Technical Standards for the Negotiation of Foreign Securities — 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-02/2017
NDMC-12
TECHNICAL STANDARDS FOR THE NEGOTIATION OF FOREIGN SECURITIES Approval:
08/03/2017
Validity: 03/04/2017

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

CONSIDERING:
I. That Article 10 of the Securities Market Law establishes the requirements and conditions that must be met for securities issued abroad to be subject to a public offering on a Salvadoran stock exchange.
II. That the same Article 10 of the Securities Market Law establishes that brokerage houses wishing to carry out operations with foreign securities must be authorized to do so.
III. That Article 5 of the Law on Supervision and Regulation of the Financial System establishes that it is the responsibility of the Superintendency of the Financial System to authorize, suspend, or cancel the public offering of securities carried out in the stock market.
IV. That the conditions under which foreign securities are traded are different in relation to the information available for investors' decision-making as well as the characteristics of the available securities compared to Salvadoran issuances.

THEREFORE, by virtue of the regulatory powers conferred by Article 99 of the Law on Supervision and Regulation of the Financial System, AGREES to issue the following:

TECHNICAL STANDARDS FOR THE NEGOTIATION OF FOREIGN SECURITIES

CHAPTER I
OBJECT, SUBJECTS AND TERMS

Object
Art. 1.- These Standards aim to regulate the public offering in the Salvadoran market of securities issued abroad, their authorization or registration, and trading in accordance with the Securities Market Law and what is established in these Standards; as well as the obligations of intermediaries and other participants in operations with said securities.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Standards are:
a) Stockbroker agents authorized to carry out intermediation operations with foreign securities; b) Stock exchange; c) Brokerage houses authorized to carry out intermediation operations with foreign securities; and d) Companies specialized in the deposit and custody of securities.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Stockbroker agent: Stockbroker agent, understood as the representative of a brokerage house, authorized by the Superintendency of the Financial System to carry out operations on its behalf in a stock exchange; b) Authorization of foreign securities: Procedure by which the Superintendency of the Financial System authorizes the public offering in El Salvador of securities issued by the States and Central Banks of Central American countries, as well as by regional and international financial organizations of which the State of El Salvador or the Central Reserve Bank of El Salvador are members; c) Central Bank: Central Reserve Bank of El Salvador; d) Stock Exchange: Stock exchange constituted in El Salvador and registered with the Superintendency of the Financial System; e) House: Brokerage house, registered with the Superintendency of the Financial System and authorized to carry out intermediation operations with foreign securities; f) Depository: Company specialized in the deposit and custody of securities constituted as a joint-stock company, registered and authorized by the Superintendency of the Financial System; g) Market Law: Securities Market Law; h) Registry: Public Stock Registry of the Superintendency of the Financial System; i) Foreign securities registry: Procedure by which the Superintendency of the Financial System authorizes the registry entry of security issuances issued by States and institutions responsible for managing the monetary policy of countries outside the Central American region, issued by companies, entities, corporations, or any type of legal persons, public or

private, that are authorized to carry out a public offering of securities in their country of origin; j) International stock or financial information system: An international information system, recognized by the Superintendency of the Financial System, which provides electronic tools for financial analysis, data services, and news about all types of securities available and traded on international trading platforms; k) Repealed; and (1) l) Superintendency: Superintendency of the Financial System. (1)

CHAPTER II
AUTHORIZATION OF FOREIGN SECURITIES

Public Offering of Foreign Securities
Art. 4.- Foreign securities issued by the States and Central Banks of Central American countries, as well as by regional and international financial organizations of which the State of El Salvador or the Central Bank are members, may be subject to public offering, subject to prior authorization by the Superintendency. Once these securities are authorized, they must be inscribed in a stock exchange so that they can be subject to public offering in the Salvadoran secondary market, in accordance with the Market Law.

Application for Authorization of Foreign Securities Art. 5.- For the authorization of foreign securities in accordance with what is established in Article 4 of these Standards, the interested House must present to the Superintendency an application signed by its Legal Representative or Attorney-in-fact, accompanied by the following documentation (1):
a) Certificate issued by the stock exchange on which the securities were originally listed, or a copy of the agreement authorizing the issuance of said securities or the respective Legislative Decree, as applicable; and b) Information supplement of the authorized foreign securities, as required in Annex No. 1 of these Standards. The application and documentation may be presented through the means made available by the Superintendency, which may be electronic means. In any case, the time limit referred to in Article 6 of these Standards will begin to run from the next business day after the application has been submitted electronically. (1)

Art. 6.- Upon receipt of the application for authorization to trade a foreign security, with the documentation presented in complete form in accordance with what is established in Article 5 of these Standards; the Superintendency will proceed to verify compliance with the requirements defined by the Market Law and these Standards, and if these are met, it will grant authorization for the trading of the foreign security in the local market within a period of fifteen (15) business days counted from the day following the receipt of the application. To allow the House to request its inscription in a stock exchange, it will be sufficient with the communication of the favorable agreement issued by the Superintendency. (1)

CHAPTER III
REGISTRATION OF FOREIGN SECURITIES

Registration of Foreign Securities
Art. 7.- Foreign securities issued by States and by institutions responsible for managing the monetary policy of foreign countries outside the Central American region; as well as those issued by companies, entities, corporations, or any type of legal persons, public or private, from any foreign country, may be subject to public offering provided they come from a country or jurisdiction in which an organized securities market operates, which has similar or superior regulatory and supervisory requirements compared to those of El Salvador, and are recorded in the Registry, in accordance with what is established in the Market Law. Once the securities are recorded in the Registry, they must be inscribed in a stock exchange.

Application for Registration of Foreign Securities Art. 8.- For the registration of foreign securities, the interested House must present an application signed by its Legal Representative or Attorney-in-fact attaching the following information and documentation: (1) a) Documentation that allows corroborating that said securities meet the characteristics established in letters a) and b) of the second paragraph of Article 10 of the Market Law; b) Current international risk classification of the issuance. In the case of sovereign debt, the risk classification of the country of origin will be taken into account. When referring to shares, the risk classification to be considered will be that of the issuer. Additionally, documentation must be presented evidencing the international stock or financial information system in which the classification is maintained available and updated for consultation by Salvadoran investors;

c) Documentation that allows corroborating that the classification is issued by a risk rating agency, recognized by the Securities and Exchange Commission (SEC) of the United States of America, or that it has been issued by foreign risk rating agencies registered with the market regulator of their respective country of origin; d) The prospectus of the issuance to be registered, disseminated by the issuer; and e) An information supplement for Salvadoran investors, which must contain the necessary information for an investor to make an informed decision about the security, including as a minimum, when referring to debt instruments, what is detailed in Annex No. 1 of these Standards. When referring to equity securities, it must include as a minimum what is detailed in Annex No. 2 of these Standards; the supplement must be in Spanish. (1) When the registration of new securities of the same issuer with similar characteristics is applicable, such as: class, risk rating, and currency, only the documentation established in letters a) and d) of this article and the update of the supplement must be presented. (1)

Art. 9.- In the case of foreign securities that do not have at least one current international risk classification, they may be subject to registration by the Superintendency, attaching the following information to the application:
a) The audited Financial Statements of the last fiscal year in accordance with the legal requirements established in its jurisdiction and the work report of the last fiscal year, when the issuer has it; and (1) b) Operational, governance, or risk reports of the issuer, among others, in accordance with the information available to said issuer and in accordance with the applicable jurisdiction. (1) c) Repealed (1) The House may indicate in the application the respective electronic links where the information in the aforementioned letters is available for consultation and review.

Art. 10.-Once the documentation is presented, the Superintendency will proceed to analyze and resolve the registration application, as stipulated in Article 12 of these Standards.

CHAPTER IV
PROCESS FOR REGISTRATION OF FOREIGN SECURITIES

Art. 11.- The application for registration of foreign securities must be presented by the House to the Superintendency, in complete form and with the formal requirements in accordance with what is provided in these Standards, to start the registration period of fifteen (15) business days counted from the day after the application has been presented. The application and documentation may be presented through the means made available by the Superintendency, which may be electronic means. In any case, the time limit referred to in Article 6 of these Standards will begin to run from the next business day after the application has been submitted electronically. (1)

Process of inscription in the Foreign Securities Registry Art. 12.-Upon receipt of the application for registration of foreign securities, with the information established in Article 8 in complete form and in Article 9 of these Standards when applicable to foreign securities that do not have a risk classification, the Superintendency will proceed to verify compliance with the requirements defined by the Market Law and these Standards, having a period of up to fifteen (15) business days to carry out the registry entry in the corresponding Registry. Once this period has expired and without communicating observations to the Brokerage House, the Superintendency will proceed to register it in the Foreign Securities Registry. (1).

If the application is not accompanied by the complete information detailed in Articles 8 and 9 of these Standards, the Superintendency, due to the lack of necessary requirements, may warn the House that within a period of ten (10) business days counted from the day following the notification, it must present the missing documents, a period that may be extended at the request of the House when there are reasons justifying it. (1) The Superintendency in the same warning will indicate to the House that if it does not complete the information within the aforementioned period, it will proceed without further procedure to archive the application, reserving its right to present a new application. (1) If after the analysis of the documentation presented in accordance with Articles 8 and 9 of these Standards, the Superintendency has observations or when the documentation or information presented is not sufficient to establish the facts or information intended to be accredited as stipulated in

Article 10 of the Market Law and these Standards; the Superintendency will warn the respective House only once to remedy the deficiencies communicated or present additional documentation or information requested. (1)
The House will have a maximum period of ten (10) business days counted from the day following the notification, to resolve the observations or present the additional information required by the Superintendency. (1) The Superintendency may, through a reasoned resolution, extend by up to another ten (10) business days, the period indicated in the previous paragraph, when the nature of the observations or deficiencies warned requires it. (1) Extension Period (1) Art. 12-A.- The House may present to the Superintendency an application for extension of the period indicated in the fifth paragraph of Article 12 of these Standards, stating the grounds on which it is based and proposing, if applicable, the pertinent proof. (1) The extension period may not exceed ten (10) business days and will start from the next business day after the expiration date of the original period. (1) Suspension of the period (1) Art. 12-B.- The fifteen (15) business day period indicated in Article 12 of these Standards, will be suspended for the days that elapse between the notification of the request for information or documentation referred to in the second and fifth paragraphs of Article 12 of these Standards, until the observations required by the Superintendency are remedied. (1) Once the documents are presented in due form, the Superintendency will proceed to respond to the application for authorization of the corresponding Registry. (1)

Art. 13.-In the case where the agreement by the Superintendency is favorable, the House, within a maximum period of fifteen (15) business days counted from the receipt of said agreement, must pay the registry fees for each security and send by the means indicated by the Superintendency the definitive information supplement for Salvadoran investors that the House will use for the trading of the security in question. (1).

When the Superintendency receives the documentation and verifies that it is in accordance with what it authorized, it will proceed to issue the registry entry and notify the company specialized in the deposit and custody of securities, in accordance with what is established in Article 35 of the Law on Electronic Annotations of Securities in Account and the requesting House within a maximum period of five (5) business days. (1)

Once the issuance is recorded in the Registry, the House must proceed to register the foreign securities in an authorized stock exchange in accordance with the Market Law. In any case, the inscription of the foreign security in the Registry, in no case implies certification of the quality of the security or the solvency of the issuer. Archiving of proceedings initiated by registration application Art. 14.-The Superintendency will proceed without further procedure to archive the proceedings initiated in the registration procedure detailed in these Standards, when the following situations occur:
a) The House has not remedied the observations or has not presented the information required in Articles 8 and 9 of these Standards; b) The Superintendency revokes the authorization for not having presented the information required in Article 13 of these Standards; and c) The House presents a note to the Superintendency, informing the desire to withdraw the application, at any time. In any case, the interested parties will maintain their right to present a new application to the Superintendency, which will give rise to a new procedure.

CHAPTER V
AUTHORIZATION OF HOUSES TO CARRY OUT INTERMEDIATION OPERATIONS WITH FOREIGN SECURITIES

Application for authorization
Art. 15.-The House interested in carrying out operations with foreign securities must request the corresponding authorization from the Superintendency, through an application signed by its Legal Representative or Attorney-in-fact, accompanied by the following information and documentation: (1) a) Certification of the point of the minutes of the Board of Directors in which it is agreed to request the authorization to provide the intermediation service with foreign securities;

b) Manual of policies and procedures for the trading of foreign securities, in accordance with what is established in Article 30 of these Standards; c) Copy of the contract and/or subscription documentation that allows direct access to at least one international financial information system provided by systems such as Bloomberg, Reuters, or another system equivalent to these, recognized by the Superintendency, in accordance with what is established in Article 10 of the Market Law; (1) d) Format of the contract models to be signed with clients to provide the service of operations with foreign securities, which must be deposited in accordance with the Consumer Protection Law; (1) e) Copy of the contract, agreement, or other subscription documentation that proves the link with the foreign intermediary authorized to carry out operations with the securities to be traded; (1); f) Detail of the stockbroker agents that will participate in the execution of the service of trading with foreign securities, which includes the name, age, profession, and domicile, as well as a copy of the documentation that accredits compliance with what is established in Article 33 of these Standards; and (1) g) Annual training plan for the personnel that will participate in the execution of the service of trading with foreign securities. In the contracts that the Houses sign with their clients, the following aspects must be included: object of the contract, obligations of the Houses according to the Market Law, Consumer Protection Law, and these Standards, obligations of the clients, commissions to be charged, complaint procedures, contract termination clauses, domicile, among other clauses or provisions that the house incorporates considering the applicable legal framework. (1)

Authorization
Art. 16.-Upon receipt of the application for authorization, with the complete information and documentation established in Article 15 of these Standards, the Superintendency will proceed to verify compliance with the requirements defined by the Market Law and these Standards, within a period of fifteen (15) business days. (1)

If the application is not accompanied by the complete information detailed in Article 15 of these Standards, the Superintendency, due to the lack of necessary requirements, may warn the House that within a period of ten (10) business days counted from the day following the notification, it must present the missing documents, a period that may be extended at the request of the House when there are reasons justifying it. (1)

In the same warning, the Superintendence will indicate to the House that if it does not complete the information within the aforementioned deadline, it will proceed without further procedure to archive the request, reserving its right to file a new request. (1)

If, after analyzing the documentation presented in accordance with Article 15 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 warn the respective House only once to remedy the deficiencies communicated or to present additional documentation or information requested. (1)

The House will have a maximum deadline of ten (10) business days counted from the day following the notification, to resolve the observations or present the additional information required by the Superintendence. (1)

The Superintendence may, through a reasoned resolution, extend by up to another ten (10) business days, the deadline indicated in the previous clause, when the nature of the observations or deficiencies warned requires it. (1)

The authorization will have a duration of one year, counted from the date of the authorization agreement issued by the Superintendence.

Extension Deadline (1)
Art. 16-A.- The House may submit to the Superintendence a request for extension of the deadline indicated in the fifth clause of Article 16 of these Standards, stating the grounds for the request and proposing, if applicable, the pertinent proof. (1)

The extension deadline may not exceed ten (10) business days and will start from the business day following the expiration date of the original deadline. (1)

Suspension of Deadline (1)
Art. 16-B.- The fifteen (15) business day deadline indicated in Article 16 of these Standards, will be suspended for the days that elapse between the notification of the request for information or documentation referred to in the second and fifth clauses of Article 16 of these Standards, until the observations required by the Superintendence are remedied. (1)

Once the documents are presented in due form, the Superintendence will proceed to respond to the request for authorization of the corresponding Registry. (1)

Archiving of Proceedings Initiated by Authorization Request Art. 17.- The Superintendence will proceed without further procedure to archive the proceedings initiated in the authorization procedure for the negotiation with foreign securities, when the following situations arise:
a) The House has not remedied the observations in time or has not presented the information and documentation required by the Superintendence in accordance with what is established in Article 15 of these Standards; and b) The House presents a note to the Superintendence, informing the desire to withdraw the request, at any time.

In any case, the interested parties will maintain their right to file a new request with the Superintendence, which will give rise to a new procedure.

Extension of Authorization
Art. 18.- The House authorized to carry out operations with foreign securities must request its extension annually before the Superintendence, within a minimum deadline of thirty (30) business days prior to the expiration of the authorization, presenting the following documentation: (1). a) Request in which it declares that the documentation required in letters b) to f) of Article 15 of these standards, is valid for the execution of operations with foreign securities. In case said documentation has been modified with respect to that previously presented and has not yet been communicated to the Superintendence, the updated information must be attached to the authorization extension request; (1) b) Documentation that accredits that the authorized broker agents have updated their knowledge and mastery of the topics referred to in Article 33 of these Standards; and (1) c) Report on the execution of the training plan corresponding to the previously authorized period, justifying what was not done of said plan. (1)

The extension will be subject to a prior evaluation of compliance with the requirements considered for its initial authorization. If the evaluation results in the House lacking the capacity or necessary means for the execution of such operations, the renewal will be denied in accordance with what is established in the Securities Market Law and in the Law on Supervision and Regulation of the Financial System.

In the case that the Superintendence does not extend the authorization to a House to negotiate with foreign securities, said House may, with prior authorization from its clients, transfer the foreign securities held in their name to another House authorized for such negotiation.

In the case that the Superintendence revokes the authorization to negotiate foreign securities of a House, either at the request of said House or because it does not meet the requirements to negotiate foreign securities, the House will proceed to carry out an action plan, which must be known to the Superintendence, establishing in said plan, the process to be followed regarding the foreign securities held in the name of its clients, including notifications to them, the deadline to finalize obligations, and the actions to be taken in case it does not receive instructions from the client or cannot contact them; said action plan will have a duration of one hundred twenty (120) days counted from the communication of the revocation agreement issued by the Superintendence. (1).

Once the action plan presented by the House is fulfilled, the Superintendence will, within a deadline of thirty (30) business days, proceed to verify compliance regarding the transfer of securities and the action plan.

CHAPTER VI
OPERATION OUTSIDE THE REPUBLIC

Registry of operations outside the Republic
Art. 19.- A House authorized to carry out operations with foreign securities may carry out operations outside a stock exchange to acquire in the primary market or negotiate in the secondary market outside the Republic, foreign securities defined in these Standards, provided that they are authorized or registered in the Registry and inscribed in a stock exchange, as applicable. In these cases, the operations must be registered in a stock exchange, each stock exchange must keep a record of all operations of this type that the Houses carry out. (1)

The House must keep an internal record of the operations referred to in the previous clause, in which it identifies the client's order, the international intermediary, and the delivery to the client of the settlement sheet and copy of the receipt of the operation closed with the international intermediary, either trade ticket or equivalent documents, such delivery may be physical or electronic in accordance with what is agreed with the client. (1)

Sending of Information
Art. 20.- The Superintendence will send to the Houses, with a copy to the Central Bank, the technical details related to the daily sending of the information required in Annex No. 6 of these Standards, which will be communicated within a deadline of ninety (90) business days after the validity of the Standards. The information requirements will be limited to the collection of information in accordance with what is regulated in these Standards.

The House must implement the necessary mechanisms for the sending of the aforementioned information within a maximum deadline of one hundred twenty (120) days, counted from the date of having received the note from the Superintendence with the aforementioned technical requirements.

Conditions for Execution of Operations Outside the Republic Art. 21.- The House may execute operations with foreign securities outside the Republic, when they are carried out:
a) Through broker agents authorized to negotiate foreign securities in the Salvadoran market; b) With foreign intermediaries duly authorized by the corresponding authority of the country where they operate; and c) Within the framework of an agreement with a foreign company that facilitates its compensation and settlement, in accordance with what is established in Article 23 of these Standards. (1)

The House will be responsible for verifying the above conditions, especially that the intermediaries with whom it contracts in the international financial markets are authorized to negotiate.

Art. 22.- What is provided in the previous articles, in no case means that the Houses can make a public offer in El Salvador, of foreign securities that are not registered in the Registry or authorized by the Superintendence, according to what is established in Article 10 of the Law.

Deposit and Settlement of Foreign Securities
Art. 23.- Prior to the negotiation of foreign securities outside the Republic, there must be an agreement between a specialized Salvadoran society in the deposit and custody of securities and a foreign one, which facilitates and provides security for the custody and immobilization of the securities subject to negotiation.

The compensation and settlement of the securities acquired abroad will be governed by the rules of the market in which they are negotiated, attending to the understanding agreement between the Salvadoran deposit and custody center and the foreign one, where the negotiated securities are deposited.

In any case, the depositary must inform the Superintendence, about the signing of new agreements, within a deadline of ten (10) business days after their signing.

Internal Procedure of the House
Art. 24.- The House must have an internal procedure for the carrying out of operations outside the Republic that includes, at least, the control of fund flows for the execution and settlement of the operation, its accounting records, and the delivery to the client of the receipt of the operation closed with the international intermediary.

Such procedures must be part of the policies and procedures manuals referred to in Article 30 of these Standards.

Information on Foreign Securities
Art. 25.- The Houses will be responsible for providing their clients with all the necessary information regarding the conditions, characteristics, and risks that they assume when deciding on the purchase or sale of the same, as well as providing them with the information contained in the international information system that the House contracts for such effect.

Furthermore, they will be responsible for making known to investors that the operations with foreign securities that are carried out are under conditions different from those observed in negotiations with local securities, leaving evidence of the transmission to the client, the first time they decide to invest in foreign securities, of the following information:
a) That the securities are not subject to local laws; b) That the information on the securities may be in a language other than Spanish; and c) That in case of litigation, dispute resolution, situations of non-payment by the foreign issuer or other similar events, recourse must be made to the respective foreign issuer or to the authorities of the country of origin from which these securities come, to resolve them.

All the conditions and characteristics determined in this article must be stated in the documentation delivered to the investor. (1)

CHAPTER VII
OBLIGATIONS OF THE HOUSES

Information Policy
Art. 26.- The House that negotiates with foreign securities must provide to its clients and keep available to them, when they request it, the information that is available in the international information systems, considering as a minimum the relevant facts and the quotation price of those securities in the markets where they are negotiated.

Such information may come from an international information system or directly from foreign intermediaries, identifying in the sending of the same, the respective source.

Likewise, Houses that negotiate foreign securities that have knowledge of relevant facts of the foreign securities they negotiate, must communicate them to the stock exchanges and to the Superintendence, no later than the next business day of their knowledge through the means determined by the latter.

The information may be sent daily, by the electronic means deemed convenient by the Houses, leaving evidence of it.

The House, whose clients possess foreign securities in their investment portfolio, will be responsible for requesting the Superintendence to update the Registry when modifications occur, such as: name of the issuer, capital increase, amount of the issuance, type of instruments, merger or liquidation, split, reverse split, risk classification, change of prospectus or other modifications to the characteristics of the title. In the case that the foreign security is part of the investment portfolio of clients of more than one House, the responsibility to request the update of the mentioned Registry to the Superintendence will fall on all Houses whose clients possess in their investment portfolio, foreign securities, these being able to organize to make a common sending of the aforementioned update request.

To carry out the respective update, the House must present to the Superintendence an explanatory notification of the changes, justifying them and providing all the detail of the changes made, accompanied by the documentation justifying the change, the supplement of information to the Salvadoran investor with the information of the corresponding update, as well as the updated prospectus. (1)

Responsibility for Information
Art. 27.- The House will be responsible for providing its client, prior to the moment of carrying out its investments with foreign securities, a copy of the informational supplement presented before the Superintendence for the registration of the foreign security, as well as its prospectus.

Likewise, the House must inform about the tax regime applicable to the value to invest, both in the country of origin and in El Salvador and about the settlement process both at the time of purchase and at the time of its maturity or sale.

Internal Records
Art. 28.- The House, in addition to the records required for the execution of the intermediation service, must have the following internal records:
a) Operation with foreign securities carried out outside the Republic; b) Updated account statements of foreign securities intermediated by it; c) Training plans of the personnel authorized to carry out operations with foreign securities; and d) Signed contracts or other documentation that proves the linkage with foreign entities, due to operations with foreign securities. (1)

The records defined in this article may be kept in physical or electronic form and will be available to the Superintendence at the moment it requires them.

Adhesion Contracts with Clients
Art. 29.- The House, to carry out operations with foreign securities on behalf of third parties, must sign a commission contract with its clients, said contract must be deposited in the Superintendence in accordance with the Consumer Protection Law, as well as any modification made to said contract. (1)

At the time of signing the contract, the House must inform its clients about the characteristics, rights, obligations, restrictions, and risks inherent to operations with foreign securities, as well as the mechanisms for their protection, in order to exercise the rights that these securities grant.

Procedures Manual
Art. 30.- The manual containing the procedures and policies for the negotiation of foreign securities must include as a minimum the following:
a) Designation and functioning of the responsible personnel in the business areas, treasury, accounting, administration, and operations, identifying the positions and

responsibilities and detailing the procedures they develop, as applicable to the structure of each House. This manual must comprise the functions related to the sending of information to clients; (1) b) Control, receipt, and delivery of client funds to acquire or sell foreign securities; c) Operational processes for the purchase and sale of securities, identifying and describing the complete cycle of the same. Additionally, other operational processes that must be carried out in accordance with what is established by these Standards; d) Supporting documentation of the accounting records of foreign securities and the timeliness with which they will be recorded based on the occurrence of events; e) System for archiving the documentation that supports the accounting records of transactions carried out with foreign securities and the security and availability procedures; f) Information policy to clients referred to in Article 26 of these Standards; and g) Information to be provided to investors of the offer or promotion of foreign securities in detail and the means by which they will do so.

Such manual must be authorized by the Board of Directors of the House and reviewed at least once a year, for the purpose of being updated to the conditions and current regulations of the market.

Whenever the aforementioned Manual is modified, it must be sent to the Superintendence within a deadline of ten (10) business days after its approval or modification.

Likewise, when the procedures to be included in the manual correspond to procedures previously implemented by the House, even if they correspond to operations with securities issued in the Salvadoran market, it will be sufficient to mention them or their corresponding updates.

Support of Records
Art. 31.- The Houses must back up the accounting records of operations with foreign securities with sufficient and competent documentation of the negotiation, in which the client's order, the international intermediary with which the operation was carried out abroad, and the delivery to the client of the receipt of the operation are identified. The House must deliver to investors, a copy of the order, the settlement sheet of the operation, and a copy of the receipt of the operation closed with the international intermediary, either through the trade ticket or an equivalent document, such delivery may be physical or electronic in accordance with what is agreed

with the client. (1)

The House must safeguard the accounting records indicated in this article for at least a term of fifteen (15) years counted from their issuance.

Human Resources Requirements
Art. 32.- The House must have an administrative structure, in accordance with the requirements established in these Standards, as well as provide information and advisory services related to said foreign securities. (1)

In any case, the House will be responsible for the execution of a training plan that ensures the knowledge and training necessary for the adequate development of the functions of the personnel mentioned in the previous clause, which must be informed to the Superintendence within a deadline not greater than the first thirty (30) business days of each year. (1)

Authorized Personnel to Carry Out Operations with Foreign Securities Art. 33.- The House must carry out operations with foreign securities, through broker agents authorized by the Superintendence in accordance with what is established by

Brokers in the Public Registry of the Superintendence of the System -04) and accredit the knowledge and mastery, at least of the following:
a) Execution of operations in international financial markets; b) Investment instruments in international stock markets; c) Financial terminology of international stock markets; d) Portfolio management, risks, fixed income, variable, derivatives and other instruments investments; and e) Advanced knowledge of the English language at a technical level.

The House will be responsible for ensuring that the personnel providing the information service related to foreign securities, accredit the knowledge and mastery of the topics provided for in the previous clause, in attention to the House's responsibility to adequately inform its clients and maintain an updated file of compliance with said requirement.

Access to International Information Systems (1) Art. 34.- The House must inform the Superintendence about the contracts, subscriptions, or accesses with any international financial information system and will send the corresponding proof document within a maximum deadline of ten (10)

CHAPTER VIII
RECOGNITION OF MARKETS AND INFORMATION SYSTEMS

Art. 35.- Organized securities markets with supervision requirements similar to or superior to those of El Salvador shall be considered those that the Superintendence recognizes through a reasoned resolution, upon request or ex officio; based on compliance with, at least, the following requirements:
a) That they are regulated and supervised by an entity with functions and powers, at least equivalent to those of El Salvador, and that this entity is part of any of the following entities:
i. The International Organization of Securities Commissions, IOSCO (by its acronym in English);
ii. The Inter-American Council of Securities Regulatory Authorities, COSRA (by its acronym in English);
iii. The Organization for Economic Co-operation and Development, OECD (by its acronym in English), provided that El Salvador has entered into a valid international treaty for free trade with the State to which the market belongs; or
iv. Integrated Regional Market, in which a Salvadoran stock exchange participates.
v. Central American Council of Superintendents of Banks, Insurance and Other Financial Institutions; or (1)
vi. Ibero-American Securities Market Institute. (1)
b) That the market or system in which trading occurs is administered by an entity that has self-regulation powers equivalent to those held by stock exchanges in El Salvador; c) That the market has implemented supervision and regulation standards equal to or superior to those proposed by the International Organization of Securities Commissions (by its acronym in English) compared to those implemented in El Salvador; d) That the legal regime applicable to the issuers of the market in question has similar registration requirements. Likewise, that the regulations establish the obligation to disclose periodically, sufficiently, and timely, information regarding the financial, economic, accounting, legal, and administrative situation of such issuers, including that audited, at least once a year, by an independent external auditor, as well as that related to the offering of securities. In general, facts and acts capable of influencing investors' decisions must be considered, and markets must have mechanisms that

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Validity: 03/04/2017 allow the disclosure to the public of such information in an accessible, expedited, and continuous manner; e) That the country or jurisdiction is a member of the Financial Action Task Force, FATF; and f) That there are institutions for the deposit of securities or institutions responsible for the deposit, custody, administration, clearing, settlement, and transfer of securities, which have automated systems for the management of securities.

Art. 36.- The Superintendence, in accordance with the preceding article, may consider new countries from which securities will be accepted for trading, for which it will be necessary to submit the corresponding request in accordance with the model established in Annex No. 7 of these Standards. Upon receiving the complete request, the Superintendence will proceed to analyze it and, if appropriate, will issue a reasoned resolution within a maximum period of ninety (90) business days following the request, considering that the country possesses supervision standards similar to or superior to those of El Salvador, or it may deny the request. (1)

Recognition of Information Systems
Art. 37.- Stock market or international financial information systems recognized for compliance with the requirements contained in the Market Law shall be those that the Superintendence, upon request by an entity participating in the market, recognizes through a reasoned resolution; based on compliance with, at least, the following characteristics:
a) Demonstrate reliability and quality of the information provided and the capacity for continuity in the provision of the service; b) Be an electronic system that allows direct access by the House and allows the updating of screens and news for real-time market monitoring; (1) c) Provide data and news services for all foreign securities registered or authorized locally, at the date of their recognition, which includes as minimum information regarding the issuer, issuances, financial statements, markets in which they are traded, and other information that an investor would have access to if they performed the operation in the country where the security is registered; such information must be provided as applicable to the nature of the security; d) The service must be provided through a contract or subscription between the House and the provider, in which technical assistance for its use in financial and information aspects provided by the system is guaranteed; and (1) e) Allow the download of information into data processing programs.

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The aforementioned request must be accompanied by a report that documents and evidences compliance with the characteristics listed above. The Superintendence will verify compliance with the requirements established in this article, and if appropriate, will issue a resolution within a maximum period of ninety (90) business days following the request. (1).

CHAPTER IX
OTHER PROVISIONS AND VALIDITY
Sanctions
Art. 38.- Non-compliance with the provisions contained in these Standards shall be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System.

Transitory
Art. 39.- Requests for authorization or registration of foreign securities that were in process at the time these Standards entered into force shall continue and conclude in accordance with the procedure with which they began their processing.

Notwithstanding the foregoing, if six (6) months have elapsed and the applicants have not continued with the registration process, prior notification by the Superintendence, the registration requests shall be archived. Art. 40.- Houses that, at the time of entry into force of these Standards, have authorization to conduct intermediation operations with foreign securities, must present, when applicable, the updated documentation incorporating the requirements defined in Chapter V of these Standards, when submitting the request for renewal of the previously granted authorization.

Unforeseen Aspects
Art. 41.- Aspects not foreseen in regulatory matters in these Standards shall be resolved by the Central Bank through its Standards Committee.

Repeal
Art. 42.- These Standards repeal:
a) -1/2011, approved on January 19, 2011, by the Board of Directors of the Securities Superintendence, whose Organic Law was repealed by Legislative Decree number 592 containing the Law on Supervision and Regulation of the Financial System, published in the Official Gazette number 23 Volume 390 dated February 2, 2011; and b) The Commission Contract for Operations with Foreign Securities contained in the

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Resolution RSTG-2/2006, which contains the approval of the Contract Models used by Brokerage Houses for Portfolio Management and Foreign Securities Trading operations approved by the Board of Directors of the Securities Superintendence, on July 26, 2006, effective from August 18, 2006.

Validity
Art. 43.- These Standards shall enter into force starting from April 3, 2017.

MODIFICATIONS:
(1) Modifications in articles 3, 5, 6, 8, 9, 11, 12, 13, 15, 16, 18, 19, 21, 25, 26, 28, 29, 30, 31, 32, 34, 35, 36 and 37, substitution of Annexes No. 1, 2 and 7; repeal of Annexes No. 3, 4 and 5 approved by the Central Bank through its Standards Committee, in Session CN-03/2021, of February 25, 2021, with validity from March 15, 2021.

INFORMATION SUPPLEMENT FOR SALVADORAN INVESTORS, FIXED INCOME ISSUANCE* (1) ISSUER INFORMATION ISSUER (Indicate the name of the Issuer) ADDRESS OR LEGAL DOMICILE BRIEF DESCRIPTION OF THE ISSUER (Constitution, history, activity or business) ISSUER SECTOR (State, Central Bank or Financial Organization, Business Group or Financial Conglomerate) RISK CLASSIFICATION OF THE ISSUANCE (Category assigned by various International Risk Classifiers and their outlook) END OF FISCAL YEAR (Indicate the electronic links through which the investor can access updated Financial Statements of the issuer) ISSUANCE INFORMATION CLASS OF SECURITY (Security class, such as: Bonds, Notes, Eurobonds with their maturity) ISSUANCE DESIGNATION [Designation under which it will be traded on the stock (Indicate the name of the stock exchange)] TYPE OF ISSUANCE (Debt, description of the type of issuance and structuring thereof, including concepts and instruments)

CURRENCY
TOTAL AMOUNT OF THE ISSUANCE
AMOUNT ALLOCATED
PRINCIPAL AMOUNT
ADDED AMOUNT
(When applicable)

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MINIMUMS AND TRADING MULTIPLES
NOMINAL VALUE
ISIN CODE OR COMMON CODE
LISTED, REGISTERED OR RECORDED
(stock exchange, regulatory or supervisory body) FORM OF ISSUANCE (The different modalities of issuances, such as at a discount, electronic book entry, physical bonds or securities, global in one or more notes registered with or without coupon) FORM OF CIRCULATION INTEREST RATE CALCULATION BASIS TYPE OF RATE (Variable or fixed)

ISSUANCE DATE
MATURITY DATE
INTEREST PAYMENT DATES
(Payment frequency)
PAYMENT FREQUENCY
(For capital)
RISK CLASSIFICATION

GUARANTEE
(When consisting of another type of guarantee other than backing or by a third party) APPLICABLE LAWS (Main laws to which the securities are subject for their creation and trading as well as obligations imposed in their countries of origin) TAX REGIME IN THE COUNTRY OF ORIGIN (Tax treatment given in their country of origin) TAX REGIME IN EL SALVADOR (Indicate if it is taxable or not)

TRADABILITY ON THE STOCK EXCHANGE
(Indicate the name of the stock exchange)
(Clarify when special trading conditions apply for primary or secondary market) PROCEDURES TO FOLLOW IN CASE OF PROBLEMS, LITIGATIONS, CONFLICT RESOLUTION MECHANISMS, SITUATIONS OF NON-PAYMENT BY THE FOREIGN ISSUER OR OTHER SIMILAR EVENTS NATIONAL PARTICIPANTS LOCAL PAYING AGENT (Legal name, address, telephone, email address and inform with which international custodian it has a contract, and specify the procedure for the fulfillment of investors' rights and obligations) LOCAL DEPOSIT AND CUSTODY AGENT (Legal name, telephone, address, website and email address)

WEBSITES PROVIDING INFORMATION ON THE
SECURITIES
(Website address of the Issuer, website of
Regulatory and Supervisory bodies, website address of the Stock Exchange where the issuance is listed.)
AUTHORIZATIONS FOR TRADING ON THE
STOCK EXCHANGE MARKET OF EL SALVADOR (Reference to the inscription authorizations in a stock (Indicate the name of the stock exchange) and authorization in the Superintendence of the Financial System).

LITERAL REASONS a) The securities subject to this offer are authorized for public offering or recorded in the Public Stock Registry of the Financial System Superintendence. Their authorization or registration does not imply certification on the quality of the security or the solvency of the issuer; b) The inscription of the issuance in the stock exchange does not imply certification on the quality of the security or the solvency of the issuer;

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Validity: 03/04/2017 c) The information and material contained in this supplement are offered solely for the purpose of providing information and should not be considered as an offer to buy, sell, or subscribe to securities or other financial instruments; d) No information in this supplement shall be considered as advice on investment, legal, accounting, or tax matters; e) It is possible that the investments and services referenced in this supplement are not appropriate for you, and we recommend consulting with your financial advisor if you have any doubts about them; f) It is the investor's responsibility to read the information supplement, which will be in Spanish, as well as the prospectus and all available information on these securities, which may be in a language other than Spanish; g) It is the responsibility of the local brokerage house to provide the summary of information contained in this informational supplement and the issuance prospectus; h) The stock exchange (indicate the name of the stock exchange) is not responsible for the accuracy or completeness of the supplement. Likewise, it assumes no responsibility for the use of the information contained in this supplement; and i) The stock exchange (indicate the name of the stock exchange) does not guarantee that the securities referred to in this report are appropriate for certain investors in particular. NOTES: Minimum additional information to the information supplement, which brokerage houses must maintain for investors:
a) Daily price history during the month immediately preceding the trading of securities; b) Advantages and disadvantages of the investment; c) Costs to be incurred in the trading and maintenance of the securities; d) Description of the manner in which securities trading is conducted; e) Aspects that determine and affect the formation of security prices; f) Underlying assets of the issuance; and g) Make available to investors the annual reports of the Issuer, which are available on various websites.

The content of the Supplement must contain the requested information according to the characteristics and nature of the foreign security.

INFORMATION SUPPLEMENT FOR SALVADORAN INVESTORS MINIMUM INFORMATION RELATED TO EQUITY SECURITIES* (1)

ISSUER INFORMATION
NAME
ADDRESS
LAWS GOVERNING THE COMPANY
BRIEF DESCRIPTION OF THE ISSUER
(Constitution, history, activity or business, indicating which sector the issuer belongs to:
industry, commerce, services, electricity, financial or communications)

RISK CLASSIFICATION OF THE ISSUER
(Category assigned by various international risk classifiers and their outlook, when the issuer has a risk classification)

END OF FISCAL YEAR
(Indicate the electronic links through which the investor can access updated financial statements of the issuer)

INFORMATION
NAME OF THE ISSUER
CLASS OF SECURITY
(Type of instrument issued, such as:
shares and ADRs, etc.)

ISSUANCE DESIGNATION
(Designation under which it will be traded on a Stock Exchange)

CURRENCY
MARKET CAPITALIZATION AT A SPECIFIC DATE

NUMBER OF SHARES IN CIRCULATION
ON (DAY/MONTH/YEAR)

FORM OF CIRCULATION
SERIES

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INFORMATION
TERM
FORM OF REPRESENTATION OF THE
SHARES
(Electronic book entry of securities or physical securities)

MINIMUMS AND TRADING MULTIPLES
NOMINAL VALUE
NUMBER OF SHARES PER CERTIFICATE
(Indicate the No. of shares that each certificate represents, in case of ADRs)

NUMBER OF DEPOSIT CERTIFICATES
IN CIRCULATION
(Indicate the No. of certificates in circulation at the closest possible date, in case of ADRs)

LISTED, REGISTERED OR RECORDED
(Stock exchange, Regulatory or
Supervisory Body)

ISIN CODE OR COMMON CODE
DIVIDEND PAYMENT
(Competent authority agreement and frequency)

DIVIDEND PAYMENT PROCEDURE
(Through which Paying Agent, or international custodian it is performed)

OTHER RIGHTS AND OBLIGATIONS
SHAREHOLDER REGISTRY
APPLICABLE LAWS
(Main laws to which the shares are subject for their creation and trading, obligations imposed in their country of origin)

TAX WITHHOLDING AND ADDITIONAL AMOUNTS
(Securities subject to withholding)

TAX REGIME IN THE COUNTRY OF ORIGIN
(Tax treatment given in the country of origin to the trading of shares and dividends)

TAX REGIME IN EL SALVADOR
(Indicate the types of taxes to be paid, when this applies)

NATIONAL PARTICIPANTS
LOCAL PAYING AGENTS
(Legal name, address, telephone, webpage, email, and inform with which international custodian it has a contract, specify the procedure for the fulfillment of rights and obligations of investors)

LOCAL DEPOSIT AND CUSTODY AGENT
(Legal name, address, telephones, webpage and email address)

LOCAL BROKERAGE HOUSE
(Legal name, address, telephone, webpage and email address)

WEBSITES PROVIDING INFORMATION ON
THE SECURITIES
(Website address of the Issuer, website of Regulatory and Supervisory bodies, website address of the Stock Exchange where the issuance is listed.)

AUTHORIZATIONS FOR TRADING ON THE
STOCK EXCHANGE MARKET OF EL SALVADOR
(Reference to the inscription authorizations in the Registry of the Financial System Superintendence and the stock exchange)

LITERAL REASONS a) The securities subject to this offer are recorded in the Public Stock Registry of the Financial System Superintendence. Their registration does not imply certification on the quality of the security or the solvency of the issuer; b) The inscription of the issuance in the stock exchange does not imply certification on the quality of the security or the solvency of the issuer;

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Validity: 03/04/2017 c) The information and material contained in this supplement are offered solely for the purpose of providing information and should not be considered as an offer to buy, sell, or subscribe to securities or other financial instruments; d) No information in this supplement shall be considered as advice on investment, legal, accounting, or tax matters; e) It is possible that the investments and services referenced in this supplement are not appropriate for you, and we recommend consulting with your financial advisor if you have any doubts about them; f) It is the investor's responsibility to read the information supplement, which will be in Spanish, as well as the prospectus and all available information on these securities, which may be in a language other than Spanish; g) It is the responsibility of the local brokerage house to provide the summary of information contained in this informational supplement and the issuance prospectus; h) The stock exchange (indicate the name of the stock exchange) is not responsible for the accuracy or completeness of the supplement. Likewise, it assumes no responsibility for the use of the information contained in this supplement; and i) The stock exchange (indicate the name of the stock exchange) does not guarantee that the securities referred to in this report are appropriate for certain investors in particular.

NOTES: Minimum additional information to the information supplement, which brokerage houses must maintain for investors:
a) Daily price history during the month immediately preceding the trading of securities; b) Advantages and disadvantages of the investment; c) Costs to be incurred in the trading and maintenance of the securities; d) Description of the manner in which securities trading is conducted; e) Aspects that determine and affect the formation of security prices; f) Underlying assets of the issuance; and g) Make available to investors the annual reports of the Issuer, which are available on various websites.

The content of the Supplement must contain the requested information according
to the characteristics and nature of the foreign security.

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Annex No. 6
BUY AND SELL TRANSACTIONS OF FOREIGN SECURITIES N° Field Name Description 1 Operation Number Number under which the operation is registered in the local stock exchange 2 Operation Date Date on which the operation is carried out 3 Currency Currency in which the security has been issued 4 Issuance Name Name or abbreviation of the traded issuance 5 Series Name Name or abbreviation of the series 6 Operation Type Type of operation performed 7 Traded Market Description of the traded market 8 Nominal Interest Rate Nominal interest rate of the traded security 9 Payment Frequency Frequency of payment 10 Nominal Value Nominal value of the traded securities 11 Price Price of the traded securities 12 Traded Value Traded value of the operation 13 Exchange Rate Exchange rate of the operation 14 Customer Type Code Code of the customer type 15 Customer Code according to the brokerage firm Code of the customer according to the brokerage firm 16 Customer Identification Number assigned by the brokerage firm Sequential identification number of the customer assigned by the brokerage firm 17 Gross Yield Gross yield of the transaction 18 Net Yield Net yield of the transaction 19 Commission charged by the stock exchange Value of the commission charged by the stock exchange 20 Commission charged by the brokerage firm Value of the commission charged by the brokerage firm. 21 Settlement Date Date on which the settlement of the operation will take place 22 Broker Name Name of the broker (International Intermediary with which the operation is carried out)

Annex No. 6
N° Field Name Description
23 Order Number of the brokerage firm Order number according to the pre-printed order slip for buy and sell orders, which must be included in the legalized register of buy and sell securities orders kept by the brokerage firm 24 Customer Type Specifies whether the customer is an individual or a legal entity 25 Customer NIT Tax Identification Number of the customer 26 Customer DUI Document Unique Identification Number in the case of natural persons 27 Customer Gender Specifies the gender of the customer in the case of natural persons 28 Customer First Surname First surname of the customer in the case of natural persons 29 Customer Second Surname Second surname of the customer in the case of natural persons 30 Customer Married Surname Married surname of the customer in the case of natural persons 31 Customer First Name First name of the customer in the case of natural persons 32 Customer Second Name Second surname of the customer in the case of natural persons 33 Customer Company Name Name of the customer company in the case of legal entities

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Annex No. 7
INFORMATION REGARDING THE LEVELS OF SUPERVISION AND REGULATION OF THE COUNTRY IN QUESTION Country:_____________________ No. Organization Member State (Indicate with yes or no, if the Country is a member of the international organization) Information (Detail the websites where such information can be confirmed or any other information with the objective of verifying its subscription to the International Organization) The International Organization of Securities Commissions, IOSCO (in English). The Inter-American Council of Securities Regulatory Authorities, COSRA (in English). The Organization for Economic Co-operation and Development (OECD), provided that El Salvador has entered into a valid international treaty for free trade with the State to which the market belongs. Financial Action Task Force, (FATF). Regional Integrated Market, in which a Salvadoran stock exchange participates. Others (1)

The market or system in which securities are traded, whether administered by an entity that has self-regulation powers equivalent to those held by stock exchanges in El Salvador

No.
Stock Exchange
(Indicate the stock exchanges of the country or centralized trading mechanisms with securities authorized to trade securities in the country) Information (Indicate the regulatory framework applicable to the stock exchange in question, the stock exchange's website detailing its applicable regulatory framework may be indicated)

That the market has implemented equal or superior standards of supervision and regulation proposed by the International Organization of Securities Commissions (IOSCO in English), regarding those implemented in El Salvador. No. Name of the supervisory entity Information (Indicate the name of the supervisor in the country in question) (Indicate the website of the supervisory body in where the applicable legal framework of supervision is indicated) That there are institutions for the deposit of securities or institutions responsible for the deposit and custody, administration, clearing, settlement and transfer of securities, which have automated systems for the management of securities.

No.
Name of the entity responsible for carrying out the deposit and custody, administration, clearing, settlement and transfer of securities Functions Information (Indicate the name of the society) (Indicate the functions that the entity performs with reference to the (Indicate the websites as follows:

Of the entity

Of the society in
question)

Furthermore, the following must be attached to the application:
a) Evaluations or studies carried out by international financial organizations regarding the level of regulatory adequacy of the country to international standards, when they exist; b) Qualitative and quantitative information of the market in question, for the last 3 years, relative to the most representative Price Index of the stock exchange, description and number of intermediaries, market makers, issuers, investors, characteristics of the traded securities, amount and monthly volumes traded, as well as number of operations and other information relative to its operational structure and to the characteristics for the trading of securities; and c) Description of the means and mechanisms by which investors who trade with securities issued in such markets, will have access to the financial, economic, accounting, legal and administrative information of the issuers, including that relative to material events with the same opportunity and frequency with which it is disclosed in the foreign market. At minimum, the website through which such information can be obtained may be indicated.

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