Regulatory Alerts2023-09-26 | NCM-05Added · Updated
Technical Standards for the Publication of Commissions by Entities in the Securities Market
The Central Reserve Bank of El Salvador issued Technical Standard NCM-09/2023 to regulate the disclosure of fees by securities market intermediaries. The standard mandates that stock exchanges, custodial societies, and broker-dealers publish their commissions in national newspapers or provide detailed monthly reports to investors. This requirement ensures transparency and allows investors to access uniform information to make informed decisions regarding their financial intermediaries.
CNBCR-09/2023 Approval: 09/26/2023 Effective Date: 10/11/2023
NCM-05 TECHNICAL STANDARDS FOR THE PUBLICATION OF COMMISSIONS BY ENTITIES INVOLVED IN THE SECURITIES MARKET
CENTRAL RESERVE BANK OF EL SALVADOR GOVERNMENT OF EL SALVADOR
THE STANDARDS COMMITTEE OF THE CENTRAL RESERVE BANK OF EL SALVADOR,
CONSIDERING:
I. That Article 1 of the Securities Market Law establishes that it regulates the public offering of securities and these securities, their transactions, their respective markets and intermediaries, and the issuers, with the purpose of promoting the efficient development of said markets and safeguarding the interests of the investing public.
II. That Article 41 of the Securities Market Law establishes that stock exchanges must publish in two newspapers of national circulation, on the dates they publish their audited financial statements for June and December of each year, the commissions they charge for their services.
III. That Article 60-A of the Securities Market Law establishes that broker-dealer houses must inform monthly and in detail to each of the investors about the result of bank deposits, investments, accrued commissions, securities acquired and sold during the corresponding period, and the resulting balance.
IV. That Article 80 of the Securities Market Law establishes that societies that receive securities in deposit and custody must publish in two newspapers of national circulation, on the dates they publish their audited financial statements for June and December of each year, the commissions they charge for their services.
V. That Article 96 of the Securities Market Law establishes that societies that intervene in the securities market whose services generate commissions must publish them monthly and whenever they modify them.
VI. That Article 5 letter e) 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 supervise public offers for the acquisition of securities registered in the Public Stock Exchange Registry and to require offerors to reveal information deemed necessary for these to be carried out with due information and transparency, in order to safeguard the interests of the investing public.
VII. That investors, to make decisions oriented toward maximizing their resources, require access to precise and uniform information regarding the commissions that will be applied to the operations they carry out in the securities market, and thus determine the intermediary they consider appropriate according to their interests.
THEREFORE,
Alameda Juan Pablo II, between 15th and 17th Norte Avenue, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 1 of 7