Technical Standards for the Authorization of Constitution, Start of Operations, Registration and Management of Operations of Investment Fund Managers — BCR — SV

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-07/2015 NDMC-02

TECHNICAL STANDARDS FOR THE AUTHORIZATION OF CONSTITUTION, START OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS

Approval: 19/03/2015
Validity: 08/04/2015

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

CONSIDERING:

I. That articles 2 and 7 of the Investment Funds Law establish that, for the purpose of administering an Investment Fund, Managers shall be constituted as fixed-capital anonymous societies, of indefinite term, domiciled in El Salvador.

II. That article 5 of the Investment Funds Law stipulates that the Superintendency of the Financial System, within the scope of its competence, is responsible for the supervision of Investment Fund Managers, their operations, and other participants regulated by the same.

III. That article 6 of the Investment Funds Law provides that the Central Bank of Reserve of El Salvador is responsible for issuing the Technical Standards necessary for the application of said Law.

IV. That articles 8, 9, and 11 of the Investment Funds Law establish that it is the competence of the Superintendency of the Financial System to authorize the constitution, functioning, and start of operations of a Manager.

V. That articles 7 and 35 of the Law on Supervision and Regulation of the Financial System establish that the members of the financial system must adopt policies and mechanisms in matters of risk management and code of conduct, consistent with international best practices.

VI. That article 15, first paragraph, of the Special Law for the Prevention, Control, and Sanction of Money Laundering, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction, establishes that obligated subjects, in order to identify their clients and users, including the controller, beneficiary, or ultimate beneficiary, shall manage the risks associated with them and obtain appropriate information about the commercial relationships established or their continuity, must take reasonable measures to carry out due diligence procedures. (4)

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:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-07/2015 NDMC-02

TECHNICAL STANDARDS FOR THE AUTHORIZATION OF CONSTITUTION, START OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS

Approval: 19/03/2015
Validity: 08/04/2015

TECHNICAL STANDARDS FOR THE AUTHORIZATION OF CONSTITUTION, START OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS

CHAPTER I
OBJECT, SUBJECTS, AND TERMS

Object
Art. 1.- These Standards aim to regulate the requirements and process for the authorization of constitution of Investment Fund Management Societies, in accordance with the Investment Funds Law, start of operations, and their registration with the Superintendency; as well as applicable provisions for the operations they carry out.

Subjects
Art. 2.- The subjects obligated to comply with the provisions established in these Standards are persons interested in constituting an Investment Fund Management Society in accordance with the Investment Funds Law, Managers authorized by the Superintendency of the Financial System, their representatives, directors, related persons, or employees. (3)

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Commercial Agent: Natural person authorized by the Superintendency of the Financial System to market participation quotas of Investment Funds and who works for a Manager or commercial entity; b) Central Bank: Central Bank of Reserve of El Salvador; c) Financial Conglomerate: In accordance with article 113 of the Banks Law, it is a set of societies characterized by the fact that more than fifty percent of their respective share capital is owned by a controlling society, which is also a member of the conglomerate. The controlling society of the conglomerate may be a society of exclusive purpose or a bank constituted in the country; d) External Director: One who is not an employee nor holds an executive position in the entity; e) Commercial Entity: Stockbrokerage House, as well as another legal person authorized by the Superintendency of the Financial System, that has signed a mandate contract with a Manager for the marketing of participation quotas of Investment Funds; f) Fund: Investment Fund;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-07/2015 NDMC-02

TECHNICAL STANDARDS FOR THE AUTHORIZATION OF CONSTITUTION, START OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS

Approval: 19/03/2015
Validity: 08/04/2015

g) Open Fund: Open Investment Funds; h) Closed Fund: Closed Investment Funds; i) Future Shareholder: Any natural or legal person interested in acquiring shares of an Investment Fund Management Society; j) Manager: Investment Fund Management Society; k) Business Group: In accordance with article 5 of the Securities Market Law, it is one in which a society or set of societies have a common controller, who acting directly or indirectly participates with at least fifty percent in the share capital of each of them or that have common shareholders who, directly or indirectly, are holders of at least fifty percent of the capital of another society, which allows to presume that the economic and financial performance is determined by common interests or subordinate to the group; l) Funds Law: Investment Funds Law; m) Market Law: Securities Market Law; n) Supervision Law: Law on Supervision and Regulation of the Financial System; o) TIN: Tax Identification Number; p) Participant: Investor in an Investment Fund; q) Registry: Public Stock Registry of the Superintendency of the Financial System; r) Internal Regulations: Document containing all the specific characteristics and rules governing the operation of a specific Investment Fund; and s) Superintendency: Superintendency of the Financial System.

CHAPTER II
NATURE AND CONSTITUTION OF MANAGERS

Nature and constitution
Art. 4.- Managers shall be constituted in accordance with what is established in Article 7 of the Funds Law. They shall be governed by the Funds Law, the Technical Standards issued by the Central Bank, by the Internal Regulations authorized by the Superintendency for each Fund, and other applicable laws. Furthermore, the legal and regulatory provisions regarding fixed-capital anonymous societies, contained in the Commercial Code, shall apply to these societies, insofar as they do not oppose the special provisions that govern them.

In the case of Managers that belong to financial conglomerates, they shall also observe what is provided in the Supervision Law and Banks Law insofar as it does not contradict the Funds Law.

Purpose
Art. 5.- Managers have the purpose of administering Funds, on behalf and at the risk of the participants, and acting on behalf of the Funds.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-07/2015 NDMC-02

TECHNICAL STANDARDS FOR THE AUTHORIZATION OF CONSTITUTION, START OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS

Approval: 19/03/2015
Validity: 08/04/2015

No entity may, without having obtained the respective authorization and without being registered in the Registry, develop the activities legally reserved for Managers in accordance with the provisions of the Funds Law.

Board of Directors
Art. 6.- The Manager shall be administered by a Board of Directors. For the formation of said Board, consideration must be given to what is regulated in article 39 of the Supervision Law.

Inabilities
Art. 7.- The following shall not be able to be directors or administrators of Managers due to inabilities, those who fall within the circumstances detailed in article 14 of the Funds Law, presenting a sworn statement in accordance with Annex No. 1 of these Standards.

Prohibitions for controlling or relevant shareholders Art. 8.- The following shall not be controlling or relevant shareholders of the Manager, those who fall within the prohibitions referred to in article 17 of the Funds Law, presenting a sworn statement in accordance with Annex No. 2 of these Standards.

In the event that the Manager has knowledge that a shareholder falls under any of the prohibitions indicated by the Funds Law, it must notify the Superintendency within three business days following the date on which it had knowledge of such circumstance.

Authorization request for constitution
Art. 9.- Persons intending to constitute a Manager must request authorization from the Superintendency for its constitution. The request must contain the following information: (3) a) From the applicants: full name, age, profession or occupation, expression of the type and number of identity document, TIN, domicile, and nationality; b) From the future shareholders, if a natural person: full name, age, profession or occupation, expression of the type of identity document and its number, TIN, domicile, and nationality as well as the amount of their respective subscriptions. If a legal person: name of the society, TIN, domicile, and Tax Registration Number; c) In the case that the request is signed by the legal representative or attorney-in-fact of the future shareholders, their full name, age, profession or occupation, expression of the type and number of identity document, TIN, domicile, and nationality must be expressed; d) Indication, if applicable, of the business group or conglomerate to which the future shareholders belong; e) Indication of the amount of capital to be subscribed and paid, which cannot be less than that required in article 19 of the Funds Law; f) Indication of the amount of the guarantee to be constituted as required in article 8, letter c) of the Funds Law, which cannot be less than that established in article 22, letter a) of the same Law; g) Full name, age, profession or occupation, domicile, nationality, experience, bank or credit references, expression of the type and number of personal identity document, of each of the potential directors and administrators and of their respective spouses, if they have agreed in the act of marriage to submit to the regimes of participation in profits or deferred community; (3) h) The name of the Manager; and i) The place to receive any kind of notifications and the designation of the persons commissioned for such effect.

Documents that must be attached to the request Art. 10.- The authorization request for constitution must be accompanied by the following documentation:
a) Draft deed of constitution in which the purpose must be in accordance with the acts or services established in article 7 of the Funds Law; b) Draft statutes of the society, if these are not included in the draft deed; c) Legible copies of the personal identity document, the TIN or its Graphic Representation, of each of the future shareholders and their legal representatives, attorneys, and their attorneys-in-fact, if applicable; (3) d) Sworn statement by each of the future controlling or relevant shareholders, defined as such in the Funds Law, in which they express that they do not fall under any of the prohibitions established in article 17 of the Funds Law; likewise, such sworn statement must be sent by shareholders who hold 25% or more of the participation in those societies that hold the quality of relevant or controlling shareholders. Shareholders who do not hold the quality of controllers or relevant must present a sworn statement in which it is stated that they do not incur in the prohibitions established in article 17, letters c) and f) of the Funds Law. In the sworn statements signed by the shareholders, they must indicate the place where they can receive any kind of notifications and the list of persons designated for such effect. The signature on each of these statements must be authenticated by a notary, and the statements must be prepared in accordance with Annex No. 2 of these Standards; e) Documentation proving the origin of the funds for the acquisition of shares by future shareholders who hold more than 1% of them; f) In the case that one or more shareholders are a legal person, the following documents must also be attached, insofar as applicable to them:
i. Copy of their current partnership agreement and the latest credential of the election of their administration body;
ii. Certification of the list of shareholders who hold twenty-five percent or more of their social capital. Such certification must be signed by whoever has legal representation of the applicant and must be authenticated by a notary;
iii. Copy of the certification of the point in the minutes in which the authorization to the legal representative is recorded, if the current partnership agreement establishes that for the constitution of any kind of society, the legal representative of the applicant needs authorization from any superior body;
iv. Last financial information at the end of the previous fiscal year. When the closing information corresponds to a date more than six months prior to the presentation thereof, unaudited financial information corresponding to at least three months prior must be presented;
v. Copy of the Tax Registration Number; and
vi. When the future shareholder is an entity that by virtue of law is supervised by the Superintendency and has presented the information requested in this letter, it will not be necessary to present it again unless such information is not updated, that is, its date of presentation to the Superintendency is more than six months.
g) Sworn statement by each of the potential directors and administrators, in which they express that they do not fall under any of the inabilities established in article 14 of the Funds Law. In the sworn statements signed by the directors and administrators, they must indicate the place where they can receive any kind of notifications and the list of persons designated for such effect. The signature on each of these statements must be authenticated by a notary, and they must be prepared in accordance with Annex No. 1 of these Standards; h) Legible copies of the personal identity document, the TIN or its Graphic Representation, of each of the potential directors and administrators; (3) i) The Curriculum Vitae of each of the initial directors and administrators or any other kind of documentation that accredits their experience in the area related to the position they will perform; j) Bank or credit references, at least two, of each of the potential directors and administrators proposed, issued by institutions authorized to operate in the country by the Superintendency or by the office that exercises State surveillance, when it comes to references extended abroad. The aforementioned references must be issued with six months prior to the date of presentation, at the latest. When any of these certificates have been issued abroad, the Superintendency may require the applicants to present the documents by virtue of which it is proven that the entity that issued such certificate is legally authorized to operate in the corresponding country; and k) Tax solvency from the Ministry of Finance and current municipal solvency at the time of presenting the documentation, of each of the shareholders, directors, and administrators. In the case of foreign persons, they must present a non-taxpayer certificate issued by the Ministry of Finance when applicable.

The request and documentation may be presented through the means made available by the Superintendency, which may be electronic. In any case, the time limit referred to in the first paragraph of article 10-A of these Standards shall begin to run from the next business day after the request has been presented. (3)

Authorization procedure to constitute an Investment Fund Manager (3) Art. 10-A.- Upon receiving the authorization request to constitute an Investment Fund Manager, in accordance with what is established in articles 9 and 10 of these Standards, the Superintendency will proceed to verify compliance with the requirements defined in the Funds Law and these Standards, having a time limit of no more than fifteen business days for its review. (3)

If the request is not accompanied by the complete and duly formatted information detailed in articles 9 and 10 of these Standards, the Superintendency, in the absence of necessary requirements, may require the applicants to present the missing documents within a time limit of ten business days counted from the day following the notification, a time limit that may be extended at the request of the interested persons, when there are reasons justifying such extension. (3)

The Superintendency, in the same notice, will indicate to the applicants that if they do not complete the information within the aforementioned time limit, it will proceed without further procedure to archive the request, leaving them free to present a new request. (3)

If after the analysis of the documentation presented in accordance with articles 9 and 10 of these Standards, the Superintendency has observations or when the documentation or information presented does not result sufficient to establish the facts or information intended to be accredited; the Superintendency will notify the applicants to remedy the deficiencies communicated to them or present additional documentation or information requested by them. (3)

The applicants will have a maximum time limit of ten business days counted from the day following the notification, to resolve the observations or present the information requested by the Superintendency. (3)

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-07/2015 NDMC-02

TECHNICAL STANDARDS FOR THE AUTHORIZATION OF CONSTITUTION, START OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS

Approval: 19/03/2015
Validity: 08/04/2015

The Superintendency may, through a reasoned resolution, extend by up to another ten business days the time limit indicated in the previous paragraph, when the nature of the observations or deficiencies notified so requires. (3)

Extension time limit (3)
Art. 10-B.- The applicants may present to the Superintendency a request for extension of the time limit indicated in the fifth paragraph of article 10-A of these Standards, before the expiration of said time limit, expressing the grounds on which it is based and proposing, if applicable, the relevant proof. (3)

The extension time limit may not exceed ten business days and shall begin from the next business day following the expiration date of the original time limit. (3)

Suspension of time limit (3)
Art. 10-C.- The fifteen business day time limit indicated in the first paragraph of article 10-A of these Standards, shall 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 paragraphs of said article, until the interested parties remedy the observations required by the Superintendency. (3)

Publication of Manager Request for Objections (3) Art. 11.- Once the complete and duly formatted documentation referenced in articles 9 and 10 of these Standards has been presented, the Superintendency, within a time limit that shall not exceed fifteen business days, will publish in printed media of national circulation or another digital publication platform with greater or equal coverage, or on its website, in accordance with what is established in the current legal framework, by a single time and at the expense of the applicants, a notice that includes the name of the Manager to be constituted; the list of controlling or relevant shareholders, if applicable, as well as their participation in the society to be constituted and mention of belonging to a business group or conglomerate; and the list of initial directors and administrators.

When the shareholders are legal persons, the notice must additionally include the list of their shareholders who hold at least ten percent of their social capital or of the partners who have that percentage of social participation, as established in article 9 of the Funds Law. (3)

The publication aims to allow any person who has knowledge that any of the inabilities and prohibitions contained in articles 14 and 17 of the Funds Law apply to the directors, administrators, or shareholders who will be part of the Manager, to object to them. The objections must be presented in writing to the Superintendency within a time limit of fifteen days counted from the day following the publication, attaching the relevant proof. The information will have the character of confidentiality. The Superintendency will notify such circumstance to the objectee, who must appear within the time limit of eight business days counted from the...

respective notification, and must rule on the opposition raised, being able to attach all kinds of evidence aimed at supporting their arguments. Once the aforementioned period has expired, the Superintendence will rule within two business days on the alleged disqualifications or prohibitions, and must notify such circumstances in the manner previously provided.

If any shareholder, director, or administrator is declared disqualified or if it is determined that they fall under the prohibitions of the Fund Law to hold such status, the applicants must submit a new list to the Superintendence in which the corresponding shareholder, director, or administrator has been excluded.

Notwithstanding the foregoing, at any time during the authorization process, the Superintendence may, on its own motion or at the request of a party, declare the disqualification, after a hearing of the interested party within a period of eight business days counted from the day following the notification, to exercise their right of defense.

Repealed (3)
Repealed (3)
On the resolution of the application (3)
Art. 11-A.- Once the period has elapsed without objections being raised or having been resolved, the Superintendence must issue a resolution authorizing or denying the application to establish a Fund Manager, within a period not exceeding sixty days. (3)

The Superintendence will proceed to notify the resolution in which it authorizes or denies the application to establish itself as an Investment Fund Manager, within a maximum period of three business days from the date the resolution is issued. (3)

When the Superintendence denies the application to establish a Fund Manager, the Superintendence will publish such denial on its website or through digital media. (3)

Granting of the deed of establishment
Art. 12.- Upon receiving the communication of authorization for establishment, the interested parties must proceed to execute the constitutive deed within a period of thirty days counted from the date of notification of the Superintendence's resolution.

If this period elapses without the deed being executed, the authorization agreement will become void. If for any reason the interested parties in establishing a Fund Manager decide at this stage not to continue with the process, they must notify the Superintendence, which in this case will publish it on its website.

Modifications
Art. 13.- If during the period referred to in Article 12 of these Standards, any change occurs in the information or documentation presented to the Superintendence in accordance with Articles 9 and 10 of these Standards, the Fund Manager must send the updated information or documentation to the Superintendence within five days of the change occurring.

Additionally, when a change occurs in the information published in the notice referred to in Article 11 of these Standards, this fact must be published in the terms and deadlines established in the aforementioned article.

Once the Superintendence has verified the modifications to the information or documentation presented or published, it will issue a new resolution authorizing or denying the application to establish a Fund Manager, within a period not exceeding thirty days.

From the notification of this resolution, the period of thirty days referred to in Article 12 of these Standards will begin to run.

Review of the testimony (copy of the deed)
Art. 14.- Prior to presenting the testimony of the deed of establishment in the Commercial Registry, the applicants must send it to the Superintendence within a period of fifteen business days from its execution, so that it verifies that it has been drafted in accordance with the project presented under letter a) of Article 10 of these Standards, which has been previously authorized, with the Superintendence having a period of ten business days for such verification.

If there are differences between the public deed of establishment and the project thereof authorized by the Superintendence, the latter must communicate this to the applicant within the period indicated in the preceding paragraph, so that the authorizing notary proceeds to make the respective adjustments, and the testimony of the public deed must be presented again before the Superintendence, within a period of twenty business days from the date of communication of the inconsistencies or differences for verification.

Art. 15.- If it is determined that there are no inconsistencies between the public deed of establishment and the reviewed project of the deed, or in the case that the inconsistencies communicated in accordance with the provisions of the previous article have been overcome; the Superintendence will proceed within a period of five business days to extend a certificate signed by the Superintendent of the Financial System, which contains the favorable qualification of said deed, with the object that it may be presented in the Commercial Registry for the corresponding registration.

Procedure if the Commercial Registry makes observations on the Testimony of the public deed of establishment, or denies its registration Art. 16.- When the Commercial Registry notifies the authorizing notary or any other interested party, the denial or the making of observations on the testimony of the public deed of establishment of a Fund Manager, that person must, in turn, notify such circumstances to the Superintendence in writing and no later than the next business day after receiving the respective notification.

In such writing, the interested party or the authorizing notary must relate at least, the presentation number of the respective instrument in the Commercial Registry and state whether they will file any kind of appeal aimed at achieving the registration of the testimony or, in that case, the manner in which they intend to remedy the respective observations, as well as the result of such actions, which must be notified to the Superintendence in the manner provided in the preceding paragraph.

If for the registration of the instrument in question, it is necessary to modify the conditions under which the Superintendence ordered its favorable qualification, it may, upon written request of the future shareholders or their proxies, proceed to issue a new certificate in the terms established in Article 15 of these Standards.

Once the testimony is registered and the statutes are deposited in the Commercial Registry, the Fund Manager will send a copy of said instruments to the Superintendence.
CHAPTER III
AUTHORIZATION OF THE COMMENCEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS

Authorization for the commencement of operations and registration of the Fund Manager Art. 17.- Once registered in the Commercial Registry the public deed of establishment, the Fund Manager will request authorization from the Superintendence for the commencement of operations, for which it must present:
a) Note signed by the legal representative of the Fund Manager, in which it requests the Superintendence, the authorization for the commencement of operations and its corresponding entry in the Registry; b) Legible copy of the certification of the point of the Minutes of the General Shareholders' Meeting in which the election of the Board of Directors is recorded, prior to its registration in the Commercial Registry, in the case that they have not been appointed in the constitutive act; c) Legible copy of the point of the Minutes of the General Shareholders' Meeting or of the Board of Directors, by virtue of which the appointment of the General Manager or Executive Director has been made; d) Legible copy of the Tax Identification Number (NIT) or its Graphic Representation, and the Taxpayer Registration Number of the Fund Manager; (3)

e) Organizational chart of the Fund Manager indicating the position and name of the administrators and directors, specifying the position to be held with respect to support staff; f) Curriculum Vitae and documents that prove that the persons working for the Fund Manager, performing functions directly related to the management of the Funds, have the necessary technical and professional capacity to carry out such activities, such as the General Manager; Investment Manager or persons in charge of administering the investments. Any change in the personnel performing these functions must be communicated to the Superintendence within five days of occurrence, sending the information required in this letter. g) Business plan or model for the first three years, referring to the central aspects of the activities it intends to carry out, potential demand for the services it offers, market analysis, main risks and disadvantages, indicating whether it will contract the services of other entities, including commercializers; (3) h) Detail of infrastructure and technical resources adequate to its activity program in accordance with the business plan or model; i) Legible copy of the agreement appointing the external auditor, in the case that it has not been appointed in the constitutive act, which must be previously registered in the Commercial Registry; j) Budget of fixed expenses of the Fund Manager for the first year of operation; k) Accounting systems that will be used by the Fund Manager and the description of the computer platform on which it has been developed, description of its information systems, description of information backups, security and controls in the systems. The accounting systems must be presented in accordance with the applicable legal provisions; l) Automated information systems related to the registration of participants, online or batch processing on information regarding placement or redemption of participation units, control of the investments of each of the Funds it administers, valuation of Fund investments and calculation of the unit value and other operations it must perform to fulfill its purpose, attaching the inventory and description of the computer systems and databases that the Fund Manager will use in its operations, as well as the description of the computer platform on which they have been developed, presenting, in addition, the backup procedures manual and description of security policies and controls applied to the computer systems and databases in accordance with Annex No. 3 of these Standards. In the case of batch processing, it must be carried out at least twice during the working day; m) Internal control manuals for the operation of each of the entity's operational processes; n) Organization and procedures manuals that allow it to fulfill its functions adequately, considering within these the detail of the

procedure for the administration of investments including the positions of the participants in said procedure and their obligations, as well as the formats of forms to be used in the entity's accounting and operations; o) Contingency and business continuity plans; p) Policy and procedure for the Fund Manager to carry out its own investments, when such activity is included in the business model, such procedure must indicate the obligation to keep a record of each of the investments made; q) Policies to be adopted in accordance with Article 35 of the Supervision Law, Article 25 letter j) of the Fund Law, and the Technical Standards issued by the Central Bank, among which may be mentioned:
i. Policies and mechanisms for the management of risks in the Fund Manager's operations, including those related to preventing and impeding the execution of operations related to money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction. The policy must include at minimum the methodology to systematically identify, measure, control, and mitigate, as well as monitor and communicate appropriately for each of the different types of risks identified; (4)
ii. Policies on ethical standards of conduct;
iii. Management of conflicts of interest, insider information; and
iv. Corporate governance policies.
Regarding the handling of conflicts of interest, it is required to have a detail of the conflicts identified at the stage of commencement of operations, as well as the mechanisms for mitigating and revealing them, which will be reviewed by the Superintendence at the time of verifying the accounting systems and other requirements referred to in the fourth paragraph of this article. (3)

In the case of letter c), if the Board of Directors has not been elected in the public deed of establishment, in order to corroborate that it coincides with the Board of Directors published in the notice referred to in Article 11 of these Standards; once such certification is registered in the Commercial Registry, a copy of it must be sent to the Superintendence. In the case that the published list does not coincide with the certification of the point of the minutes in which the Board of Directors is chosen, the Superintendence, at the expense of the applicants, will make a new publication for the purposes of Article 11 of these Standards.

The Superintendence will verify the accounting, information, control, and internal procedures systems of the company, verifying that the computer systems have their applications and processes duly documented, including records of changes in them, maintenance policies, licenses and authorizations, backup mechanisms, and information recovery procedures. (3)

The application and documentation may be presented 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 17-A of these Standards will begin to run from the next business day after the application has been submitted. (3)

Procedure for Authorization of the commencement of operations of the Investment Fund Manager (3) Art. 17-A.- Upon receiving the application for authorization for the commencement of operations of the Investment Fund Manager, in accordance with the provisions of Article 17 of these Standards, the Superintendence will proceed to verify compliance with the requirements defined in the Fund Law and in these Standards, having up to thirty business days for the authorization or denial of the commencement of operations of the Investment Fund Manager. (3)

If the application is not accompanied by the complete and duly formatted information detailed in Article 17 of these Standards, the Superintendence, in the absence of necessary requirements, may require the applicants to submit, within a period of ten business days counted from the day following the notification, the missing documents, a period that may be extended at the request of the interested parties, when there are reasons justifying such extension. (3)

The Superintendence, 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 application, leaving them free to submit a new application. (3)

If after the analysis of the documentation presented in accordance with Article 17 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; the Superintendence will notify the applicants to remedy the deficiencies communicated or present additional documentation or information requested. (3)

The applicants will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or submit the information requested by the Superintendence. (3)

The Superintendence may, through a reasoned resolution, extend by up to another ten business days the period indicated in the preceding paragraph, when the nature of the observations or notified deficiencies so requires. (3)

Extension period (3)
Art. 17-B.- The applicants may submit to the Superintendence an application for extension of the period indicated in the fifth paragraph of Article 17-A of these Standards, before the expiration of said period, stating the grounds for the request and proposing, if applicable, the relevant evidence. (3)

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. (3)

Suspension of the period (3)
Art. 17-C.- The thirty business day period indicated in the first paragraph of Article 17-A 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 paragraphs of said article, until the interested parties remedy the observations required by the Superintendence. (3) On the resolution of the authorization (3) Art. 18.- The Superintendence, if it finds no objections or if the observations made have been remedied, will issue the agreement authorizing the commencement of operations of the Fund Manager within a period not exceeding fifteen business days, ordering in that act, its Registry Entry in the corresponding Registry, which must be carried out within a maximum period of five business days from the authorization issued. (3)

The Superintendence will proceed to notify the resolution in which it authorizes or denies the application for authorization for the commencement of operations of the Investment Fund Managers, within a maximum period of three business days from the date the authorization resolution is issued. (3)

Art. 19.- At the expense of the Fund Manager, the Superintendence must publish in national circulation print media or another digital publication platform with greater or equal coverage, or on its website, in accordance with the provisions of the prevailing legal framework, the agreement authorizing the commencement of operations within five days following the issuance of said agreement. Fund Managers must commence operations within a maximum period of six months, counted from the notification of the authorization agreement, otherwise, it will become void. The commencement of operations does not imply the active management of a Fund. The Fund's operation begins from the moment it reaches the minimum assets and number of participants required by the Fund Law. (3)

When the Superintendence denies the commencement of operations of a Fund Manager, the Superintendence will publish such denial on its website or through digital media. (3)

The Fund Manager, after obtaining the agreement authorizing the commencement of operations, must request authorization from the Superintendence referred to in Article 26 of the Fund Law for the persons who will carry out the commercialization of the participation units and those in charge of administering the investments of each Fund.
CHAPTER IV
SHARE CAPITAL OF THE FUND MANAGER

Social Capital
Art. 20.- The minimum amount of social capital for the constitution of a Manager shall be five hundred thousand United States dollars, as established in article 19 of the Funds Law. This capital must be fully subscribed and paid in cash by means of a certified check, cashier's check, or bank draft, drawn against a bank regulated by the Banks Law and credited through the deposit of the corresponding check in the Central Bank or in another bank regulated by the Banks Law.

Reduction of Capital
Art. 21.- The Manager may agree to the reduction of its social capital with the prior authorization of the Superintendence. Under no circumstances shall authorization be granted for said capital to be reduced below the amount established in accordance with article 19 of the Funds Law. For this purpose, at the time of requesting it, the Manager shall present the following:
a) Request signed by the legal representative of the Manager; b) Copy of the respective General Shareholders' Meeting agreement; and c) Justification report of the capital reduction explaining that the operations of the Manager and the Funds it administers will not be affected by this reduction.

Once the capital reduction is authorized, the Manager shall observe the procedure established for the modification of the deeds in accordance with article 12 of the Funds Law.
The Manager for the capital reduction shall also consider what is established in the Commercial Code.

Application of Losses
Art. 22.- In the event of losses in a fiscal year, in the General Shareholders' Meeting where such results are known, an agreement must be taken to cover them, according to the order established in article 21 of the Funds Law.

Capital or Equity Deficit from Application of Losses Art. 23.- Without prejudice to what is stipulated in the previous article and to the actions that correspond to the Superintendence in the exercise of its supervision function, when the minimum capital amount of the Manager is reduced to figures lower than those established in the Funds Law due to the application of losses, the Manager shall have a period of sixty days from the date such situation occurs to reintegrate it. At no time shall the Manager's equity be less than the social capital required in the Funds Law. The Manager must present to the Superintendence within the first ten days of the period, a plan and schedule of contributions to adjust to the required capital levels, which must be fulfilled within the stated term.

Once the deficit is remedied, the Manager must comply with what is established in article 48 of these Norms. If the deficiency persists, its authorization to operate will be revoked in accordance with what is provided in article 38 of the Funds Law. The revocation will produce the dissolution and liquidation of the Manager with the pertinent legal effects.

CHAPTER V
ACTS AND OPERATIONS OF THE MANAGER

Acts and Operations
Art. 24.- The Manager must carry out all acts, contracts, and operations necessary for the administration and functioning of the Funds, and in particular shall have the powers indicated in article 24 of the Funds Law. In the operations carried out by the Manager, it must keep segregated the cash and securities accounts for each Fund it administers, as well as its own accounts.

Commissions and Expenses
Art. 25.- Every commission and expense must be expressed in the Internal Regulations of the respective Fund, as well as in the offering prospectus. The administration commission and other necessary expenses will be borne by each Fund, and other commissions may be established charged to the investor, in accordance with what is established in the Consumer Protection Law and always that such commissions are clearly revealed in the offering prospectus and the Internal Regulations of the Fund.

Commissions will be expressed as percentages or amounts, and for expenses, their concept will be clearly detailed.

Commissions charged to the Fund or to the investor must include the payment that the Manager makes to the commercializing entity.

Modification in Commissions or Expenses
Art. 26.- Any modification to the commissions or expenses referred to in article 25 of these Norms must be communicated to the public. The modification will begin to govern after fifteen business days counted from the date of publication for Open Funds and for Closed Funds, fifteen days after the authorization of the Superintendence is notified.

In the case of Open Funds, the Manager will communicate the modification by means of a prominent notice in the newspaper of national circulation, established in the Internal Regulations, in the Fund's Offering Prospectus, and on its website; whereas, for a Closed Fund, the communication may be direct or by any means that allows the management to be corroborated, in the manner established in the Internal Regulations. The Manager must send a copy of the publication made to the Superintendence no later than three business days after it is carried out.

Responsibilities of Directors and Administrators Art. 27.- The directors, administrators, and managers of the Managers, at all times, must ensure that the Funds they administer are managed under criteria of honesty, prudence, and efficiency, as prudent businessmen in their own business, and are executed complying at all times with the regulatory provisions to which it is obligated, its policies, internal regulations, and procedures. They will also be responsible for ensuring that the information provided to the Superintendence and the public is truthful and reflects with transparency the true financial situation of the Manager.

Customer Service
Art. 28.- The Manager is obligated to have a procedure to attend and resolve complaints and claims from its participants, creating a formal service to attend the claims raised by the participants, must establish the corresponding mechanisms and procedures, with reasonable response times. Additionally, it must indicate the place, address, telephone, or email address through which investors can present their claims.

The procedure detailed in the preceding paragraph, including the service deadlines, must be made known to the participants in the Fund's Internal Regulations.

Prohibitions
Art. 29.- The Manager, its representatives, directors, related persons, or employees may not carry out acts for their own benefit or that of third parties, to the detriment of the participants or the Funds it administers, and will be subject to the prohibitions established in article 29 of the Funds Law. Additionally, they may not carry out the following activities:
a) Develop or promote operations that have as their objective or result the artificial evolution of the value of the participation share, preventing market manipulation behaviors, in accordance with article 100 of the Markets Law; b) Administer or commercialize Funds without having the corresponding authorization as established in article 8 of the Funds Law, or without having obtained the authorization of the respective Fund as required by articles 52 and 62 of the Funds Law; c) Grant loans on any title with Fund money, except for active repo operations, always that it is contemplated in its investment policy. It may not also allocate Fund resources to support its own liquidity as a Manager or of any other company belonging to its business group or financial conglomerate, because the investments made with resources from a Fund will have as their sole object the obtaining of adequate profitability, as established in article 96 of the Funds Law; d) Delegate in any way the responsibilities that as administrator of the Fund's investment portfolio correspond to it according to what is established in article 30 of the Funds Law; e) Accept participation shares in the Fund as collateral for credits that have been granted to the participants of said Fund; f) Carry out fictitious transactions of purchase and sale of securities or other assets that make up the Fund to the detriment of the participants; g) Manipulate the value of the assets of the Fund it administers or the value of the participation shares, applying correctly the authorized methodologies for the calculation of said value; and h) Not respect the order of entry of redemption payment requests for the benefit of its own operations, of companies belonging to its business group or financial conglomerate, other Funds administered by the same Manager, or third parties.

Manager's Participation in a Fund
Art. 30.- The Manager and companies belonging to its same financial conglomerate or business group may be holders individually or jointly of the participation shares of a Fund administered by said Manager, up to the maximum percentages established in article 28 of the Funds Law. If excesses to said maximum percentages occur due to market fluctuations or another justified cause, proceedings will be carried out in accordance with what is regulated in the second paragraph of the cited article.

In the case of excesses, the Manager must communicate to the Superintendence by note the reason for the excess and the measures to be taken to regularize to the percentages established in the Funds Law; must publish this situation on its website during the period that the excess lasts. The Manager within the period of three business days following the regularization must communicate to the Superintendence, if the situation had incidences or repercussions on the Fund.

Obligation of Indemnification and Liability
Art. 31.- The Manager is obligated to indemnify the Fund participants according to the terms established in article 27 of the Funds Law, for the execution of the actions that by virtue of the Funds Law are prohibited to it or by omission of any of its obligations. The Manager must keep control of the payment of indemnifications.

Contracting of Services
Art. 32.- The Manager, in accordance with what is established in article 30 of the Funds Law, may celebrate service contracts with other companies that allow it to exercise its functions, such as in administrative, IT, and other areas. The Manager that administers Closed Real Estate Funds, among others, may contract services related to the maintenance of real estate, supervision of construction, and valuation thereof. The Manager is not allowed to contract services for the administration of the Fund's investment portfolio.

Under no circumstances may entities related to the Manager provide services to it without explicitly recognizing the costs thereof, which will be duly incorporated in the respective contracts as well as their payment method. The prices of said services must be established strictly under market conditions. This does not prevent related entities to the Manager from providing services without cost, which must be established in the contract and revealed by the Manager.

In the Offering Prospectus, the services to be contracted must be listed. The Manager must ensure that the entities it contracts have the qualifications and capacity to perform their functions, taking into account the nature of the services they will provide, since the Manager is responsible to third parties for the quality of the contracted services as if it had carried them out. The Manager must assume the costs of indemnification of the Fund, immediately upon the occurrence of the fact, when the contracted company commits fraud, error, or breach of contract that implies prejudice to the administered Fund.

Art. 33.- All services that the Manager contracts for the Funds will be backed by a contract, without prejudice to the provisions that are established for the commercialization of shares in the Technical Norms that the Central Bank issues on this matter. (2)

Repealed (2)
The Manager will carry out, prior to contracting, an evaluation on possible conflicts of interest with the entity to be contracted and if such conflicts exist, it must mitigate them and, if applicable, reveal them in accordance with its policy. Likewise, it must define the mechanisms it will use to evaluate the performance of the contracted services, as well as the monitoring it will carry out on them.

In the case of substitution of companies that provide services; the Manager will notify said change to the Superintendence, presenting the new contract models to be signed. The Manager prior to contracting a company to provide the participant registration service, must request authorization from the Superintendence for it to verify that the Company has the necessary technological and financial requirements to provide said service, as established in article 49 of the Funds Law, the Technical Norms that the Central Bank issues on this matter. If the Manager decides to substitute the company that provides the participant registration service, it must request prior authorization from the Superintendence.

Service Contract Models
Art. 34.- The service contract models must be sent to the Superintendence for review as established in article 30 of the Funds Law and shall contain as a minimum, the following:
a) Object; b) Responsibilities of each contracting party; c) Deliverable products or services. Expected characteristics or contents thereof; d) Payment method; e) Duration period; f) Clauses that oblige the subcontracted entity to keep strict confidentiality on the information to which it has access by reason of the provision of its services, as well as a clause relative to the scheduling of work to be carried out; g) Clauses that facilitate an adequate review of the respective service provision by the Manager or by the Superintendence; h) Consignment of whether the service provider entity is related to the Manager; i) Conditions of nullity or rescission of the contract; j) Conditions for the resolution of conflicts; and k) Prohibitions applicable to the contractors, as established in the Funds Law and in these Norms.

The Manager may use the contract models once they have been reviewed by the Superintendence and the pertinent observations have been overcome. If within the period of thirty days that the Superintendence has to observe the models, it does not pronounce itself, it will be understood that it has no observations. Likewise, the Manager will reflect the contracting of these services in its accounting. Once the contracts are signed, it will send a copy of them to the Superintendence no later than three business days following the signing.

Commercialization of Participation Shares of Investment Funds Art. 35.- The Manager may carry out the commercialization of participation shares of the Funds directly or by means of commercializing entities, as established in the Funds Law and the Technical Norms that the Central Bank issues on this matter.

According to Article 46 of the Funds Law, the Manager and its agents must display in their public service offices and on their website, with a font visible to the naked eye, the following legend: “The amounts of money received as contributions for a Fund are investments at the account and risk of the investors, they are not bank deposits and do not have the guarantee of the Deposit Guarantee Institute.”

The Manager must have a mechanism to establish the investor's risk profile.

It is not allowed for the commercializing entity to subcontract the service of commercialization or redemption of participation shares.

The Board of Directors of the Manager must establish the profile and criteria that the entity must meet to be its agent.

Records
Art. 36.- It is the responsibility of the Manager to keep and maintain records with the following minimum content:

With respect to each of the Funds it administers:
a) A participant register through electronic systems that allow recording of any operation or event that has an effect on its content. The register must detail all operations carried out by the participants before the Manager with their participation shares, indicating: participant identification code; participant name, Identity Document and Tax ID (NIT); type of operation, total amount, quantity and class of participation shares, type of contribution if monetary or in kind (for Closed Funds) and the amount of the contribution, date of the operation, amount of withholdings made in concept of income tax, the assigned share value and encumbrances on the participation shares. The Manager may contract a company to carry out this register; b) A register of contributions and redemption of shares that contains as a minimum the participant identification code; serial number assigned by the system; name of the commercializing agent that carried out the transaction; number of Fund shares of the participant; date and time of receipt of contributions, as well as the manner in which the contribution was made, if in cash or in kind, electronic transfer or check; contribution amount; date and time of the redemption request; redemption amount; commissions to be charged if applicable, as well as the manner in which each of them was paid, that is, if in cash, money transfer or securities if applicable; status of the request, if the redemption has already been applied including the date or is pending, specifying why it is in process; c) For Closed Funds, the Manager will keep the register of participation shares of participants in accordance with the Law on Electronic Annotations of Securities in Account and a minutes book of the general assembly of participants, in which the adopted agreements will be noted; d) An Investment Register, in which the entries or income and exits or expenses of investment operations will be specified in chronological order, indicating the amount of the purchase or sale, taxes and expenses incurred in the investment operation, as well as the necessary information to identify that the investments made adjust to what is stated in the investment policy; and e) Books and records, required by the Commercial Code, the Ministry of Finance, and what is established in articles 36 and 37 of these Norms.

Art. 37.- With respect to the Manager, in addition to the records established by the Commercial Code, it will keep the following:
a) A register of the agents and commercializing entities contracted for the commercialization of participation shares:
i. For agents it must include: Full name of the agent; profession; type and number of personal identity document; Tax ID (NIT); address; telephone and nationality; date and session number of the Council in which it obtained authorization to operate as a commercializing agent; date of contracting of the commercializing agent; date of withdrawal of the commercializing agent; and signature of the agent;
ii. For entities: Name; trade name or corporate name, start date, renewal, extension, revocation of the mandate contract of the commercializing entity; legal representatives; monthly amounts commercialized by them; domicile; and contact telephone;
b) A register of contracted services, detailing the trade name or corporate name of the company, the service provided, term and price; c) A register of investment operations for its own account, if it has any; d) A register of complaints and claims made by participants before the Manager, its agents, and commercializing entities, indicating date, reason for the complaint, name of the person who presented it, and the status in which the complaints and claims presented are. In this register, a copy of the received claims, the response given, and the average time in which they were resolved will be incorporated, justifying those cases that had delays with respect to deadlines stated in the established procedure; e) A register of indemnifications paid to the participant; and f) A register of differences or conflicts of interest that arise between participants in their capacity as such, or between them and the Manager.

Art. 38.- Without prejudice to the specific provisions contained in the Technical Norms relating to the commercialization of participation shares of Funds of

Foreign Investors who issue the Central Bank, the Manager that has authorization to commercialize said quotas, must keep a register that will contain as a minimum:
name and nature of the Fund, name and nature of the participants who acquire said participation quotas, type and amount of the contribution, number of quotas of participation per participant, value of the quota, amount of withholdings made in concept of income tax when applicable and expression of the currency of commercialization of the participation quotas. Art. 39.- The control of the registers must be carried out through information systems, for which they must have security, integrity and consistency mechanisms. Information Archive Art. 40.- The Manager must maintain, for a period of no less than ten years, an archive of all the books, registers and all other supporting documentation corresponding. Likewise, it must have historical information for the same period.

CHAPTER VI
CONTROL MEASURES

Conduct Standards
Art. 41.- In the development of its activities, the Manager, its employees as well as any person who is directly or indirectly related to it, must observe code of conduct, for which the Manager must implement the procedures and controls necessary for their due observance, according to the Technical Standards that the Central Bank issues on this matter.

Privileged Information and Principle of Confidentiality Art. 42.- Information related to the Fund that is not public domain and that could influence the value of the participation quota of the Fund or the value of its negotiation, according to the case, is considered privileged information. This information includes prior knowledge of variations in the quota value, as well as subscriptions and redemptions for significant amounts to be made by a participant. Persons who have access to privileged information, must maintain absolute confidentiality of it and refrain from carrying out, directly or indirectly, operations regarding the instrument or value related to the information to which they have accessed, being applicable to them the Standards on reserved information established in article 35 of the Market Law, as well as the Technical Standards that the Central Bank issues on this matter. Decisions related to the investments and operations of the Fund, as well as the information relative to these decisions, are considered privileged information. The Manager as well as all other persons who have access to such information, must keep absolute confidentiality of the same.

Internal Information Barriers
Art. 43.- The Manager must establish policies that prevent the uncontrolled flow of information related to investment decisions or other privileged information towards any other area of the entity and to the societies or persons related directly or indirectly to the Manager. Investment decisions as well as their execution must be carried out separately, independently and autonomously from other activities that are carried out in another society related to the Manager. The Manager must establish security measures regarding the handling and safeguarding of information, establishing access levels according to the functions and responsibilities of the position held by each employee. Considering for the establishment of such measures what is regulated in the Technical Standards that the Central Bank issues on this matter. Audit Committee Art. 44.- The Manager must have an Audit Committee, at least two external directors must be part of said Committee. The Manager must notify the Superintendence who make up said Committee specifying the external directors. The obligations of said Committee will be those established in article 39 of the Supervision Law and those established in the Technical Standards that regulate Risk Management that the Central Bank issues for such effect. Internal Control Art. 45.- The Manager in the elaboration of manuals of functions, procedures, internal control systems and human resources, will take into consideration, among others the following aspects:
a) Ensure compliance with internal conduct standards and internal policies and procedures; b) Verify that the work carried out by its employees and managers, is framed within the standards applicable to them; c) Verify that the inquiries, complaints and in general, the service provided to the participant by the Manager, complies with the procedures, deadlines and other rules for such effect must be established in the Internal Regulations of the Fund; d) Verify that the recommendations or observations raised by the Superintendence, the internal auditor, Audit Committee or by the external auditor, are timely complied with by the Manager; e) Train the employees who work for the Manager; and f) Communicate to the Superintendence, any fact that it detects in the exercise of its functions, that could be detrimental to the participant. The internal control activities must be conducted closely coordinated with the own ones of the Surveillance Committees of Closed Funds, without substituting the functions and responsibilities of these.

Internal Control System
Art. 46.- The Manager must elaborate an internal control system that allows verifying compliance with the policies, limits, processes and procedures established for the risk management of the entity. For this purpose, it must establish the controls administrative, financial, accounting and technological necessary. Particularly it must establish a system to safeguard the asset of each Fund administered, considering aspects such as:
a) Policies for acquisition, custody, transfer and settlement of assets and liabilities, according to the case; b) Policies for segregation of functions; c) Procedures for authorization, review, registration and control of operations; d) Internal verification procedures; e) Measures to protect the computer system, documents, files and records physical of the operations; f) Alternate information, registration and control systems; g) Alert system; h) Schedule for compliance with regulatory obligations; and i) Others that establish the Technical Standards that regulate risk management that for such effect the Central Bank issues. The internal control system and its modifications must be authorized by the Board of Directors.

Segregation of Functions
Art. 47.- The Manager must establish a structure that allows adequate management integrated risk management, with the proper segregation of functions and responsibilities, as well as the hierarchical levels of operational support areas, business areas and control that participate in the process, as well as the levels of dependence, in accordance with the size and nature of its operations. For purposes of segregation of functions within the Manager, the same person may not perform the functions of risk management, accounting of the Funds and investment decision making. For purposes of separation of functions when the Manager belongs to a financial conglomerate, the provisions established in the
Article 134 of the Banking Law must be observed.
In the case that the Manager belongs to a business group, the Superintendence will evaluate the potential risks and conflicts of interest that may generate; if in said evaluation it determines that there is a potential risk for the participants of the Funds administered by that Manager, it must apply the measures that

CHAPTER VII
GENERAL PROVISIONS

Modification of Deeds
Art. 48.- In case of modification to the social pact, dissolution and liquidation of a Manager, as well as its bylaws, the provisions of Art. 12 of the Funds Law will be attended, having to grant the authorization of the Superintendence, within a period of thirty days from the presentation of the application with the complete documentation. Once granted, the Manager within ten days following, will present the testimony to verify its conformity with what was authorized, of which a reason will be noted signed by the Superintendent of the Financial System in the respective testimony, without which they cannot be registered in the Commerce Registry. Once the testimony is registered in the Commerce Registry or its bylaws deposited, the Manager will send a copy of the same to the Superintendence within a maximum period of thirty days.

Certification of photocopies, authentic signatures and translation of documents Art. 49.- Any photocopy that is presented to the Superintendence in compliance with what is provided in these Standards, when applicable, must be certified by a notary authorized in El Salvador. In cases where the photocopies correspond to the Tax ID or its Graphic Representation, notarial certification will not be required. Likewise, the signatures that match in any type of documentation, must be authenticated by a notary authorized in El Salvador. (3) Public or authentic documents emanating from a foreign country, as well as their photocopies, may be admitted without the need for legalization or apostille, always that they allow reasonably verifying their authenticity, integrity and content, in accordance with what is provided in article 4-A of the Administrative Procedures Law. (4) In case the documentation does not consist of in the Castilian language, it must be translated in accordance with what is provided in the Law of Notarial Practice of the Voluntary Jurisdiction and of Other Diligences. Information Update Art. 50.- Without prejudice to the deadlines established in the Technical Standards relative to relevant events that the Central Bank issues, the Managers will communicate to the

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-07/2015 NDMC-02
TECHNICAL STANDARDS FOR THE AUTHORIZATION OF CONSTITUTION, COMMENCEMENT OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS Approval: 19/03/2015 Validity: 08/04/2015 Superintendence any change related to the Registry, the day after the fact occurred, sending the documentation within a maximum period of eight business days from the moment the change is formalized. Likewise, any modification that is made to the information referred to in article 17 of these Standards, must be communicated to the Superintendence within a period of ten business days following that the modification has occurred. Modification of accounting systems and information systems Art. 51.- Once the accounting systems and the information systems are authorized, any modification that a Manager wishes to make to them, must notify it previously to the Superintendence. When the Manager wishes to make changes to the bases databases, systems or computer programs that are related to products and services relative to the Funds, it must have the authorization of the Superintendence prior to its implementation. For these purposes the Manager must present a request signed by the legal representative of the Manager, accompanying it with the Board of Directors agreement respective, as well as the report that grounds said decision. The Superintendence will review the request and after the respective tests, if there are no observations, it will issue the authorization. The Board of Directors must verify that at all times the requirements technical, resources and information systems indicated in these Standards. Changes of controlling or relevant shareholders Art. 52.- Any change in the share composition of the Manager when this implies new controlling or relevant shareholders must be communicated to the Superintendence prior to said change being final, for its evaluation corresponding of the new shareholder. The controlling or relevant shareholders, within thirty days following having signed the shares and in the month of January of each year, will present a sworn declaration to the Superintendence, affirming whether they are or not within any of the circumstances indicated in article 17 of the Funds Law and must inform said institution, at the latest within three business days following, if the circumstance occurs subsequently. The sworn declaration must be presented according to the
Annex No.2 of these Standards.
CHAPTER VIII
OTHER PROVISIONS AND VALIDITY

Sanctions
Art. 53.- Non-compliance with the provisions contained in these Standards, will be sanctioned in accordance with what is established in the Supervision Law.

Deadlines
Art. 54.- The Superintendence will carry out the necessary procedures so that the deadlines maximum established by the Funds Law and these Standards in the stages of authorization of constitution and commencement of operations of a Manager, are reduced in a significant manner, in order to expedite said procedures. Unforeseen Aspects Art. 55.- The aspects not provided for in regulatory matters in these Standards, will be resolved by the Central Bank through its Standards Committee. (3) Validity Art. 56.- These Standards will enter into force from the eighth of April of two thousand fifteen. MODIFICATIONS:
(1) Modification approved by the Standards Committee of the Central Bank of Reserve of El Salvador in Session No.CN-13/2015 dated August 12 of two thousand fifteen, with validity from August 14 of two thousand fifteen. (2) Modifications to article 33 approved by the Standards Committee of the Central Bank of Reserve of El Salvador in Session No. CN-17/2020 dated October 21 of two thousand twenty, with validity from November 5 of two thousand twenty. With the object of guard consistency with new regulation approved by the Standards Committee. (3) Modifications in articles 2, 9, 10, 11, 17, 19, 49 and 55, incorporation of articles 10-A, 10-B, 10-C, 11-A, 17-A, 17-B and 17-C, and substitution of article 18, approved by the Central Bank of Reserve of El Salvador through its Standards Committee, in Session CN-03/2022, of April 11 of two thousand twenty-two, with validity from May 3 of two thousand twenty-two. (4) Modifications in Considerando VI, in articles 17 and 49 and in Annexes Nos. 1 and 2, approved by the Central Bank through its Standards Committee, in Session No. CN05/2026, of June 30 of two thousand twenty-six, with validity from July 15 of two thousand twenty-six.

INVESTMENT FUND MANAGERS
MODEL OF SWORN DECLARATION FOR DIRECTORS AND ADMINISTRATORS OF THE MANAGER In the city of San Salvador, at _______ hours of 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 identify by) Identity Document number (or passport number)________, with Tax Identification Number _______who acts in his own name (or in representation of, in this case consign if it is legal representative or attorney and relate the representation according to the case, at this moment or at the end) and I SAY: That in his capacity as future director or administrator of the society ________________________, UNDER OATH MAKES THE FOLLOWING DECLARATIONS: A) That he is not a director, administrator or employee of another Manager nor is a shareholder that owns more than 10% of the capital of another Manager; B) That he is not a manager, attorney or financial advisor of a society member of the same financial conglomerate of the Manager, that trades securities. C) That he is not in a state of bankruptcy or suspension of payments, and that he has not been judicially qualified as responsible for a negligent or fraudulent bankruptcy. D) That he is not a debtor to the treasury and to the Salvadoran financial system classified in any of the highest credit risk categories. That he is not the owner of twenty-five percent or more of the shares or contributions in societies that are in the situation mentioned above, nor is he in a similar situation abroad. E) That he has not been administrator, director, manager or official of an institution or entity that is part of the financial system in which his administrative responsibility has been demonstrated for said institution or entity, from the validity of the Law of Privatization of Commercial Banks and Savings and Loan Associations, to have incurred patrimonial deficiencies of twenty percent or more of the minimum required by the law, have received contributions from the State or the Deposit Guarantee Institute for its restructuring, have been intervened by the competent body, or have been restructured, and in consequence, their authorization to operate would have been revoked. F) That he has not been convicted by a final judgment in the country or abroad, for having committed or participated deliberately in the commission of any crime. G) 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. H) That he has not been declared ineligible in the country nor abroad, for this type of position nor has he been sanctioned administratively or judicially for his participation in infractions to laws and norms of a financial nature, especially the collection of funds from the public without authorization, the granting or receipt of loans related in excess of the permitted limit and in crimes of a financial
nature. I) That he is not the President or Vice President of the Republic, Minister, Vice Minister, Director or Subdirector of a Ministry, Secretary or Undersecretary of the Presidency of the Republic, Deputy, Magistrate of the Supreme Court of Justice or of the Chambers of Second Instance, holder of the institutions that make up the Public Ministry or of the municipalities, President or Magistrate of the Court of Accounts of the Republic nor President of any state institution or enterprise of an autonomous character. J) That he is not legally incapacitated. K) That he has not been director or administrator of a Manager whose authorization to operate has been revoked by the Superintendence of the Financial System. L) That he is not president or director of a bank,

INVESTMENT FUND MANAGERS
MODEL OF SWORN DECLARATION FOR CONTROLLING OR RELEVANT SHAREHOLDERS OF THE MANAGER AND FOR SHAREHOLDERS WHO OWN 25% OR MORE OF PARTICIPATION IN THE CONTROLLING OR RELEVANT COMPANIES

In the city of San Salvador, at the _______ hours of the day ________ of _______ of two thousand __.

Before me, _______ notary of the domicile of ___, the gentleman _______ of ________________ years, (profession or occupation) _______, of the domicile _____________ who 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 in his own name (or on behalf of, in this case state if he is a legal representative or attorney and relate the representation according to the case, at this moment or at the end) in my capacity as shareholder (or of holder of 25% or more of participation in the Society) _____ who is a shareholder (relevant or controlling of the Manager) and I SAY: That in his capacity as future shareholder of the society ________________________, UNDER OATH HE MAKES THE FOLLOWING STATEMENTS: A) That he is not in a state of bankruptcy or suspension of payments. B) That he has not been convicted by a final judgment, in the country or abroad, for having committed or participated fraudulently in any crime. C) That judicial participation has not been proven to him 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. D) That he is not a debtor of the Salvadoran financial system nor abroad, classified in any of the highest categories of credit risk. E) That he has not been an administrator, director, manager or official of an institution or entity part of the financial system, in which it has been demonstrated administratively his responsibility for said institution or entity, from the entry into force of the Law on Privatization of Commercial Banks and Savings and Loan Associations, having incurred patrimonial deficiencies of twenty percent or more of the minimum required by law; received contributions from the State or the Deposit Guarantee Institute for its sanitization, or intervened by the competent body; or had been restructured and in consequence revoked its authorization to operate. F) That he has not incurred any of the legal conditions that do not allow him to hold the quality of shareholder nor has he been sanctioned, administratively or judicially, for his participation in infractions to the laws and norms of financial character, especially the collection of funds from the public without authorization, the granting or receipt of loans related in excess of the permitted limit and in the crimes of a financial nature, in the country or abroad. G) That the origin of the resources for acquiring the shares is legitimate. H) That he has the economic capacity to acquire the shares. I) That he has not been a director or administrator of a Manager, whose authorization to operate has been revoked by the Superintendence of the Financial System. J) That he is not insolvent with the Treasury and the Municipality. The undersigned notary makes it known: that I explained to the declarant
about 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 this notarial act, which consists of _____ page(s) front and back; and read that it was by me in a single act without interruption and integrally, ratifies its content and we sign. I GIVE TESTIMONY. (4) The sworn statement must comply with what is established in the Notary Law.

In the case that the shareholders are not controllers or relevant, the declaration will be presented only with the content to which letters C) and F) refer.
To this sworn statement, the documentation that proves the origin of the funds for the acquisition of the shares of the future controlling or relevant shareholders must be attached.

STAGE I
Generalities
The Managers must present the system with which they expect to handle the service. Also, they must inform about the changes that subsequently occur in said system.
Information Systems Area a) General description of the application:
i. Generalities; and
ii. Objectives.
b) Data dictionary; c) Online or batch process and justification; d) Security; e) Estimated frequency and volume of operations; f) Analyst manual: guide for the maintenance of the system (application), in which contents aspects such as: standards used in the coding of the referenced system, definitions or conventions of the data structure; g) User manual of the application; h) Work plan for the implementation stage of the application:
i. Times; and
ii. Activities.
i) Detail of main modules, including:
i. Name of the module;
ii. Objective;
iii. Main functions; and
iv. Processing flowchart.
j) Description of reports issued by the system, including:
i. Name of the report;
ii. Objective;
iii. Frequency of issuance; and
iv. Printed copy of the report.
Communications Area a) Basic diagram of the communications equipment; b) Graphic scheme of the form of distribution of the application; c) Specification of the communications provider; d) Indicate the type of link available; e) Security and controls to be implemented during online processes with remote users; and f) Access to the database used in the exchange of information with the Superintendence. Information Resources Area Presentation of Technological Platform

a) Servers: basic description of the server where the application will reside;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-07/2015 NDMC-02
TECHNICAL NORMS FOR THE AUTHORIZATION OF CONSTITUTION, START OF OPERATIONS, REGISTRATION AND MANAGEMENT OF OPERATIONS OF INVESTMENT FUND MANAGERS Approval: 19/03/2015 Validity: 08/04/2015
Annex No. 3
b) Workstations/terminals: general scheme of the distribution where the application will be installed; c) Description of data backup procedures for the application; d) Description of the database software employed; e) Description of the development tools used; and f) Description of the operating system. Application Testing It is indispensable that before executing the various applications, the functionality and the accuracy of the information processing be verified. It is the responsibility of the Manager to prepare an area of work that simulates real execution conditions, including the modules decentralized to work online. The points to evaluate are:
a) Inputs; b) Outputs; c) Processes; d) Data specifications; e) Process specifications; f) Access methods; g) Operations; h) Data manipulation (before and after electronic data processing); i) Logical process necessary to produce reports; j) Identification of files, size of fields and records; k) Online or batch process and its justification; l) Frequency and volumes of operation; m) Security systems; n) User access levels (roles); o) Control systems; p) Responsible parties; q) Number of users; r) Review of the user training plan; s) Review of the application implementation plan; and t) Tests of calculation routines. STAGE II Generalities This stage allows verifying the real functioning of the application, as in it the functionality and efficiency of the systematized processes are reviewed. It consists of making a visit to the company and validating the information based on the specifications and controls established in the application. Unlike the previous stage, the creation of a test area is not requested, since the review of inputs and outputs is performed with real data. The points to evaluate are:
a) Transfer and integration of Information, for decentralized applications;

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