Region

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Regulator

2012-06-08 | NRP-04

Added 2026-09-11

Technical Standards for the Authorization and Registration of Stock Broker Agents in the Public Registry of the Superintendence of the Financial System to provide services in Stock Exchanges

These Technical Standards establish the requirements for Stock Broker Agents to be authorized and registered in the Public Registry of the Superintendence of the Financial System. Agents must be adults, hold a university degree, possess knowledge in financial and stock market topics, pass an exam with a minimum score of 7 out of 10, and have no criminal record or financial insolvency. Brokerage Houses must grant agents power of attorney and notify the Superintendence of any changes or cessation of services within three business days. The Superintendence has twenty business days to authorize or deny an application, with provisions for requesting additional information or clarification from applicants within ten business days.

Source: Superintendencia del Sistema Financiero — original document

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El Salvador

Superintendencia del Sistema Financiero

CONSIDERING: I. That Article 6 literal k) of the Securities Market Law establishes that the Public Securities Registry shall have a special Registry for Stock Broker Agents. II. That Article 5 literal b) of the Financial System Supervision and Regulation Law establishes that it is the competence of the Superintendence of the Financial System with respect to the Securities Market: to authorize, modify, suspend or cancel the entry in the Public Securities Registry of Stock Broker Agents. III. That Article 7 third paragraph of the Financial System Supervision and Regulation Law establishes that Stock Broker Agents are subject to the supervision of the Superintendence of the Financial System. IV. That Article 37 second paragraph of the Financial System Supervision and Regulation Law establishes that supervised entities, as well as their shareholders or partners, must provide all necessary information to keep the public registries mentioned in the laws that govern them updated, within the deadlines and in the manner established. V. That Article 78 literal f) of the Financial System Supervision and Regulation Law establishes that the Superintendence shall organize and keep updated the registries entrusted to it by law regarding Stock Broker Agents authorized by the Superintendence of the Financial System. VI. That Article 82 literal a) of the Financial System Supervision and Regulation Law establishes that to be and remain registered in the Registry of Stock Broker Agents, natural persons must comply with the requirements established in the applicable regulations for their authorization. VII. That Article 115 of the Financial System Supervision and Regulation Law establishes that Stock Broker Agents, who are currently providing their services, within one year from the effective date of the aforementioned Law, must register in the registry and comply with the requirements established in Article 82 of said law and in the technical regulations that may be issued by the Central Reserve Bank of El Salvador for this purpose. POR TANTO, by virtue of the regulatory powers conferred by Article 99 of the Financial System Supervision and Regulation Law,

CHAPTER I PURPOSE, SUBJECTS AND TERMS Purpose Art. 1.- The purpose of these Standards is to establish the requirements that Stock Broker Agents must meet 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: (2) a) Brokerage Houses registered with the Superintendence of the Financial System, which have expressed their interest to the Superintendence in obtaining authorization for a natural person to act as a Stock Broker Agent, on behalf of said House; b) Stock Broker Agents who are already operating in a Stock Exchange registered with the Superintendence of the Financial System, to act on behalf of a Brokerage House. Terms Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: a) Agent(s): Stock Broker Agents, understood as the representative of a Brokerage House authorized to carry out operations on an Exchange on its behalf; b) Exchange(s): Stock Exchanges constituted in El Salvador and registered with the Superintendence of the Financial System; c) House: Brokerage House; d) Registry: Public Registry of the Superintendence of the Financial System; and e) Superintendence: Superintendence of the Financial System.

CHAPTER II REQUIREMENTS FOR THE AUTHORIZATION AND REGISTRATION OF STOCK BROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

CNBCR-06/2012 NRP-04 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCK BROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES Approval: 08/06/2012 Effective: 27/06/2012 Alameda Juan Pablo II, entre 15 y 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 3 of 12 Regarding Stock Broker Agents Art. 4.- Agents shall act on an Exchange, on behalf and representation of the House that designates them and under the responsibility of the latter. Art. 5.- Without prejudice to the provisions of Article 4 of these Standards and in accordance with Article 61 of the Securities Market Law, Stock Broker Agents and the House they represent shall be jointly and severally liable, even for slight negligence, for the lack of correct and adequate information they provide to investors for making investments and for the advice they provide. Art. 6.- To legalize the representation of Agents in negotiations carried out on the Exchanges, Houses must grant them a power of attorney by public deed, which must be registered in the Commercial Registry. When the legal representative of the entity acts as an Agent, the power of attorney mentioned in the preceding paragraph will not be necessary, provided that this power was granted in their appointment. Art. 7.- An Agent interested in participating as a client in operations carried out on the Stock Exchange may not represent themselves, but may do so through the intermediation of another Agent, for which the Agent participating in operations must inform the general manager, attorney-in-fact or legal representative of the House for which they work in writing no later than the business day following the operation. (1) When operations are carried out through an Agent who works for the same House where they work, they must have prior written authorization from the general manager, attorney-in-fact or legal representative of the House. In any case, operations in which the Agent participates as a client shall be reported to the Superintendence no later than the business day following their execution. Art. 8.- For an Agent to participate in the securities market, they must be previously authorized and registered in the Registry maintained by the Superintendence for such purposes. No Agent may act as such in two or more Houses simultaneously.

Requirements for the authorization and registration of Agents with the Superintendence Art. 9.- To be authorized and registered as a Stock Broker Agent, the following requirements must be met: a) Be of legal age; b) Hold a university degree; c) Possess knowledge and mastery of stock market and financial topics, such as:

CNBCR-06/2012 NRP-04 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCK BROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES Approval: 08/06/2012 Effective: 27/06/2012 Alameda Juan Pablo II, entre 15 y 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 4 of 12 i) Financial operations and instruments; ii) Financial terminology of stock markets; iii) Portfolio management, risks, investments in fixed income, variable income and other instruments; d) Possess sufficient power of attorney granted by a House to operate on an Exchange as its representative, duly registered in the Commercial Registry; e) Possess a credential accrediting them as a Stock Broker Agent, issued by a Salvadoran Stock Exchange; f) Possess an Agent number duly registered with a Salvadoran Stock Exchange; g) Pass a knowledge exam at a Stock Exchange, obtaining a minimum score of seven points out of a total of ten; h) Have no criminal record; i) Not be insolvent or bankrupt unless rehabilitated; j) Not have been judicially qualified as responsible for culpable or fraudulent bankruptcy; k) Not have been convicted of any intentional crime; l) Not be a debtor of the financial system for credits for which sanitation reserves of fifty percent or more of the balance have been constituted, as long as such situation persists; m) Not have had their registration as a Stock Broker Agent in the Superintendence's Registry canceled, as a result of an Administrative Sanctioning Procedure; n) Not have been judicially proven to have participated in activities related to drug trafficking, financing of terrorism, and money and asset laundering; and o) What is established in Article 82 of the Financial System Supervision and Regulation Law. The Superintendence shall verify compliance with the requirements related to the credit situation of the Stock Broker Agent through the information systems it has available. Content of the Application Art. 10.- For the authorization and registration of Agents in the Superintendence's Registry, it is necessary to submit an application signed by the legal representative or attorney-in-fact of the House, specifying the following information in said application: a) Full name of the Agent, age, nationality, profession or occupation, domicile, personal identification document number and Tax Identification Number; b) Date and minute number of the Stock Exchange's Board of Directors meeting in which authorization was obtained to perform the functions of Agent, as well as their assigned code; c) Date of the power of attorney granted by public deed by the House to the Agent to act on its behalf, as well as the registration date of said power in the Commercial Registry;

Documents that must be attached to the application Art. 11.- The application for authorization and registration of Agents must be accompanied by the following personal information: a) Legible copies of the Unique Personal Identification Document and the Tax Identification Number; b) Curriculum Vitae, as well as legible copies of the documentation accrediting their experience and knowledge in the securities market; c) Legible copy of the documents accrediting higher education studies completed; d) Legible copy of the Agent's credential granted by a Stock Exchange; e) Legible copy of the power of attorney granted by public deed by a House to the Agent, duly registered in the Commercial Registry. In the event that the Agent acts as the legal representative of the House, they must present a legible copy of the instrument in which the power of representation to negotiate on its behalf is granted; f) Accredit, by means of the corresponding document, having presented an exam before a Stock Exchange on the functioning and practices of the Stock Exchange and the stock market in general, as well as the applicable laws and regulations in that matter; obtaining a minimum score of seven points out of a total of ten; g) Certificate of no criminal record valid on the date of submission of the application to the Superintendence; and (2) h) Sworn declaration of the Agent, which must be notarized and prepared in accordance with the format established in Annex No. 1 of these Standards. For Agents of foreign nationality, legible copies of the Passport and the Tax Identification Number must be presented. The application and documentation may be submitted through the means made available by the Superintendence, which may be electronic. In any case, the period referred to in the first paragraph of Article 12 of these Standards shall begin to run from the business day following the submission of the application. (2)

Procedure for authorization of Agents in the Public Registry of the Superintendence of the Financial System (2) Art. 12.- Once the application for authorization and registration of Agents in the Public Registry is received, in accordance with the provisions of Articles 10 and 11 of these Standards, the Superintendence shall proceed to verify compliance with the requirements defined in these Standards, having a period of up to twenty business days for the authorization or denial of Agents in the Public Registry. (2)

CNBCR-06/2012 NRP-04 TECHNICAL STANDARDS FOR THE AUTHORIZATION AND REGISTRATION OF STOCK BROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES Approval: 08/06/2012 Effective: 27/06/2012 Alameda Juan Pablo II, entre 15 y 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 6 of 12 If the application is not accompanied by complete and proper information, as detailed in Articles 10 and 11 of these Standards, the Superintendence, due to the lack of necessary requirements, may require the applicant to submit the missing documents within a period of ten business days counted from the day following notification, a period that may be extended at the request of said applicant when there are reasons that justify it. (2) In the same warning, the Superintendence shall inform the applicant that if they do not complete the information within the aforementioned period, it will proceed without further processing to file the application, reserving their right to submit a new application. (2) If, after analyzing the documentation submitted in accordance with Articles 10 and 11 of these Standards, the Superintendence has observations or when the documentation or information that has been submitted is not sufficient to establish the facts or information intended to be accredited; the Superintendence shall warn the respective applicant once only to remedy the deficiencies communicated or to present additional documentation or information required. (2) The applicant shall have a maximum period of ten business days counted from the day following notification to resolve the observations or submit the additional information required by the Superintendence. (2) The Superintendence may, by reasoned resolution, extend the period indicated in the preceding paragraph by up to another ten business days, when the nature of the observations or deficiencies warned so requires. (2) Extension period (2) Art. 12-A.- The interested party may submit to the Superintendence a request for an extension of the period indicated in the fifth paragraph of Article 12 of these Standards, before the expiration of said period, stating the reasons on which it is based and proposing, where appropriate, the relevant evidence. (2) The extension period may not exceed ten business days and shall begin from the business day following the expiration date of the original period. (2)

Suspension of the period (2) Art. 12-B.- The twenty business day period indicated in the first paragraph of Article 12 of these Standards shall be suspended for the days between the notification of the request for information or documentation referred to in the second and fifth paragraphs of the aforementioned article, until the required observations are remedied. (2) Once the complete and proper documentation has been submitted, the Superintendence

Art. 13.- The Superintendence shall notify interested parties of the resolution of the Board of Directors referred to in Article 12, which authorizes or denies the application, within a maximum period of three business days from the date the resolution is issued. (2) In the event that the Board of Directors issues a favorable resolution for the authorization of the Agent, registration in the corresponding Registry of the Superintendence shall proceed. Filing of proceedings initiated by registration request Art. 13-A.- The Superintendence shall proceed without further processing to file the proceedings initiated in the registration procedure detailed in these Standards, when the following situations occur: (1) a) That the House has not remedied the observations or has not submitted the required information, in accordance with Articles 10, 11 and 12 of these Standards; or (1) b) That the House submits a letter to the Superintendence, informing of the desire to withdraw the application, at any time. (1) In any case, interested parties shall retain their right to submit a new application to the Superintendence, which will give rise to a new process. (1) CHAPTER III UPDATE OF INFORMATION OF STOCK BROKER AGENTS IN THE REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM

Update of information in the Superintendence's Registry Art. 14.- Houses shall communicate to the Superintendence any change related to the Public Registry information of their Agents, no later than three business days following the occurrence of the event, submitting the documentation within a maximum period of thirty subsequent days, however, this period may be extended at the request of the Houses in justified cases. In the event of mergers between Houses, the legible copy of the power of attorney referred to in literal e) of Article 11 of these Standards must be updated in the Superintendence's Registry. (1) Art. 15.- When an Agent ceases to provide services in a House, either because they resign or are dismissed, it shall be the responsibility of the House to notify the Superintendence on the business day following the event and to revoke the power of attorney granted to the Agent by public deed, which must be registered in the Commercial Registry. (1)

CNBCR-06/2012 NRP-04 TECHNICAL NORMS FOR THE AUTHORIZATION AND REGISTRATION OF STOCKBROKER AGENTS IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCE OF THE FINANCIAL SYSTEM TO PROVIDE SERVICES IN STOCK EXCHANGES Approval: 08/06/2012 Validity: 27/06/2012 Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 9 of 12

Change of labor relationship of an Agent Art. 15-A.- If the cessation of duties of the Agent with a Firm is due to a change of labor relationship with another, without prejudice to what is established in article 43 of the Regulations of the Securities Market Law and articles 14 and 15 of these Norms; the hiring Firm must inform the Superintendence of this situation no later than the next business day after the Agent begins duties and submit within a maximum period of one month counted from the authorization of the change by the Stock Exchange in which it will operate, a request for modification of the registry entry by means of a note signed by its legal representative or attorney, attaching the following documents: (1) (3) a) The documents required in letters e) and h) of article 11 of these Norms and the other documents established in said article will only be presented when these have been modified with respect to those previously presented in the authorization request; and (1) b) Legible copy of the authorization of the change of Firm of the Agent granted by a Stock Exchange. (1) (3) Once the aforementioned documents have been presented in their entirety and the Superintendence has received the documentation in accordance with what is established in article 15 of these Norms, by the corresponding Firm, said Superintendence will resolve in accordance with what is provided in articles 12, 12-A, 12-B and 13 of these Norms within a period of ten business days. (1) (2) The Agent may not act in the name and on behalf of the hiring Firm, nor carry out activities as an Agent, while their Registration in the Superintendence has not been modified. (1) Art. 15-B.- If the cessation of duties is not due to a change of labor relationship, but to its termination due to resignation or dismissal, the Agent will have a period of one year to rejoin a Firm to act as such; during this period, the Superintendence will suspend the registry entry to operate as an Agent in accordance with what is established in article 15 letter m) of the Law on Supervision and Regulation of the Financial System. The aforementioned period will be counted from the date of resignation or dismissal. Notwithstanding the foregoing, the Superintendence may proceed to cancel the Registration in accordance with what is established by the current legal framework. (1) If during the period referred to in the preceding paragraph, the Agent shows interest in having the registry entry reactivated, the new hiring Firm must submit to the Superintendence a request for modification of the registry entry, in accordance with what is established in article 15-A of these Norms. (1) Once the one-year period mentioned in the preceding paragraphs has elapsed and if the Agent has not joined a new Firm, the Superintendence will proceed to cancel the registry entry and the authorization to operate as an Agent. Notwithstanding the foregoing and considering that the cancellation was not an act resulting from a sanction imposed by the Superintendence, the interested party, upon rejoining a Firm, will maintain their right to have a new authorization managed for them, for which the hiring Firm will proceed to comply with what is established in articles 9, 10 and 11 of these Norms. (1) In the case of Agents who were authorized by a Stock Exchange before June 27, 2012, in accordance with what is established in article 20 of these Norms, compliance with letter b) of article 9 of these Norms will not be applicable. (1) In any case, the Agent may not carry out operations or perform any activity as an Agent while their Registration in the Superintendence is suspended or cancelled. (1)

Registry of Agents to be kept by Stockbroker Firms Art. 16.- Firms will keep a registry of their Agents, which will contain at minimum the following information: a) Full name of the Agent, profession, general information, such as: Tax Identification Number, Unique Identity Document number, address, telephone, nationality; b) Agent code, date and number of the Board of Directors meeting act in which part of a Stock Exchange authorized [the agent]; c) Date on which the power of attorney granted by public deed to the Agent by a Firm was registered in the Commerce Registry; d) Date and number of the session of the Board of Councilors of the Superintendence in which the Agent was registered in the Public Registry; e) Date of the Agent's entry into the Firm; f) Date of registration in the Commerce Registry, of the revocation of the power of attorney granted by the Firm; g) Date of the Agent's withdrawal; and h) Signature of the Agent.

CHAPTER IV OTHER PROVISIONS AND VALIDITY

Certification of photocopies and authentication of signatures Art. 17.- Any photocopy presented to the Superintendence in compliance with what is provided for in these Norms must be certified by an authorized notary in El Salvador. Likewise, signatures that match in all types of documentation must be authenticated by an authorized notary in El Salvador. Notwithstanding the foregoing, if the documentation presented originates from abroad, both the photocopies and the signatures contained therein may be authenticated or certified, as appropriate, by a foreign notary or official, in which case, the procedure for legalization of signatures or apostille must be followed respectively.

Proof of training for Agents Art. 18.- Agents registered in the Registry of the Superintendence must prove a minimum of 40 hours of training on topics related to the securities market, every two years; the Firm must submit to the Superintendence the documentation proving compliance with what is established in this article, within 30 business days following the end of the stipulated period. (1)

Compliance with requirements Art. 19.- Firms are responsible for verifying that Agents comply with the requirements established in these Norms.

Transitory Art. 20.- For the Registration in the Superintendence of Agents who are operating on the date of validity of these Norms and to comply with the period defined in article 115 of the Law on Supervision and Regulation of the Financial System, the Superintendence will request from the Stock Exchange a certification of the list of active agents who are registered and authorized by it; including at minimum the full name, agent code and name of the Firm for which they operate on its behalf. For the purpose of completing the registration information in the Superintendence, Firms will have a maximum period of 60 business days from August 2, 2012, to present to the Superintendence the request and information related to articles 10 and 11 of these Norms. In the case of Agents who on the date of validity of these Norms are authorized by a Stock Exchange to hold said position; compliance with letter b) of article 9 of these Norms will not be required.

Sanctions (2) Art. 20-A.- 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. (2)

Unforeseen aspects Art. 21.- Aspects not provided for in the regulatory matter of these Norms will be resolved by the Central Bank through its Norms Committee. (2)

Validity Art. 22.- These Norms will enter into force on June 27, 2012.

MODIFICATIONS:

(1) Modifications approved by the Norms Committee of the Central Reserve Bank of El Salvador, in Session No. CN-12/2016, dated December 23, 2016, with validity from January 20, 2017. (2) Modifications to articles 2, 11, 12, 13, 15-A and 21 and incorporation of articles 12-A, 12-B and 20-A, approved by the Central Bank through its Norms Committee, in Session CN-11/2021, of August 31, 2021, with validity from September 17, 2021. (3) Modifications in article 15-A, approved by the Central Bank through its Norms Committee, in Session CN-07/2025, of August 28, 2025, with validity from September 12, 2025.

Annex No. 1

STOCKBROKER AGENTS MODEL OF SWORN DECLARATION FOR STOCKBROKER AGENTS In the city of San Salvador, at _______ hours on the day ________ of _______ of two thousand . Before me, _______ notary of the domicile of _______________ appears the gentleman _______ of _______ years, (profession or trade) _______, from the domicile _____________ whom I know (or do not know), holder of (or identified by) Unique Identity Document number (or passport number)______, with Tax Identification Number _______, who acts in his own name, and SAYS: That in his capacity as Stockbroker Agent of the society ________________________, UNDER OATH MAKES THE FOLLOWING DECLARATIONS: A) That he is of legal age. B) That he is not insolvent or bankrupt. C) That he has not been judicially qualified as responsible for culpable or fraudulent bankruptcy. D) That he has not been convicted of any intentional crime. E) That he is not a debtor of the financial system for credits to which a 50% soundness reserve has been constituted. F) That his registration as a Stockbroker Agent in the Registry of the Superintendence has not been cancelled, derived from an Administrative Sanction Procedure. G) That it has not been judicially proven that he participated in activities related to drug trafficking, terrorism financing, money laundering and asset laundering. 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 expressed the declarant to whom I explained the legal effects of this notarial act, which consists of _____ page(s) front and back; and having read it to him by me in a single act without interruption and in its entirety, he ratifies its content and we sign. I CERTIFY.

The Sworn Declaration must comply with what is established in the Notary Law.