Law 14/2003, Of 23 October, Of The Institut Nacional Andorrà De Finances

Original Language Title: Llei 14/2003, del 23 d'octubre, de l'Institut Nacional Andorrà de Finances

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Law 14/2003, of 23 October, of the Institut Nacional Andorrà de Finances since the General Council in its session of 23 October 2003 has approved the following: law 14/2003, of 23 October, of the Institut Nacional Andorrà de Finances preamble the Andorran National Institute of Finance (hereinafter the INAF or the Institute) was established by the law of creation of the Institut Nacional Andorrà de Finances of 12 June 1989, as a financial institution of public character with the aim of facilitating the financing of the public sector, to help the Government to meet their social and economic objectives and to assist the authorities in the management of financial and economic policy. Subsequently, the law on modification of the law of creation of the Andorran National Institute of finance, of 3 September 1993, defines the INAF technical body Executive of the financial authority of the Principality of Andorra and gives some additional functions deriving from this condition.

At present, the consolidation of the INAF as an authority of the Andorran financial system is necessary to a redefinition of its functions for the purpose of providing the Institute with more independence and, in General, to equate its powers to the supervisory bodies of other countries.

Specifically, the increase in the functions of the INAF depends on providing it skills in the area of supervision and control, such as the increase of its field of action, which allows you to take actions as in situ inspections independently; the replacement of administrators; the determination of injunctive relief, as well as sanctioning powers.

At the same time, the increase in powers of the INAF is accompanied by the adoption of practical measures to ensure the independence, and the redefinition of the operational structure. In the first group of measures include devices such as the regulation of the grounds for dismissal and separation of the members of the Board of Directors and the General management, the regulation of their mandates, the establishment of a regime of incompatibilities, the rotation of the charges, the modification of the system of financing of the INAF, and a mechanism of communication between this institution and the Ministry responsible for finance.

Within the functional measures for the redefinition of the operational structure of the INAF include mainly the remodelling of the governing bodies of the INAF with the removal of the Advisory Committee.

On the other hand, the increase in the functions of the INAF implies a change in the architecture of the system of supervision, with the removal of the Commission of Finance as a higher authority of the financial system, given the skills gap that leads to the concentration of these to the governing bodies of the INAF, and the transfer of competencies in the field of money laundering money laundering prevention unit.

The law consists of a chapter, and composed of two articles which establish the General provisions relating to the INAF; one chapter II, which determines its object and its functions, consisting of seven articles; one chapter III, with sixteen articles, relating to the governing bodies of the Institute; one chapter IV relating to the financing of the INAF, consisting of two articles; one chapter V, which established the provisions relating to the annual accounts, with two articles, and a chapter VI with a unique article related to financial control and accounting Institute. Also part of the law six additional provisions relating to the amendments introduced by this law in the legislation of the Andorran financial system;

two transitional provisions; a repeal, and a final provision.

Chapter i. General provisions Article 1 Nature the Institut Nacional Andorrà de Finances is an entity of public law with its own legal personality and full capacity to act publicly and privately, independently of the general administration. In the development of its functions, act independently with respect to the general administration.

Article 2 headquarters the headquarters of the Institute is established in the territory of the Principality of Andorra.

Chapter II. Object and functions Article 3 subject to the INAF is the authority of the Andorran financial system and promotes and ensures the smooth functioning and stability of the financial system.

The INAF performs the necessary actions that require the exercise of its functions.

Article 4 Monitoring and control the INAF supervises and controls the built-in entities in the financial system in order to ensure compliance with the regulations applicable to these entities.

Article 5 disciplinary Power and sanctioning the INAF exercises disciplinary power and sanctioning of entities in the financial system.

Article 6 public debt management and treasury services the INAF provides the services of the State Treasury and du financial management of emissions of public debt of the Principality of Andorra.

Article 7 financial Agent the Institut Nacional Andorrà de Finances carries out those financial activities of general interest assigned to it by the Government and, in particular, the promotion of investments in geographic areas and in the economic sectors requiring priority attention, such as infrastructure, housing and agriculture.

Article 8 assessment and studies at the Institut Nacional Andorrà de Finances raises the Government information and reports on financial legislation and proposes measures likely to improve the planning and regulation of the financial system. At the same time advises the Government and draws up studies and statistics on financial matters, proceeding to the establishment and publication of an annual report explaining the tasks performed.

Article 9 international relations at the Institut Nacional Andorrà de Finances established relationships and partnerships within the scope of their roles and responsibilities with central banks and financial supervisory authorities of other countries, and with national and international agencies related to financial topics.

Chapter III. Governing bodies Article 10 governing bodies The governing bodies of the Institut Nacional Andorrà de Finances are the Board of Directors and the General management.

Section 1a. The Board of Directors Article 11 Composition 1. The Board of Directors consists of a president, three to five directors and the director general of the Institute.

2. The director-general of the Institute is part of Office of the Board of Directors, with voice but without vote.

3. The Board of Directors appoints a Secretary who assists in its meetings.

Article 12 the appointment, duration and remuneration


1. The president and the members of the Board of Directors are appointed by the General Council, at the proposal of the Government presented by the Minister in charge of finance, with the favourable vote of two-thirds of its members in first ballot.

If in the first ballot the required majority is not achieved in the previous section, within a period of no more than the 72 hours, will be elected the candidates who, in a second vote, obtained the favourable vote of the simple majority of the General Council.

2. The post of president and member of the Board of Directors has a duration of six years and is not renewable. Half of the positions are renewed every three years.

3. In the event that may occur one or more vacancies in the Board of Directors, it must proceed to cover them as soon as possible and has to appoint the president or the directors are needed. The new members will be able to see their mandate renewed in exceptional cases, once sold out the remaining period to the causing of the vacancy that cover, up to complete a whole period of six years.

4. The remuneration of the Chairman and of the directors of the Board of Directors is set by the Government.

Article 13 Requirements the president and the directors of the Board of Directors must have the Andorran nationality and knowledge and adequate professional experience in the field of business management, economic policy or law for the exercise of the Office.

Article 14 Incompatibilities the Office of Chairman or member of the Board of Directors is incompatible: in) with a member of the General Council;

b) with any other public office provided in the service of the Administration, whether by choice or by civil service appointment or contract;

c) with any function or Office, Manager or Executive, in political parties or entities to develop financial activities in Andorran territory or abroad;

d) with any activity that could jeopardize the independence and impartiality in the exercise of the Office.

Article 15 Termination and separation 1. The president and the directors of the Board of Directors are constant in the charge for any of the following reasons: a) to end of the period for which they were appointed;

b) by resignation, presented in writing in front of whom he appointed;

c) to death;

d) for disability declared by judicial decision;

e) to disable access to the exercise of political rights declared by judicial decision;

f) to conviction for the Commission of a crime.

g) for unjustified absence at meetings of the Board of Directors more than twice in a year, counter from each absence.

2. The General Council, at the proposal of the Government, the president or the directors of the Board of Directors in the event that no longer meet the requirements for the exercise of the Office, to incur in any incompatibility or coping with a serious breach of the obligations of the commit charge.

Article 16 Obligation of confidentiality the participants to the meetings of the Board of Directors have a duty to keep in secret the content of the deliberations and the resolutions adopted and, in general, all the information you know in the exercise of his Office at the Institute, even after its termination or separation.

Article 17 Operation 1. The Board of Directors may be called by the president, by the director general of the Institute or by at least two directors.

2. The Board of Directors shall meet at least once every three months.

3. The Board of Directors is validly constituted when the meeting are present at least half of the members with the current post. Decisions are taken with the vote of the majority of the members attending and, in case of a tie, the vote of the president is ruling.

4. The resolutions of the Board of Directors are documented in a record must sign the president and the Secretary.

5. Certification of the resolutions of the Board of Directors are delivered by the Secretary with the approval of the president.

Article 18 Powers Are powers of the Board of Directors: to) Approve the guidelines of the Institute needed to fulfil the functions assigned to it and control its execution.

b) to approve the proposed budget of the Institute, the annual accounts and the proposed distribution of result and elevate them to the Government.

c) Appoint the Deputy Director general of the Institute, at the proposal of the director general.

d) to approve the proposals of the Director General in conjunction with the general terms and conditions, remuneration and dismissal of the staff of the Institute, as well as other rules that may affect it.

e) approve the internal rules of the Institute and the delegations of its powers.

f) agree on the amount of credits awarded on the basis of which it is necessary to its prior authorization.

g) agree on the amount of investments made on the basis of which it is necessary to its prior authorization.

h) agreed to the imposition of disciplinary sanctions.

and approve the sanctions proposals) that the Institute has sent to the Government.

j) Approve the replacement of the administrators of the institutions of the financial system.

k) Approve the proposals for the precautionary measures that have been applied to the institutions of the financial system or its organs of administration and management.

l) approve agreements provided for in article 9.

m) to approve requests for creation abroad of banks and financial institutions, branches and representative offices, on the part of banks and finance Andorran law.

n) to approve applications for acquisition of shares classified in banks and financial institutions abroad by banks and finance Andorran law.

o) Approve the resolution of resources or claims brought against the resolutions of the Institute.

p) Adopt the necessary agreements for the development of the functions of the Institute are of its competence.

q) Fix the remuneration of the Secretary of the Board of Directors if it does not form part of the staff of the Institute.

Section 2a. The Directorate General Article 19 composition, appointment, duration and remuneration 1. The General direction is formed by the director general and the Deputy Director general.

2. The director-general of the INAF is appointed by the Government on the proposal of the Board of Directors of the INAF.

3. The Deputy Director general is appointed by the Board of Directors of the Institute, at the proposal of the director general.

4. The duration of the posts of director-general and Deputy Director general is simultaneously and for a period of six years, and is renewable indefinitely.

5. remuneration and other conditions of the employment contract of the director


are set by the Government.

Article 20 the members of the General Management Requirements must be Andorran nationality, academic degree in economics, finance or business administration and management, and professional knowledge and experience appropriate to the exercise of the Office in the field of banking and finance.

Article 21 1 Incompatibilities. The director-general and the Deputy Director general have to exercise the Office full-time, and therefore is incompatible with the exercise of any other public or private remunerated activity, profession, or.

2. After the cessation or separation from their offices and during the subsequent year, the director-general and the Deputy Director-general may not exercise any professional activity related to activities of the financial system.

Article 22 Termination and separation 1. The director-general and the Deputy Director general in the Office are constant for the same reasons set out in article 15 for the president and the directors of the Board of Directors.

2. The Government can separate the ceo in the event that leave to meet the necessary requirements for the exercise of the Office, incur any incompatibility or coping with a serious breach of the obligations of the commit charge.

3. The Deputy Director-general continues in Office if, for any of the causes provided for in this law, cease or the general manager, without prejudice to the provisions of paragraph 2 of article 24.

The contract is formalised in the time of the recruitment of Deputy Director general provides for the compensation regime that applies in the case of termination or separation of this, linked to the cessation or the separation of the director-general on the basis of the reasons stipulated in points e) and f) of paragraph 1 of article 15.

Article 23 Obligation of secrecy members of the Directorate-General and the staff of the Institute have a duty to keep secret all information known in the exercise of his Office at the Institute, even after its termination or their separation.

Article 24 Responsibilities 1. The competences of the General direction that the director-general: a) execute the resolutions of the Board of Directors.

b) manage and organize technically the Institute.

c) Exercise the legal representation of the Institute both judicial and extrajudicial.

d) Authorize contracts and necessary documents for the development of the functions of the Institute.

e) Prepare the reports and proposals of resolutions that the Board of Directors must approve and submit them to the Board of Directors.

f) Sent to the Government the budget proposal of the Institute approved by the Board of Directors.

g) to establish and organize the tasks, rights and obligations of the staff of the Institute in accordance with the internal rules approved by the Board of Directors.

h) to propose to the Board of Directors the appointment of Deputy Director general of the Institute.

I) hire and fire the staff of the Institute and propose to the Board of Directors the general contract conditions, remuneration and dismissal of staff.

j) Formulate recommendations, warnings and requirements to entities in the financial system and its organs of administration and management.

k) to propose to the Board of Directors of precautionary measures to be applied to the institutions of the financial system and its organs of administration and management.

l) Formulate enforceable technical releases for entities of the financial system.

m) advise the Ministry in charge of finances in the achievement of its objectives of financial policy.

n) Engage the services of external auditors for the verification of the information and compliance with the regulations applicable to the institutions of the financial system.

o) Request to entities in the financial system any type of information in order to verify and check the existence and accuracy of the information that it deems necessary.

p) on-site inspections in the companies of the financial system when it deems it necessary for the production of information or for the verification of compliance with the regulations applicable to entities in the financial system reporting to the Board of Directors once the inspection incoada.

q) and instruct the sanctioning and propose appropriate disciplinary sanctions.

r) Make proposals for replacement of administrators of the institutions of the financial system and submit them to the Board of Directors to be approved.

s) to propose to the Board of Directors of the partnership agreements provided for in article 9.

2. The Deputy Director-general exercises the powers of the director-general in cases of absence or illness, when the director-general to cease or be separated from the position and while not have appointed a new one, or when the director general is delegated to do so.

Section 3a. Protection of governing bodies Article 25 protection of organs of Government Are members of the governing bodies of the INAF and his staff have only non-contractual responsibility for the exercise of their functions in the case of damage caused by events (actions or omissions) intentional or caused by gross negligence that are directly attributable, in the terms of the articles 58 to 64 of the code of the administration.

Chapter IV. Own Resources financing Article 26 1. The own resources of the Institut Nacional Andorrà de Finances are formed by the Endowment capital and for bookings with a charge to the positive results of the exercise.

2. INAF is financed with the income derived from the exploitation of its heritage and the development of its functions, and also by means of subsidies provided to the budgets of the State.

The part of the positive result of the exercise that is being channelled to the benefit corresponds to the Government. Even so, on the recommendation of the Board of Directors, the Government may decide to affect a part or all of the benefit to a reserve fund of the INAF. This reserve fund is only can be used to offset losses.

Article 27 Budget 1. The Institut Nacional Andorrà de Finances formulates the operating budget and investments with sufficiently in advance so that it can be integrated into a specific section of the general budget Law and approved by the General Council.

The Government submits the budget prepared by the Institut Nacional Andorrà de Finances without any modification and, in case of disagreement or discrepancy attaches a reasoned report in which exposes your criteria and, if this is the case, the modifications that appropriate cross.

2. The budget of the Institut Nacional Andorrà de Finances is subject to


General law of public finance and concordant provisions and deployment.

Chapter v. annual accounts Article 28 Formulation and audit 1. The director general has to formulate the annual accounts of the Institute in accordance with the general law of public finance, with the adaptations that are necessary for the exercise of their activity, and concordant provisions and for the deployment and, if applicable, the proposed involvement of the positive result of the exercise.

2. The director-general can submit the annual accounts of the Institute in an audit of accounts.

Article 29 Approval 1. The director general shall submit to the Board of Directors, within a maximum period of three months from the end of the year, and because the approval, the annual financial statements of the Institute and the proposed involvement of the positive result of the exercise. Also, if applicable, should submit the audit report to the Board of Directors in the same period.

2. The Board of Directors, once you have approved the annual financial statements of the Institute and the proposed involvement of the positive result of the exercise, are relayed to the Government because the submitted to the General Council.

Chapter VI. Financial control and accounting Article 30 financial Control and accounting 1. The Institut Nacional Andorrà de Finances is subject to financial control in accordance with the provisions of the general law of public finance, and with the necessary adaptations for the exercise of their activity.

2. INAF is subject to external audit by the Court of Auditors.

First additional provision additional provisions are introduced the following changes to the law regulating the financial system: 1. article 7 is worded as follows: "entities in the financial system are subject to the authority of the Institut Nacional Andorrà de Finances."

2. articles 8, 9, 10 and 11 are without content.

3. article 16 paragraph 2 is worded as follows: "the General Council, by means of a specific regulation and report of the INAF, fixed the number of minimum share capital required for each entity, according to their belonging to groups or sub-groups listed in the law regulating the powers of the various operational components of the financial system".

Second additional provision In the fifth transitional provision of law regulating deposit guarantee reserves and other operational obligations to maintain and deposited by entities operating in the financial system fails to take effect the mandatory opinion of the Commission of finance.

Third additional provision introduces the following changes to the law regulating solvency and liquidity criteria in financial institutions: 1. the second paragraph of article 3 is worded as follows: "the regulations, with the previous report of the Institut Nacional Andorrà de Finances, you can establish limitations or conditions to all those games of equity that a reduced efficiency for the coverage of losses as well as determine the new games that integrate the own funds and their deductions. "

2. Lets take effect the mandatory opinion of the Commission of Finance for articles 5 and 22.

Fourth additional provision introduces the following changes to the law regulating the disciplinary regime of the financial system: 1. The heading of article 3 is written as follows: "authority of the Andorran financial system".

2. the first paragraph of article 3 is worded as follows: "the Andorran National Institute of Finance carries out the function of supervision and control of entities in the financial system and track the evolution of these entities to check compliance with the laws and regulations that govern their actions and act preemptively in finding evidence of irregularities".

3. Paragraph 1 of article 4 is drawn up as follows: "in the exercise of its functions, the Institut Nacional Andorrà de Finances: a) Apply and apply the rules and regulations in force, by means of the procedures and instrumental techniques, rules that are necessary.

b) apply for and receive, occasionally or systematically, integrated financial system institutions all the information that it deems necessary and, if appropriate, requires the certification by external auditors.

c) Performs, in fulfilment of its functions, in-situ inspections of entities in the financial system, either directly or by means of external auditors.

d) Receives, for the purposes of administrative departments or services of the administration information relating to possible irregularities committed in relation to the legislation of the financial system.

Providing this information does not constitute a violation of professional secrecy, nor any restrictions on disclosure of information and, consequently, does not involve any kind of legal responsibility. "

4. The heading of article 7 is drafted as follows: "Organ of discipline in the financial system."

5. article 7 is worded as follows: "the Andorran National Institute of finance, as an authority of the Andorran financial system, exercise disciplinary power over the whole of the financial system."

6. the second paragraph of article 8 is without content.

7. The heading of article 9 is written as follows: "resolution of the case by the INAF".

8. article 9 is drafted as follows: "1. The Andorran National Institute of finance, once the instruction, resolve within a month the incoats files when the penalties imposed for infringements mild and serious. In the resolution, we have to fix, so motivated, the facts and their exact legal qualification; determine the violation that these facts constitute and the entity, person or people who are authors and/or responsible for the violations, and specify the corresponding sanction, or declare the non-existence of infringement or liability.

2. For very serious offences incoats records, the Andorran National Institute of Finance submits the case to the Government with the proposal of disciplinary actions it considers appropriate.

3. The sanctions on entities and to individuals who are authors and/or responsible for that derived from the same infringement are the subject of a single decision, resulting in a single procedure.

4. When the penalty determined by the appointment of provisional administrator, the Institut Nacional Andorrà de Finances must specify in the resolution the scope of their competences and their performance.

5. The INAF notifies the final resolution of sanctions imposed by


minor and serious offences in the affected organisations and reports, if any, of the resource. "

9. The heading of article 10 is written as follows: "resolution of the case by the Government".

10. article 10 is worded as follows: "1. The Government resolved within a period of two months from the date of receipt of the file, in accordance with the provisions of the previous article, the incoats files when the sanctions were imposed for very serious offences. In the resolution have been set, so motivated, the facts and their exact legal qualification; determine the violation that these facts constitute and the entity, person or people who are authors and/or responsible for the violations, and specify the corresponding sanction, or declare the non-existence of infringement or liability.

2. The sanctions on entities and to individuals who are authors or responsible that derived from the same infringement are the subject of a single decision, resulting in a single procedure.

3. When the penalty determined by the appointment of provisional administrator, the Government should specify in the resolution the scope of their competences and their performance.

4. The Government notifies the final resolution of sanctions imposed for very serious offences in the affected organisations and reports, if any, of the resource. "

11. the first paragraph of article 12 is worded as follows: "once the procedure has commenced, the Andorran National Institute of Finance may, in the exercise of disciplinary power, take the precautionary measures they believe suitable with the ultimate goal of protecting the financial system, the economic interests affected and the effectiveness of the resolution is adopted."

12. the second paragraph of article 12 is without content.

13. The fifth paragraph of article 12 is worded as follows: "the Andorran National Institute of Finance informs the Government of the provisional measures taken".

14. In the sixth paragraph of article 12 is replaced the reference to the Commission of finance for part of the Andorran National Institute of finance.

15. The second paragraph of section 3 of article 13 is worded as follows: "When the offences committed may be constitutive of the crime, the Andorran National Institute of Finance informs immediately the judicial authority or the public prosecutor."

16. In the first paragraph of article 22 replaced the reference to the Commission of finance for part of the Andorran National Institute of finance.

17. The first and third additional provision are without content.

Fifth additional provision introduces the following changes to the law regulating the creation of new banks of Andorran law: 1. article 3 is worded as follows: "The requests for the authorization of the creation of banks of Andorran law must be submitted in two copies to the Ministry in charge of finance, which sent a copy to the INAF."

2. article 8 is worded as follows: "the resolution of the applications for authorisation for the creation of new banks of Andorran law requires, prior, the report of the INAF."

3. article 11 is drafted as follows: "The sponsors must submit detailed documentation in the article 13 of this law in two copies and together with the application to the Ministry in charge of finance, which sent a copy to the INAF."

4. article 12 is worded as follows: "to) The sponsors who have obtained a provisional decision in the form of prior authorization must be presented in two copies to the Ministry in charge of finance, within the maximum period of three months from the provisional decision, the documents detailed in article 14 of this law.

The Ministry responsible for finance must send a copy to the INAF.

b) without prejudice to that stated in the preceding point a), during the period of instruction, the INAF, on its own initiative or by request of the Government, may require the promoters the additional information that it deems necessary, provided that it is related to the requirements to apply for permits for creation of banks.

The INAF communicated to the Ministry in charge of finance, prior, the nature of the information that it has requested the sponsors. "

Sixth additional provision introduces the following changes to the law regulating the basic administrative regime of the banking entities: article 12 "acts subject to inscription" is worded as follows: "to have full administrative effectiveness, the following events must be registered in the corresponding registries: a) the creation and dissolution of banks;

b) the creation abroad of banks and financial institutions, branches and representative offices, on the part of banks and finance Andorran law;

c) appointments and revocation of members of the Board of Directors;

d) the appointments and revocation of members of the Directorate-General;

e) changes in the shareholding of the Bank;

f) are changes in those holdings that must serve as a lasting way the activities of the Organisation (permanent participations). Include changes in qualifying holdings in other companies the Bank;

g) the modification of the links with other credit institutions;

h) changes and appointments of external auditors;

and the modification of the articles of Association) of the banks;

j) events that may significantly alter the daily activity of the Bank, such as mergers or spin-offs. "

Transitional provisions first transitory provision of The governing bodies should be constituted in accordance with the provisions laid down in this law, within a period of two months from the date of its entry into force.

At the time of setting up the governing bodies are extinguished the organs in force and the mandates of the current members of the Board.

After the first three years from the establishment of the Board of Directors, half of the positions of the Board of Directors must be renewed by lottery.

Second transitional provision the Government has presented to the General Council before 31 March 2004 the regulation relating to the integration of the insurance companies in the financial system. The development of these regulations must provide to the INAF the supervision of this sector.

Repealing provision abolishes the law of creation of the Andorran National Institute of finance,


on 12 June 1989, and the law on modification of the law of creation of the Andorran National Institute of finance, of 3 September 1993, and any other provision of equal or lower rank which contradict the provisions of the present law.

Final provision this law comes into force the day after being published in the official bulletin of the Principality of Andorra.

Casa de la Vall, 23 October 2003, Francesc Areny Casal Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Joan Enric Vives Sicília Jacques Chirac President of the French Republic and the Bishop of Urgell Co-prince of Andorra Co-prince of Andorra

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