF SWORN DECLARATION FOR APPLICANTS FOR INVESTMENT ADMINISTRATORS OF INVESTMENT FUNDS

In the city of San Salvador, at the _______ hours of the day ________ of _______ of two thousand ____. Before me, _______ notary of the domicile of ______________ appears the gentleman _________ of ______________ years, (profession) _______, of the domicile _____________ whom I know (or do not know), holder of (or I identify by) Unique Identity Document number (or passport number)________, with Tax Identification Number _______, who acts on his own behalf, and TELLS ME: That in his capacity as applicant for investment administrator of Investment Funds working for the entity ___________________, UNDER OATH MAKES THE FOLLOWING DECLARATIONS: A) That he has not been judicially qualified as responsible for a negligent or fraudulent bankruptcy. B) That he has not been convicted by a final judgment in the country or abroad, for having committed or participated fraudulently in the commission of any crime. C) That he has not been judicially convicted for his participation in infractions to laws or norms of a financial nature. D) That his participation in activities related to drug trafficking and related crimes, and with money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction in the country or abroad has not been judicially proven. The undersigned notary certifies: that I explained to the declarant what is established in the Penal Code, regarding the crime of ideological falsity, regulated in article two hundred and eighty-four. Thus the declarant expressed himself to whom I explained the legal effects of the present notarial act, which consists of _____ sheet(s) front and back; and read to him by me in a single act without interruption and in its entirety, he ratifies its content and we sign. I GIVE TESTIMONY. (2) The Sworn Declaration must comply with what is established in the Notary Law.

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