Technical Standards for the Authorization and Registration of Pension Service Agents for Pension Fund Administrators

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 1 of 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022

THE COMMITTEE OF STANDARDS 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 the 21st of the same month and year, the Comprehensive Law of the Pension System was issued. II. That Article 70 of the Comprehensive Law of the Pension System establishes that Administrators may carry out promotion and affiliation activities through Pension Service Agents, who must be authorized by the Superintendency of the Financial System, prior to approval of the requirements established for such effect and be registered in the corresponding Public Registry. III. That Article 159 of the Comprehensive Law of the Pension System establishes that the Central Reserve Bank of El Salvador will issue the necessary Technical Standards that allow the development of what is established in the aforementioned Law. IV. That Article 7, third clause, of the Law on Supervision and Regulation of the Financial System establishes that Pension Service Agents will also be supervised. V. That Article 15, letter m) of the Law on Supervision and Regulation of the Financial System establishes that it is the faculty of the Board of Directors of the Superintendency of the Financial System: to authorize, modify, suspend, or cancel the registry entries in the Registries kept by the Superintendency of the persons, institutions, and operations that are subject to said requirement, in accordance with the laws on the matter, when such acts are not the result of a sanction. VI. That Article 78, letter g), of the Law on Supervision and Regulation of the Financial System establishes that the Superintendency will organize and keep updated the Registries that the laws entrust to it, among these, the one related to pension service agents. VII. That Article 79, fourth clause, of the Law on Supervision and Regulation of the Financial System establishes that Pension Service Agents must provide the Superintendency of the Financial System with the following information: names of the agents and their details, unique code assigned to the agent, and a copy of the contract signed between the pension fund administrator and the agent. The Superintendency may incorporate other information into the Registry based on the authorization granted to Pension Service Agents, in accordance with the Law on the Savings System for Pensions, its regulations, and corresponding standards.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 2 of 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022 VIII. That Article 99, letter a), of the Law on Supervision and Regulation of the Financial System establishes that it corresponds to the Central Reserve Bank of El Salvador in its capacity as regulator to approve the technical standards that the laws regulating the supervised entities establish must be issued to facilitate their application, especially regarding good corporate governance practices.

THEREFORE, by virtue of the normative 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 PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS

CHAPTER I OBJECT, SUBJECTS, AND TERMS

Object Art. 1.- These standards aim to regulate the process of Authorization and Registration of Pension Service Agents before the Superintendency of the Financial System, as well as the generalities of said function and the minimum content of the contract to be celebrated between said agents and a Pension Fund Administrator.

Subjects Art. 2.- The subjects obliged to comply with the provisions established in these Standards are: a) Pension Fund Administrators; and b) Natural persons interested in being authorized and registered in the Registry of the Superintendency of the Financial System as Pension Service Agents.

Terms Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: a) Affiliate: any person who maintains a relationship with a Pension Fund Administrator, through the signing of an affiliation contract; b) AFP: Pension Fund Administrator; c) Agents: Pension Service Agents; d) Central Bank: Central Reserve Bank of El Salvador;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 3 of 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022 e) CUA: Agent Unique Code; f) DUI: Unique Identity Document; g) Ordinary evaluation: knowledge test required to be registered in the Agents Registry; h) Extraordinary exam: knowledge test conducted when the applicant fails the ordinary evaluation or when, for justified reasons, they could not undergo said evaluation; i) SP Law: Comprehensive Law of the Pension System; j) Applicant: person who undergoes the process to be authorized as an Agent; k) Registry: Public Registry of Pension Service Agents; l) SP: Pension System; and m) Superintendency: Superintendency of the Financial System.

CHAPTER II PROCESS OF AUTHORIZATION AND REGISTRATION OF AGENTS

Content of the authorization and registration request Art. 4.- The AFPs that request that their applicants be authorized and registered in the Registry as Agents must present the following documentation: a) Written request signed by the legal representative or attorney-in-fact of the AFP; and b) List of personnel aspiring to be Agents, which must contain the information established in Annex No. 1 of these Standards and must be sent by the means and file formats that the Superintendency establishes for such purposes.

Documents attached to the request for the registration of Agents in the Registry Art. 5.- In addition to what is established in Article 4 of these Standards, the AFPs must attach to the applicants' request the following personal information: a) Legible copy of the DUI, in the case of Salvadorans; b) Copy of the Residence Card, Passport, or other legal document that accredits their identity in the case of foreigners, duly authenticated or certified by a notary or foreign official, as applicable, following the respective procedure for legalization of signatures or apostille; c) Curriculum vitae; d) Certificates of no criminal record and from the National Civil Police; e) Legible copy of the contract celebrated with the AFP, when applicable; and f) Copy of the title of the highest academic degree obtained. Each AFP will be responsible for verifying, prior to the processing of the authorization request for its Agents, compliance with what is established in this article.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 4 of 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022 The request and documentation may be presented through the means made available by the Superintendency, which may be electronic. In any case, the deadline referred to in the first clause of Article 6 of these Standards will begin to run from the next business day after the request has been presented.

Procedure for authorization of registration in the Registry Art. 6.- Upon receipt of the corresponding authorization request, in accordance with what is established in Articles 4 and 5 of these Standards, the Superintendency will proceed to verify that the presented documentation is complete, having a maximum period of thirty business days for the authorization or denial of registration in the corresponding Registry. If the request is not accompanied by the complete and duly formatted information detailed in Articles 4 and 5 of these Standards, the Superintendency, due to the lack of necessary requirements, may require the AFP 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 applicants, when there are reasons justifying such extension. The Superintendency in the same notice will indicate to the applicants that if they do not complete the information within the aforementioned period, it will proceed without further procedure to archive the request, leaving them free to present a new request. If after the analysis of the presented documentation, in accordance with what is established in Articles 4 and 5 of these Standards, the Superintendency has observations or when the documentation or information presented is not sufficient to establish the facts or information intended to be accredited, the Superintendency may notify the AFP once to remedy the deficiencies communicated or present additional documentation or information requested. The AFP will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or present the information required by the Superintendency. The Superintendency may, through a reasoned resolution, extend by up to another ten business days the period indicated in the previous clause, when the nature of the observations or deficiencies notified so requires. Once the request is presented with complete and duly formatted information, in accordance with what is established in these Standards, the Superintendency will schedule the evaluation of the applicants, establishing the day and time to attend, within the period established in the first clause of this article.

Extension period Art. 7.- The AFP may present to the Superintendency a request for extension of the period indicated in the fifth clause of Article 6 of these Standards, before the expiration of said period, must express the grounds on which it is based and propose, if applicable, the relevant proof. 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.

Suspension of the period Art. 8.- The thirty-day period indicated in the first clause of Article 6 of these Standards will be suspended for the days that elapse between the notification of the request to complete information or documentation referred to in the second and fifth clauses of Article 6 of these Standards, until the interested parties remedy the observations required by the Superintendency.

Regarding the evaluation of the applicant Art. 9.- The applicant must appear at the place, day, and time scheduled for the evaluation, for which they must identify themselves with their DUI in the case of Salvadorans, or with their Residence Card, Passport, or other document that accredits their identity in the case of foreigners.

The minimum passing grade for the exam will be seventy out of one hundred (70/100).

Extraordinary exam Art. 10.- In the case of applicants who did not pass the ordinary evaluation, they may undergo an extraordinary exam, at the request of the AFP, complying with what is established in Article 9 of these Standards. Applicants who do not pass the extraordinary exam may undergo another ordinary evaluation, after the period of sixty business days has elapsed after the last exam.

Absence from the evaluation Art. 11.- If any applicant cannot appear for the evaluation, they must communicate this situation to the AFP, who in turn will inform the Superintendency. The AFP must request a new evaluation, which may include the applicants who were absent.

Multiplicity of AFPs for an applicant Art. 12.- In the event that multiple AFPs present the same person as an applicant, the Superintendency will consider the first notification of application received as valid, communicating this situation to the remaining AFPs in writing.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 5 of 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022 Communication of results Art. 13.- The Superintendency will communicate to the AFPs the results obtained by each of the applicants included in the list sent, which will contain the information described in Annex No. 2 of these Standards. The AFPs, within a maximum period of ten business days following the notification, will send to the Superintendency the list of applicants who passed the exam and who will serve as Agents, which will contain the information described in Annex No. 3 of these Standards. In the event that the AFPs do not send the list within the established period, the processing of the request will expire.

Communication of the resolution Art. 14.- Once the documentation referred to in the second clause of Article 13 of these Standards is received, the Superintendency will proceed to notify the resolution of the Authorization and Registration request of the Pension Service Agent within a maximum period of three business days from the date the resolution is issued, sending to the AFPs the information described in Annex No. 4 of these Standards.

Validity of the authorization Art. 15.- The authorization issued by the Superintendency will be for an indefinite period while the employment relationship with the AFP that requested the Authorization and Registration of the Agent remains in force.

Identification of Agents Art. 16.- For the identification of Agents, the Superintendency will assign a CUA, which will remain unchanged while they perform duties in the System, regardless of the AFP for which they provide their services. For any activity that the Agent performs as such, they must identify themselves through the CUA.

Issuance of card or credential Art. 17.- The AFP must issue a card or credential for its authorized Agents, who must carry it visibly to the public. Said card or credential will contain the following data: a) CUA; b) Name of the authorized person; c) Name of the AFP for which they work; d) Date of authorization by the Superintendency; and e) Date of issuance of the credential.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 6 of 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022 Inactive Agents contracted by AFPs Art. 18.- In the event that AFPs hire Agents with inactive status for more than six months, they must request the corresponding evaluation, which must comply with the process established in these Standards, and must present the updated information established in Article 5 of these Standards. In the event that the exam is approved, the Superintendency, within the period provided in Article 5 of these Standards, will proceed to activate the corresponding registry. If the period of inactivity is less than six months, the AFP will request the corresponding activation without the need to take the evaluation, but must update the information required in Article 5 of these Standards.

Publicity of Agents registered in the Registry Art. 19.- The Superintendency will publish on its Website the Registry of Pension Service Agents, detailing at minimum the following information: a) Registration number; b) Full name; c) DUI; d) Session Number and the date of authorization by the Board of Directors of the Superintendency; e) Name of the entity for which they work; and f) Status of the authorization, declaring that they are active in the case that the Agent is working for an AFP.

CHAPTER III REGARDING PENSION SERVICE AGENTS

Regarding Agents Art. 20.- Agents shall be understood as those natural persons who, with prior authorization from the Superintendency and registration in the corresponding Registry, sign employment contracts with an AFP to participate in the promotion of the AFP's services and the incorporation of workers as affiliates to the System. Agents may be contracted by AFPs, according to the existing labor contracting modalities in the market, always in a direct employment relationship. AFPs cannot contract for the incorporation of workers into the System with persons other than the Agents. Agents may provide their professional services exclusively to one AFP at a time.

Content of the employment contracts of Agents Art. 21.- The employment contracts that AFPs celebrate with their Agents must be previously approved by the Superintendency and must contain at minimum the following clauses: a) Declaration by the Agents of knowing and submitting to the Laws, Regulations, and Technical Standards governing the System; b) Declaration by the AFP recognizing that the Agents act on its behalf, and in turn, declaration by the Agents that their actions bind the AFP whenever they act on its behalf; c) Commitment by the Agents to refrain from making affiliations or transfers of affiliates, offering additional benefits not contemplated in the regulations governing the System; d) Commitment by the Agents to the AFP to keep confidential the affiliate-AFP relationship vis-à-vis other AFPs, even after the employment link has been dissolved; and e) To provide as a cause for termination of the contract, the non-compliance with the declarations and commitments by the Agents, especially those referred to the confidentiality they must maintain regarding matters that are within their knowledge. The text of the contract may not incorporate concepts or clauses that contravene what is established in this article.

Conditions for hiring Agents Art. 22.- AFPs must follow a selection process, endeavoring at all times that the Agents meet the conditions of competence, moral solvency, and suitability regarding the work they will perform.

Responsibility of Agents Art. 23.- Agents will act in the name and on behalf of the AFP that hires them and under the responsibility of said AFP. Without prejudice to what is established in the previous clause, Agents are responsible for explaining to the persons they will affiliate to the System, the obligations and rights that arise from the affiliation, as well as regarding the functioning, characteristics, and benefits of the affiliation or transfer to the System.

File of Agents Art. 24.- The AFP must maintain a file for each Agent it hires, which must contain at minimum the following: a) The curriculum vitae; b) Copy of the contract celebrated with the AFP;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 7 of 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022 c) Copy of the DUI, in the case of Salvadorans; Passport, Residence Card, or other document that accredits their nationality in the case of foreigners; as well as work permit in cases where required by law; d) Copy of the title of the highest academic degree obtained; e) Certificate from the National Civil Police; and f) Certificate of No Criminal Record.

Training of Agents Art. 25.- The AFP must design and implement each year a training plan directed at its Agents. It will be the responsibility of the AFPs that contracted Agents accredit at least forty hours of training each year on pension-related topics. The training provided to the Agents must be documented, which will be available to the Superintendency at all times.

Dismissals, resignation, or death of Agents Art. 26.- The dismissal, resignation, or death of an Agent must be informed by the AFP to the Superintendency within a period not exceeding three days from the occurrence of the event, through the means made available by it, providing the information described in Annex No. 5 of these Standards. The Superintendency, with the information sent by the AFP regarding the dismissal, resignation, or death of an agent, will cancel or suspend the Registry entry, or revoke the authorization granted to the Agent to operate as such, as applicable, in accordance with what is established in the Law on Supervision and Regulation of the Financial System. Likewise, in the event of dismissal, when an Agent holds the authorization as an Agent for the Marketing of Voluntary Pension Savings Funds, the cancellation of the registry entry will generate the revocation of the authorization to operate as such.

Statuses of Agents Art. 27.- The Superintendency will classify the statuses of Agents, according to the values established in Annex No. 6 of these Standards.

Agent Base for AFPs Art. 28.- The Superintendency will share the information described in Annex No. 7 of these Standards with each of the AFPs after any modification to the Agent registry.

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 17 CNBCR-11/2022 NSP-72 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF PENSION SERVICE AGENTS FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 30/12/2022 [Document ends]