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ORGANIZATION
MONETARY
Y
AND
FINANCIAL
ING. HUGO DEL POZO BARREZUETA DIRECTOR
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At the service of the country since July 1, 1895
Year II-Nº 332
Quito, Friday 12 September 2014
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SECOND SUPPLEMENT
2 -- Second Supplement -- Official Record No. 332 -- Friday, September 12, 2014
Second Supplement -- Official Record No. 332 -- Friday, September 12, 2014 -- 3
ECUADOR Republic
NATIONAL ASSEMBLY
Of. No. SAN-2014-1305 Quito, September 05, 2014 Engineer Hugo del Pozo Barrezueta Director of the Official Register In his office of my considerations: The National Assembly, in accordance with the powers conferred upon it by the Constitution of The Republic of Ecuador and the Organic Law of the Legislative Function, discussed and approved the Project of MONETARY AND FINANCIAL ORGANIC CODE. In session of 2 September 2014, the Plenary Assembly of the National Assembly met and pronounced on the partial objection presented by the Constitutional President of the Republic. The text of the MONETARY AND FINANCIAL ORGANIC CODE, to be used, as provided for in Article 138 of the Constitution of the Republic of Ecuador and Article 64 of the Organic Law of the Legislative Function, has been explained. publish it in the Official Register. Intently, f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.
ECUADOR Republic
NATIONAL ASSEMBLY
CERTIFICATION I allow you to CERTIFY that the National Assembly discussed and approved the PROJECT MONETARY AND FINANCIAL ORGANIC CODE, in First debate of 8 July 2014; second debate on 22 and 24 July 2014; and, its partial objection on 2 September 2014. Quito, 2 September 2014. f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.
REPUBLIC of Ecuador
NATIONAL ASSEMBLY
THE PLENO
CONSIDERING:
What, in accordance with Article 261 numeral 5 of the Constitution of the Republic, the Central State shall have exclusive powers over economic and monetary policies, among others; Article 283 of the State Supreme Charter states that the economic system is social and solidarity; it recognizes the human being as a subject and an end; it proposes a dynamic and balanced relationship between society, state and Market, in harmony with nature; it aims to guarantee the production and reproduction of material and immaterial conditions that enable Good Living; and prescribes that the economic system is integrated by the forms of organization economic, public, private, mixed, popular and solidarity, and the other that the Constitution determines; that, article 284 of the Constitution of the Republic states that economic policy will have the following objectives: 1) Ensure adequate distribution of income and national wealth; 2) Incentives for national production, systemic productivity and competitiveness, accumulation of scientific and technological knowledge, strategic insertion into the global economy and complementary productive activities in regional integration; 3) Ensuring food and energy sovereignty; 4) Promoting the incorporation of added value with maximum efficiency, within the biophysical limits of the nature and respect for life and cultures; 5) Achieving a balanced development of the national territory, integration between regions, in the field, between the countryside and the city, in the economic, social and cultural fields; 6) Promoting full employment and valuing all forms of work with respect for labour rights; 7) Maintaining the economic stability, understood as the highest level of sustainable production and employment in time; 8) Promoting fair and complementary exchange of goods and services in transparent and efficient markets; 9) Promoting social consumption and environmentally responsible; whereas, in accordance with article 302 numerals 2 and 3 of the Constitution of the Republic, monetary, credit, exchange and financial policy will have as objectives: to establish global liquidity levels that ensure adequate margins of financial security and to target surplus liquidity towards investment required for the development of the country, respectively; whereas, Article 303 of the Charter of the State prescribes that the formulation of monetary, credit, exchange and financial policies is the exclusive power of the Executive Function which (a) it shall be used by the Central Bank and the implementation of the credit policy and financial will also be exercised through public banking;
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That, Article 308 of the Constitution of the Republic mandates that financial activities are a public service and may be Under the law, Article 309 of the Constitution provides that the national financial system is composed of the public, private, and popular and solidarity sectors, which are public resources and prescribes that each of these sectors will have rules and control bodies specific and differentiated, which will be responsible for preserving their security, stability, transparency and solidity; that Article 312 of the Constitution of the Republic establishes that the institutions of the private financial system, its directors and the principal shareholders may not be directly or indirectly holders of shares and units in companies other than the financial activity; whereas, pursuant to Article 338 of the Constitution of the Republic, the State shall promote and protect the domestic savings as a source of productive investment in the country; Que, it is necessary to systematize within a legal body all the provisions of laws related to monetary, financial, credit and exchange policies, as part of the new Ecuadorian financial architecture; what, it is necessary to determine the institutions responsible for the formulation of policies in the monetary, financial, credit and foreign exchange areas, as well as the regulation of public order financial services and their control; and, in the exercise of the powers established in the Article 120 number 6 of the Constitution of the Republic, issue the following:
CODE MONETARY AND FINANCIAL ORGANIC
PRELIMINARY TITLE
ITEMS
CHAPTER 1
General Principles
Article 1.-Object. The Monetary and Financial Organic Code it is intended to regulate monetary and financial systems, as well as the securities and insurance regimes in Ecuador. Article 2.-Scope. This Code establishes the framework of policies, regulations, supervision, control and accountability governing the monetary and financial systems, as well as the securities and insurance regimes, the exercise of their activities and the relationship with its users. Article 3.-Objectives. The objectives of this Code are: 1. Power generation, production of
wealth, distribution and redistribution;
2. Ensure that the exercise of monetary, financial, securities and insurance activities is consistent and integrated;
3. Ensure the economy's liquidity levels for
contribute to the implementation of the economic program; 4. Seek the sustainability of the national financial system
and of insurance and securities regimes and ensure compliance of the obligations of each of the sectors and entities that make up them;
5. Mitigate systemic risks and reduce
economic fluctuations; 6. Protect the rights of service users
financial, securities and insurance; 7. Deepen the process of establishing a system
social and solidarity economic, in which human beings are the end of public policy;
8. Strengthen strategic insertion at the regional level and
international; 9. Encourage, promote and generate incentives in favor of the
entities of the Popular and Solidarity Economy; and, 10. Promote access to credit for people in
human mobility, with disabilities, young people, single mothers, and other people belonging to priority care groups.
Article 4.-Principles. The principles that inspire The provisions of the Monetary and Financial Organic Code are: 1. The prevalence of the human being over the capital; 2. The subordination of the monetary, financial, and
values and insurance as an instrument to the service of the real economy;
3. The exercise of monetary and financial sovereignty and the
international strategic insertion; 4. Inclusion and equity; 5. Strengthening trust; and, 6. The protection of citizens ' rights. Article 5.-Policy. The formulation of monetary, credit, currency, financial, as well as insurance and securities policies and regulations is the exclusive power of the Executive Function and has as its objectives the Articles 284 and 302 of the Constitution of the Republic and those established in the National Development Plan.
CHAPTER 2
Of the entities
Article 6.-Integration. Integrate the monetary systems and national financial institutions responsible for the
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policy formulation, regulation, implementation, supervision, control and financial security and public entities, private and popular and supportive of monetary and financial activities. The institutions responsible for policy formulation, regulation, implementation, supervision and control, as well as public and private entities carrying out securities transactions, make up the securities and insurance regimes. insurance activities. Article 7.-Conflicts of interest. No officials or members of the regulatory or control entities of the national financial system or insurance and securities regimes may be members of the national financial system. areas to be regulated, supervised or controlled, or represent or advise third parties who have them, in the field of this Code. The public servants of the regulatory or supervisory bodies shall refrain from acting in cases where their interests conflict with those of the body or entity in which they provide their services or evidence is evidenced or exceeded. which causes conflict of interest. The members of the Monetary and Financial Policy and Regulatory Board and the superintendents in charge of the control of the national financial system and of the insurance and securities regimes mentioned in this Code, before assuming their positions, must declare in public instrument, under oath, that neither he or she, his or her spouse or survivor are in conflict of interest or have a relationship of kinship within the second degree of consanguinity and second degree of affinity with persons with property ownership with influence and with administrators of financial institutions private and popular and private insurance and private securities, in the field of their respective competition. In the case of entities whose participation is greater than 3% of the total assets of the national financial system, there are conflicts of interest for persons with a relationship of kinship within the fourth grade of the consanguinity and second of affinity with persons with patrimonial property with influence and with administrators of private and popular financial institutions, insurance and private securities, in the field of their respective competence. Before the beginning of a session in which regulatory or control issues are to be addressed, the members of the Monetary and Financial Policy and Regulatory Board and the superintendents mentioned in this article must report on the existence of the conflict of interests that is supervinent, a fact that must be incorporated in the corresponding act, and be excused from acting. No member of the Monetary and Financial Policy and Regulatory Board may intervene or vote in those matters in which he, his spouse or survivor, his relatives up to the third degree of consanguinity or second degree of affinity, or his or her partner or (a) a de facto or de jure partners have assets of a wealth. In such cases, the member shall withdraw from the session in the case of the matter on which he or she has a conflict of interest.
The superintendents referred to in this Code shall not be able to resolve or intervene in matters in which he or she, his or her spouse or survivor or his relatives up to the third degree of consanguinity or second degree of affinity, or his or her partner or partners in fact or in law have interests of a patrimonial character. The conflict of interest of a patrimonial nature referred to in this Article shall be set up by the ownership of 1% or more of the subscribed and paid capital of the regulated or controlled entity or the equivalent of one thousand unified basic wages, which is greater. In this case, the member, official or servant of the regulatory and supervisory bodies shall be required to release the securities originating in the conflict of interest of a patrimonial character. If any member, official or servant of the regulatory and control bodies is the owner of shares in any of the regulated entities or controlled by an amount lower than that determined in the preceding paragraph, it is obliged to give know the fact in writing to your appointing authority. In the same way, it will inform if it has a spouse or relative within the third degree of consanguinity or second degree of affinity, or adoptive father or son, who are working in those entities. The non-observance of this provision will be a cause for removal. There is no conflict of interest when deciding and voting on matters with a general effect. It will be a cause of separation from the position to incur a conflict of interest. The provisions of this article are not applicable in the regulation and control of the companies referred to in the Companies Act. Article. 8.-Officials of the regulatory and control bodies. No member, official or servant of the regulatory and control bodies on monetary, financial, insurance and securities matters, while in the exercise of their functions, may be director, official or employee of any of the private financial institutions or of the popular and solidarity economy or of private securities and insurance institutions. The servants and officials of the bodies indicated, with the exception of those who are subject to the Labour Code, shall not be able to provide guarantees or to hire credit with the institutions of the national financial system unless they have the express authorisation of its highest authority. The members of the regulatory bodies and the holders of the control bodies shall make public on the website of their institution the balance of the appropriations they maintain in force on a quarterly basis. Members, servants and officials who are part of the bodies carrying out regulatory, supervisory and control activities shall be prevented from providing their services in the regulated entities or in which they are
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under its scope of control, as the case may be, under any contractual mode, and to intervene or manage directly or indirectly these bodies, for the benefit of such regulated and controlled entities until after two (2) years of termination of their duties, without prejudice to the limitations that Article 153 of the Constitution determines. The breach of this impediment shall constitute a serious infringement by the regulated or controlled entity, which shall be punishable under Section 11 of Chapter 3 of this Code, to Article 208 of the Securities Market Act or to Article 40 of the General Insurance Law, as appropriate according to the nature of the offending entity. This prohibition applies exclusively to the case of regulated, controlled or supervised entities under the scope of this Code. Workers subject to the Labour Code of the regulatory, supervisory or supervisory bodies are not subject to this prohibition. Article 9.-Coordination. The regulatory and control bodies and the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund, will have a duty to coordinate actions for the fulfillment of their purposes and to make effective the the enjoyment and exercise of the rights recognised in the Constitution, for the purpose of which they shall exchange data or reports relating to the entities subject to their regulation and control. The information submitted to stealth and reservation shall be treated in accordance with the provisions of this Code. Article 10.-Coactive jurisdiction. Grant the superintendencies, the Deposit Insurance Corporation, the Liquidity Fund and the Private Insurance Fund, the Central Bank of Ecuador, the public financial sector entities, the co-active jurisdiction for the collection of the appropriations and any kind of obligations in their favour or third parties, which shall be exercised by the legal representative of those entities. The exercise of the co-active jurisdiction may be delegated to any server of the entity by means of the act concerned. The co-active shall be exercised by means of any title of credit of the individual in the law. The procedure for the co-active procedure to be followed shall be determined in law. Article 11.-Support of the Public Force. The superintendances referred to in this Code, as part of its control actions to financial, insurance and securities activities, in order to safeguard the value of the assets of the such entities and in order to preserve the integrity of the relevant information, will directly and motivate the Public Force to provide support for delegated officials to enter an entity, remain in it and keep it in custody, Mandatory for the Public Force to provide immediate assistance to be requested. Article 12.-Veeduria and social control. The superintendencies, the Central Bank of Ecuador, the Deposit Insurance Corporation, the Liquidity Fund and
Private Insurance Fund, public financial and securities institutions, and public insurance will be subject to citizen oversight and social control, through the control mechanisms provided for in the current legislation.
Section 1 of the Monetary Policy and Regulatory Board and
Financial Article 13.-Conformation. Create the Monetary and Financial Policy and Regulatory Board, part of the Executive Function, responsible for the formulation of public policies and monetary, credit, currency, financial, insurance and securities regulation and supervision. The Board shall be composed of full rights by the holders of the ministries of State responsible for economic policy, production, public finances, the head of state planning and a delegate of the President of the State. Republic. The Superintendent of Banks, the Superintendent of Companies, Securities and Insurance, the Superintendent of Popular and Solidarity Economy, the General Manager of the Central Bank of Ecuador, will participate in the Board's deliberations, with voice but no vote. and the Chairman of the Board of Directors of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund. The Monetary and Financial Policy and Regulatory Board may invite any other public authority, private or popular and supportive entity deemed necessary for its deliberations, to participate in its sessions. Article 14.-Functions. The Board has the following functions: 1. Formulate and direct monetary, credit,
currency and financial policies, including insurance and securities policy;
2. Regulate by rules the implementation of
monetary, credit, currency and financial policies, including insurance and securities policy, and monitor their implementation;
3. Regulate by rules the financial activities
that are exercised by the entities of the national financial system and the activities of the insurance and securities entities;
4. Regulate the creation, constitution, organization,
operation and liquidation of financial, insurance and securities entities;
5. Know about the results of the control carried out by
the superintendances referred to in this Code, the supervision and supervision by the Central Bank of Ecuador and the reports presented by the Deposit Insurance Corporation, Fund of Liquidity and Private Insurance Fund, in the field of its competencies;
6. Apply the provisions of this Code, the regulations
regulatory and resolve the unanticipated cases;
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7. Approve monetary, credit,
currency and financial programming, which will align with the government's economic program;
8. Authorize the policy of investments of the surplus
of liquidity and international reserves; 9. To know and to resolve the challenges that are presented
to the acts of the own Board, according to the Statute of the Legal Regime Executive Function Administrative;
10. Present to the President of the Republic proposals of
modification of monetary, credit, currency, financial, insurance and securities legislation;
11. Establish, within the framework of their competencies, any
measure that helps:
a) Prevent and discourage fraudulent practices, including laundering of assets and financing of crimes such as terrorism;
b) Protecting the privacy of individuals in relation
with the dissemination of their personal information, as well as national security information;
c) Protecting the integrity and stability of the system
national financial and sustainability currency regime and securities and insurance regimes;
d) Safeguarding performance economic in
emergency situations; e) Incentives regional integration processes; f) Caution the sustainability of the balance of
payments, economic planning for Good Living and defense of the nascent industry;
g) Generate incentives to system institutions
financial for the creation of products aimed at promoting and facilitating the economic inclusion of priority care groups such as people in human mobility, with disability, young people and single mothers.
12. To determine for the national economy the level of
global liquidity consistent with the strategic objectives defined for the exercise of economic policy;
13. Plan, regulate and monitor the liquidity levels
of the economy; 14. Define the criteria to be followed for the management of the
surplus liquidity, in order to stimulate domestic investment, its sustainability, its consistency with the objectives of economic growth, generation of work, sustainability of the balance of payments, reduction of inequality and distribution and redistribution of income;
15. Issue the regulatory framework for management, solvency, and
prudence to which entities
be subject to financial, securities and insurancein line with macroeconomic objectives;
16. Establish liquidity reserve levels, of
domestic liquidity, equity, technical assets and risk weights of assets, their composition, form of calculation and modifications, to which institutions must submit financial, securities, and insurance;
17. Determine the quotas of the entities in the sectors
private and popular finance and solidarity that they will be able to contract with the Central Bank of Ecuador for discount or domestic investment window operations, subject to this Code, on the basis of its solvency, economic relations and economic policy to be determined for the purpose;
18. Establish for non-financial legal persons
to carry out credit operations for the limits to be determined by the Board, minimum reserve requirements, asset and liquidity requirements, and other requirements to ensure adequate management and solvency, as well as their way of calculation, in the framework of economic policy;
19. Establish means of payment; 20. Normar the national payment system; 21. Regular electronic currency management and provide the
Central Bank of Ecuador with its implementation, monitoring and evaluation, as well as of the national currency, of agreement with the provisions of this Code;
22. Determine the requirements applicable to the
financial, securities and insurance entities, consistent with economic policy objectives;
23. Establish credit levels, interest rates, reserves
of liquidity, lacy and provisions applicable to credit, financial, commercial and other operations, which may be defined by segments, economic activities, and other criteria;
24. Regulate the growth of financial institutions, of
values and insurance, to reduce the vulnerability of the economy;
25. Establish rules for the operation of payments
and transfers to and from Ecuador; 26. Establish moratoria for the constitution of new
financial, securities and insurance entities; 27. Meet the functions that the Market Law of
Values gives you, as well as regulate the constitution, operation and settlement of trust funds and businesses;
28. Establish charges for services provided by the
financial, securities and insurance entities as well as non-financial institutions that grant credit and expenses with third parties arising from the active transactions in which the users of these entities;
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29. Establish the maximum cost and commission limit
that can be agreed upon by the use of the credit card, debit and other means of similar nature to commercial establishments.
These costs and commissions shall not exceed the maximum limits established by the Board, in addition to other factors of an operational nature, the maximum effective rate issued by the Central Bank of Ecuador;
30. Regulate the maximum levels of remuneration and other
economic, social and compensation benefits of the financial, securities and insurance institutions ' managers, considering the profitability, risk, assets and capital of the entity compared to the rest of the system;
31. Establish credit and investment policy guidelines
and, in general, on assets, liabilities and contingent operations of the entities in the national financial system, in accordance with this Code;
32. Determine the type of entities that may have
current and securities accounts in the Central Bank of Ecuador;
33. Dictate the rules governing insurance and
reinsurance; 34. Regulate the trust management of the sector entities
public finance; 35. Establish the segmentation of the sector entities
popular and supportive financial; 36. Determine the banking operations of the
Central Bank of Ecuador subject to the control of the Superintendency of Banks and the operations of the trusts of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund subject to the control of the respective supertrends;
37. Authorize the Central Bank of Ecuador and the
financial, securities and insurance entities, new activities which, without being prohibited, are necessary for the fulfilment of the objectives of monetary, financial, credit, exchange, securities and insurance, in accordance with the regulations that are dictated to the effect;
38. Require the suspension of the application of the standards
issued by the control agencies; 39. Establish units of account; 40. Know the reports that present, in the field of
their competencies, the Central Bank of Ecuador, the control bodies and the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund, on the state of monetary and financial systems and on financial, insurance and securities institutions;
41. Regulate the constitution, organization, operation, liquidation and registration of supplementary pension funds and their investments, as well as the minimum requirements for exercising the position of administrators;
42. Appoint the administrative secretary of the Board; 43. Appoint the General Manager of the Central Bank of the
Ecuador; 44. Approve the Statute of the Central Bank of Ecuador and
its reforms, subject to compliance with the requirements of the Public Service Organic Law;
45. Approve annually the Central Bank
budget of Ecuador and public financial sector entities, insurance and public securities, its reforms, as well as regulate its execution;
46. Approve the Bank
Central Ecuador and the Deposit Insurance Corporation, Liquidity Fund, and Private Insurance Fund annually;
47. Regulate participation as shareholders in entities
of the national financial system, natural or legal persons domiciled in tax havens;
48. Submit to the President of the Republic a report of
accountability during the first quarter of each year with respect to the previous economic year, when required by the President or when the Board considers it relevant;
49. Issue general rules for the payment of
Private Insurance Fund coverage; 50. Determine the percentages and destinations in which you
will split the contribution on net direct insurance premiums established in law when you hire private insurance policies;
51. Dictate transparency and disclosure rules for
information for all entities in the national financial system and securities and insurance regimes;
52. Require the external auditors and qualifiers of
risk the necessary information; 53. Determine the value of the coverage that is paid with
charge to the Private Insurance Fund; 54. Regulate the implementation of the alternability of the
administrators of the entities of the popular and solidarity financial sector; and,
55. Exercise the other functions assigned to you by law. In order to comply with these tasks, the Board shall issue the rules in matters of its competence, without being able to alter the legal provisions. The Board may issue regulations by segments, economic activities, and other criteria.
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The Board may directly require the information deemed necessary, without restriction, to the Central Bank of Ecuador, to the superintendances described in this Code, the Internal Revenue Service, the National Customs Service, the State Ministry in charge of public finances, the Deposit Insurance Corporation, the Liquidity Fund and the Insurance Fund Private and the Financial Analysis Unit. The Board may, through the respective supervisory bodies, require information from the institutions of the national financial system, securities and insurance institutions and any non-financial institution that grants credit for the limits it establishes. the Board, being the obligation of these entities to provide it within the deadlines to be established for the purpose. The Board may count on the advice and consultancies it deems necessary for the effective performance of its functions. Article 15.-Macro-economic powers. The Monetary and Financial Policy and Regulatory Board may establish conditions and limits to the position in external assets that financial, securities and insurance entities as well as entities Non-financial institutions that grant credit for the limits established by the Board, maintain abroad. The Monetary and Financial Policy and Regulatory Board may lay down conditions and limits on external indebtedness of financial institutions, securities and insurance institutions and non-financial institutions that grant credit for on the limits that establish the Board, of the country contract abroad. In addition, it may lay down conditions and limits on the amounts of guarantees, guarantees, guarantees or any other contingent granted by the entities of the national financial system to any natural or legal person. The Monetary and Financial Policy and Regulatory Board will be able to provide that the foreign currency of the operations it determines will be obligatory to the country and will establish fines up to the amount of the foreign currency, in the case of non-compliance with that obligation. These fines will be imposed by the Central Bank of Ecuador. In the event of failure to collect these obligations through bank debits, recovery will be carried out through the co-active route. Article 16.-Proposals to the Board. The control bodies, the Central Bank of Ecuador and the Deposit Insurance Corporation, the Liquidity Fund and the Private Insurance Fund, within the scope of their respective powers, may prepare and propose to the Board or to the Board, plans, studies, analyses, reports and proposals for policies and regulations. Article 17.-Reserved information. In order to safeguard monetary, financial, insurance and securities sustainability, the Board may, in accordance with the procedure laid down in the procedure, describe the information relating to the areas of its management as being reserved.
The Administrative Secretary of the Board will carry an orderly listing of all the files and reserved information, in which the date of qualification and the reserve period and the reasons that support it will be recorded. The person who spreads the reserved information will be sanctioned according to the law. Article 18.-Advisory Board. It is the consultative instance for public policy feedback. This instance will have representation of the civil society; of the productive sectors; of the popular and solidary sectors and private of the national financial system, whose choice, participation and requirements of the people and organizations will be determined in the regulations issued by the Board. Article 19.-Operation. The Board shall meet in an ordinary manner each month and in an extraordinary manner when convened by its President, on its own initiative or at the request of at least two of its members, to address specific issues. The quorum required for the installation of the Board is three members with the right to vote. The decisions of the Board shall be taken by simple majority, unless the law establishes, for certain matters, different treatments. In the event of a tie, the Chairman of the Board shall have a vote of the right. The votes of the members of the Board shall be expressed in a positive or negative manner and abstention is not permitted. The votes will represent the institutional point of view. The Board shall issue the rules governing its operation on the basis of the provisions of this Code. Article 20.-Fuero. The members of the Board shall enjoy the National Court of Justice for the acts and administrative decisions taken in the performance of their duties. Article 21.-Acts of the Board. The acts of the Board enjoy the presumption of legality and shall be expressed by means of resolutions which shall have mandatory force and shall begin to apply from the date of their publication in the Official Register, except for which the Board itself, on the grounds of the matter, has the right to issue from the date of its issue, without prejudice to its subsequent publication in the Official Register. In these cases, those resolutions shall be published on the website of the Monetary and Financial Policy and Regulatory Board, within the maximum period of twenty-four hours from their issuance, except those qualified as reserved. The Board, for the formation and expression of its political and administrative will, does not require the contest of a different entity or the approval of its acts by other organs or institutions of the State. Article 22.-Recipes and resources. The administrative or regulatory acts of the Board may be the object
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of impeachment, modification, recall, or repeal, in accordance with the rules and procedure determined in the Statute of the Administrative Legal Regime of the Executive Function, according to the nature of the act. Article 23.-Chairman of the Board. Acting as Chairman of the Monetary and Financial Policy and Regulatory Board, the head of the Ministry of State in charge of economic policy, responsible for the necessary processes for the organization and management of economic policy and macroeconomic programming and its consistency. In the absence of the Chair of the Board, the President of the President of the Republic shall assume the presidency. Article 24.-Functions of the Chair of the Board. The Chair of the Board shall have the following functions: 1. Exercise the representation of the Board; 2. Run and comply with the decisions of the
Board; 3. Convene, chair and lead Board sessions; 4. Report to the Board on the implementation and implementation of
policies and regulations; and, 5. The others entrusted to him by the Board. Article 25.-Administrative Secretary of the Board. The Administrative Secretary shall be appointed by the Board and shall have as functions the following: 1. Conduct the calls for meetings of the Board; 2. Take the minutes of the sessions; 3. Attest to the resolutions of the Board; 4. Keep the files of the Board; and, 5. The others assigned to you by the Board and this Code. To be Secretary of the Board it will be required to have professional title of at least third level in the matters related to the functions of the Board.
Section 2 of the Central Bank of Ecuador
Article 26.-Nature. The Central Bank of Ecuador is a legal entity governed by public law, part of the Executive Function, of indefinite duration, with administrative and budgetary autonomy, whose organization and functions are determined in the Constitution of the Republic, this Code, its statute, the regulations issued by the Board of Policy and Monetary and financial regulation and internal regulations. Article 27.- Purpose. The Central Bank of Ecuador aims at the implementation of the monetary, credit, exchange and financial policies of the State through the use of the instruments determined in this Code and the
Article 28.-Heritage. The Central Bank of Ecuador will have its own patrimony, which will be constituted by the capital, the general reserve fund, the special reserves, the reserve for the revaluation of the patrimony, the reserve This is the first time that the Bank has been in a position. The Monetary and Financial Policy and Regulatory Board may establish, in coordination with the governing body of public finances, the inclusion of other heritage items. Article 29.-Capital. The capital of the Central Bank of Ecuador is the exclusive, non-transferable and non-transferable property of the Republic of Ecuador and is constituted by the contributions in money or species made by the governing body of the financial institutions. public. Article 30.-Utilities. The usefulness or loss of the Central Bank of Ecuador is the net result obtained in the management of the institution during an economic year, which corresponds to the duration of a calendar year. At the end of each financial year, the net profit shall be credited to the general reserve fund until the amount of that account is equal to 500% of the paid capital of the Central Bank of Ecuador. When this percentage is met, it will be possible to transfer up to 100% of the profits to the General Budget of the State. If 100% has not been transferred, the balance may be transferred to the general reserve fund, subject to the approval of the Monetary and Financial Policy and Regulatory Board. If losses are incurred at the end of an financial year, they shall be offset against the general reserve fund or be insufficient to be charged to the capital. The Monetary and Financial Policy and Regulatory Board will have the capitalization of the Central Bank of Ecuador when necessary. To this end, a favourable report by the governing body of public finances will be required. Article 31.-Financial Statements. At the end of each financial year, the Central Bank of Ecuador will draw up the balance sheet and the state of losses and profits of the institution. The elaboration of the aforementioned financial statements will be carried out according to principles of general acceptance in the matter, according to the regulations that for the effect issue the Board of Policy and Monetary and Financial Regulation. Article 32.-Quarterly Report. The Central Bank of Ecuador will present to the Monetary and Financial Policy and Regulatory Board a quarterly report on its financial position, reserves and position of external assets, together with the the financial statements, documents to be delivered during the following month, signed by the General Manager and the General Accountant of the Bank. Article 33.-Balance sheet of the Central Bank. The Monetary and Financial Policy and Regulatory Board should establish policies aimed at ensuring quality and
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liquidity of the balance sheet assets of the Central Bank of Ecuador, to appropriately support its liabilities, and issue the regulations necessary for the catalogue of accounts, accounting records and the preparation of the financial statements of the Central Bank of Ecuador. The financial derivatives transactions carried out by the Central Bank of Ecuador shall comply with the accounting, financial and operational aspects of the Monetary and Financial Policy and Regulatory Board. Article 34.-Budget. The budget of the Central Bank of Ecuador will be financed with the income earned from its own management and will be drawn up on the basis of the guidelines issued by the Monetary and Financial Policy and Regulatory Board and other laws related to the material. The budget of the Central Bank of Ecuador will be approved by the Monetary and Financial Policy and Regulatory Board. In the event that the revenue of the management of the Central Bank of Ecuador is not sufficient for the operation, the Ministry of Public Finance shall allocate the corresponding budget items in accordance with the procedures provided in the Organic Code of Planning and Public Finance. Article 35.-Privileged credits. The credits and obligations owed to the Central Bank of Ecuador will be preferred, in the terms of this Code. Article 36.-Functions. The Central Bank of Ecuador has the following functions: 1. Instrumentation and execute policies and regulations
dictated by the Monetary and Financial Policy and Regulatory Board for the monetary and financial, monitor and monitor their implementation, sanction their non-compliance, in the field of their competencies, and report their results;
2. Manage the national payment system; 3. Monitor and supervise the ancillary payments systems; 4. Ensure the supply and distribution of the
currency and money species in the country; 5. Acquire securities and bonds issued by the entity
governing public finances, in accordance with the Board's regulations;
6. Issue securities; 7. Rediscount operations with entities
of the national financial system that meet the requirements of this Code and the Monetary and Financial Policy and Regulatory Board;
8. Manage the liquidity of the economy to drive the
development goals of the country, using direct and indirect instruments, such as open market operations
, exchange operations, among others;
9. Encourage financial inclusion by increasing the
access to quality financial services in the field of their competence;
10. Direct and promote monetary integration and
regional finance; 11. Manage the financial assets of the Central Bank
of Ecuador at home and abroad; 12. In coordination with the control bodies,
evaluate and manage monetary and financial systemic risk for prudential macro supervision purposes;
13. Exercise sanctioning power, in accordance with
this Code; 14. Know and resolve the claims and resources
administrative by acts of the institution itself; 15. Elaborate, in coordination with the ministry in charge of
the economic policy, the forecasts and the economic-financial estimates;
16. Develop, in coordination with the ministry in charge of
economic policy, the financial sustainability report to the Monetary and Financial Policy and Regulatory Board;
17. To project, in coordination with the governing body of the
public finances and the ministry in charge of economic policy, the levels of global liquidity of the economy and to carry out its monitoring;
18. Provide the necessary means of payment for the
economic system to operate efficiently, in accordance with the rules issued by the Board;
19. Determine the features and manage provisioning,
minting, circulation, exchange, withdrawal, and currency demonetization;
20. To provide exclusively national metallic currency,
as well as electronic currency, in the framework of the policy dictated by the Monetary and Financial Policy and Regulatory Board;
21. Authorize corresponding payments; 22. Operate the central payment system; 23. Monitor compliance with
functioning " rules issued by the Board for the national payment system;
24. Exercise surveillance and monitoring of systems
payment auxiliaries, ensuring compliance with the regulations to which they are subject;
25. Monitor compliance with interest rates
approved by the Board;
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26. Manage the reserves, optimizing the utility
national economic of the domestic and external investments, subject to the principles of security, liquidity and profitability;
27. Implement domestic investment, subject to the
established in the policies approved by the Board; 28. Act as a depositary of third-party resources, in
cases in which the law orders a deposit to exist; 29. Act as a fiscal, financial and depositary agent of
public resources; 30. external and
internal, legal and legitimate, and retain the necessary resources for your service, in accordance with the stipulations of the respective contracts;
31. Act as a centralized repository of compensation and
settlement of securities; 32. Act as trustee; 33. Market gold from small
mining and artisanal mining, directly or by intermediate of public and private economic agents, which must be previously authorized by the Central Bank of Ecuador itself;
34. Perform operations and implement instruments
that have monetary or financial character and are necessary for the fulfillment of monetary policy objectives;
35. Submit reports as required by the Board; 36. To offer debt collection services between
public sector entities and between Decentralized Autonomous Governments with private entities;
37. Offer financial services and investments to the
international community of central banks; 38. Account of their management to the Board and the
citizenship; 39. Establish the procedures and mechanisms of
currency risk coverage in foreign currency operations; and,
40. The others who assign you the law and the Policy Board and
Monetary and Financial Regulation. The Central Bank of Ecuador, for the purpose of its purpose, may carry out all acts, contracts and operations in the country or abroad that are necessary and request a history, states or general or special information to the public, private, organizations of the popular and solidarity economy and the control agencies of the State, in accordance with the functions conferred upon it by the Constitution of the Republic, this Code, its Statute and the other functions compatible with the nature of the central bank assigned to it by legal mandate.
Article 37.-Recruitment of the Central Bank of Ecuador. The contracting of services required by the Central Bank of Ecuador that contribute to the investment of the reserve, the management of the position of external assets and liabilities, of gold Monetary and non-monetary and to the sustainability of the monetary system, will be subject to the special regime determined in article 2 numeral 10 of the Organic Law of the National System of Public Procurement. Article 38.-External credits. The Central Bank of Ecuador, in the name of the Ecuadorian State, will be able to contract external credits for the financing of the balance of payments and to address liquidity needs, with the approval of the Debt and Financing. Article 39.-Representation of the State. The Central Bank of Ecuador, representing the Ecuadorian State in its relations with the international monetary organizations, will sign the contributions and acquire the shares and securities of these institutions. Article 40.-Public sector deposits. The public resources of the institutions, agencies and companies of the non-financial public sector will be kept in deposit with the Central Bank of Ecuador, in accordance with the regulations issued by the Board. Institutions of the national financial system shall participate in the collection of public resources, through collecting accounts in the name of non-financial public entities, in accordance with the regulations issued by the Board. The balance of these accounts will be automatically transferred to the accounts that correspond to the respective public institutions in the Central Bank of Ecuador, in accordance with the regulation that is issued for the purpose. Institutions of the national financial system shall not open, in the name of public institutions, other types of accounts, unless they have the authorisation granted by the Board. This prohibition shall apply in particular to accounts with a rotating capacity. Institutions of the national financial system shall clearly identify in their records the ownership of the accounts of the preceding paragraph and shall send to the Central Bank of Ecuador the balances and movements to be carried out by those entities, with the periodicity to be determined. The non-observance of this article will be sanctioned in accordance with the law. Article 41.-Financial operations of the non-financial public sector. The institutions, agencies and companies of the non-financial public sector shall carry out, through the Central Bank of Ecuador, or the accounts of the latter, all payments that have to do, as well as all the financial operations they require, in accordance with the regulations and exceptions that the Board of Monetary and Financial Policy and Regulation dictates. Non-financial public sector entities shall not be able to make financial investments, with the exception of the entity
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governing public finances, social security entities, Decentralized Autonomous Governments, and the Corporation of Deposit insurance and Liquidity Fund, except express authorization of the Board. The operations carried out by public institutions or public companies, through the Central Bank of Ecuador, as a financial agent of the State, whether in the country or abroad, are of a public nature. The non-observance of the provisions of this article will be sanctioned according to the law. Article 42.-corresponding agreements. The Central Bank of Ecuador can conclude agreements with the entities of the national or foreign financial system, for the collection, collection and payment of public resources and for other financial operations. Article 43.-Information about currency trading other than the dollar. The entities of the national financial system authorized to negotiate in currencies other than the dollar will communicate to the Central Bank of Ecuador, in the form and with the The Board shall determine, the amounts and rates of exchange of the transactions they carry out and provide the Bank with the information required by the Bank about the movement of its foreign currency accounts. Failure to comply with this provision will be sanctioned as a very serious infringement in accordance with this Code. Article 44.-Deposits in guarantee in favor of the State. The deposits in guarantee, guarantees or bonds in money in favor of the State or any other of the institutions, agencies and companies of the public sector and all other deposits in Money to be lodged as a guarantee by legal or judicial mandate shall be made at the Central Bank of Ecuador or in correspondents authorized by it. Article 45.-Special accounts. The Monetary and Financial Policy and Regulatory Board may authorize entities other than those in the General Budget of the State to create special accounts within the Current Account. Unique to the National Treasury. The special accounts of all national public companies are part of the National Treasury's Single Account. Article 46.-Inembargability. The deposits of public entities and the resources of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund in the Central Bank of Ecuador or in their accounts, both in the country and in the country the outside, they are inembargable, they enjoy sovereign immunity and they cannot be the object of any kind of prize or preventive measure or precautionary measure. The Ecuadorian State will grant equal treatment to the assets deposited or entrusted to the country by central banks or monetary authorities of other countries, under the principle of reciprocity. Article 47.-Administrative structure. The administrative structure of the Central Bank of Ecuador shall be established in the statute and in the respective organic.
functional. The functional organic must be processed in accordance with the provisions of the Public Service Organic Law. Article 48.-General Manager. The General Manager of the Central Bank of Ecuador will be appointed by the Monetary and Financial Policy and Regulatory Board. Article 49.-Functions of the General Manager. The General Manager of the Central Bank of Ecuador will have the following functions: 1. Exercise legal, judicial and extrajudicial representation
of the Central Bank of Ecuador; 2. Direct, coordinate and supervise technical management,
operational and administrative of the Central Bank of Ecuador, for which it will issue the corresponding internal regulations;
3. Select and hire the qualified external auditor
previously by the Superintendency of Banks; 4. Act as the appointing authority; 5. To monitor compliance with the regulations that dictate
the Monetary and Financial Policy and Regulatory Board, in the field of its competence;
6. Authorize the operations of the Central Bank of the
Ecuador that are not expressly reserved for the Monetary and Financial Policy and Regulatory Board;
7. Act, within their faculties, in relationships or
negotiations with foreign banks, with other central banks and with international financial institutions; and,
8. The others that correspond to you according to this
Code. Article 50.-Requirements for General Manager. To be designated General Manager of the Central Bank of Ecuador, the following requirements must be met: 1. Ecuadorian Citizen; 2. Third-level professional title in economy,
finance, administration, law, or related areas; 3. Professional experience in related areas of the
minus five years; 4. Not being in conflict of interest; and, 5. Meet the required requirements to be an official or
public server. Article 51.-Labor Regime. Officials, servers and workers of the Central Bank of Ecuador will be subject to the provisions of the Organic Law of the Public Service and Labor Code, as the case may be. Article 52.-Fuero. The General Manager, the deputy general manager, directors and officials appointed to participate in the monetary and the
monitoring processes.14 -- Second Supplement -- Official Registration No. 332 -- Friday, September 12, 2014
National System of Payments, will enjoy the jurisdiction of the National Court of Justice, for the administrative acts and decisions that they adopt in the exercise of their specific functions. Article 53.-Bans. The General Manager and the servers of the Central Bank of Ecuador will not be able to integrate the directories or bodies that do their times in private financial institutions, in private equity market entities, in private insurance and reinsurance companies or entities in the popular and supportive financial sector. The General Manager shall not be able to perform other public functions, with the exception of the delegations entrusted to him by the President of the Republic and university teaching. The General Manager and the servers of the Central Bank of Ecuador are subject to the limitations set out in Article 8. Article 54.-Recovers and resources. The administrative or regulatory acts issued by the Central Bank of Ecuador shall be subject to the rules and procedures determined by the Statute of the Administrative Legal Regime of the Executive, in respect of its impeachment, modification, revocation or repeal, if any. Article 55.-Publications. The Central Bank of Ecuador shall prepare and publish on its website and/or by any other means, with the periodicity determined by General Management, the following information: 1. indicators
monetary, financial, credit and currency exchange; 2. Country macroeconomic synthesis statistics; 3. Interest rates; 4. Authorized payment systems and institutions
authorized to operate; and, 5. The additional information required by the Board. In order to comply with this provision, the Bank may require natural and legal persons governed by public and private law for the information it deems necessary. The publication of the balance sheet of the Central Bank of Ecuador will be carried out at least monthly. Article 56.-Bans. The Central Bank of Ecuador is prohibited as follows: 1. Acquire or admit in warranty shares of companies
of any kind and participate, directly or indirectly, in companies or companies, with the exception of of shares or units acquired by international monetary or financial institutions;
2. Assume direct or indirect
, subsidies, grants, or transfers that correspond to the national government and other entities and
public sector companies, in any form, with the resources of the Bank, implementation of quotas for public enterprises;
3. Grant with resources of the Central Bank of Ecuador
grants, donations or contributions in favor of any natural or legal person, public or private, except for those own assets, whose transfer to other public sector entities Free title may be performed as provided for in law; and,
4. Ensure and counter-operate private sector operations
This prohibition does not apply to counter-guarantees in operations that affect the balance of trade, provided that they have a monetary deposit of 100% of their value in the Central Bank of Ecuador, in accordance with the regulations issued by the Board.
Article 57.-External control. The Central Bank of Ecuador is subject to the following external controls: 1. From the Comptroller General of the State, by the use of the
public resources, in the part corresponding to the administrative management of the Bank;
2. From the Comptroller General of the State for the
verification of compliance with the regulations and resolutions issued by the Monetary and Financial Policy and Regulatory Board and the Central Bank of Ecuador itself, monetary policy instruments identified in this Code, the management of financial assets, the functioning of the central payment system and the assessment of the risk management system of the Central Bank of Ecuador.
The Board You can additionally determine other reports and their periodicity.
external audit will be reserved; and,
3. From the Superintendence of Banks in the scope of its
competition. Article 58.-Internal control systems. The Central Bank of Ecuador shall have internal control systems to ensure the effectiveness and efficiency of its activities, the reliability of information and compliance with applicable laws and regulations. It shall also have an internal auditor appointed by the Comptroller General of the State, who shall carry out exclusively the internal control of the public resources in the part corresponding to the administrative management of the Bank, in accordance with the rules the supervisory body, and an internal auditor, qualified by the Superintendency of Banks, appointed by the bank, which shall be responsible for the internal control of the banking operations determined by the Board, in accordance with the Article 14 numeral 36.
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Section 3
Banking Superintendence Article 59.-Nature. The Banking Superintendence is a technical body governed by public law, with legal personality, part of the function of Transparency and Social Control, with administrative, financial, budgetary and organisational autonomy, the organisation and functions of which are determined in the Constitution of the Republic and the law. Article 60.-Purpose. The Superintendency of Banks shall carry out the surveillance, audit, intervention, control and supervision of the financial activities carried out by public and private entities of the National Financial System, with the The purpose of these activities is to be subject to the legal system and to the general interest. Article 61.-Budget. The budget of the Superintendency of Banks will be part of the General Budget of the State and will be subject to the rules and procedures laid down in the Organic Code of Planning and Public Finance and its secondary legislation. Article 62.-Functions. The Superintendence of Banks has the following functions: 1. Exercise surveillance, audit, control and oversight
of compliance with the provisions of this Code and the regulations issued by the Monetary and Financial Policy and Regulatory Board, in respect of the financial activities exercised by the entities that make up the public and private financial sectors;
2. Authorize the organization, termination, and settlement of
the entities that make up the Public Financial Sector;
3. Authorize the constitution, denomination, organization
and liquidation of the entities that make up the Private Financial Sector;
4. Authorize the activities of the entities that
make up the public and private financial sectors; 5. Inspect and punish natural persons or
legal entities that are not part of the popular and solidarity economy and that exercise, against the provisions of this Code, financial activities reserved for entities of the National Financial System, especially the collection of third-party resources. For the purpose, it will act on its own initiative or by complaint;
6. Exercise the power of sanction on the entities
under its control and on natural or legal persons who fail to comply with the provisions of this Code, in the field of their competence;
7. Ensure the stability, soundness and correctness
operation of the entities subject to their control and, in general, monitor that they comply with the rules governing
their functioning, the financial activities they provide, through the (a) a permanent preventive supervision on the spot and on-site inspection visits, without any restriction, in accordance with best practices, to determine the economic and financial situation of the entities, the management of their businesses, and quality and control of risk management and verify the veracity of the information they generate;
8. Set up intensive monitoring programs to
controlled entities, without any restrictions; 9. Require that the controlled entities present and
adopt the corresponding corrective and sanitation measures;
10. Dispose of the controlled entities increases of
subscribed capital and paid in money, as a measure of preventive and prudential character;
11. Care that the information of the entities under their
control, which should be of public knowledge, be clear and truthful for their understanding;
12. Acquitting queries on the subjects of your
competence; 13. Channel and verify the delivery of information
subject to secrecy and reservation, required by the Monetary and Financial Policy and Regulatory Board. The same function will fulfill the information required of public and private financial institutions, for use by other institutions of the State;
14. Establish the amounts and procedures that will allow
to investigate the origin and provenance of currency exchange operations resources or any currency capture mechanism;
15. Authorize the total disposal of assets, liabilities and the
rights contained in contracts of financial institutions subject to their control;
16. Protect the rights of customers and users
financial and resolve disputes in the administrative field that are generated with the entities under their control, for which you may request or practice, as the case may be, the control actions required for clarification;
17. Set the mandatory clauses and
bans on contracts whose object is the provision of financial services;
18. Approve the social statutes of the entities of the
public and private financial sectors and the modifications that occur in them;
19. Conduct investigations necessary to authorize
enrollments in the Book of Shares and Shareholders of private financial institutions, in the cases noted in this Code;
20. Remove administrators and other officials from
entities under their control and start, when the
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case, legal actions against them, for violations of this Code and current regulations for duly motivated causes;
21. Control that
public and private entities in the financial system
with the decisions taken by the Monetary and Financial Policy and Regulatory Board;22. Propose policies and regulations to the Policy Board
and Monetary and Financial Regulation, in the field of their competencies;
23. Report to the Monetary Policy and Regulatory Board
and Finance the results of the control; 24. Qualify natural and legal persons who
carry out supervision support work, as internal auditors, auditors external, risk valuer and rating experts, among others;
25. Designate the temporary administrators and
liquidators of the entities under their control; 26. Provide the reports or certifications of
any entity subject to its control, in order to obtain loans from agencies international for the development of economic programs, at the request of those agencies or during their lifetime, in accordance with the regulations established by the Board;
27. Impose the penalties provided for in this Code; and, 28. The others who assign the law to him. The superintendence, in order to fulfil these tasks, may issue all the necessary acts and contracts. It may also issue the rules in matters of its competence, without being able to alter or innovate the legal provisions or regulations issued by the Monetary and Financial Policy and Regulatory Board. Article 63.-Faculty to request information. The Superintendence is entitled to request at any time, any entity subject to its control, the information it deems relevant, without any limit, in the field of its competence. Likewise, the Superintendency of Banks may require information from the shareholders, board members and legal representatives of the institutions subject to its control. Article 64.-Management and structure. The Superintendency of Banks will be able to establish regional trends within the national territory. The administrative structure of the Superintendence will count on the instances, tendencies specialized in the public and private financial sectors, units, technical divisions and advisory bodies to be established in the respective statute. Article 65.-Labor Regime. The officials, servers and workers of the Superintendency of Banks will be responsible for the process, which must be approved in accordance with the provisions of the Public Service Organic Law.
Article 65. subject to the provisions of the Organic Law of the Public Service or the Labour Code, depending on the case. Article 66.-Fuero. The intendents, directors, temporary administrators, liquidators, auditors and officials appointed by the Superintendency of Banks to participate in the processes of supervision, exclusion and transfer of assets and liabilities and liquidation shall be granted by the National Court of Justice for the acts and administrative decisions which they adopt in the exercise of their specific functions. Article 67.-Superintendent. The Superintendence of Banks shall be directed and represented by the Superintendent or the Superintendent. Article 68.-Designation and requirements. The designation of the Superintendent of Banks and the length of time in his office are those established in the Constitution of the Republic, the law and the respective regulations. The requirements to be Superintendent of Banks are as follows: 1. Ecuadorian Citizen; 2. Third-level professional title in economics,
finance, administration, law or related areas; 3. Professional experience of at least ten years in
related areas; 4. Not being in conflict of interest; and, 5. Meet the required requirements to be an official or
public server. Article 69.-Superintendent's duties. The Superintendent has the following functions: 1. Exercise the legal, judicial and extrajudicial representation
of the Superintendence; 2. Direct the surveillance, audit,
Superintendency monitoring and control;
3. Direct, coordinate, and monitor management
Superintendency management, for which it will issue the corresponding internal regulations;
4. Agree, celebrate and execute, in the name of the
Superintendence the legal acts, contracts, conventions and businesses that require the institutional management and the obligations it contracts;
5. Act as the appointing authority; 6. Develop, approve, prior to its submission to the governing body of
public finances, and execute the annual budget of the Superintendence;
7. Exercising and delegating coactive jurisdiction; and,
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8. Exercise the other functions assigned to you by law. Article 70.-Accountability. The Superintendency of Banks will establish accountability mechanisms for its activities. Article 71.-Acts of control. The Superintendence of Banks, in the performance of its functions, may use any form, mechanism, methodology or instruments of control, in situ or extra situ, internal or external, considering the best practices, and may require that all securities, books, accounts, correspondence and any other documents relating to the business or controlled activities be submitted to it for examination, without adduced reservation of no nature or have the practice of any other action or diligence. The Superintendence of Banks, within the control acts, may provide for the application of any measure provided for in this Code which will lead to the correct observations of the control body and apply the sanctions in case of (a) The acts of control of the Superintendence of Banks enjoy the presumption of legality, they will have mandatory force and will start to rule from the date of their notification. The Superintendence of Banks, for the formation and expression of its political and administrative will, does not require the contest of a different entity nor the approval of its acts by other organs or institutions of the State. Article 72.-Reports. The audit, inspection, analysis and document reports that the Superintendent qualifies as such shall be written and reserved for the purpose of ensuring the stability of public financial institutions. and private, and those who issue the servers and officials of the Superintendence in the exercise of their control functions. The superintendence, if necessary and of any observations, shall transmit the reports to the relevant authorities of the institution concerned. These reports shall not be disclosed to third parties, in whole or in part, by the Superintendence, by the entity examined or by any person acting for them, except where required by the Monetary and Financial Policy and Regulatory Board or in the case evidence of criminal liability has been established, which must be brought to the attention of the State Attorney General's Office. These reports will lose their status as reserved after one hundred and eighty days from the date of the resolution that provides for the liquidation of an entity. Where a process of investigation has been initiated in an institution of the financial system, the audit reports shall not be reserved for the National Assembly, the State Attorney General and the National Assembly. Comptroller General of the State. Article 73.-Claims and resources. Acts issued by the Superintendence of Banks enjoy the presumption
of legality, and its execution shall not be suspended by the interposition, admission to processing or substantiation of claims or resources. The legislative acts may be reformed or repealed at any time by the body that issued it or at the request of a party, through the filing of an administrative complaint. Administrative acts which produce individual legal effects directly, issued by any Superintendence body, may be revoked or reformed only by the Superintendent of Banks, subject to the interposition of the appeal The Court of Appeal, in the light of the judgment of the Court of Appeal, The pronouncement in this case will cause state. There is no recourse to appeal to the decision of the Superintendent of Banks, nor even if the act that is intended to challenge has been known and resolved by him in the first administrative instance. By revision, the Superintendent of Banks may revoke or reform any administrative act, either on its own initiative or on the occasion of the filing of the respective appeal, within a period of one year, which shall be counted from the notification of such act. The review shall take place only if the contested administrative act has been made with obvious error of fact or of the right to appear in the documents appearing in the file or of express legal provisions or when, subsequently, Documents of transcendental value shall be disregarded when the act or resolution concerned is issued. The Superintendence will regulate the content and procedure to be observed in terms of impeachment, repeal, recall and reform of these acts.
Section 4 of the Superintendence of Popular Economy and
Solidarity Article 74.-Scope. The Superintendence of Popular and Solidarity Economy, in its organization, operation and functions of control and supervision of the popular and solidarity financial sector, will be governed by the provisions of this Code and the Organic Law of the People's Economy and Solidarity. The Superintendence of Popular and Solidarity Economy, in addition to the privileges granted to it by the Organic Law of Popular and Solidarity Economy, will have the functions specified in Article 62, except for numerals 18 and 19. The numeral 10 of the aforementioned article will be applied recognizing that the entities of the popular and solidarity economy have unlimited capital. The acts issued by the Superintendence of Popular and Solidarity Economy will enjoy the presumption of legality and will be subject to the provisions of Article 73 regarding their impeachment, reform or extinction. Article 75.-Labor Regime. Officials, servers, and workers of the Superintendence of
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Popular and Solidarity Economy will be subject to the provisions of the Public Service and Labor Code Organic Law, as the case may be. Article 76.-Fuero. The intendents, directors, temporary administrators, liquidators, auditors and officials appointed by the Superintendency of the People's Economy and Solidarity to participate in the processes of supervision, exclusion and transfer of assets and liabilities and liquidation, shall be granted by the National Court of Justice for the acts and administrative decisions which they adopt in the exercise of their specific functions. Article 77.-Reports. The audit, inspection, analysis, and the reports of the servers and officials of the superintendence, in the exercise of the control and surveillance functions, shall be written and reserved, as well as the documents that the Superintendent qualifies as such by virtue of precaution of the stability of his or her controlled. The Superintendence, if necessary to believe the case and to have observations, will move the reports to the knowledge of the corresponding authorities of the entity examined. These reports shall not be disclosed to third parties, in whole or in part, by the Superintendence, by the entity examined or by any person acting for them, except where required by the Monetary and Financial Policy and Regulatory Board or when has determined indications of criminal responsibility, which must be reported to the State Attorney General's Office. These reports will lose their status as reserved after one hundred and eighty days from the date of the resolution that provides for the liquidation of the entity. Where a process of investigation has been initiated in an institution of the financial system, the audit reports shall not be reserved for the National Assembly, the State Attorney General and the National Assembly. State Comptroller General.
Section 5 of the Superintendence of Companies, Securities and
Insurance Article 78.-Scope. The Superintendence of Companies, Securities and Insurance, among other matters societaria, exercise surveillance, audit, intervention, control and supervision of the market securities, insurance scheme and non-financial private legal persons, for which will be governed by the provisions of the Companies Act, Securities Market Act, General Insurance Law, this Code and the regulations that issues the Monetary and Financial Policy and Regulatory Board. Acts issued by the Superintendence of Companies, Securities and Insurance, within all areas of their jurisdiction, shall enjoy the presumption of legality and shall be subject to the provisions of Article 73 in respect of their challenge, reform or extinction, except where the law regulates another procedure in specific matters.
Legal persons who are not part of the National Financial System, and who are not under the control of the Superintendence of Popular and Solidarity Economy, that as part of the specific spin of your business carry out credit operations over the limits To establish the Monetary and Financial Policy and Regulatory Board, they will be controlled by the Superintendence of Companies, Securities and Insurance, in accordance with this Code.
Section 6 of the Deposit Insurance Corporation, Fund of
Liquidity and Private Insurance Fund Article 79.-Nature. The Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund is a legal person governed by public law, not financial, with autonomy administrative and operational. Article 80.-Functions. The Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund has the following functions: 1. Manage Deposits Insurance of the sectors
private and popular financial and solidarity and the resources that constitute it;
2. Manage the Liquidity Fund of the sectors
private financial and popular and supportive and the contributions that constitute it;
3. Administer the Private Insurance Fund and the
resources that constitute it; 4. Pay deposit insurance; 5. Pay private insurance insurance; 6. Establish, at the request of the control body and
within a period not exceeding ten days, the lowest cost rule, for which you can request information that you consider relevant to the control body and/or the entity, and you must deliver the information in a mandatory manner;
7. Within the process of excluding and transferring
assets and liabilities, acquiring assets or rights at face value or executing any other procedure that allows the application of the lower cost rule regarding the payment of insurance deposits. If there are differences between the nominal value and the market value, the Deposit Insurance Corporation shall be constituted as a creditor of the shareholders and administrators of the financial institution and the administrators of the economic entities. popular and supportive.
The Corporation will be able to exercise against them all legal actions that correspond;
8. Alienate the assets and rights acquired by the
application of the preceding numeral. The Board shall issue the rules governing such disposal;
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9. Present to the Board of Monetary Policy and Regulation
and Financial regulatory proposals regarding deposit insurance;
10. Cover the risks of private insurance companies
legally constituted in the country that enter into forced liquidation; and,
11. The other functions assigned to you by the law. The Corporation shall pay the deposits secured in the event of the forced liquidation of a financial institution and shall manage the recovery of the deposit insurance resources used in that process. The Deposit Insurance Corporation and Liquidity Fund, for the performance of its functions, may perform all the necessary acts, contracts and operations. The acts issued by the Corporation shall be subject to the rules and procedures determined by the Statute of the Administrative Legal Regime of the Executive Function, in respect of their impeachment, modification, revocation or repeal, if any. Article 81.-Budget. The Budget of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund will be part of the State General Budget. The deposit insurance resources that you manage may not be used to finance the Corporation's budget. Article 82.-Management and structure. The administrative structure of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund shall be established in its social status and in the organic statute by process, which shall be approved. in accordance with the Public Service Organic Law. Article 83.-From the directory. The Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund will have a board composed of three full members: a delegate of the President of the Republic, who will preside, the holder of the Secretariat of State in charge of the economic policy or its delegate and the head of the Secretariat of State in charge of the public finances or its delegate. The Superintendent of Banks, the Superintendent of Popular and Solidarity Economy, the Superintendent of Companies, Securities and Insurance and the General Manager of the Central Bank of Ecuador or its delegates will participate in the board sessions in the the scope of its powers with a voice and without a vote. He will serve as the secretary of the board the General Manager of the Corporation, who will participate in the deliberations with voice, without the right to vote. When the directory deals with issues related to the Liquidity Fund, two additional delegates representing the private financial sector and the popular and supportive financial sector, respectively, will be integrated into the collegiate body. be appointed in accordance with the rules issued by the Board.
Article 84.-Designation and requirements. The delegates of the public entities members of the Board shall be appointed by administrative act and shall comply with the Following requirements: 1. Ecuadorian Citizen; 2. Third-level professional title in economics,
finance, administration, law or related areas; 3. Professional experience in related areas
minus five years; 4. Not being incourted conflicts of interest; and, 5. Meet the required requirements to be an official or
public server. Article 85.-Directory functions. The Directory of the Deposit Insurance Corporation, Liquidity Fund, and Private Insurance Fund will have the following functions: 1. Run Policy Board-defined policies
and Monetary and Financial Regulation for Deposit Insurance, Liquidity Fund and Private Insurance Fund;
2. Approve the extraordinary liquidity credits; 3. Approve the return of the contributions to the Fund of
Liquidity, in accordance with this Code and in accordance with the procedure established by the Board;
4. Report semi-annually or at the request of the Board of
Monetary and Financial Policy and Regulation on its activities;
5. Select the external audit firm; 6. Approve the Corporation's annual budget, prior
to its submission to the governing body of public finances; 7. Designate the General Manager; 8. Qualify as reserved the information that could
endanger the normal development of the national financial system;
9. Dictate the administrative rules and issue the
operating manuals that will govern its operation; 10. Annually fix the amount of the aliquot for the premium
fixed and periodically the risk-adjusted premium, for the Insurance Fund Private;
11. Propose to the Board of Policy and Regulation
Monetary and Financial the amount of insurance coverage of private insurance; and,
12. The others that are required for compliance
of their functions.
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Article 86.-Operation. The directory will meet in an ordinary manner every two months and in an extraordinary manner when the convene the president or at the request of one of the members to deal with specific issues. The quorum required for the installation of the directory is with all its members. The decisions of the directory will be taken by simple majority. The votes of the members of the Board shall be expressed in a positive or negative manner and abstention is not permitted. The directory will be run by the directory itself. Article 87.-The General Manager. The Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund will be directed and represented by the General Manager. Article 88.-Designation and requirements. The General Manager of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund will be appointed by the Board and must meet the following requirements: 1. Ecuadorian Citizen; 2. Professional title of fourth level in economics,
finance, administration, law or related areas; 3. Professional experience in related areas of the
minus five years; 4. Not being in conflict of interest; and, 5. Meet the required requirements to be an official or
public server. The General Manager of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund shall not be able to exercise any other paid public or private activities, except for university teaching. Article 89.-Obligations. Board members, General Manager and other officials of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund shall at all times observe the principles of prudence and reserve and keep professional secrecy with regard to the information they handle in the performance of their specific functions. Reports related to the Liquidity Fund loans will have the character of reserved. Article 90.-Prohibition. The General Manager of the Deposit Insurance Corporation, the Liquidity Fund and the Private Insurance Fund and the servers of that institution are subject to the limitations laid down in Article 8. Article 91.-General Manager functions. The General Manager will have the following functions:
1. Exercise the legal, judicial and extrajudicial representation of the Corporation;
2. Arrange for the payment of Deposit Insurance and the Fund
of Private Insurance; 3. Execute the policies provided by the Policy Board
and Monetary and Financial Regulation and its Board; 4. Authorize the purchase of assets in the process of
exclusion and transfer of assets and liabilities, respecting the rule of lower cost;
5. Direct, coordinate and monitor the management
of the Corporation; 6. To celebrate in the name of the Corporation the acts,
contracts, conventions and legal businesses that require the institutional management and the obligations that it contracts;
7. Act as the appointing authority; 8. Develop and execute the annual budget of the
Corporation; 9. Exercise and delegate the coactive jurisdiction; and, 10. Exercise the other functions assigned to you by law. Article 92.-Fuero. The members of the Board of Directors of the Deposit Insurance Corporation, the Liquidity Fund and the Private Insurance Fund or its delegates and the General Manager shall enjoy the jurisdiction of the National Court of Justice for the acts and decisions administrative authorities taken in the exercise of their specific duties. Article 93.-Information to the public. The directory shall draw up and implement a public communication program to disseminate information about the mechanisms, benefits and limitations of Deposit Insurance to depositors and depositors. citizenship in general. The Board will also issue rules on the information to be provided by financial institutions on coverage, exclusions and payments in respect of deposit insurance. Financial institution-related reports will lose their status as reserved after one hundred and eighty days from the date of the resolution that provides for the settlement of an entity.
Title I MONETARY SYSTEM
CHAPTER 1
Of currency and money Article 94.-Of the currency in the Republic of Ecuador. All transactions, monetary, financial transactions and their accounting records, performed in the Republic of Ecuador, be expressed in dollars of the United States of America, in accordance with this Code.
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The circulation, exchange, withdrawal and demonetization of dollars from the United States of America, currency in the Republic of Ecuador, correspond exclusively to the Central Bank of Ecuador, in accordance with the provisions of this Code and with the regulation issued by the Monetary and Financial Policy and Regulatory Board. The Central Bank of Ecuador is the only entity authorized to provide and manage national or electronic currency in the Republic of Ecuador, equivalent and convertible to dollars of the United States of America, according to the provisions of this Code and with the regulation and authorization of the Monetary and Financial Policy and Regulatory Board. The currency determined in this article is a means of payment. The currency has the power of discharge and legal tender in the Republic of Ecuador in the framework of the regulations issued by the Monetary and Financial Policy and Regulatory Board. In no case shall the State be able to compel a natural or legal person under private law to receive currency other than the United States dollar. Article 95.-Obligation to provide liquidity. The Central Bank of Ecuador will be obliged to meet the demand for liquidity in the Republic of Ecuador in a timely manner in order to guarantee the development of the transactions economic. For this purpose, it is entitled to make the necessary remittance, which shall not be considered as import or export operations. These operations carried out by the Central Bank of Ecuador will not be subject to any tax in the country. Article 96.-Remittance of physical money to guarantee the circulation. The remittances of physical money to guarantee the circulation in the national economy, from and to Ecuador, can only be carried out by the Central Bank of Ecuador and, exceptionally, by the entities of the national financial system, in accordance with the rules that the Board of Monetary and Financial Policy and Regulation dictate for the effect. These operations must comply with the provisions of the Law on Prevention, Detection and Eradication of the Crime-laundering and Crime-Financing Crime. Article 97.-Currency exchange. The exchange of the currency, as referred to in Article 94, of any kind or denomination shall be carried out by the Central Bank of Ecuador, the bearer and the view, without charge of any kind, by currency of denomination greater or less than request. If the Central Bank of Ecuador does not temporarily dispute currency in the required denominations, it will be able to provide currency in the securities that are closest to those requested. Institutions of the national financial system shall be obliged to provide the exchange of currency services in accordance with the terms of the Monetary and Financial Policy and Regulatory Board, with the exceptions to be determined.
Article 98.-Bans. It is generally prohibited: 1. The issuance, reproduction, imitation, falsification or
total or partial simulation of currency and money, as well as its circulation by any means, support or form representation;
2. The alteration or transformation of the metallic coin
in circulation, by means of its foundry or any other procedure which is intended to take advantage of its metallic content. This prohibition is not applicable to the Central Bank of Ecuador; and,
3. The circulation and receipt of currency and money not
authorized by the Monetary and Financial Policy and Regulatory Board.
The violation of these prohibitions will be sanctioned as provided by the Comprehensive Criminal Code and with the comiso of such currency and money and the products purchased with this currency or money.
CHAPTER 2 Means of payment
Article 99.-Other means of payment. The means of payment are the currencies other than the dollar of the States United of America, cheques, transfers by electronic or digital means, cards credit and debit and others of similar nature, in terms that the Board of Monetary and Financial Policy and Regulation determines and regulates. Article 100.-Obligations in other means of payment. Obligations may be agreed on means of payment other than those of Article 94, in accordance with the regulations issued by the Monetary and Financial Policy and Regulatory Board. If by the act by which an obligation has been established to pay with currencies other than the United States dollar of the United States, the obligation shall be fulfilled by giving the agreed currency or the currency determined in the Article 94, the change in force at the place and the date of the expiration of the obligation. Article 101.-Electronic currency. The electronic currency will be put into circulation by the Central Bank of Ecuador, backed with its liquid assets, on the basis of policies and regulations issued by the Political Board. and Monetary and Financial Regulation. Article 102.-Obligations of monetary deposits. Only the Central Bank of Ecuador and authorized national financial system entities may contract obligations that have the character of monetary deposits with third parties.
CHAPTER 3 Of payments and systems payments
Article 103.-National payment system. The national payment system comprises the set of policies, rules, instruments, procedures and services by
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means of which transfers of managed resources through means of payment and the settlement of securities between its various participants. The national payment system is made up of the central payment system and the ancillary payment systems. The Central Bank of Ecuador shall establish the requirements for the operation, authorization, registration and disclosure of services and information. The corresponding tariff regime will be regulated by the Monetary and Financial Policy and Regulatory Board. The Central Bank of Ecuador will promote the participation of the entities that make up the national financial system in the national system of payments, and will have the duty to promote financial inclusion by expanding access and use the formal financial services to segments of the excluded population or with limited access to them. The reports issued by the servers and officials of the Central Bank of Ecuador, in the exercise of the oversight functions of the national payment system, shall be written and reserved, as well as the documents that the General Manager qualifies as In order to safeguard the stability of the system. Such reports shall not be disclosed to third parties, in whole or in part, by the bank, by the supervised entity or by any person acting for them, except where required by the Monetary and Financial Policy and Regulatory Board or when (a) a number of indications of criminal liability, which must be reported to the State Attorney General's Office. Article 104.-Central System of Payments. The central payment system is the set of policies, rules, instruments, procedures and services articulated and coordinated, by the Central Bank of Ecuador, through which the transfers of resources from their participants, as well as their clearing and settlement. The Monetary and Financial Policy and Regulatory Board shall establish the conditions and conditions for access to the central payment system. Article 105.-Payment ancillary systems. Auxiliary payment systems are the set of policies, rules, instruments, procedures and services articulated and coordinated, public or private, authorized by the Central Bank of the Ecuador, interconnected with the central payment system, established to make transfers of resources and compensation among its various participants. The entities of auxiliary services of the national financial system that carry out transactional activities and the companies that make money remittances and postal money, for their operation will require the prior authorization of the Central Bank of Ecuador. Article 106.-Payments and their irrevocability. Payments ordered and accepted through the national payment system have the quality of irrevocable, binding and non-binding to third parties, cannot be suspended or left without
effect, are legally enforceable and will have the same legal value as written documents. No judicial providence, arbitral decision, administrative act, precautionary measure or embargo may suspend, revoke or leave without effect a payment previously ordered by the participant and accepted by the system administrator. These measures shall only apply in the future and shall take effect from the notification of the competent authority to the respective National Financial System or Securities Market entity, to the participant or to the system administrator, as corresponds. Electronic signatures and the use of official keys for transactions channeled through the national system of payments will have equal validity and will be recognized for the legal effects of the signatures. Article 107.-Liability. Participants of the national payment system shall keep all supporting documents duly filed and shall be responsible for administrative, civil and criminal charges for applications made on the basis of on inaccurate, incomplete or false information. Article 108.-Compensation and settlement. The Central Bank of Ecuador is the clearing and settlement of resources in the central payment system and the liquidator of the payment systems. These ancillary systems, as well as the entities of the national financial system, will transmit with the periodicity and in the form determined by the Central Bank of Ecuador the detail and the results of the compensation processes to be liquidated. The deficiencies in the clearing and settlement chambers of the central payment system of the entities that contribute to the Liquidity Fund of the national financial system will be met with the resources of that fund. Article 109.-Supervision of auxiliary payment systems. The Central Bank of Ecuador shall carry out the surveillance and supervision of the auxiliary payment systems and their administrative entities, as well as any payment infrastructure or transfer of monetary resources that act in the market, duly authorised by competent authority, to ensure the proper functioning of the channels, instruments and means of payment which are processed by its intermediary. The administrators of the auxiliary payment systems, including any payment infrastructure or money transfers, will be obliged to send to the Central Bank of Ecuador the information it requires and within the time limits. to determine. Article 110.-Corrective measures. The Central Bank of Ecuador will arrange for the application of corrective measures to ancillary payment systems that have failed to comply with the corresponding regulations. Article 111.-Infractions. The Central Bank of Ecuador shall sanction the entities in charge of the ancillary payment systems and their administrators, where appropriate, for the following reasons:
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1. Do not adjust internal regulation to the regulations
that the Board of Monetary and Financial Policy and Regulation issues;
2. Do not make the modifications to the internal regulations
required by the Central Bank of Ecuador within the time limit to be determined;
3. Modify the internal regulations without the
authorization of the Central Bank of Ecuador; 4. Do not present the information that the Central Bank of the
Ecuador requires or presents in an imprecise, incomplete or extemporaneous manner;
5. Provide the Central Bank of Ecuador
false information related to the respective payment system;
6. Failure to comply with corrective measures; and, 7. Default to any other obligation under
this Code or the rules governing payment systems.
The violations contained in numerals 1, 2 and 3 will be considered serious. The infractions of numerals 4, 5, 6 and 7 will be considered as very serious. Article 112.-Sanctions. For the purposes of the violations mentioned in the preceding article, the Central Bank of Ecuador shall impose the following penalties: 1. For serious violations typified in numerals
1, 2 and 3 a fine of up to three hundred basic wages unified; and,
2. For the very serious violations typified in
numerals 4, 5, 6 and 7, a fine of no less than three hundred unified basic salaries, no more than one thousand unified basic salaries shall be applied.
These penalties shall be applied without prejudice to the obligation of the entity to remedy the non-compliance that caused such a sanction. In the event that such non-compliance is not remedied, the Central Bank of Ecuador will ask the respective superintendence for the removal of the corresponding legal representative or, if necessary, suspend the entity in the payment system. The application of these sanctions does not relieve the direct responsibility of the administrators. Article 113.-Sanction for operations without authorization. The Central Bank of Ecuador will sanction a fine of up to USD 800,000.00 (eight hundred thousand dollars from the United States of America), which will be updated by the Board of Directors. conformity with the consumer price index, or up to the level of income of the institution's last financial year, and the order for the immediate suspension of transactions to be made to institutions which carry out clearing or settlement without the respective authorisation. Article 114.-Application and sanctioning procedure. The penalties shall be determined in this Law, in the attention of the
severity of the fault, damages caused to third parties, negligence, intentionality, recidivism or any other aggravating or mitigating circumstance. If the same fact is a matter of two or more administrative offences, the most serious shall be taken into consideration. If the two offences are equally serious, it shall be taken into consideration for a penalty of greater pecuniary value. Pecuniary sanctions in the firm will cause the corresponding interest. The Central Bank of Ecuador shall apply the administrative penalty procedure provided for in Article 277. Article 115.-Civil and criminal liability. The penalties provided for in this Title shall be imposed without prejudice to the corresponding civil and criminal liability and the obligation of the entity to remedy the non-compliance. Article 116.-Centralized Deposit of Securities. The Central Bank of Ecuador shall perform the function of Centralized Deposit of Securities Clearing and Settlement, with securities and intermediaries entered in the Register of the Securities Market. It shall also carry out the function of the single Centralized Deposit of Compensation and Securities Settlement for securities issued by the Central Bank of Ecuador, the governing body of public finances and other entities in the sector. public. Article 117.-Systems for clearing and settlement of commercial obligations. The Monetary and Financial Policy and Regulatory Board shall define the policies and regulations governing the operation of the instruments to enable the non-financial sectors of the economy of the country access to immediate liquidity mechanisms, through the clearing and settlement of the commercial obligations generated in the activities of the business of the business, by means of the transfer and/or extinction of a commercial obligation among the members of the system. The Board may consider the formation of a fund, from the budget of the Central Bank of Ecuador, to cover the losses that arise in the operation of the system. The fund will be able to settle for public order resources.
CHAPTER 4 Monetary Policy Instruments
Section 1
Managing the liquidity of the economy Article 118.-Liquidity. The Monetary and Financial Policy and Regulatory Board will define liquidity policies to ensure the effectiveness of monetary policy focused on achieving the objectives set out in this Code. It shall also establish and regulate the monetary policy instruments to be used, such as: liquidity reserves, ratio of domestic liquidity and the composition of total liquidity, interest rates,
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open market operations and discount window, among others. The implementation of these instruments will be done through the Central Bank of Ecuador. Article 119.-Reports on liquidity. The Central Bank of Ecuador, in coordination with the governing body of public finances and the ministry in charge of economic policy, shall submit at least six months to the Board of Policy and Monetary and Financial Regulation a report on the liquidity of the country's economy, which will serve as a basis for the adoption of the corresponding policies. Article 120.-Domestic liquidity ratio. The entities in the national financial system, in order to maintain an adequate level of liquidity that promotes growth and labor, are obliged to maintain in the country the proportion of the Total liquidity to be determined by the Monetary and Financial Policy and Regulatory Board. Article 121.-Liquidity reserves. The entities of the national financial system and non-financial institutions that grant credit for the limits issued by the Monetary and Financial Policy and Regulatory Board are required to to maintain liquidity reserves in the Central Bank of Ecuador in respect of its assets and/or liabilities, in accordance with the regulations issued for the purpose, which may be established by credit segment, type of entity, sector and activity, among others. Article 122.-Remuneration for excess liquidity reserves. The Central Bank of Ecuador shall not recognize any remuneration on the portion of the liquidity reserve deposited in the current accounts as the entities in the financial system Maintain the Bank's. Excess liquidity reserves deposited in current accounts may, on a transitional basis, be remunerated as established by the Board. This remuneration may not exceed the equivalent of the annual change in the previous year's consumer price index for the excess reserve period. Article 123.-Santion for Liquidity Deficiencies. If a financial institution's share of domestic liquidity is impaired, the Central Bank of Ecuador shall apply a fine equivalent to the statutory maximum interest rate applicable to the financial institution. the date of the default, calculated on the amount of the deficiency, without prejudice to the financial institution's obligation to overcome the deficiency immediately. If a financial institution fails to meet the liquidity reserves and the requirements set by the Board to receive an extraordinary credit from the Liquidity Fund to cover such a deficiency, a fine equivalent to the statutory maximum rate shall be applied. of interest to the date of the default, calculated on the amount of the deficiency, without prejudice to the obligation of the financial institution to overcome the deficiency immediately.
The recidivism in the non-compliance of the (a) the provisions set out in the preceding paragraphs, in a calendar year, shall be punished as Financial institutions that fail to comply with liquidity reserves but comply with the regulations issued by the Board to access the credits of the discount window may receive a credit for the amount equal to the deficiency with the interest rate and conditions that the Board determines.
Section 2 Operations of the Central Bank of Ecuador
Article 124.-Investment of surplus liquidity. The Bank Central to Ecuador will be able to invest the surplus of liquidity of the economy in the entities of the sector public financial instruments, by means of reimbursable financial instruments of domestic investment. The Central Bank of Ecuador may invest the surplus of liquidity of the economy in private financial sector entities or entities in segment 1 of the popular and supportive financial sector through repayable financial instruments. for domestic investment, subject to the surrender of securities issued by the governing body of public finances, securities of the Central Bank of Ecuador or a credit portfolio with a rating of at least A. maintain in the Liquidity Fund will be constituted as a guarantee of last instance on the domestic investment operations. The investment detailed in the preceding initiatives will focus primarily on promoting the change in the pattern of specialization of the national economy, innovation and entrepreneurship to increase the technological and knowledge intensity of the national production, selective substitution of imports and the promotion of exports. The Central Bank of Ecuador, in coordination with the governing body of public finances and the ministry in charge of economic policy, shall quantify the excess liquidity to be used for domestic investment, in order to direct it to the sectors of interest of the State. The Board will determine the financial conditions of domestic investment instruments, while taking into account domestic liquidity and the sustainability of this mechanism over time. For the quantification of surplus liquidity, public and private entities will provide mandatory information that the Central Bank of Ecuador requires for the purpose. Article 125.-Domestic Investment Plan. The Monetary and Financial Policy and Regulatory Board will approve the domestic investment plan, which is the instrument that makes the investment of surplus liquidity available. Resources from the implementation of the domestic investment plan may not be used for purposes other than those approved. Control of the use of these resources will be carried out by the control bodies.
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Article 126.-Emission of Securities of the Central Bank of Ecuador. The Monetary and Financial Policy and Regulatory Board, with the The central bank of Ecuador, within the limits of the sustainability of the balance of payments, will authorize the issuance of securities called Central Bank Titles (CBT), which will be automatically renewed and backed up by the Central Bank. its total with the assets of the Central Bank of Ecuador. Central Bank (TBC) securities shall be issued by type or series which may have different characteristics. These securities shall be traded on the primary market only with the governing body of public finances, except express and unanimous exception of the Board, shall serve for the payment of taxes and any other obligation to the State at its nominal value, and shall not be considered public debt. They are excepted from the registration in the Register of Securities Market when their negotiation takes place in the private market. Article 127.-Open market operations. The Central Bank of Ecuador may carry out open market operations with the entities of the national financial system, through the reporting of securities issued by the Central Bank. President.-The President-in-Office of the Council of the European Union, in accordance with the resolutions issued by the Board of Governors of the Central Bank of Ecuador. Article 128.-Rediscount window. The Central Bank of Ecuador will be able to carry out rediscounting operations that may have the character of revolving, credit portfolio and long-term securities issued by the governing body of the public finances or Central Bank Titles (CBT), with institutions of the national financial system contributing to the Liquidity Fund previously qualified as to its risk profile and minimum solvency requirements. The credit quality of the credit portfolio to be rediscounted must have a rating of no less than A. The Central Bank of Ecuador, in accordance with the regulations that the Board dictates, may additionally grant credits through the Discount window to cover deficiencies in the liquidity reserve. Where this mechanism is applied, institutions shall, within a period determined by the Board, which shall not exceed 30 days, deliver the portfolio of claims and/or securities to be recounted. The resources that the entity holds in the Liquidity Fund shall be constituted as a last-instance guarantee on the discount transactions. If the financial institutions receiving the rediscount transactions fail to comply with the established payments, the Central Bank of Ecuador will declare the total of the rediscounted operation due and will require the Liquidity Fund. to immediately transfer the outstanding outstanding securities to the corresponding financial institution's contributions, without any additional authorization. The failure of the financial institution to refund the securities to the Liquidity Fund shall be a cause of forced liquidation.
In case the receiving financial institutions of the rediscount transactions enter into the process of settlement, the securities of the rediscounted portfolio or securities shall have priority to be paid, in accordance with the payment ranking determined in Article 315, either through the contributions to the Liquidity Fund of the financial institution concerned, with immediate conversion assets to the entity's own property or with direct payments in money. The designated liquidator shall have an obligation to comply with this provision. Article 129.-Limit to the granting of credits in the discount window and to the investment of surplus liquidity. The quotas to be established by the Board for the entities of the private and popular financial sectors and solidarity carry out rediscount or domestic investment window operations with the Central Bank of Ecuador, shall be determined on the basis of the solvency ratio and the property relations determined by the Board in accordance with the objectives of the economic policy. The added quota for these two instruments may not exceed the cumulative sum of: (a) 100% of the position in securities issued by the governing body of public finances and the Central Bank of Ecuador; (b) 70% of the individual contributions committed by the financial institution to the Liquidity Fund; and (c) the credit portfolio with a rating of at least A that does not exceed 30% of the technical assets of each institution. The charge will be made from the resources provided by the financial institutions to the Liquidity Fund, up to the amount given to that fund.
Section 3 Of the interest rates and rates of the Central Bank of the
Ecuador
Article 130.-Interest rates. The Monetary and Financial Policy and Regulatory Board may set the maximum interest rates for the active and passive operations of the national financial system and the other interest rates required by law, in accordance with the Article 14 numeral 23 of this Code. Anathocism is prohibited. Article 131.-Interest rates of the Central Bank of Ecuador, The Monetary and Financial Policy and Regulatory Board will determine the interest rates applicable to the active and passive operations of the Central Bank of Ecuador and the tariffs that the Bank will charge for its services.
CHAPTER 5 Of external assets and liabilities
Section 1
External assets and liabilities Article 132.-External assets of the Central Bank of Ecuador. Assets The external of the Central Bank of Ecuador are formed by the following: 1. Foreign exchange;
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2. Net assets in external financial institutions; 3. account units issued
international monetary agencies
4. Monetary and non-monetary gold; 5. reserve position with international organizations; 6. Saldos in favour of Ecuador Central Bank in thebilateral and multilateral agreements; and, 7. Other foreign currency assets. Article 133.-External liabilities of the Central Bank of Ecuador. The external liabilities of the Central Bank of Ecuador are established as follows: 1. Obligations abroad payable in foreign currency; 2. 3. Saldos to pay for the Central Bank of Ecuador in the
bilateral and multilateral agreements; and, 4. Other foreign currency liabilities. Article 134.-Accounting for external assets and liabilities. External assets and liabilities shall be accounted for in accordance with generally accepted accounting practices, in accordance with the regulations issued by the Board. Article 135.-Gold negotiation. The Central Bank of Ecuador may intervene in the purchase, sale or trading of gold and may make foreign exchange or gold transactions in the future or through other derivatives, in the form and conditions authorized by the Bank. Monetary and Financial Policy and Regulatory Board. Article 136.-Inembargability. The assets and resources that integrate the external assets of the Central Bank of Ecuador are non-embargable, enjoy sovereign immunity, cannot be subject to any type of award, preventive or precautionary measure
Section 2 Of International Reserves
Article 137.-International reserves. International reserves are understood to be the total of international reserves.
Section 2 Of international reserves
Article 137.-International reserves. external assets held by the Central Bank of Ecuador in financial instruments, denominated in foreign currency and issued by non-residents, which are considered liquid and low-risk. The Central Bank of Ecuador will maintain international reserves in the currencies most used by the country in its foreign payments, especially in diversified currencies and easy to accept. In order to maintain the country's external financial solvency, the Monetary and Financial Policy and Regulatory Board will issue the regulation for the Central Bank of Ecuador to maintain an international reserve appropriate to the needs of the payments.
Article 138.-Contabilization of reserves. Reservations shall be accounted for in accordance with general accounting practices adopted by the Monetary and Financial Policy and Regulatory Board. Article 139.-Investment of the reserves. The Central Bank of Ecuador will invest the international reserves in order to guarantee, in their order, the security, liquidity and economic profitability of such investments. The return on investment will be an income of the Central Bank of Ecuador and will be recorded in the income statement. The income from the investments made by the Central Bank of Ecuador with the funds of the Ecuadorian Social Security Institute will be transferred monthly to that institution and will not be part of the current income or earnings of the Central bank of Ecuador. Returns arising from investments in the National Treasury Single Account shall be returned to that account in its entirety, except for the relevant commissions authorized by the Board within the financial operations. These yields will not be part of the income of the Central Bank of Ecuador. The same provision applies to resources from the Liquidity Fund where applicable.
CHAPTER 6 Currency regime
Article 140.-Debt service. It is up to the Central Bank of Ecuador to acquire the foreign currency to carry out the debt service and the payments of public sector entities. The Board of Monetary and Financial Policy and Regulation will authorize the opening and maintenance of foreign accounts, for the use of public sector entities, prior to favorable reports from the governing body of public finances and the Bank. Central to Ecuador. Article 141.-Purchase and sale of foreign currency. The Monetary and Financial Policy and Regulatory Board will regulate the purchase and sale of foreign currency and will determine the cases in which the sale of foreign currency is compulsory to the Central Bank of Ecuador. Other currency transactions may be carried out on the free market. The governing body of public finances will provide the Central Bank of Ecuador with the programming of transfers to the outside of the General Budget of the State. Article 142.-Foreign trade policies. The Monetary and Financial Policy and Regulatory Board will agree with the body responsible for foreign trade regulation, through joint resolution, on compliance targets. Net income of non-oil foreign currency from the balances of goods and services; the latter body shall be responsible for the
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filled in for those goals. The Board will present a report of the completion of this obligation to the Presidency of the Republic.
TITLE II NATIONAL FINANCIAL SYSTEM
CHAPTER 1
Financial Activities
Section 1 Of financial activities and their authorization
Article 143.-Financial activity. For the purposes of this Code, financial activity is the set of operations and services that are carried out between bidders, claimants and users, for facilitate the circulation of money and carry out financial intermediation; aims to preserve the deposits and to meet the financing requirements for the achievement of the country's development goals. The financial activities are a public order service, regulated and controlled by the State, which can be provided by the entities that make up the national financial system, after authorization from the control bodies, in the framework of the regulations issued by the Monetary and Financial Policy and Regulatory Board. Article 144.-Authorization. The Superintendence of Banks and the Superintendency of Popular and Solidarity Economy, in the field of their respective competences, will authorize the entities of the national financial system to exercise activities financial. The authorization indicated shall determine the active, passive, contingent and financial services operations that the entities may exercise, by segments, according to their social object, line of business, specialties, capabilities and other requirements and conditions for the establishment of the Monetary and Financial Policy and Regulatory Board. The authorizations determined in this article shall be made in a reasoned administrative act and shall be issued after the requirements determined in this Code and in the rules issued for the purpose are complied with. Authorisations may be revoked for the reasons set out in this Code. Institutions of the national financial system, in addition to this authorization and before the start of operations, shall obtain from the control body the respective operating permit, in accordance with the procedure established for the purpose. Only legal persons authorised by the respective control bodies may use the names: "bank", "financial corporation", "general warehouse of deposit", "exchange house", "ancillary services of the financial system", "savings and credit cooperatives", "mutual savings and credit associations for housing" and "central banks" and other specific ones used in this Code and the rules dictated by the Monetary Policy and Regulatory Board; and Financial.
No expressions can be used that are in the form of phonetic or semantic similarity, lead to confusion with the above. The corresponding superintendence will qualify the likeness. Article 145.-Revocation of the authorization. The control bodies may revoke the authorization for the exercise of financial activities for the following reasons: 1. Do not perform the minimum of operations determined by
the control body for a period of at least six consecutive months;
2. Having supplied false or fraudulent information or
omitted relevant information to obtain the authorization; and,
3. In the other cases provided for in this Code. The recall may be resolved, in whole or in part, in respect of one or more authorizations. The revocation of one or more authorisations, which at the discretion of the control body put at risk the economic-financial viability of the institution, shall be the cause of forced liquidation. Article 146.-Procedure for the recall. The control body by standard shall establish the procedure for revoking the authorization, observing the constitutional guarantees of due process. The recall resolution will not be suspended by the interposition of claims or administrative appeals or lawsuits before the courts of justice or arbitration.
Section 2 State Responsibility
Article 147.- Responsibility. It is the responsibility of the State to facilitate access to financial activities, promoting its democratization through the formulation of policies and regulations. Article 148.-Prohibition of freezing. The State and its institutions may not, in any way, have any form of freezing or arbitrary and generalized withholding of funds or deposits entered in the institutions of the national financial system. Failure to comply with this prohibition will entail criminal, civil and administrative responsibilities. Article 149.-Credit Guarantee System. Create the credit guarantee system as a mechanism that aims to entrench credit obligations of people who are not able to implement projects with the credit system. National finance for lack of guarantees, such as first entrepreneurs, single mothers, people in human mobility, with disabilities, young people and other persons belonging to priority care groups. The credit guarantee system may also entrench investments in securities issued under the securities market law, of companies that underpin the change in the production matrix.
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The credit guarantee may be granted by legal persons governed by public and private law. The Monetary and Financial Policy and Regulatory Board shall regulate the credit guarantee system and determine the public institution in charge of its management. The credit guarantee system will be under the control of the Superintendency of Banks.
Section 3 of the regulation
Article 150.-Subject to regulation. The entities of the national financial system will be subject to the regulation issued by the Monetary and Financial Policy and Regulatory Board. Article 151.-Differentiated regulation. The regulation must recognize the nature and particular characteristics of each of the sectors of the national financial system. Regulation may be differentiated by sector, by segment, by activity, among others.
Section 4 Of Financial Users
Article 152.-Rights of Persons. Natural and legal persons are entitled to the availability of adequate financial services, as well as accurate and non-misleading information about its content and characteristics. It is the right of financial users that the credit information and reports that they contain in the databases of the financial institutions are accurate and up to date with the periodicity established in the standard. The entities of the national financial system and those that make up the securities and insurance regimes, are obliged to disclose to their clients and users the existence of conflicts of interest in the activities, operations and services that offer to the same. For the purpose, the Board shall establish the corresponding regulation. Article 153.-Quality of services. The Monetary and Financial Policy and Regulatory Board will regulate the quality standards of financial services, customer and user satisfaction measurement systems Care and repair systems. Article 154.-Express acceptance. It is the right of users to impose charges that are imposed by financial and non-financial services after they have been expressed and previously accepted. Article 155.-Protection. In the terms laid out by the Constitution of the Republic, this Code and the law, financial users are entitled to have their personal information protected and confidential.
Article 156.-Control. The rights of customers and financial users shall be monitored and protected by the control bodies referred to in this Code. Article 157.-Vulneration of rights. Financial users may file complaints or complaints with the entity itself, the control body or the Customer's Ombudsman or any administrative, judicial or constitutional action. recognized in the law to demand the restitution of their rights infringed and the due compensation for damages caused. Article 158.-Customer Defender. Each entity member of the national financial system shall have a client defender, who shall be independent of the institution and appointed in accordance with the regulation issued by the Board. The client defender may not have any kind of connection with the shareholders or the administrators of the financial institution. Its role will be to protect the rights and interests of financial users and will be regulated by the Monetary and Financial Policy and Regulatory Board.
Section 5 Public Catstar
Article 159.-Public Catastro. Superintendence of Banks, the Superintendence of Popular and Solidarity Economy and the Superintendence of Companies, Securities and Insurance will organize and maintain a public register that contains at least the following data: 1. Nomina of entities created or incorporated; 2. Nomina of entities authorized to exercise
financial, securities and insurance activities; 3. Nomina of non-financial legal persons who have
received authorization to perform credit operations;
4. Payroll of liquidated entities; 5. Nomina of shareholders. In case of having as
shareholders representing more than 2% of the share capital, the register shall include the details of the shareholders until they reach natural persons representing, directly or indirectly, more 2% of the share capital of such legal persons. The Monetary and Financial Policy and Regulatory Board will be able to reduce this percentage and to provide for exceptions for institutions that are listed below this percentage. For entities in the popular and supportive financial sector, the register will be the payroll of the representatives to the general assembly, in the cases that it applies;
6. Payroll of administrators that includes the members
of the directory or body that does its times and the legal representatives.
The cadastre must be permanently updated, it will be public and easy to consult. The information of the cadastre must be available on the web.
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CHAPTER 2
Integrating the national financial system Article 160.-National financial system. The system The national financial sector consists of the public financial sector, the private financial sector, and the popular and supportive financial sector. Article 161.-Public financial sector. The public financial sector consists of: 1. Banks; and, 2. Corporations. Article 162.-Private financial sector. The private financial sector consists of the following entities: 1. Multiple banks and specialized banks:
a) Multiple bank is the financial institution that has authorized transactions in two or more credit segments; and,
b) Specialized Bank is the financial institution that
has operations authorized in a credit segment and that in other segments its operations do not exceed the thresholds determined by the Monetary and Financial Policy and Regulatory Board.
2. Financial services:
warehouse, exchange houses, and mortgage secondary market development corporations; and,
3. Ancillary services of the financial system, such
banking, transactional, monetary and securities, payment, collection, network and ATM, accounting and accounting software, and other qualified
Article 163.-Popular and supportive financial sector. The and supportive financial sector is composed of: 1. Savings and credit cooperatives; 2. Central banks; 3. associative or solidarity entities, banks and banks
communal and savings banks; and, 4. Ancillary services of the financial system, such
banking, transactional, monetary and securities, payment, collection, network and ATM, accounting and accounting software, and other qualified They are also part of the popular financial sector and solidarity mutual savings and credit associations for housing.
associations or solidarity, communal banks and banks and savings banks will be governed by the provisions of the Organic Law of the People's Economy and Solidarity and the regulations that the Board of Monetary and Financial Policy and Regulation dictate. Article 164.-Subsidiaries or affiliates. The subsidiaries or affiliates of financial institutions domiciled in Ecuador are also part of the national financial system. Subsidiary is that company with its own legal status, in which a bank, corporation, central bank, savings and credit union or mutual savings and credit association for housing has an equity stake, direct or indirect, more than 50% of the subscribed and paid capital of the company. Affiliate is that company with its own legal status, in which a bank, corporation, central bank, savings and credit union or mutual savings and credit association for housing has an equity stake, direct or indirect, less than 50% and not less than 20% of the subscribed and paid capital of the company or in which it exercises an influence on its management by the presence of shareholders, directors, administrators or common employees.
CHAPTER 3 Common provisions for the financial system
national
Section 1 Of Capital, reserves and utilities
Article 165.-Capital. Entities in the public and private financial sectors shall have an authorized capital and a subscribed and paid capital. The authorized capital is the amount to which entities in the public and private financial sectors can accept subscriptions or issue shares, as the case may be. The subscribed and paid capital shall be at least 50% of the amount of the authorised capital. The social capital of entities in the popular and supportive financial sector will be variable and can be increased in an unlimited way. Article 166.-Capital increases. Entities in the public and private financial sectors will be able to increase their authorized capital at any time, through reform of their creation or constitution documents. Increases in authorized capital will be resolved by the board in the case of public financial sector entities, and by the general meeting of shareholders in the case of entities in the private financial sector. Corresponding formalities, will be entered in the Mercantile Register and will be notified to the Superintendence of Banks. Payment of the subscribed and paid capital increases shall be made in the manner provided for in this Code.
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Without prejudice to the private financial sector entity accounting for increased subscribed and paid capital, the control body may carry out any investigations it considers to verify the legality of the payment of capital increases and the provenance of the funds. If the verification of the legality of the capital increase of a financial institution and the provenance of the funds used for its payment were established that there were infringements of this Code, the control body, prior to the request of the the evidence of discharge and by means of a reasoned act, shall cease to be wholly or partly increased. Article 167.-Advertisement of capital. Entities in the public and private financial sectors will only announce their subscribed and paid capital. Similarly, branches of foreign financial institutions shall only announce the amount of capital and reserves allocated by the parent financial institution. Article 168.-Legal reserve fund. Entities in the public and private financial sectors must constitute a legal reserve fund that will amount to at least 50% of its subscribed and paid capital. To form this legal reserve, financial institutions will allocate at least 10% of their annual profits. Also, in accordance with its statutes and by decision of the directories or the general meeting of shareholders, where appropriate, they may constitute other reserves which shall have the character of special or optional, formed by the transfer of the profits to the estate. The entities of the popular and solidary financial sector will have an Irdeliverable Fund of Legal Reserve, as provided for in the Organic Law of the Popular and Solidarity Economy. Article 169.-Persons with property ownership with influence. For entities in the national financial system, persons with property ownership are considered to have influence on natural or legal persons who hold, direct or indirectly, the smallest value from the following numerals: 1. 6% or more of the subscribed and paid capital or capital
social; or, 2. Shares or stakes for a larger amount or
equal to six basic fractions exempt from income tax.
Section 2
mergers, conversions and partnerships Article 170.-Fusion. The merger is the union of two or more entities of the national financial system of the same sector, whereby they undertake to put together their assets and form a new society, the which acquires the rights and obligations of the intervening companies on a universal basis. The merger also occurs when one or more entities are absorbed by another entity that continues to subsist.
Article 171.-Merge classes. Mergers may be ordinary and extraordinary. The ordinary merger is the one agreed upon and made by financial institutions which are not in a situation of a deficiency of technical assets. The extraordinary merger takes place between an entity that is in a situation of a deficiency of technical patrimony with another entity that will not be in such a situation; in this case, the express acceptance of the representative will always be necessary the legal entity that will not be in a situation of deficiency, who for the effect is empowered to take this decision. In this case, the general meeting of shareholders or the body which does its times of the entity which is not in a deficiency of technical heritage, shall be convened to resolve the extraordinary merger. If the general meeting of shareholders or the body which does not meet this call does not meet this call, the control body shall arrange for the compulsory meeting of these bodies to resolve the matter, with the members who are present. Article 172.-Merger process. The ordinary merger process will be normalized by the control bodies. The extraordinary merger process is exempted from the ordinary merger procedures and will be regulated by the Monetary and Financial Policy and Regulatory Board. This merger shall be exempt from payment of taxes. The same exemption will have savings and credit cooperatives when they merge with others. Article 173.-Transfer of assets. In the event of a merger, the transfer of assets shall be subject to the rules issued by the control bodies and the applicable accounting rules. The process of transfer of liabilities and guarantees shall not require the express acceptance of the clients, who shall be notified later by the acquiring institution. Article 174.-Liability on liabilities. In the case of merger by absorption, the absorbing financial institution shall take over the liabilities of the absorbed. Article 175.-Conversion. Conversion is the modification or change of the social object or activity of a financial institution to adopt the object and form of another entity provided for in this Code within the same sector; this figure is not It alters the existence as a legal person and only grants it the powers and imposes the legal requirements and limitations of the adopted species. Article 176.-Approval. The merger and conversion will be approved in advance by the respective control bodies, in accordance with the current regulations. In the event of an ordinary merger, the policies and regulations governing the control of the market power shall be considered, the competent regulatory authority has issued and a prior report of the Superintendence of Control of Power of Power of the Market when it exceeds the limits by sector and/or financial segment determined by the Board
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of Monetary and Financial Policy and Regulation, in coordination with the Market Power Control Board. In the event of an extraordinary merger, these requirements will not be necessary. Article 177.-Association. The association is the union of two or more entities of the national financial system that are in current operation, for the extension or provision of specific services, without each of the entities associates lose their identity and legal status. The association shall be made by association agreement, subject to the authorization of the inspection bodies. The association agreement shall provide for the period of duration, within the maximum time limits to be determined by the Monetary and Financial Policy Board, the rules governing each of them and the liability of each of them against the risks involved.
Section 3 Foreign Investment
Article 178.-Foreign investment. Foreign natural or legal persons and foreign financial institutions may constitute financial institutions or establish branches or representative offices in Ecuador that will become part of the financial institutions in the terms recognised by the legislation in force. The foreign financial institution will respond in solidarity to the obligations contracted by the branch or office of representation established in Ecuador. Article 179.-Branches and offices of representation. Foreign financial institutions that intend to establish branches in Ecuador, to carry out financial activities or to constitute representative offices, shall obtain prior authorisation of the national control bodies. The branches must be previously domiciled in Ecuador. Branches of foreign financial institutions and representative offices will be subject to regulations issued by the Monetary and Financial Policy and Regulatory Board. Creditors of a foreign financial institution that has established a branch in Ecuador shall not be entitled to exercise rights over the assets held by the branch in the country. The representative offices shall only serve as information centers for their clients and to carry out the operations referred to in Article 194 numeral 1 literal (a) numerals 1 and 3 of this Code. Article 180.-Prohibition of Denominations. Foreign financial institutions may not adopt denominations that belong to Ecuadorian financial institutions or that induce them to think that they are subsidiaries or affiliates of such entities. institutions when in reality they are not. They must unequivocally indicate their quality of foreign financial institution.
Article 181.-Requirements. To establish branches or representative offices in Ecuador, the foreign financial institution concerned shall: 1. Prove that it is legally established in agreement
with the laws of the country in which it is constituted; 2. Prove that in accordance with such laws and its own
statutes may agree and has no impediment to create branches or representation offices in Ecuador;
3. Demonstrate that your home address is not found
established in tax havens or jurisdictions of lower taxation than that of Ecuador, in accordance with the definitions established by the Internal Revenue Service;
4. Comply with the requirements determined in this
Code, those arranged by the Monetary and Financial Policy and Regulatory Board and the control bodies, in accordance with the nature of the entity;
5. Comply with the requirements that the legislation
Ecuador points out and demonstrate that the disposition to operate in Ecuador has been duly authorized by the governmental authority in charge of the control of the institution in its country of origin, if it is enforceable under the law of that country;
6. Permanently maintain a proxy or
representative, whose power will be previously qualified by the respective control body and must be registered in the Mercantile Register. This proxy or representative must have ample and sufficient powers to carry out all the acts and contracts that have to be held and have effect in Ecuador and, in particular, in order to be able to answer demands and fulfill obligations. The power must be clearly and accurately granted, meeting the requirements of both the Ecuadorian legislation and the legislation of the country of origin of the foreign financial institution;
7. Explicitly acknowledge:
a. The submission to the jurisdiction, laws, courts and authorities of Ecuador, in relation to the acts that it celebrates and contracts that it subscribes or that have to have effects in the Ecuadorian territory;
b. To renounce the complaint through diplomatic channels; c. The rights established in any treaty
commercial or investment protection do not in any way limit the exercise of the state's regulatory powers, the imposition of sanctions and the establishment of This Code is referred to by this Code, so it accepts at all times to receive equal treatment of the national in similar circumstances; and,
d. Ecuador's legislation and jurisdiction and
competition from Ecuadorian courts to know and resolve any controversy over the
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interpretation, application, execution of any measure taken by regulatory and control bodies, and/or compliance with the rights and obligations arising from the application of this Code;
8. All requirements set in the
literals
will be mandatory. Failure to submit any will override the process. The branch may only be authorized if there is legislation in the country in which the parent company is established to regulate the risk of its operations, to the satisfaction of the national control bodies, and the exchange is feasible. mutual information on these financial institutions between the control bodies of both countries.
Once the control body extends the authorization referred to in Article 185, the foreign financial institution shall proceed as the provisions of Title II, Chapter 5. Article 182.-Representation abroad. The entities of the public and private financial sectors may constitute offices abroad, subject to the authorization of the control agency of Ecuador, and maintain that represent the interests of the entity. Article 183.-National financial institutions abroad. Entities in the public, private and financial sectors of the public and in solidarity, subject to the authorization of the respective control body, may participate as shareholders in the capital of foreign financial institutions of the same nature, constituted or constituted, subject to the conditions determined by this Code and the corresponding regulation issued by the Board. The aforementioned financial institutions and the shareholders of those entities with wealth ownership shall not be able to participate as shareholders in financial institutions incorporated or as a tax haven or (a) jurisdiction to lower taxes than that of Ecuador, according to the definitions established by the Internal Revenue Service, nor where the supervisory standards are lower than the national ones. Capital investment in foreign financial institutions that exceed 50% of the subscribed and paid capital will make it a subsidiary of the investment owner. Investment between 20% and 50% will make you an affiliate. Article 184.-Participation as a shareholder or opening of offices abroad. To obtain the authorization to participate as a shareholder in foreign financial institutions, constituted or to be constituted, or to establish offices in the the national public or private financial institution must comply with the following conditions:
1. Submit the consent of the control authority of the country where you will participate;
2. To present the sworn statement of their repressive-
legal tender stating that the participation will not be used for the purpose of facilitating tax evasion or capital flight;
3. Present the current rules of the country where partici-
for as a shareholder related to capital requirements, risk asset rating, provisions regime, credit concentration, consolidation of financial statements, risk management, as well as any information that will enable the monitoring and control capacity of the country where it will participate; and,
4. Expressly accept that the Superintendency may
perform the inspections it deems appropriate and request the information it deems necessary, without any limit.
In the case of participation in the capital of entities Foreign financial institutions already constituted, the control body, to more than the requirements laid down in the previous nums, may require the information to enable the financial risks of the receiving institution to be assessed. In the event that the authorization of the Ecuadorian control body is required for the participation as shareholders abroad, the Superintendence may provide a provisional authorization. Article 185.-Authorization. Fulfilled the conditions mentioned in this section, the control body may issue the corresponding resolution by which it authorizes both foreign participation in Ecuador and participation abroad. The public or private financial institution shall immediately notify the control body in respect of any changes related to the authorised participation. Article 186.- Reports. The authorised public or private financial institution shall submit to the control body a certified copy of the authorisation granted by the foreign control authority for the participation as a shareholder. The subsidiaries directly or through the group head shall submit annually within 90 days of the end of the financial year or at the request of the superintendence, an updated certified copy of the authorization for the functioning and the audited balance sheets. In case of failure to do so, or where the report contains comments that cause a serious financial problem to be presumed, the Superintendence may revoke the authorisation granted. The group head or its subsidiary, at the request of the Superintendency, must provide information regarding potential depositors of money that are caused by illicit activities, including the laundering of assets and crimes such as terrorism.
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For control purposes, the Superintendence may request at any time the additional information it requires to exercise its functions. Article 187.-Revocation of the authorization. The authorization granted for a public or private financial institution to participate in the capital of a foreign financial institution may be revoked by the control body, by means of a reasoned decision, in the following cases: 1. Where the authorised entity, at the discretion of the control body
, has unilaterally modified the conditions under which the authorisation to invest was extended;
2. When you do not submit the reports or information
mentioned in the preceding article; 3. When the consolidated monitoring process and
cross-border by the Ecuadorian control body or the information submitted determines the existence of serious financial problems in the foreign financial institution, or that the business lines of that entity are not in accordance with those authorised by the national or foreign control bodies; and,
4. For very serious violation, in compliance with this
Code. As a consequence of the recall, the control body will order the corresponding disinvestment.
Section 4 of the solvency and financial prudence
Article 188.-Financial requirements for operation. the national financial system must comply, at all times, with the financial and operational requirements laid down by this Code and those provided by the Monetary and Financial Policy and Regulatory Board, in accordance with the activities they carry out. Article 189.-Liquidity. Entities in the national financial system shall maintain sufficient levels of high quality liquid assets free of charge or restriction, which may be converted into cash in a given period (a) time without significant loss of its value, in relation to its obligations and quotas, weighted as determined by the Board. The levels and administration of liquidity will be determined by the Monetary and Financial Policy and Regulatory Board and will be measured using, at least, the following prudential parameters: 1. Immediate liquidity; 2. Structural liquidity; 3. Liquidity reserves; 4. Domestic liquidity; and,
5. Liquidity gaps. Article 190.-Solvency and technical assets. The entities in the national financial system shall maintain the wealth of assets to support the institution's current and future operations to cover losses that are not protected by the provisions of risk assets and to underpin the appropriate macroeconomic performance. Entities in the national public and private financial sectors, individually, and financial groups, on the basis of consolidated and/or combined financial statements, are required to maintain a relationship between their respective national and private financial institutions. technical assets and the risk-weighted sum of their assets and quotas of not less than 9%. The entities of the popular and solidary financial sector of segment 1, individually, and the popular and solidarity groups, on the basis of the consolidated and/or combined financial statements, will have to maintain the relationship between their technical assets and the risk-weighted sum of their assets and quotas of not less than 9%. The Board shall regulate the percentages of technical assets applicable to other segments of the popular and supportive financial sector. The total technical assets of the financial institutions shall cover at least the sum of the capital requirements for credit risk, market risk, operational risk and others in which they incur the execution of financial activities of agreement with the regulations issued by the Board. The relationship between the technical assets and the total and contingent assets of the entities in the public, private and public financial sectors and in solidarity with segment 1 shall not be less than 4%. The Board shall regulate the percentages applicable to other segments of the popular and supportive financial sector. The Board may set solvency percentages for the minima laid down in this Article. Article 191.-Composition of the technical patrimony. The technical patrimony shall be constituted, among others, by: 1. The sum of the subscribed and paid capital; 2. Reserves; 3. The total profit or surplus of the year
current once the labor and tax obligations are met;
4. The irrepressible fund of legal reserve; 5. The accumulated profits of previous years; 6. Amounts to future capitalizations; and, 7. Convertible debentures without specific warranty, of
agreement with regulations issued by the Board.
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The technical assets constituted will be deducted as follows: 1. The deficiency of provisions, redemptions and
depreciations required; and, 2. Desmedrs of other items that the financial institution
has not recognized as losses. The technical heritage is subdivided into primary technical heritage and secondary technical heritage. The primary technical heritage is that constituted by liquid, permanent and value-certain assets. The secondary technical heritage is made up of the rest of the heritage accounts. The total of the secondary technical heritage shall be limited to a maximum of 100% of the total primary technical heritage. The Monetary and Financial Policy and Regulatory Board shall, by means of rules, determine the classification of the accounts that make up the primary and secondary technical assets and establish the conditions for the inclusion, exclusion and deduction of a or several heritage items, delimiting the set of relationships that must be maintained between them in order to safeguard the solvency, sustainability and protection of the public's resources. Article 192.-Property Deficiency. The deficiencies of technical assets presented by the entities of the national financial system, without prejudice to the corresponding penalties, may be sold within the supervision program. This code, with increases in subscribed and paid capital and/or subordinated loans, shall be executed within a period not exceeding ninety days. Such deficiencies may also be covered by convertible bonds in shares, provided that they maintain a general guarantee, that their maturity is longer than five years and that they are acquired exclusively in currency. In the case of increases in subscribed capital and paid by new shareholders, they must be previously qualified by the appropriate control body. If the financial institution does not cover the equity deficiency within the time limit, the superintendencies shall provide that the majority shareholders or members of the financial institution constitute an unconditional, irrevocable and recovery guarantee. The Bank of the European Union (IMF), in favor of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund, of at least the equivalent of 140% of the deficiency. This guarantee must be in force for as long as the deficiency is maintained and will be implemented in the event of non-compliance with the intensive monitoring programme. Failure to provide the guarantee or not to keep it in place for as long as the property deficiency exists will be a causal settlement. It shall be the causal settlement for a financial institution to maintain a ratio of the technical assets constituted against the weighted assets and quotas
by risk of less than 9% for more than two hundred and seventy additional days to the ninety days mentioned in the first paragraph of this article. Capital values of less than 50% of the levels established as property requirements shall be the causal settlement of the financial institution. Article 193.-Solvency in foreign entities. The solvency of foreign financial institutions in which an Ecuadorian financial institution's shareholding exists by more than 20% of the capital will be determined by the countries where they are located, but in no case may be less than 9% of the relationship between technical assets and risk-weighted assets, calculated with the calculation methodology applied for financial groups in Ecuador; or less than the minimum that the Board determines, the greater of the two.
Section 5 Of Operations
Article 194.-Operations. Financial institutions may perform the following operations, in accordance with the authorization granted to you by the respective control body: 1. Public and private financial sector:
a. Active operations:
1. Grant mortgage and loan loans, with or without securities issuance, as well as operating operating loans and any other lending modality authorized by the Board;
2. Grant current account credits, contracted or
no; 3. Constitute deposits in financial institutions of the
country and abroad; 4. Negotiate bills of exchange, books, notes,
invoices and other documents representing payment obligations created by sales on credit, as well as the advance of backed-up funds from the referenced documents;
5. Negotiate documents resulting from operations
foreign trade; 6. Negotiate securities and discount letters
documents on the outside or make advances on them;
7. Acquire, retain and dispose of, on its own or
third parties, securities issued by the governing body of public finances and by the Central Bank of Ecuador;
8. Acquire, retain or dispose of, for its own account,
fixed income securities, as provided for in the Securities Market Act, and other securities established in the Trade Code and other laws, as well as representative securities of rights to these;
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9. Acquire, retain or dispose of term contracts,
purchase or sale options and futures; may also perform other operations of the money market, in accordance with the relevant regulations;
10. Make investments in the capital of an entity of
financial services and/or an ancillary services entity of the financial system to convert them into its subsidiaries or affiliates;
11. Make investments in the capital of foreign financial entities
in the terms of this Code; and,
12. Buy or sell precious minerals.
b. Passive operations:
1. Receive deposits in the view; 2. Receive time deposits; 3. Receive loans and accept credit from entities
country and foreign financial institutions; 4. Act as a process originator of
securitization with support from the portfolio mortgage credit, loan or chiropractor, own or acquired; and,
5. Issue long-term obligations and obligations
convertible into guaranteed shares with their assets and assets; these obligations shall be governed by the provisions of the Securities Market Act.
c. Contingent operations:
1. To assume third-party obligations through acceptances, endorsements or endorsements of receivables, the granting of guarantees, bonds and letters of credit internal and external, or any other document; and,
2. Trading financial derivatives for own account.
d. Services:
1. Perform cash and cash services; 2. Act as an issuer or card operator of
credit, debit, or payment cards; 3. Make collections, payments and transfers of
funds, as well as issue orders against your own offices or national or foreign financial institutions;
4. Receive and retain objects, furniture, values, and
documents in deposit for safekeeping and lease lockers or security boxes for securities deposits; and,
5. For self-account or third-party,
foreign exchange operations, contract reporters, and issue or negotiate traveler's checks.
2. Popular and supportive financial sector:
a. The active, passive, contingent, and service operations determined in numeral 1 literal to numerals 4, 7, and 10; literal b numerals 1, 2, 3, and 4; literal c numeral 1; and, literal d numerals 1, 3, and 4 of this article;
b. Grant loans to your partners. Mutualists
will be able to grant loans to their clients; c. Constitute deposits in system entities
national financial; d. Act as
debit or payment card issuer or card operator. Segment 1 entities in the popular and supportive financial sector will be able to issue or operate credit cards;
e. Issue long-term obligations with support in
its assets, assets, mortgage credit portfolio or loan, own or acquired, provided that in the latter case they originate in active credit operations of other entities financial;
f. Make investments in the social capital of the
central boxes; and, g. Carry out operations with foreign exchange.
The entities of the popular and supportive financial sector will be able to perform the operations detailed in this article, according to the segment to which they belong, in the terms of their authorization. The definition and actions comprising the operations determined in this article shall be regulated by the Monetary and Financial Policy and Regulatory Board. Financial institutions, for all operations they carry out, shall have the appropriate credit and service technology. Article 195.-Extraordinary cancellation of obligations. The entities of the national financial system may, in an extraordinary manner, receive as payment of loans or obligations constituted in their favour movable, immovable, shares or shares, inter alia, in payment or by judicial award. Movable, immovable property and shares or shares may be held for up to one year at the time of receipt; the time limit shall be expired and shall be published in the public auction, in accordance with the rules laid down by the Board of Policy and Monetary and Financial Regulation. If they are not eligible, the financial institution shall constitute provisions on the basis of a monthly twelfth of the book value, starting in the immediate month after the expiry of the period. In any event, they may not maintain such movable, immovable and shares or units for a period which
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exceeds one additional year to the one-year deadline originally granted. Non-alienated movable and immovable property will be sold by the Superintendence at public auction. The rights to shares or units not listed within the period indicated shall be suspended and the Superintendence shall have its sale by public auction. Those who acquire such shares or shares shall be entitled to receive the benefits which have been suspended. Article 196.-Other operations. The entities of the national financial system may carry out other operations that are necessary for their operation, such as buying, building, preserving and alienating necessary movable and immovable property. for its operation, within the quotas established by the Board. Institutions of the national financial system shall not be able to carry out insurance and securities activities beyond those that are authorised by this Code. Article 197.-Operations in other means of payment. The entities of the national financial system will be able to carry out operations in other means of payment, in accordance with the rules that the Board of Monetary and Financial Policy and Regulation dictates. Article 198.-Operations by non-financial legal persons. Non-financial legal persons who, as part of their business turnaround, conduct sales on a term basis or conduct credit operations over the limits established by the Monetary and Financial Policy and Regulatory Board, shall be controlled. by the Superintendence of Companies, Securities and Insurance or by the Superintendence of the Popular and Solidarity Economy as appropriate and will be subject to the rules that the Board of Monetary and Financial Policy and Regulation will dictate on this matter. For this purpose, the term sales shall be considered as credit operations. Article 199.-Suspension of operations. The control bodies of the entities of the national financial system may provide for the suspension of the operations of the entities under their control in the cases referred to in the law. Article 200.-Offices. The entities of the national financial system may establish offices for the attention of the public by observing the criteria of territoriality, in accordance with the regulations of the Board. These offices shall, prior to the commencement of operations, obtain from the control body the respective operating permit, in accordance with the procedure laid down by it. The entities shall exhibit in public and visible place, both in their matrix and in each of their offices, the operating permit granted by the superintendencies. Article 201.-Attention to the public. The entities of the national financial system shall treat the public as from the date of the permit to operate, within the schedules established by the control bodies. It will not be
able to suspend or terminate the public attention without prior notification to the respective superintendence and the general public with at least five days in advance. The control bodies of the institutions of the national financial system may provide or authorise the temporary suspension of the work in one or more of the offices of the entities under their control, at the request of the institutions. Article 202.-Attention in the event of a strike. In the case of a declaration of strike by a financial institution, before the suspension of work, the authority that is aware of the labor conflict will take care that during the strike they remain open. all offices and continue to work in their duties for workers in an indispensable number, so as not to affect the rights of financial users.
Section 6 Of assets, credit limits and provisions
Article 203.-Financial management of assets. Financial system entities The national authorities are obliged to comply with the rules of composition in the structure of financial assets of their balance sheets and the requirements for the acquisition of investment financial instruments, in accordance with what is established by the Board. Article 204.-Quality of assets, quotas and constitution of provisions. The entities of the national financial system, in order to reflect the true quality of the assets and quotas, will permanently qualify them and constitute the provisions of this Code and the regulations issued by the Monetary and Financial Policy and Regulatory Board to cover the risks of unworthiness, the loss of the value of assets and to underpin the appropriate performance macroeconomic. Article 205.-Provision. The entities of the national financial system must constitute a valuation account for assets and quotas, including financial derivatives, to cover any losses due to bad accounts or devaluation and to underpin the appropriate macroeconomic performance. Expected losses on risk assets will be covered with provisions, while unexpected losses will be met with capital. Article 206.-Obligation to provide. Public and private financial institutions shall constitute the following provisions: 1. Specific provisions for the devaluation of assets
and quotas; 2. Generic provisions; 3. Provisions per economic cycle; and, 4. Any other provision to be determined by the Board of
Monetary and Financial Policy and Regulation.
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Financial institutions, for the determination of the above provisions, will be subject to the rules set by the Board. The Monetary and Financial Policy and Regulatory Board will establish, by segments, the provisions for the entities of the popular and solidarity financial sector, with the number 1 being mandatory for segment 1. Article 207.-Punishment of obligations. The entities of the national financial system will be liable for any loan, discount or any other unrecoverable obligation; this punishment does not free her from continuing the recovery of the sums. Nor does it relieve the person responsible for the claim of his/her status as a delinquent debtor. The default time that must elapse for a financial institution to punish these obligations will be determined by the Monetary and Financial Policy and Regulatory Board, based on the assessment of non-payment of transactions with Counterparty credit risk, which may not exceed three years. Prior to the punishment of the obligations, they must be provided at 100% of their value recorded in books. Article 208.-Relations in active, passive and contingent operations. The Monetary and Financial Policy and Regulatory Board will dictate the rules regarding the relationships that financial institutions should keep in their operations. active, passive and contingent, taking into account the risks arising from differences in terms, rates, currencies and others. The Board shall also dictate the rules concerning the development of policies, technologies and procedures for risk management. Article 209.-Guidance on credit operations. The Monetary and Financial Policy and Regulatory Board may regulate by rules the orientation and routing of credit operations of the institutions of the system. national financial institutions and non-financial institutions which grant loans in respect of the limits established by the Board. For this purpose, it shall consider, inter alia, the segments, interest rates, guarantees and credit limits. In no case shall the Board be able to intervene in the definition of the natural or legal person receiving the credit operations. For this purpose, the Board shall consider the time limit between the assets and liabilities of the regulated entities. The Board may provide incentives for the implementation of this provision. Article 210.-Limits for active and contingent operations. Public, private and segment 1 financial institutions in the popular and supportive financial sector shall not be able to carry out active and contingent operations with the same natural or legal person for a sum exceeding, overall, 10% of the
entity's technical heritage. This limit shall be raised to 20% if the excess of 10% corresponds to obligations secured by national or foreign banks of recognised solvency or by appropriate guarantees, in the terms of the Board of Policy and Regulation Monetary and Financial. The limits of the appropriations established shall be determined at the date of the original approval of the operations or of each reform carried out. In no case shall the appropriate guarantee be less than the total value of the excess. The whole of the operations of the preceding subparagraph shall in no case exceed two hundred per cent (200%) of the assets of the credit subject, unless there are adequate guarantees covering at least the one hundred and twenty percent (120%), in accordance with the regulations issued by the Board. The limits determined in the preceding paragraph shall not apply in respect of the active and contingent operations with securities issued by the Ecuadorian State and the Central Bank of Ecuador. The Monetary and Financial Policy and Regulatory Board will set percentages lower than those determined in this article for financial institutions that have an excess risk profile at the most secure level of the system. The Monetary and Financial Policy and Regulatory Board will establish the applicable limits for the rest of the segments of the popular and supportive financial sector. Article 211.-Exceptions to the limits for active and contingent operations. Except for the limits determined in the preceding article of this Code, the following operations: 1.
exports after the shipment, which had the guarantee of irrevocable credits, opened by banks qualified by the control body as a recognized solvency of the exterior;
2. The confirmed import letters of credit and the
guarantees to be issued with support against sufficient guarantees, in accordance with the regulation issued by the Monetary and Financial Policy and Regulatory Board;
3. The guarantees granted for account and risk of
private financial institutions from outside, qualified by the control body as being of recognized solvency, provided that they have sufficient documentary support, in security and satisfaction of the entity, in accordance with the regulation issued by the Monetary and Financial Policy and Regulatory Board; and,
4. The active and contingent operations between
financial institutions, with the constraints determined by the Monetary and Financial Policy and Regulatory Board.
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Article 212.-Limits for Financial Group. In the case of a financial group, the percentages provided for in Article 210, shall be computed on the consolidated technical assets of the financial group. Article 213.-Presanointing of a single credit subject. For the purposes of the limits determined in Article 210, it shall be presumed that individual natural or legal persons constitute a single subject when: indirectly in 20% or
more of the capital of the same legal person; 2. Exist business, capital relations or of
administration that allow one or more of them to exercise a significant and permanent influence on the decisions of others;
3. There is data or information that is founded on how diverse
people maintain relationships of such a nature that they are in fact a unit of economic interest; and,
4. The others defined by the control body
by rule. Article 214.-Guarantees of credit operations. All credit operations must be guaranteed. The Monetary and Financial Policy and Regulatory Board shall, in a reasoned manner, establish the cases in which the credit operations are to be guaranteed at least, in terms of their quality and minimum coverage. Article 215.-Prohibition of related transactions. Public and private financial institutions and their subsidiaries or affiliates are prohibited from carrying out active, passive, contingent and service operations with natural persons or legal entities directly or indirectly linked to their administration. The operations determined in Article 194 are exempted from this prohibition, numeral 1 literal to numeral 7; literal b numerals 1 and 2; and, literal d, numerals 1 and 4. The aforementioned entities may issue debit and payment cards in favour of these related persons. Private financial institutions are also prohibited from carrying out transactions with natural and legal persons directly or indirectly linked to the ownership of such entities, with the exception of operations excluded from the precedent. The same prohibition shall apply to popular and supportive financial institutions, having regard to the provisions of Article 450. On the capital of a financial institution there is no ownership link in public and popular financial institutions. Public and private financial institutions may carry out credit operations in favour of their employees who do not belong to the administration of the institution, only under market conditions and within the limits to be determined by the Board of Directors. Monetary and Financial Policy and Regulation, which will not be able to exceed the
equivalent to 25 basic fractions exempt from income tax, for each person. For the financial institutions of the popular and solidarity economy, the credit quotas established in this Code will be observed. The administrators of public and private financial institutions and their relatives in the fourth degree of consanguinity and second degree of affinity, may access educational credit operations in the same entity in which they work, under conditions the market, in accordance with the limits to be determined by the Monetary and Financial Policy and Regulatory Board. Article 216.-Related persons. They shall be considered persons linked to the ownership or administration of the public or private financial institution, the following: 1. Natural or legal persons who own, direct or
indirectly, the least value from the following literals:
a. 1% or more of the subscribed and paid capital of the
financial institution; or, b. Subscribed and paid capital of the financial institution
for an amount greater than or equal to one hundred basic fractions exempt from income tax.
2. Persons with wealth ownership with influence
of a subsidiary or affiliated entity belonging to a financial group;
3. Legal persons in which the
administrators or officials who approve credit operations of a financial institution directly or indirectly hold more than 3% of the capital of such companies;
4. Spouses, cohabitants or relatives within
of the second degree of consanguinity and relatives up to the first degree of affinity of the shareholders who are persons with property ownership with influence and the managers of a financial institution;
5. The third and fourth degree relatives of
consanguinity and the relatives of the second degree of shareholder affinity with more than 12% of the equity package and the managers of a financial institution;
6. Spouses, cohabitants or relatives within
of the second degree of consanguinity or first of affinity of the officials of a financial institution approving credit operations; and,
7. Legal persons in which the spouses, the
living ", the relatives within the second degree of consanguinity or first of affinity of the administrators or the officials who approve credit operations of an entity (a) financial assets, holding shares of 3% or more of the capital of such companies.
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For entities in the popular and supportive financial sector, there will only be linkage in numerals 3 and 7 of this article, and in operations that exceed the credit quotas established in this Code and in the regulations issued by the Monetary and Financial Policy and Regulatory Board. Article 217.-Persons linked by presumption. They are persons linked by presumption, in the entities of the national financial system, the following: 1. Those who have received credit under conditions
preferential by time, interest rates, lack of caution or disproportionate to the debtor's assets or their ability to pay;
2. Those who have received unsecured credits
adequately, without a background or domiciled abroad and without information available on them;
3. Those who have received credits for reciprocity with
other financial institution; 4. Those with preferential treatment in
passive operations; and, 5. Those that are declared presumptive, according to
general rules dictated by the control bodies.
Section 7
Financial and accounting regime Article 218.-Accounting rules. institutions of the national financial system shall be subject to the policies and regulations on accounting and financial statements issued by the Monetary and Financial Policy and Regulatory Board, as well as the rules of control which they The control bodies concerned dictate, in an extra and non-contradictory manner, the respective control bodies. Article 219.-Financial Statements. The financial statements of the institutions of the national financial system, with a cut to 31 December of each year, shall be entered into by the legal representative and the general accountant of the institution and shall have the opinion of the auditors internal and external qualified by the superintendencies, as the case may be. The General Meeting of Shareholders or the body that does its times, until March 31 of each year shall approve the audited financial statements of the financial institutions, with a cut to 31 December of the previous year, which shall be presented to the corresponding control body. Article 220.-Presentation of financial statements to the control body. The institutions of the national financial system shall submit to the respective control bodies the financial statements, including their consolidated and combined balance sheets, which are subscribed by the legal representative and the general accountant of the institution; and the additional information that is required, in the formats and with the periodicity to determine the superintendencies.
The entities of the national financial system shall be obliged to give access to the control bodies and the Service of Internal revenue for accounting, books, correspondence, files or documents supporting their operations, electronically in real and physical time, without any limitation. Article 221.-Publication of financial statements. The entities of the national financial system shall publish the states of situation, losses and gains, position of technical assets and indicators of liquidity, solvency, efficiency and profitability, which shall additionally contain the opinion of the external auditor qualified by the respective superintendence and all explanatory notes supplementing the information contained in its opinion, at least once a year at the end of the each financial year at 31 December, or where the control bodies so provide, of compliance with the rules laid down for the purpose. For the case of financial groups and popular and supportive groups, each of the participating entities shall present to the superintendence and publish, in conjunction with the reports of the internal auditors and the external auditor qualified by the respective superintendence, their individual financial statements, as well as the consolidated and audited financial statements of the group. The publication shall be carried out in a newspaper in the territorial district in which the institution has coverage and on the website of each financial institution. Article 222.-Publication of superintendencies. The control bodies shall disclose and publish financial and statistical information of the national financial system by financial sector and of each individual entity. Article 223.-Information on financial statements. If the financial statements contain allegedly false information, the superintendants shall report this particular to the State Attorney General. Article 224.-Information on the situation of financial institutions. The control bodies shall regularly inform the general public about the financial situation of the entities subject to their control. At least the financial structure, asset quality, including the overall results of the last rating of its risk assets, technical heritage position and solvency, liquidity, efficiency and performance indicators shall be reported. profitability. Article 225.-Information file. The entities of the national financial system shall maintain their physical accounting records, including the respective endorsements, for a period of ten years from the completion of the transaction. and for fifteen years in the digital format authorized by the superintendencies. The information provided by financial institutions and certified copies and reproductions issued by an authorised official of the financial institution shall have a similar probative value as the original documents.
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Section 8
Control and Audits Article 226.-Control of Financial Activities. In accordance with their powers, they shall monitor the financial activities of the national financial system. Article 227.-Internal control systems. All entities in the national financial system must have internal control systems to ensure the effectiveness and efficiency of their activities, the reliability of the information and the compliance with applicable laws and regulations. Article 228.-Audits. The entities of the national financial system shall have an internal auditor and an external auditor, registered and qualified as to their suitability and experience of the corresponding superintendence. Internal and external auditors shall be responsible for administrative, civil and criminal liability for the reports and opinions they issue. Article 229.-Internal auditor. The internal auditor is a natural person appointed by the General Meeting of Shareholders or the body that does his or her times, and may be removed at any time by the body that designated him, for the reasons determined by the superintendencies. In the event of a definitive absence, the General Shareholders ' Meeting or the body that will do its time will appoint its replacement. Article 230.- Liability of the internal auditor. The internal auditor shall verify that the entity's activities and procedures are in accordance with the provisions of this Code, the regulations issued by the Board of Policy and Monetary and Financial Regulation, the statutes and the principles of accounting dictated by the superintendencies and those of general acceptance. In addition, the internal auditor shall monitor the operation of the internal control systems and compliance with the resolutions of the control bodies, the General Shareholders ' Meeting, the board of directors or the bodies that do their times and issue opinion on the proper functioning of the corporate or cooperative government, among others. The internal auditor shall submit to the directory or to the body which he or she does and to the control bodies, any information requested and those which the auditors consider necessary. Article 231.-External auditor. The external auditor of a financial institution may be a natural or legal person, be selected by the General Shareholders ' Meeting or the body that does its times and may be hired by the entities financial for consecutive annual periods of up to three years, observing the criteria of alternability and reference prices that the control bodies establish for the purpose. The superintendencies may, at their sole discretion and in a reasoned manner, arrange for the termination of the contract with the external auditor; in this case, the financial institution
shall immediately proceed to replace it. The financial institution shall not terminate the contract with the external auditor without the authorisation of the control body. Article 232.-Liability of the external auditor. The external auditor shall be responsible for carrying out external audits in each financial institution. The external audit includes, inter alia, the following actions: 1. Issue independent opinion on the accuracy or
accuracy of the financial statements, accounting systems and their vouchers and supports and express their views on whether the financial statements are reasonably present in the situation assets of the institution as at 31 December and the results of its operations during the year ended on that date, in accordance with the established accounting rules and generally accepted accounting principles, in so far as these are not are counterposed to the above, as well as their uniform application;
2. Rule on the adequacy and effectiveness of the
internal control systems, structure and administrative procedures, and evaluate them;
3. Review whether the financial activities and their
procedures are in accordance with applicable law, and the instructions that the Superintendence will deliver;
4. Review the information related to the
investments that the financial institution maintains in subsidiaries or affiliates, both in the country and abroad. In this case, you should comment on the nature and amount of the transactions between the investor and the recipient of the investment, their existing relationships and the effects of the consolidation on the assets of the audited entity;
5. Review compliance with controls for
to avoid illicit activities, including laundering of assets and financing of crimes such as terrorism and other crimes;
6. Review the compliance with the corrective measures
recommended in the previous report on the aspects indicated in the previous numerals; and,
7. Report on the other requirements that the
respective control body has, assuming full responsibility for the reports they issue, in accordance with the rules that are issued by the superintendencies.
The external auditor will do the times of the financial institution's commissioner, in the terms established in the Companies Act; it will have the functions that are determined in this Code and in the tax laws, as well as in the provisions that the control body dictates. corresponding.
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Article 233.-Limitation. The external auditor may only provide the audit services for which he was hired and will not be able to to provide any other service or collaboration to the audited entity through natural or legal persons directly and indirectly related. In addition, the external auditor may not, within the year following the termination of his contract, provide any other service to the audited entity. The natural or legal person who has provided services, other than external audit, to the financial institution in the year immediately before may not be external auditors. In the case of the financial groups and the popular and solidary groups, the entities that make up the groups will have the same external auditor or signatures associated with it. Article 234.-Review of audits. The control bodies will have full oversight powers of the audit process applied and the quality and consistency of the results achieved by internal and external audits. Article 235.-Audit reports. The audit reports are reserved for the public for ten years. The audit reports shall not be reserved nor shall they enjoy secrecy and reservation in the investigation processes carried out by the Office of the Prosecutor General of the State or the Comptroller General of the State. Nor will the audit reports be reserved when requested by the Monetary and Financial Policy and Regulatory Board, which will observe the rules of secrecy and reserve established in this Code. Article 236.-Control of the national financial system. The control of public and private financial institutions shall be carried out in accordance with the specific provisions for each financial sector under this Code. Article 237.-Risk Qualifiers. The solvency and capacity of entities in the national financial system to manage risks with third parties and meet their obligations to the public will be qualified on the basis of (a) to include a uniform scale of risk rating by financial sectors, in accordance with the rules issued by the Monetary and Financial Policy and Regulatory Board. The risk rating may be performed by national or foreign risk rating companies, or associated with them, with experience and recognized prestige, qualified as suitable by the control bodies. The contracting of these signatures will be carried out by means of selection procedures, guaranteeing the alternability. The rating will be carried out at December 31 of each year, and will be revised at least quarterly for the public, private and popular financial sectors and solidarity segment 1, and will be published by the control bodies in a circulation journal
national. The periodicity and relevance for other entities in the popular and supportive financial sector will be determined by the Monetary and Financial Policy and Regulatory Board. The institutions of the national financial system shall be obliged to expose, in a visible place, in all public attention and on their website, the last risk rating granted. Only the risk ratings carried out by the companies authorised by the control bodies may be published. The members of the risk rating committee and the technical staff involved in the rating processes shall respond jointly and severally to the risk rating for the damage resulting from their performance, without prejudice to the risk assessment. Criminal liability to occur.
Section 9 Of the obligations
Article 238.-Liability for solvency. Shareholders and partners of entities in the private and popular financial sectors and in solidarity shall be responsible for the solvency of the institution up to the amount of its shares or units. In the event of the forced liquidation of a private financial institution, shareholders who, directly or indirectly, are persons with property ownership with influence, shall be liable even with their personal assets in the event that they have incurred dolo, severe guilt or mild guilt. Equal responsibility shall be the trusts created to administer shares, their constituents and the administrators of the entities of the national financial system. They shall also be responsible for their assets and for the officials in the acts specified in Article 305. Article 239.-Financial indicators, liquidity, capital and equity. The institutions of the national financial system shall, at all times, comply with the rules relating to financial indicators, liquidity, capital and equity. determined in this Code and the regulations issued by the Monetary and Financial Policy and Regulatory Board in accordance with the type of entity, internal control systems and risk management appropriate to the size and complexity of the financial institution. Item 240.-Lace. The entities of the public and private financial sectors, without prejudice to the other reserves provided by this Code, are obliged to maintain lace on the deposits and captions that they hold. The Lace will not be remunerated and will be maintained in the Central Bank of Ecuador. In the event that the public and private financial institutions do not comply with the willing, the Superintendency of Banks will order the entity to immediately provide the necessary resources to cover the disassemblage.
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For entities in the popular and supportive financial sector, the Monetary and Financial Policy and Regulatory Board will establish the Segment-differentiated lace conditions for this sector. Article 241.-Lace Regulation. The Board of Monetary and Financial Policy and Regulation will regulate in a differentiated manner the percentages of lace, which may be by structure of capture, type of entity, among others. Article 242.-Delivery of information. The entities of the national financial system are required to provide the information required by the control bodies and the Internal Revenue Service, directly, without restriction, processing or intermediation, under the conditions and form that these entities have, exclusively for the purpose of their management. The legal, financial, accounting and any other information required of the entities subject to this Code by the respective control bodies may be dematerialized and subscribed by electronic signature certified by one of the authorized entities, in the terms provided for in the Law on Electronic Commerce, Firms and Data Messages. Each control body shall establish, for its implementation, the provisions inherent in each type of information. The entities of the national financial system, in accordance with the provisions of this Code, have the obligation to provide through the control bodies any information required by the Monetary Policy and Regulatory Board and Financial, in the times that are established for the effect. The information requirements of the Central Bank of Ecuador, the Deposit Insurance Corporation and the Liquidity Fund, the National Council for the Control of Narcotic Drugs and Psychotropic Psychotropic and the Analysis Unit Financial UAF, will be processed in accordance with the provisions of this Code and the law. If by express legal provision other institutions of the State have the need to require information from the financial institutions, this requirement must be channeled through the control bodies, which, after determining the their cause and purpose, they shall collect and deliver. Article 243.-Asset laundering and financing of crimes such as terrorism. Infringements on the laundering of assets and financing of crimes such as terrorism shall be punished in accordance with the provisions of the Penal Comprehensive Code and the Law on the Prevention, Detection and Eradication of the Crime of Washing Assets and Crime Financing. Article 244.-Control and prevention of asset laundering. The entities of the national financial system have the obligation to establish internal control systems for the prevention of crimes, including the laundering of assets and the financing of crimes such as terrorism, in all financial operations.
Article 245.-Information to shareholders and partners. The entities of the national financial system shall submit to their shareholders and shareholders, as corresponds to at least the following information: 1. Administration report; 2. Comparative situation Balances of the last two
years; 3. Status of changes in financial situation
corresponding to last year; 4. State of losses and earnings of the last two
years; 5. Report of the qualified internal and external auditors
by the respective superintendence; 6. Risk-rating report, when
corresponds; 7. Position of technical heritage; 8. Liquidity, solvency, efficiency and
profitability; 9. Risk Asset Rating of the last financial year
economic; and, 10. Remuneration, compensation and other benefits
of its administrators. In the case of financial groups, the information should be presented in a consolidated and individual form for each of the entities in the group. The information set out in this Article shall be made available to the general public by means of its website and in its annual memory, in such a way as to determine the control bodies. Article 246.-Information to the financial user. The entities of the national financial system have the obligation to inform the financial users, in the formats defined by the control body, at least the following: 1. Its main financial indicators; 2. Annual effective interest rates and passive rates; 3. Financial services charges; 4. General conditions of the activities
financial services they provide; 5. risk, where applicable; 6. The status of the operations a user maintains
with the entity; 7. The benefits and limitations of the services that are
are being offered;
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8. The procedure for the attention of the claims to
the financial institution; 9. A copy of the physical document, when the
Financial institution requires the signature of the user; and, 10. If you agree that certain services such as states
account for users be sent electronically, the physical banking certification that is required will not be cost.
Article 247.-Service charges entities of the national financial system shall not charge or charge fees for services that have not been provided by the institution, nor may they establish charges for financial services that are not authorized by the Board of Policy and Monetary and Financial Regulation. Any charge made against this provision shall be returned to the financial user, without prejudice to the penalties to which it may be imposed. Article 248.-Charges for non-financial services. Entities in the national financial system may not carry out any charge for the provision of services other than financial services, on behalf of third parties, if they do not comply with the regulation that the Board issues for the effect or does not have the prior and express acceptance of the user. Acceptance must be verifiable by any form recognized by law. Charges that do not have the express acceptance of the user shall be returned, without prejudice to the penalties to which they may be imposed. Article 249.-Suspension of charges or payments for loss. In the event of loss, theft, theft or theft of debit, credit, ATM, checking, or any other instrument that has a similar purpose, the system entities National financial institution shall suspend any charge or payment on behalf of its customers, from the time such events are notified, either in writing, by telephone or by any other means that constitute a means of proof, according to the provided for in the law. The charges or payments made by the financial institution on behalf of its clients, which have not taken into account the notification of loss, theft, theft or theft, shall be assumed by the entity. The entity shall also assume liabilities arising from computer fraud caused by weakness or defects in its systems. The charges or payments made by the financial institutions on behalf of their clients attributable to them shall be of their own responsibility. Article 250.-Mandatory insurance. Prior to the disbursement of credit operations, institutions of the national financial system shall require the hiring of insurance to be determined by the Monetary Policy and Regulatory Board and Financial.
Article 251.-Customer support. The entities of the National Financial System will have systems of customer support with respect to the operations and services they provide, that facilitate the solution of the disputes arising with their financial users. Disputes or claims not settled before the financial institution may be filed with the relevant control body, without prejudice to the legal proceedings which may be filed. Article 252.-Accession contracts. Financial services may only be provided upon subscription of an accession contract whose binding clauses and prohibitions must be approved by the control bodies. Contracts shall not include those clauses prohibited by law. Any stipulation to the contrary or those clauses that imply the renunciation or reduction of a right of the financial user recognized by the law, shall be null and void. Article 253.-fraudulent advertising. The entities of the national financial system shall be liable for their financial activities and the poor performance of their services, where their conditions are not in accordance with the advertising carried out or with the description they incorporate.
Section 10 of the Bans
Article 254.-General prohibition. Natural or legal persons who are not part of the national financial system are prohibited from collecting third-party resources or performing, as usual, the financial activities as defined in Article 143 reserved for entities which system. They will also not be able to advertise or use notices, posters, receipts, letterheads, titles or any other means to suggest that the business of the persons mentioned is financial in nature. Violations of the provisions of this article will be sanctioned according to the provisions of this Code. Article 255.-Bans to entities in the national financial system. Entities of the national financial system are prohibited: 1. To carry out financial activities that are not
authorized by the control bodies, or not have the approval of the Monetary and Financial Policy and Regulatory Board referred to in Article 14 numeral 37;
2. Carry out operations involving the pyramid of
capital, in particular direct, indirect and contingent credits with the object that their product is destined, directly or indirectly, to the subscription and payment of shares or units of the institution itself or any other company of the financial group or group of people and solidarity;
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3. Carry out direct, indirect and
contingent credit operations, receiving in warranty their own shares or units, or of the subsidiary or affiliated companies belonging to the same financial group or group of people and solidarity;
4. Arbitrarily freeze or withhold funds or deposits; 5. Perform active and contingent operations with
related persons or over the quotas set out in this Code as applicable;
6. Acquire securities issued, endorsed
or guaranteed by the entity or companies that integrate its financial group or group of people and in solidarity under conditions other than those of the market, in accordance with the rules that issue the Monetary and Financial Policy and Regulatory Board;
7. Negotiate within the same financial group or group
popular and supportive of the ownership actions of any of its members;
8. Acquire debt for amounts higher than the
determined by the Monetary and Financial Policy and Regulatory Board;
9. Perform credit operations over limits
authorized in regulation; 10. Issue short-term obligations or commercial paper,
with the exception of financial services entities and ancillary system services financial;
11. Collect interest on the established maximums; 12. Charge delinquent interest or capital fines not
expired; 13. Violate the stealth or the reservation; 14. Adult or distort financial statements; 15. Grant guarantees other than those determined by the
Monetary and Financial Policy Board, or request lesser guarantees in quality and quantity established by that Board;
16. Perform any form of misleading advertising,
abusive or misleading in the choice of services, which may affect the interests and rights of financial users;
17. Constitute taxes without authorization on assets of
property of the entity; 18. Markup the databases of its clients; 19. To dispose or lease, to any title, the assets of
property of the entity or are mortgaged or paid to it, in favour of administrators, officials or employees, or persons acting in their name and in their representation;
20. Purchase property from the managers, officials or employees of the entity, or persons acting in their name and representation; and,
21. Deny the opening of any type of account, without
giving valid justification. Non-financial institutions that grant credit for the limits established by the Board are subject to the prohibitions determined in the numerals 9, 11, 12, 14, 15, 16, and 18 of this article. Article 256.-Prohibition of participation as a shareholder. Private financial institutions and shareholders of a private financial institution that are persons with wealth ownership with influence, may not be holders, direct or indirectly, of shares or units of undertakings, companies or commercial companies other than the financial activity. This prohibition also applies to the shareholders of a financial institution which, even if they are not individually considered to be persons with a wealth of influence, at the discretion of the control body maintain economic links, Business and/or family members and together exceed the percentage or values of Article 169, or a unit of economic interest, in accordance with this Code. Nor may the administrators of financial institutions participate as shareholders in undertakings outside the financial activity. Shareholders shall be deemed to be indirect holders when they exercise their right of ownership over 6% or more of the securities representing the capital of commercial companies outside the financial activity through trusts, links economic and social, other mechanisms or through these through their spouses or cohabitants. Without prejudice to the above, control bodies may establish other types of indirect property which may be derived from research carried out. Failure to comply with the prohibition laid down in this article by financial institutions, their shareholders or administrators, shall be sanctioned as a very serious infringement and with the suspension of their rights as members or shareholders of the the respective non-financial institution and the removal of its charges in the case of the administrators. The control body shall also have the seizure of the shares or units of the respective non-financial institution and its subsequent sale in public auction. The securities to be obtained by such sale, once the expenses incurred by the State and the amount of the corresponding penalties are discounted, shall be given to each of the shareholders or administrators of the financial institutions. private, their spouses or cohabitants, they are incourses in the prohibition. Article 257.-Impediments to shareholders and administrators. Shareholders, administrators and officials of private financial entities and the
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administrators and officials of the popular and solidarity financial entities, on which it has been established liability in respect of an entity declared in forced liquidation, by means of a conviction, may not be nominated for posts of popular choice, nor act as public servants, nor be part of an entity of the financial system national. This prohibition shall apply for five years from the date on which they have served their sentence. In the event of this prohibition, the nominations, nominations or contracts of these persons shall be without effect. This prohibition shall apply without prejudice to the provisions of Article 113 (2) of the Constitution of the Republic. Article 258.-Impediments to board members and management and surveillance boards. They may not be members of the board or boards of directors or supervisory boards of an entity of the national financial system: 1. The managers, general proxies, internal auditors and
external, and natural and legal persons who perform work of support to the supervision and more officials and employees of the entity, whatever their denomination and their subsidiaries or affiliates;
2. Directors, members of the boards of
administration and surveillance, legal representatives, general proxies, internal and external auditors of other entities of the same species. This prohibition does not apply among entities in the Public Financial Sector;
3. Those who were in arrears of their obligations for
more than sixty days with any of the entities of the National Financial System subject to this Code;
4. Who in the course of the last five years
would have been removed by the control body; 5. Who over the last sixty days
have firm obligations with the Internal Revenue Service or with the Ecuadorian Social Security Institute;
6. Who over the last five years
would have incurred in punishment of their obligations by any financial institution;
7. Those who were litigating against the entity; 8. Who would have been convicted of crime, while
penalty and up to five years after it was served; 9. The spouse or survivor or the relative within the
fourth grade consanguinity or second affinity of a principal or alternate principal, vowel and administrators of the private or popular financial sector entity and solidarity in question; and
10. Those for any cause are legally incapacitated.
The prohibitions contained in numerals 2 to 9 of this article are applicable to the legal representatives, vice-presidents, managers, deputy managers and internal auditors of the entities in the national financial system, or who does, in appropriate cases. No more than 40% of the directors or members of the board of directors of an entity that controls a financial group or group of people and solidarity shall also be able to integrate the directory of its subsidiaries. The prohibitions and inabilities referred to in this Article shall apply with the exception of numeral 7 also in cases in which they are acts which are supervenient to the performance of the duties. The designation of the members of the board or of the body which does its times of an entity of the national financial system, shall be communicated to the respective control body for the qualification of the suitability of these persons; in the process of the inspection body shall verify, inter alia, that the designated persons are not subject to the prohibitions specified. The member of the board or body which does its own times shall take possession of its designation once it has been awarded the qualification by the control bodies. If the board member or board member is not qualified, the financial institution shall replace it. Article 259.-Bans for servers. The public servants of the Monetary and Financial Policy and Regulatory Board, the control bodies, the Central Bank of Ecuador and the Deposit Insurance Corporation, Fund of Liquidity and Private Insurance Fund will be subject to the general prohibitions determined in the Organic Law of the Public Service. It is prohibited for these servers to disclose any information subject to stealth and reservation that is under their knowledge in the performance of their office.
Section 11 of the Violations and Sanctions
Article 260.- Violations. Violations are rated as very serious, severe, and minor. Article 261.-Very serious infractions. These are very serious infractions: 1. Not to observe the constant prohibitions in the article
255 numerals 1, 2, 3, 4, 5, 6, 7, 8 and 9; 2. Not to observe the rules of the Policy Board and
Monetary and Financial Regulation and the rules and provisions that outtrend superintendencies;
3. Perform operations that are not within the entity's social
object; 4. Simulate capital increases;
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5. Maintain actions in companies outside of the activity
financial for the limits determined in Article 256;
6. Do not observe the internal control provisions on
prevention of crimes, including those for laundering of assets and financing of crimes such as terrorism, determined in Article 244;
7. Do not observe the capital, reserves and
solvency provisions laid down in this Code; 8. Do not observe the provisions on assets, limits of
credit, provisions and credit guidance; 9. Run merger, conversion or exclusion operations
and transfer of assets and liabilities, without the authorization of the control bodies;
10. Participate as a shareholder of foreign financial institutions
constituted or constituted, without the authorization of the respective superintendence;
11. Deny, impede, impede or hinder control and
surveillance by the State control agencies in the field of their competencies;
12. Falsifying documents and information or partial hiding or
fully, by any act or means, the actual situation of the financial institution;
13. Not to observe the provisions related to the
delivery of information required by the State institutions determined in this Code, in the field of their competencies;
14. Perform acts of disposition of assets and securities of
an entity subject to suspension of operations, in accordance with the provisions of Article 292, or in the form of a forced liquidation, once disposed of;
15. Grant credit operations to public entities
without observing the procedure laid down in the Public Planning and Finance Code;
16. Breach the prohibitions determined in
Articles 40 and 41; 17. Operate corresponsess without the established authorization
in article 36 numeral 21; 18. Do not pay the fine imposed for serious infraction; 19. The commission of two or more serious infractions in the
one year term; 20. Rebase without authorization dividends anticipated or
profits when the control body has provided the contrary; and,
21. The other provisions laid down in this Code. Article 262.-Serious violations. These are serious violations:
1. Violate the prohibitions determined in Article 255 numerals 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21;
2. Not to observe the provisions relating to the
rights of financial users; 3. Not to observe the provisions regarding the regime
financial and accounting; 4. Not to observe the provisions on internal control; 5. Not to observe the provisions on charges by
financial and non-financial services; 6. Make association agreements without the
authorization of the superintendents; 7. Modify the social statutes of the financial institution
without authorization from the control body; 8. Do not pay contributions and contributions ready in
Code; 9. Use adherence contracts without respecting the
minimum conditions and prohibitions determined by superintendencies;
10. Open offices without the respective permission of
operation; 11. Do not pay the fine imposed for minor infraction; 12. Committing two or more minor infractions in the
one year period; and, 13. The other provisions laid down in this Code. Article 263.-Minor infractions. These are minor violations, the following: 1. The unauthorized modification of the schedules of
attention to the public; 2. Not providing shareholders or partners with the
information provided in this Code; 3. The presentation with errors and inconsistencies of the
reports to which the financial institution is required; and,
4. The other provisions laid down in this Code. Article 264.-Administrative penalties. The following penalties are laid down: 1. For very serious infractions, a fine of up to 0.01
% of the assets of the offending entity, the removal of the administrators and/or the recall of the or the authorities;
2. For serious infractions, fines up to 0.005% of
the assets of the offending entity, the suspension of the administrators for up to ninety days and/or admonition; and,
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3. For minor infractions, fines of up to 0.001% of the
assets of the offending entity. In no case shall a financial penalty for a public, private or popular and solidarity-based financial institution belonging to segment 1 be less than 30 unified basic salaries. In respect of the other popular and supportive financial institutions, the financial penalty may not be less than a unified basic salary. The amount of the fines will be entered into the National Treasury's Single Account, in accordance with the provisions of Article 267 of this Code Article 265.-Graduation and criteria. The penalties will be graduated in the light of the seriousness of the (a) non-compliance, damage caused to third parties, negligence, intentionality, recidivism or any other aggravating or mitigating circumstances. In the case of very serious and serious infringements, superintendences, depending on the criteria set out in the preceding paragraph, in addition to the financial penalty, may impose the other penalties determined for each type of infringement. If the same fact is a matter of two or more administrative offences, the most serious shall be taken into consideration. If the two offences are equally serious, it shall be taken into consideration for a penalty of greater pecuniary value. Pecuniary sanctions in the firm will cause the corresponding interest. Article 266.-Concurrency of the sanctions. The imposition of the sanctions provided for in this Code is independent of any other sanction that may be applied for acts of violation of other provisions of the Code and do not limit the the application of the corresponding civil or criminal penalties, in accordance with the law. In no case can a person be administratively sanctioned twice by the same body, for the same cause. Article 267.-Form of application of sanctions. The fines imposed on financial institutions, once firm, will be made effective by debits from the accounts held by financial institutions in the Central Bank of Ecuador. In the event of failure to carry out the debit referred to in the preceding paragraph, the control body shall issue the corresponding title of credit, which may be charged administratively by means of coactive or judicial proceedings. Fines imposed on administrators, officials or employees of a financial institution shall be made effective by means of securities that may be charged through the co-active jurisdiction or by any other means.
The fines imposed deposit into the Single National Treasury Account. Article 268.-Subjects responsible for the infringement. The financial institution, its shareholders, administrators, officials or employees and other persons referred to in Article 276 which, by way of action or omission, are liable for the infringements, are liable for the infringements Code. Natural persons and non-financial legal persons who incur the infringements determined in this Code, where appropriate, are also responsible. The imposition of the penalties, in no case, will relieve the offender of the fulfilment of the obligation whose failure to comply has led to the sanction. Article 269.-Prescription of infringements. Very serious violations prescribe in eight years, serious infringements in five years and minor infractions prescribe in three years, counted from the date of the infringement. The prescription will be interrupted by the start of the sanctioning procedure. Article 270.-Extinction of penalties. The penalties imposed may be extinguished in the following cases: 1. For compliance with the sanction; 2. For acceptance of claim or administrative appeal;
and, 3. By court judgment. Article 271.-Santion to officials and servants of the control bodies. The failure to comply with the prohibition laid down in Article 259 shall be sanctioned by the corresponding appointing authorities in accordance with the provisions of the provisions of this Article. of the Organic Law of Public Service and Labor Code, as the case may be. Article 272.-Sanction for disclosure of information. Natural or legal persons who disclose, in whole or in part, information subject to secrecy or reservation, shall be sanctioned with a fine of twenty-five basic wages unified, without prejudice to the relevant criminal liability. Article 273.-Civil liability. Without prejudice to the administrative penalties referred to in this section and to the corrective measures ordered by the control bodies, financial institutions shall respond civilly to actions or omissions that cause harm to financial users or to state bodies, in accordance with the law. Article 274.-Offences. At any time, when the control bodies of the National Financial System, in the exercise of their control functions, have knowledge of the perpetration of a crime related to financial activities, including washing of
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assets and financing of crimes such as terrorism, will be required to report these facts to the Attorney General of the State, and in the latter case shall also be notified to the UAF Financial Analysis Unit for subsequent purposes. The exercise of criminal action shall be independent of civil and administrative sanctions. Article 275.-Sanction for unauthorized activities. The Superintendence of Popular and Solidarity Economy, with respect to the entities of the popular and solidarity economy that are alleged violators of the general prohibition determined in the Article 254 shall have the same powers of inspection as this Code confers on entities in the popular and supportive financial sector. The Superintendency of Banks will have, in respect of persons who are not part of the popular and solidarity economy and are presumed violators of the general prohibition determined in Article 254, the same powers of inspection as this Code confers on the financial institutions. In these cases, the control bodies will have the immediate suspension of the activities, the closure of offices, will notify the Attorney General of the State and will have any other precautionary measure aimed at protecting the interests of people. These transgressions will be administratively sanctioned with a fine of between five hundred and two thousand five hundred unified basic salaries, without prejudice to civil and criminal liability. Article 276.-Competition of the superintendence. The jurisdiction to sanction the infringements of the financial institutions of the public and private sectors, their shareholders, administrators, officials or employees, internal auditors and The Bank's Superintendency of Banks, which is a risk-rating firm, expert experts, and others that carry out supervision support services, corresponds to the Superintendence of Banks. The jurisdiction to sanction the infringements of the entities of the popular and solidary financial sector, its administrators, officials or employees, internal and external auditors, risk rating firms, expert experts and others Support services for supervision, corresponds to the Superintendence of the Popular and Solidarity Economy. The jurisdiction to sanction the infringements of the non-financial institutions that grant credit, their administrators, officials or employees and others that carry out supervision support services, corresponds to the Superintendence of Companies, Values and Insurance and the Superintendence of Popular and Solidarity Economy, as the case may be. The superintendents, in the field of their functions, will have the competence to sanction any natural or legal person who, without having the qualities indicated in the paragraphs that anteceden, committed infractions to this Code, the regulations issued by the Board or the rules issued by the control bodies.
The sanctions shall consist of a reasoned administrative act. The superintendencies may take the precautionary measures they consider necessary in order to safeguard the interests of the persons. The superintendencies have an obligation to initiate the investigation procedures that correspond, within thirty days from the receipt of any complaint made in their knowledge by the Board of Policy and Regulation. Monetary and Financial. Failure to comply with this obligation will cause the corresponding administrative, civil or criminal liability. Article 277.-Sanctions administrative procedure. Superintendencies will sanction by observing the following procedure: 1. Identification of the violation; 2. Notification of the violation in the term of up to
ten days from their identification, thus initiating the administrative sanctioning procedure;
3. Once notified, the alleged infringer in the term
of ten days, will be able to present all the legal evidence that is created assisted. This term may be extended once and upon request by an additional five days;
4. The tests submitted will be processed by the
control body, who will evaluate them according to the rules of the healthy criticism within the twenty-day term, and may require within this term the technical and legal reports that Consider necessary. This term can be extended once, for an additional fifteen days;
5. After the term indicated in the numeral
precedent, the control body, in a reasoned manner, will dictate the appropriate resolution;
6. The resolution shall be notified by the body of
control within three days from the date of its issue; and,
7. During the substantiation of the procedure
sanctioning administrative, the parties will be able to access the file without any restriction.
Failure to comply with the terms indicated in this article will cause the server to be removed from office. responsible public. Article 278.-Impeachment. The sanctioning acts may be challenged in administrative headquarters or in judicial offices before the administrative courts, without prejudice to the other actions specified in the law. The sole interposition of a claim, appeal or court action does not suspend the effects of the sanctioning act.
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For the filing of a claim or remedy for the imposition of pecuniary penalties, the appellant must previously record the value of the fine imposed. Article 279.-Sanction by other entities. The transgression of the prohibitions referred to in Article 255 shall be sanctioned by the respective control bodies in the field of their jurisdiction.
Section 12 Of The Supervision
Article 280.-Supervision. The control bodies provided for in this Code, in the field of their competences, are obliged to carry out a process of permanent, on-site and extra-situ supervision to financial institutions, which to determine the economic and financial situation of the entities, the management of their business, evaluate the quality and control of the risk management, the internal control system, the appropriate framework of the corporate or cooperative government, verify the veracity of the information they generate and the other aspects that guarantee the adequate operation of the entities and the system. The determination of the types of supervision identified in this section and its implementation shall be reserved and exclusive of the control bodies and shall not be subject to challenge by the controlled entities. Article 281.-Preventive supervision. Consists of the supervision that applies to financial institutions determined by the relevant control body as being very low or low risk profile, being understood as such to those entities whose economic status- financial, corporate or cooperative governance and risk management, among other conditions to be determined by the control body, are considered sufficient for the size and complexity of their operations or which present recommendations children that do not generate significant concern for the supervisor. Article 282.-Corrective supervision. It consists of the supervision that applies to financial institutions determined by the relevant control body as a medium risk profile, being understood as such to those entities whose economic-financial condition, corporate or cooperative governance, or risk management, among other conditions to be determined by the control body, evidence of moderate to significant weaknesses in relation to the size and complexity of the their operations and that they require strict monitoring of the recommendations of the supervisor. Article 283.-Intensive monitoring. Consists of the supervision that applies to financial institutions determined by the relevant control body as a high and critical risk profile, being understood as such to those entities whose economic status- financial, corporate or cooperative governance, or risk management, among other conditions determined by the control body, are considered inadequate to the size and complexity of
its operations, which require significant improvements or have clear prospects of missing the requirements (a) a solvency ratio or a default. Intensive supervision will also be done to financial institutions that record losses in the last two quarters or when the projection of their business indicates that within the next two quarters they could fall below the level of the minimum technical heritage required. Article 284.-Intensive monitoring program. The Superintendence of Banks or the Superintendency of Popular and Solidarity Economy will require for approval an intensive supervision program for entities with high risk profile and (a) critical, which should include the set of actions set out by the control body aimed at solving the problems incurred by an institution of the national financial system. The intensive monitoring programme shall be imposed on the institution by the control bodies at any time; the programme shall be prepared by the respective financial institution and submitted to the relevant control body for its approval, within the time limit set for the purpose. If the financial institution has not submitted the programme within the time limit, the control body shall prepare and impose its implementation. In the case of a subsidiary, the intensive monitoring programme shall be submitted by the entity leading the financial group. The intensive monitoring programme shall contain the commitments, obligations and time limits for carrying out the activities in question, in no case may it be longer than two years and shall specify in a timetable the actions and measures which the entity will take to address its situation. The program must be viable, with sustainable assumptions and must be approved by the Board or the body that does its times. Under no circumstances shall the programme for the intensive supervision of a property deficiency exceed three hundred and sixty days, in accordance with the time limits laid down in Article 192. If this deadline is met, and if the property deficiency persists, this will constitute a causal settlement of the entity. Article 285.-Control of the intensive monitoring program. The compliance of the intensive monitoring programmes will be verified by the control bodies in situ and/or extra-situ. During the implementation of the intensive monitoring programme, the superintendencies may review and adjust it and provide for all preventive and corrective measures necessary and to impose the appropriate sanctions, without prejudice to the the civil and criminal actions to be taken. Article 286.-Termination of the intensive monitoring program. The intensive monitoring program will end with the fulfillment of its objectives
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within the specified period, in which case, the financial institution will recover its normal operation. The intensive monitoring programme may be completed in advance, at the disposal of the control body, where the financial institution fails to comply with the programme. Article 287.-Incompliance with the intensive monitoring program. The substantial non-compliance with the intensive monitoring programme will be a cause for an extraordinary merger, the exclusion of assets and liabilities or the forced liquidation of the financial institution. Article 288.-Reserved character of intensive monitoring programs. Intensive monitoring programs and all sustenance information will be reserved for twenty-five years. Superintendencies and financial institutions will be obliged to keep the relevant reserve. The information on the preventive and corrective monitoring processes shall be subject to reserve for the period of 15 years. Article 289.-Preventive and corrective measures. While the intensive monitoring programme is approved and during its implementation, the control bodies may provide the following measures: 1. That the increases in deposits, captions or
investments are invested in high-liquidity, solvency and profitability domestic securities, in the form that superintendencies have;
2. Prohibit new loans and/or
from being granted new investments, except those ordered in the preceding number;
3. Avoid the concentration of credit; 4. Ban the distribution of profits, dividends
and/or surpluses; 5. Negate the opening of new offices, in the country or in the
outside, or arrange for the closure of existing ones; 6. is invested in the capital of institutions
constituted or to be constituted in the country or abroad;
7. Prohibit any type of foreign investment; 8. Dispose the divestment of assets abroad; 9. Dispose the settlement of trusts and restitution
immediately of assets contributed to the autonomous wealth;
10. Provide immediately that the entity registers
contably the losses corresponding to the partial or total provisioning of assets whose state of recovery, performance or liquidity so requires, at the sole discretion of the superintendencies, and the reduction of their capital or the affectation of reserves against them;
11. To grant deadlines, in accordance with Article 192, for the institution to resolve the increase in capital and reserves, which shall be subscribed and paid within such time limits;
12. Immediate removal of administrators and other
officials or employees it deems relevant. In the popular and supportive financial sector, removal may also be applied in respect of the partners acting as representatives in the general assembly; and,
13. All other measures that you consider
convenient and do not contravene the rules issued by the Monetary and Financial Policy and Regulatory Board.
Article 290.-Consolidated and cross-border supervision. control bodies shall carry out consolidated and cross-border supervision of the entire financial group or group of people and solidarity, through appropriate monitoring and enforcement of prudential rules for all activities carried out by the groups; local and international level, the transparency of their operations, the treatment of conflicts of interest, service and security of customers and the identification of risks in the position of solvency and liquidity, individually and at a consolidated level, as well as to avoid regulatory arbitrations. The local control bodies shall carry out the consolidated supervi-sion of the entity which makes the head of the group and its members, and shall require the information which is necessary, without any limit, directly or through it, to all members of the financial group or group of people and solidarity and shall determine the consolidated technical heritage requirement of those groups. Consolidated and cross-border supervision may be carried out in cooperation with foreign control bodies, on the basis of agreements to be signed for the purpose, which, on the basis of reciprocity, shall facilitate the information exchange between them.
Section 13 Exclusion and Transfer of Assets and Liabilities
Article 291.-Unviable Financial Entity. It is the entity of the national financial system that incurs one or more of the Forced liquidation causes. Article 292.-Resolution of suspension of operations and exclusion and transfer of assets and liabilities. In order to adequately protect the deposits of the public and prior to declaring the forced liquidation of a financial institution infeasible, the control body shall, by resolution, have the suspension of operations, the exclusion and transfer of assets and liabilities and shall appoint a temporary administrator. This resolution shall enter into force from the date of its issue. Article 293.-Operations excepted from suspension. The control body shall determine the operations to be excepted from the suspension and which
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are indispensable for the preservation of the entity's assets, the recovery of the credits and the payments of the remuneration of employees. Article 294.-Loss of shareholders 'and shareholders' rights and cessation of servicers. As of the date of the resolution of suspension of operations and the exclusion and transfer of assets and liabilities of the unviable financial institution, they lose the rights of their shareholders or members and automatically cease in their functions the administrators, without any claim and compensation, even if they have a relationship of dependency with the entity; moreover, the alienation of property of shareholders with property ownership with influence, third parties (a) the control body shall carry out all the relevant actions. Article 295.-Temporary Administrator. The temporary administrator shall assume the duties of the administrators and shall exercise the legal representation of the non-viable financial institution, by means of precautionary measures. Article 296.-Process of exclusion and transfer of assets and liabilities. Within the process of exclusion and transfer of assets and liabilities, the temporary administrator, in coordination with the control body, shall implement the following measures: 1. Organising the information of the institution; 2. Total or partial exclusion asset and/or liabilities of the
unviable financial entity; and, 3. The transfer of the excluded assets to another entity
viable financial, together with liabilities for equal value. If the transfer of the excluded assets is not feasible, the provisions of Article 80 (7) may be applied.
.The process of exclusion and transfer, including the transfer of assets, liabilities, guarantees, shall not require the transfer of assets. express acceptance of the clients and may be implemented through the establishment of a trust. The temporary manager may punish the price of the assets from the assets of the institution in liquidation, while the value to be obtained by his transfer covers at least all the pres referred to in Article 315, numerals 2 and 11 inclusive, and the percentage defined by the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund in respect of the deposits referred to in the numeral 1 of the aforementioned article. The application of this criterion will not cause civil liability to the temporary administrator. The control body may grant to the receiving entities the excluded assets and liabilities, temporary exceptions to the application of the general rules issued by the Monetary and Financial Policy and Regulatory Board, their authorisation. The exceptions shall be related to the amount of the assets and liabilities assumed and shall avoid putting the liquidity and/or solvency of the institution at risk.
The measures provided by the temporary administrator in the process of exclusion and transfer of assets and liabilities, in any form, are exempt from taxes. The process of exclusion and transfer of assets and liabilities shall be implemented by the temporary administrator within a period of 15 days from the date of the decision to suspend operations. If, within the period indicated, the arrangements for the process of exclusion and transfer of assets and liabilities have not been concluded, the control body shall arrange for the compulsory liquidation of the non-viable financial institution and request the Deposit insurance and Liquidity Fund the payment of insured deposits. In any event, the temporary administrator must reserve sufficient resources for the cancellation of the discount and domestic investment window credits of the liquidity surpluses. Article 297.-Administrative and judicial actions. No administrative or judicial actions may be initiated or continued on the assets of the financial institution whose operations have been suspended in accordance with Article 292, as No precautionary measures may be available or registered for those. Should precautionary measures be provided, the relevant judge shall order his immediate lifting. Acts arranged by the temporary administrator involving the transfer of assets and liabilities of the non-viable financial institution are not subject to any judicial authorisation and cannot be considered to be ineffective in respect of creditors of the financial institution that owns the excluded assets. The creditors of the non-viable financial institution shall have no action or right against the acquirers of the assets. Article 298.-Termination of the process of exclusion and transfer of assets and liabilities. In the event that the process of exclusion and transfer of assets and liabilities from a non-viable financial institution has been successfully completed shall proceed to the forced liquidation of the financial institution as well as its non-transferred assets and liabilities. In addition, in the event that the process of exclusion and transfer of assets and liabilities has not been completed satisfactorily, the financial institution shall be wound up as well as all its assets and liabilities.
Settlement Section 14
Article 299.-Settlement. The entities in the national financial system are voluntarily or forcibly liquidated, in accordance with the provisions of this Code. Article 300.-Transfer of assets. When an entity in the national financial system that is in a forced liquidation or whose general meeting of shareholders or
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body that does its times have agreed to its voluntary dissolution, to dispose of all its assets or a substantial part of them to another financial institution, such transfer shall be made by means of public deed in which the goods transferred according to the respective balance sheet are indicated for their amount and item. In the cases referred to in the preceding paragraph, as well as in any other case of transfer, the tradition of the goods and their corresponding guarantees and ancillary rights shall operate in full, without the need for endorsements, notifications or registration, except in the case of real estate. The only merit of the public disposal instrument shall be to allow the guarantees to be entered, where appropriate, or to exercise the rights of the creditor. The registrars of the property and mercantile shall be obliged to carry out in an expeditious manner the records and corresponding inscriptions. Article 301.-Voluntary liquidation Causals. The entities of the national financial system are liquidated on a voluntary basis, where they are not incurred in the cause of forced liquidation, due to the following causes: 1. Due to the maturity of the term fixed in the
social status; 2. By merger; 3. By conclusion of the activities for which they are
formed; and 4. By transfer from the home address abroad. Entities in the private and popular financial sectors and in solidarity will also be settled by agreement of the shareholders or partners, as the case may be. Entities in the public financial sector shall also be liquidated for reasons of public interest provided by the President of the Republic. Article 302.-Voluntary settlement resolution. The decision to liquidate an entity of the national financial system on a voluntary basis, for any of the causes determined in this Code, shall be brought to the attention of the control for approval. The control body, after verifying that the financial institution is not engaged in any of the causes of forced liquidation, that it has the necessary resources to meet all its financial and non-financial obligations and that its liquidation does not generate negative effects on the functionality of the national financial system or on the macroeconomic management of the country, may approve or deny the voluntary liquidation, by issuing the corresponding administrative act. If the financial institution is in the form of a forced liquidation or does not have sufficient resources to meet all its financial and non-financial obligations, voluntary liquidation shall be refused and administrative actions shall be available.
Article 303.-Causals of forced liquidation. The entities of the national financial system are forced to settle, for the following reasons: 1. By the recall of one or more of the
financial activity authorizations, when at the discretion of the control body they affect the economic-financial viability of the entity;
2. For substantial non-compliance with the
intensive monitoring; 3. For failure to cover heritage deficiencies
technical compliance with the requirements of Article 192;
4. For not raising the subscribed capital or subscribed capital and
paid to the minimums set forth in this Code; 5. For losses of 50% or more of the share capital or the
subscribed and paid capital, which could not be covered with the reserves of the entity;
6. For not paying any of its obligations,
especially with depositors, in the clearing house or non-compliance in the restitution of domestic investment operations or discount window, when the fund of liquidity does not cover such operations. In the case of entities in the Popular and Solidarity Financial Sector, except those of segment 1, which are geographically located in areas of difficult access, this causal settlement is configured if within seventy-two hours Required payment of obligations, these were not met;
7. When any of the solvency indicators are
less than fifty percent (50%) of the required minimum level;
8. For accumulating two months of default in the
payment of contributions and contributions to Deposit Insurance and/or Liquidity Fund;
9. By termination of the exclusion process and
transfer of assets and liabilities referred to in Article 296; and,
10. For any other cause determined in this Code. The entities that make up the private and popular financial sectors and solidarity will be forced to settle, in addition, for the following reasons: 11. Because of the manifest impossibility of fulfilling the object
social; 12. When the entity's administrators leave
their charges and it is not possible to designate their replacements within a period of not more than thirty days;
13. By reducing the legal minimum number of
shareholders and by decreasing the number of their partners below the statutory minimum set; and,
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14. Not to modify their procedures, by the
inoperative of the directory or by the non-adoption of the agreements determined in the last paragraph of article 412.
The resolution of suspension of operations provided for in Article 292 will cause the loss of ownership of the shares of all shareholders and the shares of the shareholders. Article 304.-Forcible settlement resolution. When the control body becomes determined that the financial institution is engaged in one or more forced liquidation causes, and it is not possible or feasible to implement a process of exclusion and transfer of assets and liabilities, shall issue the entity's forced settlement resolution. Article 305.-Presumption of fraudulent bankruptcy. When a financial institution is put into a forced liquidation, it shall be presumed to be the result of intentional acts committed by the administrators, officials or employees who have participated in any of the acts indicated by the Code. Organic Integral Organic. Article 306.-Complaint. In the event that the suspension of operations or the forced liquidation of a financial institution is resolved, the control body is obliged to immediately file the corresponding complaint with the Prosecutor General's Office. General of the State, in accordance with the Penal Integral Organic Code, with the purpose of establishing the criminal responsibilities to which there is a place. Article 307.-Content of settlement resolution. In the resolution of voluntary or forced settlement, at least the following shall be available: 1. The liquidation of the financial institution; 2. The revocation of the authorizations to perform
financial activities; 3. The withdrawal of operating permits; 4. The deadline for settlement, which in no case may
exceed two years; 5. Designation of the liquidator; and, 6. The cessation of functions of the temporary administrator. In the case of forced liquidation, the resolution will require the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund to pay insurance to depositors. The settlement decision of a financial institution shall be reasoned, signed by the holder of the relevant control body, shall enjoy the presumption of legitimacy and must be fulfilled from the date of its issue. The settlement resolution shall be entered in the relevant records.
The control body shall supervise the overall management of the liquidator. Article 308.-Vigency. The settlement resolution shall apply from the date of its issue, without prejudice to its publication in the Official Register. Article 309.-Advertising. The settlement resolution of a financial institution shall be published, for one time, in a circulation paper of the place of domicile of the institution and in the Official Register, without prejudice to its advertising in other media. Article 310.-Impeachment. The act of liquidation of a financial institution may be challenged in administrative or judicial headquarters. The administrative seat shall be contested in accordance with the rules laid down by the inspection body. The legal challenge will be brought before the respective administrative court. The interposition of an action or action shall not suspend the effects of the settlement act of a financial institution. If the challenge is accepted, either in the administrative or judicial seat of last instance, and the act of liquidation of a financial institution is left without effect, it shall be carried out in accordance with the terms of the judgment or judgment, as the case may be. All acts concluded by the liquidator in the performance of his duties shall be valid, except in the case of legal proceedings, in which case the relevant rules shall apply. Article 311.-Resources for payment of settlement. When an entity is in the process of settlement, all the resources on which it is entitled shall be collected, in order to pay the entity's obligations, except those whose availability is restricted by a judicial measure prior to the suspension of operations. Article 312.-Liquidator functions. The liquidator shall perform all activities leading to the carrying out of the assets of the financial institution in liquidation, in order to cancel the existing liabilities. For the purpose, the liquidator shall exercise the coercive jurisdiction. The main functions of the liquidator are: 1. Represent the entity, judicial and extrajudicially; 2. Initiate the judicial actions that correspond to
against any person who could be responsible for the liquidation;
3. To take charge of the administration of the goods that
integrate the patrimony of the entity; 4. To comply with the provisions of article 306; 5. Contract credits, for which effect you will be able to deliver in
collateral the assets of the entity in liquidation. These credits shall be privileged over any other accretion;
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6. Dispose of social goods; 7. Receipt and collect the amount of the credit of the
entity and the balances owed by the shareholders, granting the corresponding receipts or finiquitos;
8. Pay to the creditors; 9. Present settlement states; 10. Report to the control bodies; 11. Present to the control bodies the reports
corresponding to the recovery of the debts, with the periodicity established for such effects;
12. Receive, carry and guard the books and correspondence
of the entity and ensure the integrity of its assets, formulate the monthly and annual balance sheets, and a memory on the development of the liquidation, render detailed account of its administration and draw up the final settlement balance or subscribe to the equity deficiency act;
13. Negotiate or downgrade bad or dubious debts and
compromise on claims against the entity; and, 14. Distribute to shareholders the remainder of
social, if any; otherwise, you will have to issue the credit notes for the differences.
The control body will determine the additional functions to be fulfilled. the liquidator, as the case may be. The assets, liabilities, assets and other obligations which cannot be settled in accordance with the provisions of this Article may be transferred to a trust whose constituent shall be the liquidator of the institution, in order to dispose of the assets. remains. The liquidator shall not be able to carry out any new financial activities relating to the entity's social object, as well as to acquire, directly or indirectly, the assets of the financial institution in liquidation. This prohibition extends to the spouse, survivor, and relatives within the fourth degree of consanguinity or second degree of affinity. Article 313.-Judicial actions. Resolved the suspension of operations provided for in Article 292 or the forced liquidation of the financial institution, no judicial or administrative proceedings may be initiated against that entity, nor shall it be decreed. liens or charges, or other measures on their property, or procedures for the execution of judgments in the light of judicial or administrative rulings, because of the obligations entered into before the date on which it was settled the suspension of operations to that financial institution and as such a situation continue in force, except mortgages constituted by the financial institution in favour of third parties, in guarantee of transactions up to the amount, per natural or legal person, equivalent to two hundred basic unified salaries, shall be governed by Article 2381 of the Civil Code.
The sums due, for any given concept, or the undertakings owned by those shareholders or administrators of the financial institutions concerned by this Article, including those which they shall not be required from the date of suspension of operations, for these purposes, the time limit, and therefore shall be, in favour of the suspended entity taking them into administration, first class privileged credit even with preference to mortgage loans, structured in trusts or any other of a different kind This is not the case for the workers or the state institutions, including the Ecuadorian Social Security Institute. For the collection of such assets, the suspended National Financial System entity shall initiate the co-active on the basis of the determination to be used, and shall provide for the precautionary measures and awards that may be actual character on goods which are subject to a charge of any kind or contributed to trusts, which shall be cancelled by the temporary administrator or the liquidator of the institution, in order to collect what is added, so that the product, while respecting the priority given in this paragraph, covers the accreances according to the Article 315. The control bodies, at the justified request of the liquidator, may order the cancellation in the Registry of the Property of the registration of the purchase, payment or any other title of the domain, including the contributions to self-employed assets, in respect of those assets of undertakings linked to persons with property ownership with influence or administrators, concluded after the suspension of the financial institution's operations, at last of the fact that these goods are used to collect what is added according to the precept and to the the procedure determined in the preceding paragraph. Third parties in good faith who may be affected by the cancellation of the transfer shall be liable for damages exclusively against those who have transferred the property after the suspension of the operations of the entity has been ordered. financial. Article 314.-Interest and time limits for credits granted. All deposits, debts and other obligations of a financial institution in favour of third parties, from the date of their forced liquidation, shall not bear interest against the mass of creditors, except as provided in the following Article. Loans granted by a financial institution in the process of forced liquidation shall keep the terms and conditions originally agreed. However, the credits with the quality of the related links shall be deemed to be expired. Article 315.-Payment of payments in forced liquidation. The payments arising from the forced liquidation of a financial institution shall be made in the following order: 1. Deposits up to the amount legally secured
from deposit insurance;
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2. Those due to the workers for
remuneration, indemnities, profits, reserve funds and retirement pensions from the employer, up to the amount of the settlements that are practiced in the terms of the legislation "3." 3. "3." 3. " I will support you, and the obligations to the Ecuadorian Social Security Institute derived from labor relations;
3. Credits granted by discount window and
domestic investment of surplus liquidity; 4. deposits for amounts exceeding the value
secured from priority care groups, up to a value equivalent to (50%) additional to the secured value;
5. Other deposits for amounts exceeding the
secured value, in accordance with the rules dictated by the Monetary and Financial Policy and Regulatory Board, in the following order:
a. At least 90% of natural persons
depositors with lower deposits; and, b. At least 90% of legal persons
depositors with lower deposits. 6. Other deposits for amounts exceeding the
secured value, in accordance with the rules of the Monetary and Financial Policy and Regulatory Board, in the following order:
a. The remaining natural persons depositors with
lower deposits; and, b. The remaining legal persons depositors with
lower deposits. 7. The remainder of the funds ' liabilities captured by the
financial institution under modalities not covered by the preceding numerals, with the exception of deposits of those with credit or other related assets in the institution in settlement;
8. The securities paid by the Insurance Corporation of
Deposits and Liquidity Fund; 9. Those due for taxes, fees and
contributions; 10. The court costs that are caused in the common interest
of the creditors; 11. The suppliers of the financial institution, up to the
amount equivalent to the deposit insurance; and, 12. Other liabilities, according to the order and form
determined in the Civil Code, and the unclaimed values of the preceding numerals, within three months of the call for recovery.
The remnants of the financial institutions private and of the entities of the popular and solidary financial sector, in case of having, after having discounted the expense
administrative incurred by the State, the interest generated on the liabilities to which the article refers (a) the date of the decision of the Council of the European Parliament and of the Council of forced liquidation, will be given to shareholders or members, administrators, natural and legal persons linked, both by their actions and by any other type of accretion. The order of payment order provided in this article may not be modified in any way, under penalty of peculado in the terms of article 278 of the Penal Integral Organic Code. Article 316.-Securities not claimed during settlement. Securities that have not been claimed within the time limit set in the settlement process of a financial institution may be used for payment of the loans in the order fixed in the previous article. Article 317.-Unclaimed securities completed settlement. The monetary securities that have not been claimed to be settled shall be deposited by the liquidator in the National Treasury Account. The remaining assets will be transferred to the entity that is in charge of the property management of the State, for its disposal. Article 318.-Closing of settlement. The settlement process shall be completed, the settlement shall be conducted by the settlement balance sheet and the settlement balance sheet, as well as the final settlement report, which shall be submitted to the control body and disclosed. to shareholders and/or members pending payment, in accordance with the rules issued by the control body. At the close of the liquidation the control body will dispose of the entity and exclude the financial institution from the Public Catastro.
Deposit Insurance Section 15, Liquidity Fund and Fund of
Insurance Private Article 319.-Administration. The Deposit Insurance of the private and popular financial sectors and solidarity, will be administered by the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund. Article 320.-Obligation. The entities of the private and popular financial sectors are obliged to participate with the contributions and contributions to the Deposit Insurance and Liquidity Fund and the guarantee mechanisms. Article 321.-Resource Management. Deposit Insurance resources will be managed through independent trusts administered by the Central Bank of Ecuador, whose constituent will be the Deposit Insurance Corporation, the Fund. of Liquidity and Private Insurance Fund.
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Article 322.-Deposit Insurance. Deposit Insurance will protect the deposits made in the entities of the the private and popular financial sectors authorized by the respective control bodies, in the form of current accounts, savings, fixed-term deposits or other legally accepted modalities, in accordance with the conditions laid down in the which establishes this Code for the payment of insurance. Article 323.-Exclusion of insurance. They shall not be protected by Deposit Insurance: 1. Deposits made by related persons
directly or indirectly to the financial institution as established by this Code;
2. Deposits in the same entity of shareholders,
administrators and members of the supervisory board of a popular or supportive financial institution;
3. The excess of the protected amount; 4. The deposits in offices abroad; 5. The obligations issued by the financial institutions
under the provisions of the Law of the Market of Securities; and,
6. Deposits that do not meet the conditions
determined in this Code. Article 324.-Deposit Insurance Trusts: The Deposit Insurance Corporation, Liquidity Fund, and Private Insurance Fund shall constitute the following independent trusts, in the Central Bank of Ecuador, with the To contribute entities in each sector: 1. Deposit Insurance Trust of the entities
of the Private Financial Sector; and, 2. Deposit Insurance Trust of the entities
of the Popular and Solidarity Financial Sector. Article 325.-Deposit Insurance Resources. Deposit Insurance will be nurtured with the following resources, in which each financial sector corresponds: 1. The contributions that will be made by the entities of the
financial sectors private and popular and supportive, in accordance with the provisions of this Code;
2. The return on investments and utilities
liquid for each annual Deposit Insurance exercise;
3. The donations they receive; 4. Those coming from loans or contingent lines
obtained for the financing of their activities; 5. Those coming from loans among the trusts
of the deposit insurance; and, 6. The remnants referred to in the article
315.
Deposit Insurance resources are of a public nature, not part of the General Budget of the State, they are unembargable and they will not be affected by the obligations of the taxpayers. The operation of his trusts will be exempt from all kinds of tributes. Creditors for loans or contingent lines shall not be able to make effective their claims against taxpayers, the liability of which is limited to their contributions. Article 326.-Contributions. Contributions to Deposit Insurance and the periodicity of their payment by entities in the private and popular financial sectors will be determined by the Policy and Regulatory Board. Monetary and Financial. The contributions may be differentiated by each financial sector and entity, and shall consist of a fixed premium and a variable premium, differentiated by the institution's risk. Article 327.-Investments. Deposit Insurance resources should be invested by observing the principles of security, liquidity, diversification and profitability, subject to the investment policies approved by the Monetary and Financial Policy and Regulatory Board. Article 328.-Protected Monto. The amount protected by Deposit Insurance for each natural or legal person will be differentiated by each of the insured financial sectors. The insured amount of deposits in private and popular financial institutions, segment 1, will be equal to twice the current exempt basic fraction of income tax, but in no case less than USD 32,000.00 (thirty-two years). thousand dollars from the United States of America). The insured amount of deposits for the rest of the segments of the Popular and Solidarity Financial Sector will be equal to once the current exempt basic fraction of the income tax, but in no case less than USD 11,000.00 (eleven thousand dollars). United States of America). The total amount to be paid by Deposit Insurance in each sector will not be able to exceed the total assets of the respective trust. Article 329.-Enforcement. The right to payment of Deposit Insurance shall be made effective from the date of notification of the resolution with the declaratory of forced liquidation of the entities of the private and popular financial sectors and solidarity, by the control body to the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund. Article 330.-Payment Requirements and Procedure. The requirements and procedure for payment of Deposit Insurance shall be determined, in each case, by the Deposit Insurance Corporation, the Liquidity Fund and the Private Insurance Fund. compliance with the standard dictated for the purpose by the Corporation itself.
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For payment of deposit insurance made by the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund acquires, instead of the creditor, the right to recover the credit for the value paid. Article 331.-Rights Subrogation. The Deposit Insurance Corporation, Liquidity Fund, and Private Insurance Fund shall be subrogated to the receivables in respect of securities covered by Deposit Insurance. Article 332.-Control. The Private Financial Sector Deposit Insurance trust will be subject to the control of the Superintendency of Banks. The deposit insurance trust of the popular and solidarity financial sector will be subject to the control of the Superintendence of Popular and Solidarity Economy. The Comptroller General of the State shall exercise control over the use of the public resources of the assets of the respective trusts. Article 333.-Liquidity Fund. The liquidity deficiencies of entities in the private and popular and supportive financial sectors may be covered by the Liquidity Fund, which will act as lender of last resort and provide liquidity loans to financial institutions that comply with the following conditions: 1. That they maintain their technical assets within the
minimum levels required by Article 190; and, 2. That they have administered their liquidity compliance
with the regulations dictated for the effect. Article 334.-Trusts from the Liquidity Fund. The following independent trusts shall be established: 1. Trust of the Entity Liquidity Fund
of the Private Financial Sector; and, 2. entities
of the Popular and Solidarity Financial Sector. Article 335.-Liquidity Fund resources. The Liquidity Fund will be nourished with the following resources, in which each trust corresponds: 1. The contributions that the entities will make, of
compliance with the provisions of this Code; 2. Return on investments and utilities
liquid for each annual exercise of the Liquidity Fund; 3. The donations you receive; 4. Those coming from loans or contingent lines
obtained for the financing of your activities; and, 5. The proceeds of loans among the trusts
of the liquidity fund.
The resources of the Liquidity Fund are of a private nature, are non-embargable and cannot be affected by the obligations of the contributors, except for the payment of the credit operations through the discount window and the domestic investment of the surplus liquidity. The operation of the trusts will be exempt from all kinds of taxes. The creditors of the Liquidity Fund for loans or contingent lines will not be able to make effective their credits against the contributors, whose responsibility is limited to their contributions. Article 336.-Amounts. The contributions to the Liquidity Fund and the periodicity of its payment by the entities of the private and popular financial sectors and solidarity will be determined by the Board of Monetary Policy and Financial. The contributions will be differentiated by each financial sector. Article 337.-Investments. The resources of the Liquidity Fund should be invested in accordance with the principles of security, liquidity, diversification and profitability in the framework of the objectives of economic policy and the preservation of the deposits. These resources may not be invested in bonds issued by the Ministry of Finance. Members of the Board of Directors of the Deposit Insurance Corporation, Liquidity Fund and Private Insurance Fund, will be responsible for the failure to observe the parameters described in the previous paragraph. Article 338.-Operations. The Liquidity Fund may perform the following active and passive operations: 1. Active operations, consisting of:
a. Ordinary appropriations, the term of which shall be a renewable working day, which shall be granted within a credit line to cover deficiencies in the clearing houses of the Central Bank of Ecuador administered by the Central Bank of Ecuador;
b. Extraordinary credits, which may not exceed
of the three hundred and sixty-five-day period from its grant; and,
c. The operations referred to in Article 335.
2. Passive operations: These may consist of loans and
securitisations; and, 3. Contingent lines with international financial institutions
The Liquidity Fund may also be used to cancel the obligations arising from the discount window and the domestic investment of the surplus liquidity, in accordance with this Code. Article 339.-Conditions. In active operations, the following conditions are observed:
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1. The ordinary credits may be granted up to the
amount equivalent to the contribution that each financial institution has made to the Liquidity Fund, which shall guarantee the respective operation. Access to these credits will be automatic and your interest rate will be set by the Monetary and Financial Policy and Regulatory Board. The Central Bank of Ecuador, as a fiduciary administrator, shall inform the relevant control body of the execution of these operations; and,
2. Extraordinary credits may be granted to
the financial institutions provided, provided that they maintain the minimum level of solvency determined by the Monetary and Financial Policy and Regulatory Board. The interest rate of these credits will be established by the Board.
The Monetary and Financial Policy and Regulatory Board shall issue the eligibility rules, in which the conditions to be met by the institutions shall be established. financial to access this type of credit. Article 340.-Guarantee Trust. Each of the entities in the private and popular financial sectors and in solidarity shall constitute a commercial guarantee trust with a portfolio of investments and portfolio that will have as a beneficiary creditor to the Trust of the Fund Liquidity that corresponds. The minimum initial contribution to this trust will be at least fifty thousand dollars from the United States of America USD 50,000.00 (fifty thousand dollars from the United States of America) for the private financial sector entities, and on each occasion that requires an extraordinary liquidity credit, the institution shall provide adequate guarantees for an amount not less than 140% of the amount of the extraordinary credit, in accordance with the rules issued by the Monetary Policy and Regulatory Board; and Financial. The minimum initial contribution to this trust for the popular and solidarity financial institutions will be determined by the Monetary and Financial Policy and Regulatory Board. Article 341.-Exposition. The total exposure of the resources provided to the Liquidity Fund for all active operations granted to a financial institution that remain in force may not exceed 30% of its assets, nor of the equivalent of 100% of the technical assets of that financial institution. Article 342.-Control. The accounts of the private financial sector of the Liquidity Fund shall be subject to the annual verification of an external audit previously qualified by the Superintendency of Banks, without prejudice to the powers of the the institution to monitor them. The accounts of the popular and supportive financial sector of the Liquidity Fund will be subject to the annual verification of an external audit previously qualified by the Superintendence of Popular and Solidarity Economy, without prejudice to the powers of the
Article 343.-Return of resources. The resources provided by financial institutions to the Liquidity Fund shall be returned in the following cases: 1. Exclusion and transfer of assets and liabilities; 2. Voluntary or forcible settlement of the entity; and, 3. The excess of the contribution in case of mergers. Article 344.-Subject to the Private Insurance Fund. They shall be protected by the coverage determined in this legal body, public and private sector policyholders who have existing policies, with the entire premium cancelled, in the companies of the private insurance system. The Private Deposit Insurance shall cover within the amount set by the Board the value of outstanding claims to the date of the forced liquidation. Article 345.-Exclusion from Insurance. They will not be protected by private insurance coverage: a. People who have been sentenced for crimes
of drug trafficking or money laundering; and, b. Persons who have policies with
insurance companies that are not legally constituted in Ecuador.
Article 346.-Protected Amount. To determine the amount protected by the coverage and its return to the insured or beneficiary, the whole of the policies registered by each natural or legal person, public or private, in the company of the private insurance system, shall be taken into account at the date of the start of the forced liquidation provided by the control body. Article 347.-Coverage. The Private Insurance Fund shall be activated from the notification made by the control body to the Corporation, with the declaration of forced liquidation of a private insurance system company. The receipt by the insured persons or beneficiaries of the securities paid by the Corporation will produce the full subrogation of the rights of the creditor against the insurance company submitted to the forcible liquidation. The resources to be recovered under that subrogation shall be entered into the Private Insurance Fund. Article 348.-Private Insurance Fund Trust. For the implementation of the insurance guarantee the Corporation will constitute a fund through a merchant trust that will be controlled exclusively by the control body, with the exclusive purpose of fulfilling the aims set out in this Law. The equity of the fund shall be non-rechargeable and shall not be affected by the obligations of the contributors. The establishment and operation of the fund shall be exempt from all taxes. The creditors of the fund by
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contingent loans or lines will not be able to make their credits against the contributors, whose liability is limited to their contributions. Article 349.-Private Insurance Fund Resources. The Private Insurance Fund shall be constituted with the following resources to be considered public: a. The 1.5% contribution on the value of premiums
net of direct insurance, which will be carried out by private insurance companies, and the proportion of the contribution determined in Article 67 of the General Insurance Act;
b. The return on investments and utilities
liquid for each year of the Private Insurance Fund;
c. The donations I receive; and, d. Those from loans or contingent lines
obtained for the financing of their activities. The resources of the Fund should be invested by observing the principles of security, liquidity diversification and profitability, and framing the investment policies approved by the Board. The fund's resources may not be used to cover administrative expenses or to pay for investments in fixed assets of the Corporation. Article 350.-Inembargability. The contributions and their interests shall be inembargable and shall not be subject to any precautionary measure restricting their availability. The contributions to be made by the private insurance companies may be debited from the accounts held by the financial system entities, upon request of the legal representative of the Corporation. Article 351.-Audit and Verification. The Private Insurance Fund shall be subject to the annual verification of an external audit qualified by the control body. The control body may at any time verify the
Section 16 of the stealth and reservationArticle 352.-Protection of information. Personal data of users of the national financial system who are reposing in the said system and its access are protected, and can only be delivered to its owner or to authorize or at the disposal of this Code. Article 353.-Sigil and reservation. The deposits and other fetches of any nature that are received by the entities of the national financial system are subject to secrecy, and therefore no information relating to them may be provided operations, but to the holder or to whom it has been expressly authorized by him or to whom he/she represents it lawfully.
Other operations are subject to reservation and the entities of the national financial system may only make them known to who demonstrates a legitimate interest and whenever it is not foreseeable that the knowledge of the information may cause injury to the customer. Entities in the national financial system, in order to facilitate reconciliation processes, shall give access to the detailed knowledge of previous operations and their background to the external audit firm contracted by the institution, which It shall also be subject to stealth and reservation. Institutions of the national financial system may disclose prior operations in global, non-personalised or biased terms, for statistical or information purposes only, where there is a public interest. They may also provide general information regarding the behaviour of customers in particular, prior to their authorisation, for the purposes of credit assessment, to the need for another financial institution or approved commercial establishments. for the clients, without it impli-that the ability to disclose individualized transactions. There shall be no reservation in respect of the total or partial extinction of the active operations, so that the payment and its terms, the compensation, the donations and the prescriptions may be made public. The system shall not be applied to the resources of public sector entities. Article 354.-Exceptions. The provisions of the preceding article do not apply for the delivery of the following information requested from the control bodies or the entities of the National Financial System: 1. relating to operations carried out
by those who are a party or are investigated in cases under the knowledge of a judge or the State Attorney General's Office;
2. The current account holder's data closed by
spin of checks without provision of funds, required by the legitimate holder of the checks;
3. Any information required by the
control and Internal Revenue Service, within the scope of its competence;
4. The information required by the Policy Board and
Monetary and Financial Regulation, which must be channeled through the control body;
5. The information to be delivered by the bodies of
control to make the public aware of the financial and financial situation of financial institutions;
6. The reports required of the control bodies,
in the field of their competence, by governments or by competent authorities of the countries with which Ecuador maintains reciprocal and legitimate agreements concluded to combat the crime, in the terms of those conventions;
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7. Financial information that constitutes
exchange with banking, financial and tax control authorities of other countries, provided that there are reciprocal, existing and legitimately concluded conventions; and,
8. The others who establish the law. The information to be delivered shall be used only for the purposes justified by the requesting institution. The delivery of this information will be carried out with equal protection of stealth and reservation; therefore, the persons of this information assume the responsibility inherent to the stealth and the reservation. The transfer of this liability does not apply in the case of numerals 6 and 7. The violation of the stealth and the reservation shall be sanctioned as provided in this Code, without prejudice to the criminal actions to which it has taken place. Article 355.-Non-disclosure of information. No natural or legal person who becomes aware of information subject to secrecy or reservation may disclose it in whole or in part. Failure to comply with these provisions will be sanctioned by this Code, without prejudice to the respective criminal liability. Article 356.-Obligation of denunciation. When the control bodies, shareholders, administrators or officials of the entities of the national financial system have knowledge of the evidence of the perpetration of a related crime with the activities of financial institutions, they will be obliged, followed, to report them to the State Attorney General.
Section 17 of the credit data register
Article 357.-Credit data records. The Register of Credit Data is in charge of the National Directorate of Registry of Public Data. The National Directorate of Public Data Registry has an obligation to administer the credit database and will be able to generate reports of credit references in an accurate and up-to-date manner, according to the law. Article 358.-Information for the record. The credit information in charge of the financial institutions shall be delivered to the Credible Data Registry through the respective control bodies, which shall establish the policies, form and its periodicity. Institutions of the national financial system shall provide only to the Credible Data Registry the data records of the information concerning the credit history. It is prohibited to provide this information to any other entity other than those specified in this Code. The control bodies and the Internal Revenue Service will be able to access at all times, automatically, in the formats and structures requested, the credit data contained in the Register of Credible Data, in order to fulfill its duties and obligations established in the Constitution and law.
Article 359.-Delivery of information. The entities of the national financial system, are required to supply to the Registry of Credible Data, through the agencies of control, the information needed to keep it up to date. This information will be previously validated by the superintendences, in the field of their competencies, prior to their delivery to the National Directorate of Public Data Registry. In order to comply with this obligation, the entities should observe the following: 1. Deliver the information within the given deadline
by the control bodies; 2. Deliver special reports to amend errors that
have been committed, for the purpose of debugging this registry;
3. The information submitted must contain at least the
following identification data, in case the person who has contracted the credit is a natural person: full names and surnames, identity card number and citizenship or passport and in the case of a legal person, the social reason and the number of the Single Register of Contributors (RUC) shall be recorded. With regard to the information relating to the credit operation, the following data shall be required for both natural persons and legal persons: the date on which the obligation originated, the date from which the obligation is due, the dates from which the date of the credit operation The amount of the interest accrued to the date of the report, the amount of the interest from arrears to the date of the report, and the state in which the credit is located, expressly stating whether it is in respect of that credit has been raised administrative claim or has been initiated judicial process; and,
4. Do not deliver value detail for
concepts that have not originated in direct credit operations and have not been expressly requested by the customer.
Non-financial entities that grant credit Regarding the limits determined by the Board, they are obliged to comply with the provisions of this article and to provide the information directly to the National Directorate of Public Data Registry. Article 360.-Responsibility. The National Directorate of Public Data Registry is responsible for the application of the models authorized jointly by the Superintendents of Banks and Insurance, of the Popular and Solidarity Economy, and of Companies, used to generate credit reports.
CHAPTER 4 Public Financial Sector
Section 1
Creation, naming, organization and settlement Article 361.-Creation. Entities in the public financial sector shall be created by executive decree, in which at least it shall be expressed:
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1. Denomination; 2. Object; 3. Authorized, subscribed and paid capital; 4. Heritage; 5. Administration; 6. Duration; and, 7. Domicile. Article 362.-Denomination. The name of entities in the public financial sector will be differentiated from the rest of financial institutions, and their public nature must be made visible. Article 363.-Organization. Entities in the public financial sector shall be organized in accordance with the definitions and needs determined by the Monetary and Financial Policy and Regulatory Board. Article 364.-Settlement. The President of the Republic by executive decree, for reasons of public interest, may arrange for the closure of public financial sector entities. As a result of the closing, voluntary liquidation will be carried out in accordance with the provisions of this Code.
Section 2 Nature, social object, duration,
status and domicile Article 365.- Nature. Entities in the public financial sector shall be constituted as legal persons governed by public law, with administrative, financial and budgetary autonomy. In the exercise of their financial activities and services, they shall be governed by the provisions of this Code, which shall be issued by the Board, the control bodies, their respective directories, those applicable to financial institutions and in the rest, apply the legislation governing public institutions. Article 366.-Object. The object of the entities in the public financial sector shall be determined in the executive decree of its creation, in which its condition of public financial institution, the type of entity and the segments is established and financial activities to which it is to be devoted. Article 367.-Heritage. The assets of the entities in the public financial sector are autonomous and shall consist of the assets to be determined in the corresponding executive order. Article 368.-Duration, social status and domicile. Entities in the public financial sector shall have the duration and domicile established in the respective social status.
The social status shall contain the structure general institutional of the entity and must be known and approved internally by its directory and subsequently by the Superintendence of Banks. The content of the social status will be normalized by the Superintendence of Banks.
Section 3 Of the purposes and objectives
Article 369.-Purpose and objectives. Public financial institutions shall carry out activities financial in a sustainable and efficient manner. The funding they grant will seek to meet the following objectives: a) Changing the pattern of specialization of the
national economy; b) Innovation and entrepreneurship to increase
technological and knowledge intensity; c) Increasing national production and sovereignty
food; d) Selective substitution of imports; e) Exports with emphasis on those of value
added; f) Projects of autonomous governments
decentralized; g) Housing primarily of social interest; h) economic inclusion of first entrepreneurs,
single mothers, people in mobility human, with disabilities, youth and others belonging to priority care groups.
Article 370.-Trust administration. Public financial sector entities will have the power to act as administrators. trustees.
Government and Administration Section 4
Article 371.-Structure. The government of the entities that make up the public financial sector will be integrated by: 1. Directory; and 2. General management. The organizational structure of the entity will be included in the respective normative act, which will be approved in accordance with the Public Service Organic Law. The board members and the general manager will be considered the administrators of the entity.
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Article 372.-Public policies. Public policies governing the exercise of the activities of the sector entities Public finance will be dictated by the Monetary and Financial Policy and Regulatory Board. Article 373.-Directory. Each of the public financial institutions will have a directory constituted as follows: 1. A permanent delegate of the President of the
Republic, who will preside over it and have a vote of the same; 2. The holders of three State secretaries whose scope
is directly related to the purposes and objectives of the respective financial institution, or its permanent delegates; and,
3. The head of the Secretariat of State in charge of the
economic policy or its permanent delegate. The President of the Republic in each executive decree of creation shall establish which ministers or secretaries of state shall participate in each directory, in accordance with this article. The public financial institution shall notify the respective superintendence of the appointment of directors, legal representatives and internal and external auditors within eight days of its appointment. Article 374.-Designation of delegates. Permanent delegates shall be appointed by the appropriate administrative act; prior to the commencement of their duties, they shall have the qualification issued by the Superintendence of Banks, crediting the following requirements: 1. Ecuadorian citizen; 2. Third-level professional in economics, finance,
banking, law, administration, development or related; 3. Professional experience in areas related to
minus five years; 4. Not being in conflict of interest; and, 5. Meet the required requirements to be an official or
public server. He will act as the Secretary of the Board, the person appointed to the effect. Article 375.-Directory functions. The directory of public financial entities will have the following functions: 1. Dictate the management policies of the entity and control
its execution; 2. Know and authorize the Borrowing or
operations in the domestic or international market, over the limits authorized to the general manager;
3. To know and resolve on the content and compliance of the Banking Superintendency communications regarding provisions, observations, recommendations and initiatives on the march of the entity;
4. Set the approval levels of the
active and contingent
operations; 5. Approve the active and contingent operations thatindividually exceed 2% of the technical heritage, and their warranties, and know the operations passive that exceeds that percentage;
6. Analyze and approve the comprehensive management policy of
risks and follow up on its implementation; 7. Approve and issue opinion, under its responsibility,
on financial statements and internal and external auditors ' reports, qualified by the superintendence. The opinion of the directory must be sent to the control body according to the instructions it determines;
8. Ultimately know and resolve administrative
the resources presented against the acts of the directory itself and the General Manager;
9. Approve the social status and its reforms; 10. Approve the organic status by processes of the
entity; 11. Approve the budget internally, prior to its
sent to the Board; 12. Approve the internal regulations; 13. Designate the General Manager of the entity; 14. Designate the internal and external auditors, experts
valuers and the risk rating firm subject to prior qualification by the superintendence;
15. Designate a secretary of the directory; 16. Present the reports required by the
Board and control bodies; and, 17. The others who assign the law to him. In the case of the public financial institution in charge of the financing of the Decentralized Autonomous Governments, the functions of the numeral 14 will be resolved by the General Shareholders ' Meeting. Article 376.-Functions of the President. The chairman of the directory will have the following functions: 1. Call and chair the directory sessions and
subscribe with the Secretary the corresponding minutes; 2. Report to the directory on execution and application
the decisions taken; and,
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3. Exercise the other functions that correspond to you, of
compliance with this Code and the status of the entity.
Article 377.-General Manager. The General Manager of the entity shall be appointed by the Board and shall be free of charge. appointment and removal. You must meet the following requirements: 1. Ecuadorian Citizen; 2. Fourth-level professional title in economics,
finance, administration, law, or related areas; 3. Professional experience in related areas
theminus five years; 4. Not being in conflict of interest; and, 5. Meet the required requirements to be an official or
public server. The General Manager must meet the required qualification for the delegates to the directory. Article 378.-General Manager duties. The General Manager shall perform the following functions: 1. Represent legal, judicial and extrajudicial to the
entity; 2. Agree, execute and celebrate any act, done,
agreement, contract, or legal business that leads to the fulfillment of the entity's purposes and objectives;
3. Comply and enforce the resolutions of the
directory; 4. Direct the operational and administrative management of the
entity; 5. Prepare the budget, plans and regulations of the
entity and put them into consideration of the directory; 6. Submit the reports that the directory requires; 7. Exercise the coactive jurisdiction in representation of the
entity; and, 8. The others who assign him the law and the statute. Article 379.-Administrative management. The administrative management of public financial sector entities shall be unconcentrated. Article 380.-Staff. Officials and servants of public financial sector entities shall be subject to the provisions of the Public Service and Labor Code Organic Law, as the case may be.
Section 5 Of capital and reserves
Article 381.-Capital and reserves. The capital and reserves of the entities that make up the public financial sector
shall consist of the corresponding social status, and may not be less than the determined in the regulations that the Board for the effect will dictate. Article 382.-Increase of capital. The subscribed and paid capital of public financial institutions may be increased by the provision of the board or by a general rule issued by the Monetary Policy and Regulatory Board and Financial. When resources are committed from the General Budget of the State for the increases in subscribed and paid capital, prior opinion of the governing body of public finances shall be required. Capital increases will be reported to the Banking Superintendency for verification and control purposes.
Section 6 Of Public Financial Sector Operations
Article 383.-Operations. Entities public financial operations may carry out the active, passive, contingent and service operations specified in Article 194, subject to the authorisation of the relevant control body. The identification of the operations shall be recorded in the authorisation issued by the inspection body in accordance with Article 144. In order to carry out those operations not determined in this Code, they must obtain the authorization of the Monetary and Financial Policy and Regulatory Board. Public financial institutions shall, prior to the commencement of operations, obtain from the control body the respective operating permit, in accordance with the procedure laid down for that purpose. Article 384.-Investment in the capital of private financial institutions, insurance and securities. The public financial institutions which, at the date of validity of this Code, have investments in the capital of financial institutions Private insurance and securities by a percentage of more than 50% of the capital may maintain such investments in accordance with the regulations governing the Monetary and Financial Policy and Regulatory Board in which case they shall consolidate their financial statements.
Section 7 Of prohibitions and exemptions
Article 385.- Bans. Public financial institutions are prohibited: 1. To carry out credit operations that do not become entangled
in public policy prepared for the entity or in the regulations issued by the Monetary and Financial Policy and Regulatory Board;
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2. Request collateral for operations whose
amount is less than determined for the purpose by the Board;
3. Write off debts; 4. Donate resources to people in private law. The use of State General Budget resources within the framework of the provisions of Article 104 of the Organic Code of Public Planning and Finance; and,
5, is
from this prohibition. The others to set this Code. Failure to comply with the prohibitions set out in numerals 1, 2 and 3 shall be sanctioned as very serious infringements and the failure to comply with the numeral 4 shall be sanctioned as a serious infringement. Article 386.-Privileges and prerogatives. The public financial institutions and the Central Bank of Ecuador, as appropriate, shall enjoy the following exemptions: 1. Of the payment in their acts and contracts of all kinds
of tax, municipal and special taxes with the exception of value added tax for services;
2. Of the payment of taxes for the issuance of securities and
obligations of a financial character; 3. of the alcabala tax, registration and their respective
additional for the transfers of domain of real estate in which they intervene; and,
4. The others that the law grants to the institutions of
public law. Entities in the public financial sector shall enjoy the civil, commercial, procedural and other benefits and privileges of any other nature that correspond to the financial institutions operating in the country. The prescription of actions for the recovery of your credits will be operated at twice the time set for the prescription of the actions in general.
Section 8 Of Internal Audit and Control
Article 387.-Control. The Superintendency of Banks shall be responsible for the control of the financial activities of the public financial sector entities, with the exception of the public financial institution referred to in the Law of the People's Economy and Solidarity, which will be in charge of the control of the Superintendence of the Popular and Solidarity Economy. The Superintendence of the Popular and Solidarity Economy will be responsible for the control of the financial activities of the entities of the Popular and Solidarity Financial Sector. In the event that the control body presumes the committing of a criminal offence of public criminal action, it shall denounce the background to the Attorney General of the State, to
the district attorneys or tax agents, as appropriate. If the control body presumes the committing of the crimes of embezzlement or illicit enrichment, it shall communicate to the Comptroller General of the State, in order to carry out the audit that is the case. Article 388.-Ambition of control. The control areas of the superintendence and the Comptroller General of the State will be expressly differentiated, in accordance with the provisions of this Code, avoiding conflicts of competence. The acts of control, audit, surveillance and audit, as well as the verifications, examinations, evaluations, recommendations and results obtained outside the scope and competence of each control body, shall be null and void. of legal effectiveness. The Comptroller General of the State shall exercise external control in accordance with his law exclusively in the use of public resources in the administrative management of entities in the public financial sector. This control has no scope and does not cover the financial activities carried out by the public financial sector. The internal control shall be carried out by means of the internal auditor appointed by the Comptroller General of the State. Conflicts of competition in the control of public financial institutions will be resolved by the Constitutional Court.
CHAPTER 5 Private financial sector
Section 1
Constitution, denomination, organization and settlement
Article 389.-Constitution. Private financial sector entities shall be constituted in the presence of the Superintendency of Banks as anonymous corporations, in accordance with this Code, with a minimum of two promoters. A private financial institution may be set up on the initiative of the promoters concerned, founders or public promotion. Article 390.-Social reason and trade name. For the constitution of a new private financial institution, it will be necessary to have prior to the social reason, which will have to be reserved and authorized by the Superintendence of Banks. The social reason selected by the promoters must ensure their nature and individuality, in order to avoid confusion. In the case of social reasons, the class of entity to be constituted shall be recorded. Without prejudice to the authorised social reason, institutions may use commercial denominations authorised by the Superintendence of Banks. Commercial denominations may be used only by entities authorized by the Superintendency of Banks.
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Article 391.-Requirements for the constitution. Promoters who intend to constitute a private financial institution shall be required to submit, in the formats determined by the control body, the following: 1. Application subscribed by the promoters, their proxy or
representative; 2. Certified copy documents certifying the
identity, suitability, the responsibility and solvency of the promoters;
3. Document proving the reservation of the
name or social reason; 4. The technical study signed by a professional in the
material that contains at least the following: economic-financial feasibility of the private entity Market analysis and analysis that demonstrate the feasibility of its constitution and insertion, in line with the capacity and expertise chosen and its impact on the other entities of the system;
5. The draft constitution contract, which must
include the social status of the entity, the social object of which must be specific, in accordance with the models of the contract of constitution and the social status standard by the Superintendence of Banks; and,
6. Credit the capital integration account,
by the deposit voucher in any bank, of at least 50% of the minimum capital required for the constitution. This deposit will be made in an interest-bearing form.
Legal persons acting as promoters, as well as their natural persons, shall be qualified when their contribution to the financial institution is to be established. is 6% or more of the capital. Article 392.-Minimum capital for the constitution. The capital of the private financial institution shall be divided into nominative shares. The subscribed and paid minimum capital for the constitution of a private financial sector entity, is: 1. Banks: USD 11'000,000.00 ($11 million
of the United States of America); and, 2. The minimum capital and its composition entities of
financial services will be determined by the Monetary and Financial Policy and Regulatory Board.
The capital contributions of the banks must be paid in full in money, unless the Superintendency of Banks authorizes (a) to be capitalised on debt compensation obligations. The Board shall update annually the values set out in numerals 1 and 2 of this Article, using for the effect the variation of the consumer price index of the year immediately preceding. Article 393.-Processing for the constitution. Once the requirements specified in Article 391 have been submitted, the Superintendence of Banks shall carry out the
verification, analysis, validation, evaluation and qualification of the requirements and opposition, by third parties, within one hundred and eighty days, and will require the non-objection of the Monetary and Financial Policy and Regulatory Board on the impact of the new entity on the system. The Superintendence may require clarifications, additional documentation or any other information that complements the requirements required for the constitution. Article 394.-Causes to deny the constitution. The Superintendence of Banks may deny the constitution of a private financial institution for the following reasons, if they have not been remedied: 1. Failure to comply with the requirements of Article 391 for the
constitution; 2. By moratorium declared in accordance with the
provided in Article 14 numeral 26; 3. The objection of the Board of Policy and Regulation
Monetary and Financial on the constitution of the new entity; and,
4. Having been opposed by a third party,
accepted by the Superintendence of Banks. Article 395.-Approval of the constitution. The constitution of the new private financial institution will be approved by the control body and the corresponding margins and records will be available. The new private financial institution will have six months, from the date of approval of the constitution, to implement all the actions necessary to complete the process of constitution and start of activities. For such purposes, it must obtain the necessary physical infrastructure, obtain the qualification of its directors and its legal representative, have the minimum organizational structure, including technological factors, processes and resources. the human resources necessary for its operation, operation plans, internal controls, in accordance with the activities and markets in which it intends to participate and the risks it intends to assume, in accordance with the rules issued by the Superintendence of Banks. If the entity does not implement all the actions necessary to complete the process of constitution and start of activities within the period indicated, the approval of the constitution shall be without full value, except that, for reasons duly justified, the Superintendency of Banks, before the expiration of the deadline, extends it for once for up to six months. Article 396.-Authorization of financial activities. The private financial institution shall communicate to the Superintendency of Banks the fulfillment of the actions required for its constitution and start of activities and request authorization corresponding. The control body shall verify compliance with these actions, the payment of 100% of the subscribed and paid capital, and on the basis of its compliance, will extend the authorization in accordance with the provisions of this Code.
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The authorization shall consist of a reasoned administrative act, determining the financial activities and operations that may be exercised by the private financial institution, in accordance with its capacity and expertise. The term of validity of this authorisation shall be equal to that of the duration of the institution and may be renewed to the extent that the duration of the institution is extended. The authorization may not be given under any title and may be revoked by the Superintendence of Banks for the causes established by this Code. The authorisation shall enter into force from the date of its notification to the private financial institution. For this purpose, it must also be registered with the Public Catastro. Article 397.-Operating permit. Notified the authorization of financial activities, the private financial institution shall inform the Superintendency of Banks the date of commencement of operations, for the control body to issue the operating permit. The operating permit shall be issued for each of the operational offices maintained by the entity and shall be displayed for public knowledge in each of them.
Section 2 Nature, social object, duration,
statute and domicile Article 398.-Nature. Private financial sector entities shall be constituted as legal persons in private law. In the course of their operations and financial services they shall be governed by their own provisions and applicable to financial institutions. Article 399.-Shareholders. Private financial institutions shall have at least two shareholders at all times. They may not be directly or indirectly holders of shares in private financial sector entities, the following: 1. Private financial sector entities, with
exception to investment in subsidiaries or affiliates that conformed a financial group;
2. Private legal persons whose social object is
the communication with national coverage, as well as its directors and principal shareholders;
3. Entities in the popular and supportive financial sector,
with the exception of the provisions of Article 443; 4. Natural or legal persons who are persons
with property ownership with the influence of a private banking entity may only be shareholders of another private banking entity as long as they do not become persons with property heritage with influence on the other entity;
5. Natural persons who have been convicted in executed sentences for crimes of embezzlement, laundering of assets and financing of crimes such as terrorism;
6. Natural and legal persons, managers and
persons with property ownership with the influence of a private financial institution declared in forced liquidation; and,
7. The others I pointed out the law. Natural or legal persons who hold shares in undertakings outside the financial activity may only be shareholders directly or indirectly of a financial institution up to and including the criteria defined to be persons with heritage property with influence. The control body shall describe the suitability, responsibility and solvency of persons with property ownership with influence, as well as legal persons, their natural persons shareholders or shareholders, when their participation in the capital the financial institution is 6% or more. Article 400.-Social object. The social object of entities in the private financial sector will be determined in its social status, in which the type of entity and the activities to be dedicated will be established. The social object shall be specific to the type of entity recognised in this Code and may not contain activities other than financial activity. Article 401.-Duration, status and domicile. Private financial sector entities shall have the duration and domicile established in the social status. The social status will contain the general institutional structure of the entity and must be known and approved internally by the General Shareholders ' Meeting and, subsequently, by the Superintendency of Banks. The statute shall stipulate that the capital is divided into several classes of shares, with special rights for each class, without the possibility of excluding any shareholder from the profit share, also the nominal value of the shares which may be one hundred or multiple of one hundred. The reform of the social status will be approved by the General Shareholders ' Meeting and subsequently by the Superintendency of Banks.
Section 3 Of the objectives and objectives
Article 402.-Finalities and Objectives. The entities that make up the private financial sector shall have as their objective and objective the financial activities, which may be exercised, after authorization by the State, in accordance with this Code, preserving the deposits and taking into account the financial intermediation requirements of the citizenry.
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Section 4
Of Capital, Reserves, and Utilities Article 403.-Capital. Private financial institutions may increase their authorised capital in accordance with the provisions of this Code. The subscribed and paid capital of private financial institutions will be increased in accordance with the regulations issued by the Monetary and Financial Policy and Regulatory Board. The resources for the payment of the subscribed and paid capital may only come: 1. Of contributions in money or compensation of credits; 2. Capitalization of accrecias for beating, prior
valuation made by at least two companies risk qualifiers;
3. Of the surplus of the legal reserve; 4. of non-distributed utilities; and, 5. Special reservations, provided they are
intended for this purpose. The capitalization made by compensation of loans and the loans to be defeated, without prejudice to the prior approval of the General Shareholders ' Meeting, will require the authorization of the Superintendency of Banks. Shareholders who are registered as such in the entity's book of shares and shareholders, to the date on which the call for capital increase is published by the press, may exercise the right of preference for the subscription of actions, as well as to receive the certificate of preference. Article 404.-Legal reserve fund. Private financial institutions shall maintain the legal reserve fund in the terms of Article 168. Article 405.-Delivery of profits. The profits generated by private financial institutions may be distributed in accordance with the provisions of the General Shareholders ' Meeting, having regard to the provisions of the Superintendence of Banks, and in accordance with the regulations of the Monetary and Financial Policy and Regulatory Board, provided that the following conditions are met: 1. All provisions, adjustments and
required reserves, including those corresponding to the payment of taxes and the profits corresponding to the workers, are constituted;
2. Compliance with the limits set forth in the
provisions relating to solvency, liquidity, technical assets, linkage, assets, quotas and credit limits.
shareholders shall be entitled to profits that consist of
Article 406.-Advance dividends.
directory of a private financial institution may resolve the payment of advance dividends, which consist of the following: profit generated by the institution before the end of the financial year. For the distribution of dividends anticipated, the entity must meet the conditions required for the distribution of profits and have the authorization of the Superintendency of Banks. The amount of the dividends to be distributed may not exceed 40% of the accumulated profits of the current year, nor exceed 80% of the amount of the non-distributed profits from previous years. The maximum value for the cast will be the least value of the two options. The administrators of a private financial institution that authorize the payment of dividends anticipated in contravention of the provisions of this article, will be jointly and severally liable for such payment and will reimburse the entity, of its own livestock, the amount of dividends distributed. The Superintendence of Banks will make this obligation effective through the exercise of coactive jurisdiction.
Section 5 Of Government and Administration
Article 407.-Structure. The government of private financial institutions shall be composed of: 1. General Shareholders ' Meeting; 2. Directory; and 3. Legal representative The board members and legal representatives will be considered the administrators of the entity. Judicial procurators acting on behalf of the entity shall not be considered administrators. Article 408.-General shareholders ' meeting. The general meeting, formed by the shareholders legally convened and assembled, is the supreme organ of administration, with powers to resolve all matters relating to social business and to take the decisions it deems appropriate in defense of the entity and its depositors and creditors. Among its functions will be: 1. Approve the directory reports on the march of the
business; 2. Approve the financial statements and review these,
under its responsibility; 3. Approve the distribution of utilities; 4. Send to the control body the reported reports
in the preceding numerals, in accordance with the rules you issue;
5. Approve increases in authorized capital;
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6. Appoint the internal and external auditors; 7. Approve the annual reports of the internal auditors and
external; and, 8. The other functions set by this Code. The general meeting of shareholders shall meet in the form and for the purposes determined in this article and in the regulations that are issued for the purpose, within 90 days of the closing of each annual financial year. The board shall also, if applicable, know the external auditor's report on the financial group. Any election held by the general meeting of shareholders shall be carried out by written vote, the scrutiny of which shall be recorded in the respective minutes. Item 409.-Directory. Each private financial institution will have a directory, made up of an odd number of members, with a minimum of five and a maximum of fifteen principal directors, elected for a period of up to two years. years for the general meeting of shareholders, being able to be re-elected indefinitely. The Board shall also appoint as many alternate directors as the principal, for the same period. For the designation of the principal and alternate directors of the board of a private financial institution, the right of the minority shall be guaranteed, in accordance with the rules dictated by the Superintendence of Banks. The private financial institution shall notify the control body of the appointment of directors, legal representatives and internal and external auditors within eight days of its appointment. Article 410.-Directory functions. The directory of private financial entities will have the following functions: 1. Know and resolve the content and compliance
of the communications of the Superintendence of Banks relating to provisions, observations, recommendations and initiatives on the progress of the entity;
2. Analyze and approve the entity's policies, control
its execution, and risk reports; 3. Approve the active and contingent operations that
individually exceed 2% of the technical assets, and their guarantees, and know the passive operations exceeding that percentage;
4. Approve the subscribed and paid capital increases; 5. Meet and enforce the provisions of this
Code, the regulations of the Monetary and Financial Policy and Regulatory Board, the rules of the Superintendency of Banks, the resolutions of the general meeting of shareholders and the board;
6. Approve internal regulations;
7. Designate the legal representative; 8. Designate valuers and the rating firm of
risks subject to prior qualification by the Superintendency of Banks;
9. Issue an opinion, under its responsibility, on the
financial statements and internal audit report, which shall include the opinion of the auditor, regarding compliance with controls to prevent illicit activities, including asset laundering and financing of crimes such as terrorism. The opinion of the directory must be sent to the control body observing the instructions provided for the effect;
10. Present the reports required by the
control bodies; and, 11. The others to be assigned the respective social status. The board members shall be civil and criminally liable for their actions or omissions in the performance of their respective duties and duties. Item 411.-Directory inoperance. The directory inoperative will be assumed when the required quorum would not have been completed in two successive calls to directory meetings and provided that it was reported in the form would be statutory to all members. In this case, it shall be renewed; for that purpose, the legal representative, at the request of the control body, shall immediately convene a general meeting of shareholders to elect all the vowels, according to the respective statute. Article 412.-Remotion of the directory. The members of the directory of a private financial institution may be removed, at any time, by the control body for any of the following causes: 1. Be Incourseto
(
) Reluctance to comply with the provisions given bythe control body; 3. Adult or distort financial statements; 4. Hinder control actions; 5. Conduct operations that encourage or behave acts
illicit; 6. Execute serious acts that cause the
stability of the entity to be feared; and, 7. For any other cause determined in this Code. The general meeting of shareholders shall, within three days, convene for the appointment of the new directors; if not, the control body shall convene the meeting.
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If the thirty-day period from the date on which the control body arranged the removals, the financial institution has not changed its procedures or if the competent body does not meet or does not take the relevant arrangements, the forced liquidation of the entity shall be without further processing. Article 413.-Legal representative. The legal representation of the entity shall be exercised by the person or persons designated by the competent body in accordance with the provisions of the social status. The provisions of Articles 258 and 412 shall apply to it, as appropriate. Article 414.-Functions of the legal representative. Without prejudice to the functions assigned to it by the social status and the fulfilment of other legal obligations, the legal representative of a private financial institution shall be obliged to: 1. Inform the directory, at least monthly, of the
credit operations, investments, passive operations, contingents, and their guarantees made with the same person or persons related to each other, which are greater than 2% of the technical assets of the institution. A copy of such a report will be archived with the minutes of the respective session of the directory;
2. To bring to the attention of the directory, in the next
meeting which is celebrated, any communication of the superintendence that contains observations and when so required, leaving on record in the minutes of the session, in which it will consist, in addition, the resolution adopted by the directory. Certified copy shall be transmitted to the Superintendence of Banks within the term of a day counted from the date on which the session ended.; and,
3. To bring to the attention of the board, in the next
meeting that is celebrated, all communication coming from the Monetary and Financial Policy and Regulatory Board, Deposit Insurance Corporation and the Liquidity Fund and the Central Bank of the Ecuador, related to the entity's activities.
Section 6 Financial Sector Operations
Private Article 415.-Operations. Private financial institutions may perform the operations specified in Article 194 which were previously authorised by the Superintendence of Banks. To perform those operations not defined in this Code, they must obtain the authorization of the Monetary and Financial Policy and Regulatory Board. Article 416.-Auxiliary Services. Private financial entities in their operations may require ancillary services provided by other non-financial corporations, in accordance with the provisions of this Code.
Section 7 Of the financial groups
Article 417.-Financial group. Financial group shall be understood as a group of a private national bank held by the subsidiaries or affiliates provided for in this Code. A financial group may not be composed of more than one national bank or more than one financial services and ancillary services company of the national financial system engaged in the same activity. Foreign financial institutions, subsidiaries or affiliates of the national bank, will also be part of the financial groups established in this article. A financial group shall be defined as from the moment the bank holds one or more of the entities identified in the preceding paragraphs. Article 418.-Prohibition of acquiring shares. The subsidiary and affiliated companies of the entities of the private financial system may not acquire or own shares of the bank that makes the head of a financial group or any other entity. another entity of the financial group; neither may they be shareholders or participate in the capital of legal persons who are shareholders of them, nor shall they be able to invest in the capital of commercial legal persons operating in a different field to the financier. Article 419.-Presumption of a financial group. The existence of a financial group for all purposes set out in this Code shall be presumed when the control body determines that between a bank and the financial services or ancillary services, as determined in Article 162, or with external entities carrying out the activities referred to in Article 194, there are business, management or indirect ownership, or other relations, with the national financial institution or its largest shareholders. The configuration of these assumptions will convert these companies or entities from abroad into members of the financial group of the national bank. The control body by standard shall determine the criteria for assuming the formation of a financial group. Article 420.-Financial group activities. Entities that are part of a financial group may: 1. Act jointly in front of the public; and, 2. Use equal or similar denominations as the
public as members of the same group or to retain the name they had before they were part of that group, in any case, they must add the words: "Financial Group" and its name.
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Financial group members may not perform business, financial or service delivery operations between if, in terms of time, prices, fees, amounts, guarantees and fees other than those used in similar transactions with third parties. Article 421.-Group head liability. The financial institution that makes a group head shall be liable for the property losses of the members of the financial group up to the percentage value of its share, for which shall enter into a liability agreement with each of them, in accordance with which: 1. Make capital increases that are necessary
in the member entities or if this is not possible, give all facilities for third-party investors to subscribe and pay for such capital increases; and,
2. To dispose, at the request of the superintendence, shares
of the other entities or to agree the sale or disposal of assets of its subsidiaries, in order to make the capital contributions in the entity that requires it.
These liabilities shall be expressly provided for or shall be construed as incorporated in the statutes of the investment parent. Article 422.-Solvency, prudence and control of the financial group. The entities that integrate a financial group, as provided for in this section, individually and on a consolidated basis, shall be subject to all solvency, prudential and prudential rules. financial and control measures in this Code and the control of the Superintendence of Banks. Article 423.-Solvency of financial groups. For the determination of the solvency of financial groups, the total technical assets of the group head shall be deducted from the capital invested in its subsidiaries and affiliates. The Board shall establish the provisions to be applied for the consolidation and/or combination of financial statements of financial groups, for the purposes of the direct participation of the parent or for its significant influence on the financial statements. Member entities, as well as establish other deductions from the total technical assets of the parent, arising from accounting items related to their subsidiaries or affiliates or the risks identified and not covered by them.
Section 8 Of Bans
Article 424.-Bans. It is prohibited from private financial institutions: 1. Be a member of a popular financial sector entity
and solidarity; 2. Grant credit operations in favor of their
officials or employees, or their respective spouses, except as provided in the Article 215;
3. What is determined in Article 255;
4. To constitute charges on their immovable property, including those received in payment, unless they have prior authorisation of the superintendence; and,
5. The others who establish the law. The prohibitions referred to in numerals 1, 2 and 3 shall be sanctioned as very serious infringements and the number specified in the numeral 4 shall be sanctioned as a serious infringement, without prejudice to the penalties and corrections available and the nullity of the acts prohibited by this Code.
Section 9 Control and Audit
Article 425.- Control of the Superintendence of Banks. The Superintendence of Banks, will be in charge of the control of the entities Private financial. Article 426.-The internal and external auditor. Private financial institutions shall have an internal and external auditor, in accordance with the provisions of Title II, Chapter 3, Section 8.
Section 10 Of the Service Entities financial
Article 427.-Financial services entities. Financial services entities are the general warehouse stores, exchange houses, and mortgage secondary market development corporations. Article 428.-Generals. Financial services entities shall be constituted in the form of public limited liability companies, subject to the procedure laid down in this Code for the establishment of a private financial institution, and in its legal life subject to the provisions governing those entities. The social object of these public limited companies will be specific to the type of entity. The provisions of this Title relating to the exclusion and transfer of assets and liabilities, deposit insurance and liquidity fund are not applicable to these entities, however the provisions for the institutions of the system shall apply. National financial regulations in accordance with the regulations issued by the Monetary and Financial Policy and Regulatory Board. Article 429.-Operations. Financial services entities shall exclusively perform specific operations authorized by the Superintendency of Banks, in accordance with its social object. The definition and actions comprising the operations carried out by the financial services entities determined in this article shall be regulated by the Monetary and Financial Policy and Regulatory Board.
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Article 430.-Certificates of deposit. General warehouse stores may issue securities under the name of certificates of deposit, in the amount of up to fifty times their patrimony. The general storage warehouse shall be issued in a dematerialised form or in a physical format and in duplicate and with successive numbering, the certificates of deposit. In the case of physical certificates, the original of the title shall be delivered to the depositor and the copy, non-negotiable, shall be kept by the storeroom for annotation, registration and accounting. The General Deposit Stores may not issue certificates of deposit in their own favor or in that of their administrators, officials or employees. No certificate of deposit may be transferred in favor of the warehouse that issued it or its administrators, officials or employees. The content and other characteristics of the certificate of deposit shall be defined by the Monetary and Financial Policy and Regulatory Board. The things that are deposited in the General Deposit Stores, as well as the proceeds of their sale or the value of the compensation, in the event of a disaster, may not be the object of embargo, kidnapping, withholding or prohibition of alienation. But the certificate of deposit may be the subject of such judicial providences. The actions arising from the certificate of deposit for the withdrawal of the goods shall be prescribed within five years from the date of issue of the certificate. Article 431.-Liability of the General Deposit Stores. The General Deposit Stores shall be responsible for the preservation, custody and timely restitution of the goods that have been deposited with them. They will not be responsible for losses, mermas or breakdowns arising from force majeure or fortuitous cases. The costs and risks of internal mobilization of goods and products are in charge of the General Warehouse Stores. The goods and products covered by the deposit shall be insured against the risks determined by the Board. If the goods or products have been decomposed, the General Deposit Stores, with the intervention of the health authorities, may proceed to the direct sale or to the destruction of those. Prior written notice to the depositor or the last remaining property owner, if applicable, fifteen days in advance, at least, the General Warehouse of Deposit may ask the competent judge, the sale to the hammer of the goods when there is one year from the date of the deposit, and the cost of storage has not been met, or when the goods are threatened to perish or be destroyed for any reason. The goods or goods deposited, the proceeds of their sale, the value of the compensation in the event of a disaster, the
funds held by the General Warehouse of Deposit at the disposal of the holder of the certificate, can only be retained by order judicial. Article 432.-Prohibition. Financial services entities will not be able to capture monetary resources from the public, except when they issue bonds, in the terms of the Securities Market Act. Failure to comply with this prohibition will be sanctioned as a very serious infringement.
Section 11 of the ancillary services
Article 433.-Auxiliary services. The following: 1. Of banking software; 2. Transactionals; 3. For the transport of monetary and securities species; 4. Of payments; 5. Of charge; 6. of networks and ATMs; 7. Accountable; 8. Computer; 9. Tenure of buildings intended exclusively for the
use of offices by a financial institution; and, 10. Others that were determined by the Superintendence
of Banks, in the orbit of their competition. Article 434.-Nature. The ancillary services shall be provided by non-financial legal persons constituted as public limited liability companies, whose legal life shall be governed by the provisions of the Companies Act. The social object of these companies will be clearly determined. Article 435.-Participation in the capital. Private financial institutions may participate in the capital of these companies, in accordance with the provisions of this Code, by making them such participation in subsidiaries or affiliates. Article 436.-Rating. The companies, to provide the ancillary services to the entities of the national financial system, must be qualified before the Superintendency of Banks, which as part of the qualification may to provide for the reform of the social status and the increase of capital, in order to ensure its solvency. The capital of these companies must be directly related to the volume or amount of their operations. Article 437.-Operations. The definition and actions comprising the operations by the ancillary services entities of the financial system shall be
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regulated by the Monetary and Financial Policy and Regulatory Board. These entities shall provide services exclusively to the national financial system, in accordance with its social object. Exceptionally, they will be able to provide services to third parties, with the express authorization of the Superintendence of Banks. Article 438.-Investment ban. The ancillary services companies of the financial system, the shareholders of which are private financial institutions, may not invest in the capital of another legal person, whether or not they belong to the system national financial. The non-compliance with this prohibition will be sanctioned by the Superintendence of Companies, Securities and Insurance as a very serious infringement, without prejudice to its disinvestment. Article 439.-Control. The corporate control of these companies is in charge of the Superintendence of Companies, Securities and Insurance. Ancillary services related to financial activities provided by these companies will be controlled by the Superintendency of Banks, in accordance with the rules it issues for the effect.
CHAPTER 6 Popular Financial Sector and Solidarity
Section 1
Common Provisions Article 440.-Management of people's financial sector entities and solidarity. For the purposes of the application of this Code, members of the administration of the savings and credit cooperatives and of the mutual associations of savings and credit for housing, members of the board of central banks, and their legal representatives will be considered administrators. The supervisory boards will be responsible for the performance of the savings and credit cooperatives, the mutual savings and credit associations for the housing and the central banks and will be subject to the responsibilities and penalties. that this code sets for administrative boards. They may not be legal representatives of the entities that make up the popular and supportive financial sector who are spouses or cohabitants of fact or relatives within the fourth degree of consanguinity or second degree of affinity of members. of the Boards of Directors or Surveillance. Article 441.-Emotion of the Boards of Directors and Surveillance. The members of the Boards of Directors and Surveillance may be removed, at any time, by the control body for any of the following causes: 1. Being incourseable in the prohibitions determined in
article 412;
2. Reluctance to comply with the provisions given by the control body;
3. To adulterate or distort financial statements; 4. To hinder control actions; 5. To carry out or promote illicit operations; 6. To execute serious acts that make fear for the
stability of the entity; and, 7. For any other cause determined in this Code. He or the president of the entity or who has the statutory duty, within three days of the removal, shall convene a general assembly to be held within a maximum period of thirty days to inform and to be the case to the new members of the Boards of Directors and Surveillance. If the general meeting is not convened, the inspection body shall convene the meeting. If, on the expiry of the 90-day period from the date on which the inspection body provided for such removals, the financial institution has not amended its procedures or if the competent body does not meet or not take the necessary steps; appropriate arrangements shall be made without further processing of the entity's forced liquidation. Article 442.-Supplementary regulations. The entities of the popular and solidary financial sector, in everything not specifically provided for in this sector in this Code, will be governed by the provisions of the Organic Law of the Popular and Solidarity Economy. Article 443.-Investment in financial services entities and ancillary services of the financial system. Popular and supportive financial institutions may participate as shareholders or members of the service entities financial institutions, with the exception of exchange houses, and ancillary services entities in the financial system. In this case, all entities must combine and/or consolidate their balance sheets to present them to the control body under the popular and supportive group figure. Article 444.-Regulation and control. Popular and supportive financial institutions are subject to the regulation of the Monetary and Financial Policy and Regulatory Board and the control of the Superintendence of Popular and Solidarity Economy,
Section 2 Of savings and credit cooperatives
Article 445.-Nature and objectives.
Section 2 Of savings and credit cooperatives
Article 445.-Nature and objectives. Savings and credit cooperatives are organizations formed by natural persons or legal entities that voluntarily join under the principles established in the Organic Law of the People's Economy and Solidarity, with the objective of carrying out activities of financial intermediation and of
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social responsibility with its partners and, subject to prior authorization from the Superintendence of Popular and Solidarity Economy, with clients or third parties, subject to the regulations issued by the Monetary and Financial Policy and Regulatory Board. The Monetary and Financial Policy and Regulatory Board will regulate taking into account the principles of territoriality, social balance, alternation in government, and democratic and social control of the popular and solidarity financial sector. Article 446.-Constitution and legal life. The constitution, government and administration of a savings and credit union shall be governed by the provisions of the Organic Law of the People's Economy and Solidarity. A savings and credit union, with the exception of those belonging to segment 1, may have multiple non-financial activities as long as they are linked to territorial development, keep separate accounts for each activity The liquidation of a savings and credit union will be governed by the provisions of this Code and, in an additional manner, by those of the Organic Law of the Popular Economy. and Solidarity. Article 447.-Social capital and segmentation. The social capital of savings and credit cooperatives will be determined by regulation by the Monetary and Financial Policy and Regulatory Board. The cooperatives shall be located in the segments that the Board determines. The segment with the largest assets of the popular and supportive financial sector is defined as segment 1 and will include entities with an asset level of over USD 80 ' 000,000.00 ($80 million from the United States of America.) shall be updated annually by the Board applying the variation of the consumer price index. Article 448.-Capitalization. The capitalization will be refined with the contribution of a new partner or with the resolution of the general assembly that will have the capitalization of the contributions for future capitalizations. However, if capitalization involves the transfer of savings or deposits, it will require the written authorization of the partner. Article 449.-Solvency and financial prudence. The savings and credit cooperatives must maintain solvency and financial prudence rates that allow them to fulfill their obligations and maintain their activities in accordance with the regulations that are dictated to the effect, considering the particularities of the segments of the savings and credit cooperatives. The regulations must lay down rules, at least, in the following respects: 1. Wealth Solvency; 2. Financial Prudence;
3. Minimum Liquidity; 4. Social Balance; and, 5. Transparency. Article 450.-Cops of credits. The savings and credit cooperatives will establish a credit quota and group guarantees, which may be accessed by members of the boards, management, employees who have a decision or a participation in credit and investment operations, their spouses or cohabitants and their relatives within the fourth degree of consanguinity and second degree of affinity. The credit quota for the savings and credit cooperatives in segment 1 in the case of groups may not exceed 10% of the technical patrimony; in the case of individual cases, it may not exceed 1% calculated at the end of the immediate annual financial year prior to the adoption of the appropriations. The quotas for the remaining segments will be determined by the Monetary and Financial Policy and Regulatory Board. The central banks shall not apply the criteria for binding by administration in the credit quotas. The credit quota for savings and credit cooperatives for the other segments will be regulated by the Monetary and Financial Policy and Regulatory Board. The Monetary and Financial Regulation Board will regulate the percentages and quotas of the credits granted by the savings and credit cooperatives for economic activities related to the sector of the Popular Economy and Solidarity. The credit applications of the persons referred to in this article shall be settled by the board of directors and reported to the supervisory board. Article 451.-Payment orders. The savings and credit cooperatives may issue payment orders in favor of their partners, against their deposits, which may be made effective in other cooperatives of the same nature, according to the rules that dictate the Monetary and Financial Policy and Regulatory Board and the agreements to be signed for the effect. Article 452.-Investments. Savings and credit cooperatives should preferably invest in this order: 1. In the same financial sector; and, 2. On the secondary stock market or in the private financial institutions
. Article 453.-Certificate redemption. No credit and savings cooperative in segment 1 may redeem the share capital, in the event of a withdrawal of members, for sums exceeding 5% of the cooperative's share capital in its entirety, calculated at the end of the preceding financial year. In the event of the death of the partner, the redemption of the capital shall be total and shall not be counted within the 5% established in the preceding paragraph; the refund shall be made in accordance with the provisions of the Civil Code.
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Compensation of debt-to-cooperative contribution certificates will be allowed only in the event of a partner's withdrawal, always within of the 5% limit. No social capital may be redeemed if this results in breach of the rules concerning the technical patrimony and solvency ratio or if the cooperative is subject to intensive supervision programmes, in the terms established by the superintendence. The percentages of redemption of the social capital of the savings and credit cooperatives of the rest of the segments will be normalized by the Monetary and Financial Policy and Regulatory Board. Article 454.-Control. The control of the activities of the savings and credit cooperatives shall be carried out in accordance with the segments in which they are located. Article 455.-Audits. The savings and credit cooperatives will have internal and external auditors when their assets exceed USD 5 ' 000,000.00 (five million dollars from the United States of America). This value shall be adjusted annually in accordance with the consumer price index. Savings and credit cooperatives whose assets are less than the amount indicated in the preceding paragraph shall be audited by the management board in accordance with the rules issued by the Board of Directors and Monetary and Financial Regulation. Article 456.-Auxiliary supervision. Integration bodies and other specialised entities may collaborate with the superintendence in carrying out one or more specific supervisory activities, fulfilling the conditions and provisions that dictate the superintendence for the effect. Auxiliary supervisors shall be responsible for administrative, civil and criminal liability for the supervision they carry out. Article 457.-Prohibitions. The savings and credit cooperatives, in addition to the prohibitions, laid down in this Code that apply to them, are prohibited as follows: 1. Acquire shares of financial sector entities
private, except as provided in article 443; 2. Grant, in any form, preferences or
privileges to partners, administrators, officials or employees;
3. Require the new members of the organization who
subscribe to a greater number of contributions, contributions or contributions from those who have acquired the founders since they entered the organization, or who contract with the entity any extraordinary economic obligation, which has not been incurred by such members;
4. Organizations ' managers are prohibited
from using their condition and the entity's resources to establish contractual, professional,
labor or personal service relationships, directly or indirectly, with other people or organizations;
5. Establish agreements, agreements or contracts with
natural or legal persons outside the organization, allowing them to participate directly or indirectly from the benefits derived from the promotion, promotion and incentive measures it grants the Organic Law of the People's Economy and Solidarity;
6. Lucrar or fraudulently favor the
operations and activities of the organization and the benefits that the Organic Law of the Popular and Solidarity Economy grants. The same provision applies to the administrators of financial institutions in this chapter.
7. Hide, fraudulently alter, or delete in
any operation report, data, or facts about which the superintendence and the public have the right to be informed; and,
8. The others established in this Code, in the Law
Organic of the People's Economy and Solidarity and its Rules of Procedure.
The prohibitions mentioned in numerals 1, 5, 6 and 7 will be sanctioned as very serious infractions and those determined in Numerals 2, 3 and 4 shall be sanctioned as serious infractions, without prejudice to the penalties and correctives that are available and the nullity of the acts prohibited by this article.
Section 3 Of the associative or solidarity entities, boxes and banks
communal and savings banks Article 458.-Associative entities or institutions and savings banks are organizations that will be able to opt for legal personality, which are formed by the will of their partners. within the limit and in the form determined by the Monetary and Financial Policy and Regulatory Board, they will have their own governance, administration, representation, social self-control and accountability structure and will have the obligation to submit the information requested by the superintendence. The associative or solidarity entities, communal banks and banks and savings banks are formed with economic contributions from their partners, as savings, without being able to attract third-party funds, for the granting of credits to their members under the regulations issued by the Board, and shall be entered in the corresponding register. Those who opt for legal status will observe the requirements determined by the Monetary and Financial Policy and Regulatory Board for their operation and will be able to receive financing for their development and strengthening. public entities, organizations of the popular and solidarity economy, support entities, national and international cooperation and in general be favored with donations and grants.
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Article 459.-Applicable legislation. Associative or solidarity entities, communal banks and banks and savings banks will be governed by this Code, by the Organic Law of the People's Economy and Solidarity and the rules issued by the Board of Monetary and Financial Policy and Regulation. The entities mentioned in this article are subjects of accompaniment, not of control, unless they perform operations outside their scope, in which case they will be sanctioned by the Superintendence of Popular and Solidarity Economy.
Section 4 mutual savings and credit associations
for housing Article 460.-Nature and objectives. Mutual savings and credit associations for housing are entities that are part of the financial sector popular and supportive, whose objectives are the collection of resources from the public to allocate them the financing of the housing, construction and family welfare of its clients and partners, and are governed by the provisions of this Code. Article 461.-Constitution and legal life: The mutual savings and credit associations for housing, in their constitution, shall be governed by the provisions applicable to savings and credit cooperatives prescribed in the Organic Law of The People's Economy and Solidarity and its Statute. The activities, operations, liquidation and all other aspects inherent in its legal life, the mutual associations of savings and credit for the dwelling shall be governed by the provisions of this Code referring to those entities, and in the regulated specifically for the same, those applicable to the savings and credit cooperatives prescribed in this Law, the regulations issued by the Board and in its statute. Article 462.-Government and administration. The government of the mutual savings and credit associations for housing shall be composed of a general meeting of members, a board of directors, a supervisory board, a representative legal, internal and external auditors. Its internal organization will consist of the social status, which will be approved by the Superintendence of Popular and Solidarity Economy. Article 463.-Partners. They are partners of the mutual savings and credit associations for housing people who maintain certificates of contribution. The contribution certificates represent the participation of the capital of the partners in the institution, give them the right to a voice and a vote, regardless of the number of contribution certificates each one pays. No natural or legal person may hold, directly or indirectly, more than 6% of the capital of the institution in certificates of contribution. In no case will the income of new members be restricted to the mutual associations of savings and credit for the housing; once the minimum amount of capital of
constitution has been reached, due to its characteristic of variable and unlimited, the new members shall be required to pay the value of the contribution certificate set out in the statute for each institution. Article 464.-Minimum social capital, equity and segmentation. The minimum social capital of a mutual savings and credit association for housing will be variable and unlimited and will be represented by non-redeemable contributions paid by its partners. The minimum social capital will be regulated by the Monetary and Financial Policy and Regulatory Board. The mutualists shall be located in the segments that the Board determines. The value of the contribution certificates shall be established for the establishment of a mutual savings and credit association for housing and shall be included in its statute. The contribution certificates shall have the quality of the value. The equity of the mutual savings and credit associations for housing shall be composed of the social capital, the irrepressible legal reserve and other statutory reserves and shall not be less than USD 1' 800,000.00 one million eight hundred thousand dollars from the United States of America. The members of the mutualists shall be responsible for the assets of the institution up to the percentage of their contributions. In order to form their irreparable legal reserve, the mutualists will use at least 10% of their annual profits, up to an amount equal to 100% of the social capital. The surplus and annual profits that would have been made in the existing housing savings and credit associations for the currently existing housing, after the legal deductions, will be distributed proportionally between the partners and the legal reserve. (i) a cumulative, pro rata share of the equity. For the purposes of the Internal Tax Regime Law, the increase in this legal reserve will be reinvested with the surplus and profits. The existing mutualists will increase the irrepressible legal reserve with 10% of the annual profits, in the part corresponding to their partners, only when the same is less than 100% of their share capital, and up to that level. Article 465.-Operations. The mutual savings and credit associations for housing, in the field of their objectives, may carry out the operations specified in Article 194, subject to the authorization of the Superintendence of Popular and Solidarity Economy. These entities may invest directly in specific projects for the development of housing and construction, and in ancillary service entities in the real estate investment financial system or in other ancillary service entities. qualified by the superintendence, whose exclusive object is related to the activities of the business.
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Own investments in specific housing development and construction projects may not exceed 100% of their technical heritage. Under no circumstances will a single investment project be able to have 100% of the allocated quota. The total of the quota shall be distributed in several investments. The public financial institution in charge of housing programs of social interest, the mutual associations of savings and credit for housing and the housing cooperatives are exonerated from the tax and municipal taxes by the acts and contracts to be held in connection with housing projects of social interest in the country. The same exemption shall be granted to the borrowers of the entities mentioned in the preceding paragraph, in all acts and contracts by which they apply the loans received for the purposes of purchase of land or housing, construction, improvement, extension, rehabilitation or termination of housing of social interest. This exemption is extended to natural or legal persons who contract with the public financial institution in charge of housing programmes of social interest, the Mutual Associations and Cooperatives mentioned above or with the borrowers of such entities, in the above-specified purposes; and covers the loan contracts and the value of the savings of the borrower that is intended for the payment of the entry fee for the purchase of land or housing, construction, improvement, extension, rehabilitation or termination of housing of social interest. The real estate acquired for housing purposes and the dwellings that are built, extended or terminated with mortgage loans granted by the public financial institution in charge of housing programs of social interest, the Mutual associations of savings and credit for housing, and housing cooperatives, constitute a Family Heritage, by law ministry and will be subject to the general rules that on Family Heritage establishes Title XI of the Book 2 of the Civil Code, and the special provisions contained in this Article, which shall prevail over those. Article 466.-Solvency and financial prudence. The mutual savings and credit associations for housing must maintain the solvency and financial prudential ratios that enable them to meet their obligations and maintain their business activities. in accordance with the regulations governing the Monetary and Financial Policy and Regulatory Board, taking into account the aspects identified in Article 449. Article 467.-Deposit Insurance, Liquidity Fund, and Private Insurance Fund. Mutual savings and credit associations for housing will access deposit insurance, Liquidity Fund, and Private Insurance Fund in accordance with the provisions of Title II, Chapter 3, Section 15.
Section 5 Of Central Boxes
Article 468.-Central Banks. The Central Boxes are entities that integrate the popular and solidary financial sector, which are constituted by at least twenty savings and credit unions or savings and credit mutualists for housing. The central banks duly authorized by the superintendence will be able to carry out second-floor financial operations, with savings and credit cooperatives and savings and credit mutualists. Article 469.-Constitution and legal life. The Central Banks, in relation to its constitution and internal structure, shall be governed by the provisions laid down in the Organic Law of the People's Economy and Solidarity and its Rules of Procedure. Article 470.-Activities. The Central Banks after authorization of the Superintendence of Popular and Solidarity Economy will be able to carry out with the cooperatives of savings and credit and with the mutual savings and credit, the activities described in Article 194 and, additionally, the following: 1. Develop financial services networks among its
affiliates, such as shared windows, fund transfers, remittances, service payments, among others;
2. Function as a clearing house among its
affiliates, subject to the authorization of the Central Bank of Ecuador, in accordance with this Code;
3. Channel and mediate resources for the
development of the Popular and Solidarity Financial Sector; 4. Management of the investment portfolio, when
is securities issued by the governing body of public finances and the Central Bank of Ecuador; and,
5. Structuring of risk management products
financial. Article 471.-Mandatory amounts. The partner entities of the Central Banks shall maintain at all times an amount of contribution certificates in accordance with the regulations that the Board may issue for the purpose. Article 472.-Differentiated regulation for central bank contributions. The Central Boxes shall contribute to the liquidity fund in accordance with the specific rules which the Board gives to the Fund. The credit quotas set out in Article 450, or the binding criteria, are not applicable to these entities.
Section 6 Of Auxiliary Services
Article 473.-Auxiliary Services. People in the popular and supportive financial sector will be able to invest in ancillary services in the financial system
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national. These entities shall be governed by the provisions of Title 2, Chapter 5, Section 11. In addition, the entities of the popular and solidary financial sector may constitute organizations of the popular and solidarity economy, the object of which is the provision of ancillary services which will be governed by the provisions of the Organic Law of the Popular and Solidarity Economy. Article 474.-Qualification. The auxiliary services entities incorporated in accordance with the preceding article, in order to operate, must be qualified in advance before the Superintendence of the Popular and Solidarity Economy, which as part The reform of the social status and the increase of capital, with the aim of ensuring its solvency, will be available. The capital of these companies must be directly related to the volume or amount of their operations. Article 475.-Prohibition of investment. The ancillary services companies of the financial system, whose shareholders are popular and supportive financial institutions, and the organizations of the popular and solidarity economy whose object is the the provision of ancillary services, may not invest in the capital of another legal person, whether or not it belongs to the national financial system. Failure to comply with this prohibition will be sanctioned by the respective control bodies as a very serious infringement, without prejudice to their divestment. Article 476.-Control. The corporate control of the ancillary services entities of the financial system to which this section refers will be in charge of the Superintendence of Companies, Securities and Insurance and of the Superintendence of Popular and Solidarity Economy, as the case may be. The ancillary services to the financial activities of the popular and solidarity financial sector will be controlled by the Superintendence of Popular and Solidarity Economy, according to the norms that it expunes for the effect.
CHAPTER 7 Rules General character
Article 477.- The Monetary and Financial Policy and Regulatory Board and the control bodies, in the fields of their functions, shall issue the necessary rules to implement the provisions of this title.
TITLE III RELATED PROVISIONS
CHAPTER 1 Of The Cheiques
Section 1
Issue and form Article 478.-Check. It is a written means of payment by which a person called a spinner, with charge to the deposits that he holds in an account of which he is
holder in a financial institution, orders that entity, called pivoted, to pay a certain amount of money to another person called a beneficiary. The free check, in accordance with the provisions of this Code, has evidentiary value. Article 479.-Content and validity of the check. The check must contain: 1. The check denomination, inserts into the text of the
document and expressed in the language used for writing;
2. The pure and simple command to pay a sum
determined of money; 3. The name of who must pay or rotated; 4. The indication of the date of payment; 5. The indication of the place of the issue of the cheque; and, 6. The signature of who issues the check or girder. The check in which any of the above requirements are missing will not be valid as a check. Article 480.-Interest. The amount of the check does not generate interest, so any stipulation on interest is deemed non-existent. Article 481.-Firms in cheques. When a check bears signatures of persons unable, false signatures, imaginary persons or firms that for any other reason cannot compel the persons for whom the check has been signed, or with whose name is signed, the obligations of any other signatories will not leave, therefore, to be valid. Article 482.-Liability. Whoever signs a check as a representative of a person from whom he has no power to act, he compels himself under the check, and, if he has paid, has equal rights that the supposed represented would have. The same rule applies to the representative who has exceeded his powers. Article 483.-The responsibility of the spinner. The spinner responds to the payment. Any clause by which the spinner is exempted from this responsibility has no value. Article 484.-Duplicate checks. Prohibit the issue of duplicate checks.
Section 2 Of Transmission
Article 485.-Transmissibility and endorsement. The check is transmittable by endorsement. Endorsement is the transmission of a check to the order by a formula written on the back of the document.
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The endorsement must be pure and simple. Any condition to which the transmission of the cheque is subordinate shall be considered unwritten. The partial endorsement is null. Only checks can be endorsed for once and for the amounts set by the Monetary and Financial Policy and Regulatory Board. The signature which the beneficiary stamps on the cheque for the purposes of filing and recovery shall not be considered as an endorsement itself, and shall not be understood within the limits of the movement provided for in the previous. Article 486.-Signing of the endorsement. The endorsement must be written in the check and must be signed by the endorser. Article 487.-Transmission of rights. The endorsement transmits all rights resulting from the check. Prohibit the blank endorsements or the carrier. Article 488.-Payment guarantee. The endorsement, except clauses to the contrary, guarantees payment. The Board shall regulate the endorsement mechanisms. Article 489.-Legitimate Holder. The beneficiary of a check, an endorsement or not in accordance with the provisions of Article 485, is considered to be a legitimate holder. Article 490.-Exceptions to the bearer. Persons who are in demand under the check cannot oppose the holder or holder of the exceptions based on their relations with the girder or the previous holders, unless the carrier or holder, when acquiring the check, has knowingly acted to the detriment of the debtor. Article 491.-Endorsement after the protest. The endorsement after the protest or effected after the termination of the filing period, does not produce other effects than those of an ordinary cession. The undated endorsement is presumed to be made, except, proof to the contrary, prior to the protest or before the termination of the period referred to in the preceding paragraph.
Section 3 Of the filing and payment
Article 492.-Payment of the check. The check is payable to the view. At the presentation of the check, the rotated is obliged to pay or protect it. Otherwise, it shall be liable for any damages caused to the carrier or holder, irrespective of the other penalties to which it applies. Prohibit financial entities from putting in place of the protest any legend, with or without date, that establishes that the check was submitted for payment and not
paid. The entity that infringes this prohibition shall be sanctioned by the control bodies with a fine for the value of the corresponding cheque. The checks rejected for defects in form and those submitted after the maximum period for payment of the cheque referred to in Article 517, as well as the digitised images of the checks entered in the chamber, are exempted from this provision. compensation. Article 493.-Deadline for filing. The cheques drawn and payable in Ecuador shall be submitted for payment within 20 days from the date of their issuance. Cheques drawn abroad and payable in Ecuador shall be submitted for payment within 90 days from the date of issue. The cheques drawn in Ecuador and payable abroad shall be subject, for the filing to the payment, to the terms or deadlines determined by the law of the State in which the bank is located. Article 494.-Presentation for payment. The presentation of the check to a clearing house by the financial institution is equivalent to the presentation for the payment. Article 495.-Revocation of the check. The spinner may revoke a cheque by writing to the rotated that he refrains from paying it, with indication of the reason for such a recall, without thereby disappearing the responsibility of the spinner. At the request of the holder or holder who has lost the cheque, the girder is obliged, as a transitional protection measure, to suspend, in writing, the payment order. The recall of the cheque shall not take effect where there is insufficient provision of funds and in this case the bank shall be obliged to protest the cheque. The rotated must retain the amount of the check revoked until a judge resolves the appropriate, or until the rotator leaves the recall, or until the expiration of the six-month limitation period, counted since the expiration of the the time limit for filing, or until when the check is declared without effect, for its removal, deterioration, loss or destruction, in accordance with the general rules laid down by the Monetary and Financial Policy and Regulatory Board. Article 496.-Validity of the check. Neither the death nor the supervinent incapacity of the girder affect the validity of the check. The spin that has knowledge of the bankruptcy of the spinner, must deny the payment. Article 497.-Cancellation of the check. The rotated, when paying the check, will require the bearer or holder to cancel.
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The carrier or holder may admit or refuse, at will, a partial payment, but the pivoted is obligated to pay the amount of the check up to the total of the funds available to the spinner. In the case of partial payment, the twirr may require that such payment be made on the cheque and be given receipt, and shall be obliged, to give the bearer or holder a voucher containing all the specifications of the cheque and the Unpaid balance. This voucher shall have the same effects as the check on the non-covered balance. Article 498.-Signature verification. The pivoted that pays a check is obliged to check the regularity of the endorsement and the identity of the person to whom the check pays, but not the signature of the endoscopy. Article 499.-Multa by check protested. The fine of 10% on the value of each check protested by insufficient funds, which must be paid by the spinner, fine to be debited by the financial institution, from the accounts. from the spinner, to the amount held in deposit and transferred monthly to the National Treasury Single Account.
Cross check and check section 4
non-negotiable Article 500.-Cross-checks. The The card holder or holder or holder of a check may cross it, in accordance with the rules issued by the Board. Article 501.-Check non-negotiable. The check that contains the expression "no to the order" or other equivalent as "non-negotiable", "non-negotiable", "non-transferable", is not transferable but in form and with the effects of an ordinary cession. The bank that receives a check with any of the above mentioned expressions may only credit its value in an account belonging to the beneficiary, or pay it in currency to the beneficiary or the transferee. Article 502.-Perjudgments. The rotated that does not observe the provisions of this section, will answer for the damages up to a sum equal to the amount of the check.
Section 5 Of the certified check
Article 503.-Check certificate. The check that contains the word "certificate", written, dated and signed by the rotated, obligates the latter to pay the check to its presentation and frees the spinner from the responsibility of the payment.
Section 6 Of the actions for non-payment
Article 504.-Check of checks. The holder or holder may exercise his or her actions against the The following is not paid, provided that the
-payment is creditedprotesting, in any of the following forms: 1. By statement of the rotated, dated and written in the
check; 2. When the rotated will refuse to extend the declaration
mentioned in the previous numeral, a notary public of the address of the financial institution, at verbal request or written by the bearer or holder, will require the entity to pay the cheque, and, in the event of a refusal, will extend the protest by stating the requirement, the refusal to pay and the reason for it; and,
3. Per statement dated from a
compensation chamber, stating that the check has been sent in business time and has not been paid.
Article 505.-Loss of the action. The bearer or holder who will not present the cheque for payment within the legal period, will lose his action against the endorser, and against the spinner, when, having had funds, will be lost, after the expiry of the deadline, for having declared in liquidation to the financial institution. Article 506.-Solidarity. All persons required by the check are in solidarity with the holder or holder. The holder or holder has the right to proceed against all these persons, individually or collectively, without being able to be compelled to observe the order in which they were obliged. The same right applies to any signatory of a cheque that you have paid. The action attempted against one of the obliged, does not prevent the action against the others, even those after the one against which it was carried out in principle. Article 507.-Values to be reclaimed. The holder or holder can claim from the person against whom he exercises his action: 1. The amount of the unpaid check; 2. His interest, at the maximum rate, from the date of the
protested; and, 3. The expenses of the protest, those of the notifications and the
procedural costs. Article 508.-Claimed to be jointly and severally obligated. The person who has paid the check may claim from the severally obligated: 1. The full amount paid by him; 2. The interest of that sum, calculated at the rate
maximum, from the day of payment; and, 3. The costs of proceedings.
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Article 509.-Delivery of the protestate check. Any obligated against which an action is exercised or exposed to it, can require against payment the delivery of the check and a receipt. Article 510.-Force majeure or fortuitous case. When the presentation of the check or the lifting of the protest cannot be carried out within the prescribed time limits, by force majeure or fortuitous case, these deadlines shall be extended until they have ceased such events. The purely personal acts of the bearer or holder or of the person to whom the cheque or the lifting of the protest has been commissioned shall not be considered as force majeure. Article 511.-Alteration of the check. In case of alteration of the text of a check, the post-alteration signers will be bound by the terms of the text; but the previous signers will be only according to the original text.
Section 7 From the prescription
Article 512.-Prescription. The actions that correspond to the carrier or holder against the girator, the endosants and the other obligated, prescribe at six months, counted from the expiration of the presentation. The actions which correspond to each other to the various persons who are obliged to pay a cheque, prescribe at six months, from the day on which the cheque has been paid or from the day on which an action against him has been exercised. Article 513.-Interrupt of the prescription. The prescription is interrupted in accordance with the provisions contained in the law.
Section 8 Conflict of Laws
Article 514.-Conflict of Laws. concerning conflict of laws, the law of the State in which the cheque is to be paid, determines: 1. The term of presentation; 2. If it can be accepted, crossed, certified or
confirmed, and the effects of those operations; 3. The rights of the holder on the provision of funds
and its nature; 4. The rights of the revoke the check or
oppose the payment; 5. The need for the protest or other equivalent act for
retain the rights against the endorsers, the spinner or others; and,
6. The other situations concerning the modes of the
check.
Section 9 Common Rules
Article 515-Deadline for presentation and protest of a check. The presentation and protest of a cheque must be made within the time limits provided for in Article 493 and on a working day for the respective diligence. Where the last day of the period is not a working day, it shall be extended until the following working day. Intermediate holidays shall be included in the calculation of the time limit. Article 516.-Executive Title. The unpaid check for lack or insufficiency of funds and protest within the filing deadline constitutes an executive title. The proof referred to in Article 497 (3) shall also be enforceable. In other cases, unless otherwise provided for in law, the payment of a cheque may be claimed in summary oral proceedings. The civil action attempted for the payment of a cheque, does not damage the corresponding criminal action. Article 517.-Maximum Term for Check Payment The pivoted may pay a check even after the expiry of the deadlines set out in Article 493 and within thirteen months after the date of its issuance. Article 518.-Loss caused by counterfeit check payment. The loss caused by the payment of a counterfeit check not included in the girator's numbering corresponds to the rotated. The loss caused by the payment of counterfeit checks, included in the girator's numbering, corresponds to this or to the rotated, depending on whether you have one or the other fault in the loss. If neither of the two were to blame, the loss will be the turn. If the girder does not claim within six months of the state of the current account, in which the payment of counterfeit checks is recorded, the loss caused by the payment of such checks shall correspond to the spinner. Prohibit any provision contrary to the provisions of this article. Article 519.-Regulation. The Monetary and Financial Policy and Regulatory Board shall dictate the general rules necessary for the application of the provisions relating to the checks referred to in this Code. The Central Bank of Ecuador will regulate the processing of the digitized checks in the cheque clearing house. Digitized images of the checks processed in the cheque clearing house will have equal probative value as the original.
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Financial entities are entitled to destroy the physical checks received in deposit, once the deadline has expired determined to keep them physically. Article 520.-Sanctions. The control bodies have the power to sanction the breaches of this chapter, by imposing fines that will be between one and thirty basic wages unified.
GENERAL PROVISIONS First.- Limits of liability. The State shall not be responsible for the solvency of entities in the private financial sectors; popular and supportive; nor of the entities that make up the private securities and insurance schemes and under no circumstances will it be able to assume its debts. The regulation and control of the private and popular financial sectors and solidarity, securities and insurance, will not move the State the responsibility of the solvency of the entities that integrate them. Second.- Functions of the Board. All policy and regulatory functions that the laws in force at the date of promulgation of this Code give to the Banking Board, Board of Directors of the Central Bank of Ecuador, Board of Directors Regulation of the Popular and Solidarity Financial Sector, Securities Market Regulation Board, Board of the Deposit Insurance Corporation and Board of the Liquidity Fund, will be taken over by the Monetary Policy and Regulatory Board and Financial, except for cases expressly delegated to the control bodies in this Code. Third.-Conversion to dollars from the United States of America. In all current legislation and pending payment obligations in which payments are made to be made in sucres, it is understood that they must be made in dollars of the United States of America at a conversion rate of twenty-five thousand (25,000.00) sucres per dollar of the United States of America. In all existing legislation and in respect of outstanding obligations in respect of which payments are to be made in units of constant value (UVC) or in general life minimum wages, each unit of constant value shall be understood to be each general minimum living wage has a fixed and invariable value equivalent to, respectively, two comma six two eight nine (2,6289) and USD 4.00 (four dollars of the United States of America), respectively. The securities to be paid for constant tax obligations of credit securities or direct receivables, as well as those relating to earlier periods and which are determined by the taxpayer or by the Administration, shall be liquidating the interest of arrears which were in force until 10 January 2000 at the rate in force for each quarterly period. The value thus obtained and that of the fines, will be transformed to dollars from the United States of America, to a
quotation of twenty-five thousand (25,000.00) sucres to the dollar, and will be issued the new titles of credit or orders of direct collection which shall bear an interest rate of 16.82% per year from 11 January 2000. The settlement will be notified to the taxpayer and will continue with the actions provided for in the Tax Code. Fourth.-Monetary and financial transactions through tax havens. The Monetary and Financial Policy and Regulatory Board will regulate monetary and financial transactions with the outside, especially those made with havens. Tax or jurisdiction of lower taxation than that of Ecuador, according to the definitions established by the Internal Revenue Service. The Central Bank may ask the national financial system institutions for information on the full international payment chain for monetary and financial transactions. The supporting information for natural and legal persons ordering such transactions, representing the most important accumulated amounts in accordance with the regulations issued by the Board of Directors, may also be requested. Monetary and Financial Policy and Regulation. Fifth.-Temporary retention of deposits and investments. Superintendents, the Attorney General of the State, the Comptroller General of the State and the Attorney General of the State, exceptionally, for the presumption of illegal and in-form acts Individual reasons may order the temporary retention of deposits and investments in the entities of the National Financial System. The orderly retention shall lapse within 15 days from the notification to the respective financial institution, unless it is confirmed by a competent Judge. In this case, the retention shall be subject to the provisions of the Code of Civil Procedure. Sixth: Liabilities and balances frozen. Liabilities that have remained frozen in any institution of the national financial system for more than five years with a balance of up to the equivalent of 25% of a unified basic salary, or more than ten (10) years with a higher balance, because they have not been claimed by their beneficiary since the date on which they are payable, they shall be transferred to the National Treasury Account, with the exception of liabilities frozen by legal provision or duly notified to the financial institution. The frozen liabilities shall be settled at 31 January of each year. Financial institutions may not transfer to profits, directly through the transfer to provisional accounts or otherwise, frozen securities or balances belonging to other persons, irrespective of the quality of the financial institutions. Each financial institution shall submit in January of each year a report to the control body for the existence of any value, dividend or balance not
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claimed belonging to third parties who have remained immobilized as a liability for five or ten years. Seventh.-Payment of higher deposit accreencies. In the processes of the forced liquidation of the entities of the national financial system, without prejudice to the payment prelations established in this Code, the liquidator in a motivated manner may ask the natural or legal persons to hold accrecias for the value to be determined by the Board, additional justifications on the origin of such resources. Eighth.-Competition. When the object or matter of a claim or administrative appeal is found to be under the knowledge of ordinary justice, the public bodies regulated by this Code shall refrain from continuing to know them as soon as they are informed of such circumstances, provided that it is the claimant or appellant who intervenes as an acting party in the judicial process. It is not applicable when the facts of the complaint or administrative appeal are also the subject of investigation or prosecution in the criminal field. Ninth.-Judicial actions. Any judicial action initiated against the holders or delegates of the Monetary and Financial Policy and Regulatory Board in a personal capacity, by acts, resolutions or decisions taken within the said Board of Directors. The law will be ineffective and the judges who know it must discard them, except for actions initiated by the State Attorney General for the crimes against the Public Administration and the judicial action of repetition. The Superintendents referred to in this code shall not be exempt from liability for acts performed in the exercise of their duties or for their omissions and shall be responsible for administrative, civil and criminal matters for their decisions. The responsibilities shall be determined by the State control bodies, the State Office of the Prosecutor General and the competent judges. Judicial actions against acts of the Superintendents shall be brought against these entities. Any judicial action against the holders of such bodies in a personal capacity shall be ineffective and shall not be admitted to any proceedings, except those brought by the State control bodies, the Comptroller General's Office and the Office of the Prosecutor General. General of the State, without prejudice to the action of repetition established in Article 11 numeral 9 of the Constitution of the Republic. Tenth.-Contributions. Contributions that to the effective date of this Code are funding the budgets of the control bodies will be entered directly into the National Treasury's Single Account. Payment of these contributions shall be made with direct transfers to the National Treasury Single Account with the exception of that corresponding to the Private Insurance Fund provided for in Article 67 of the Act
General Insurance or by direct debit of the accounts that the entities obliged to contribute maintain in the Central Bank of Ecuador. 10th first.-Contribution of the Ecuadorian Institute of Educational Credit and Scholarship and the Ecuadorian Professional Training Service SECAP. The contribution of 1% of the payment plans to the Ecuadorian Social Security Institute, which are being transferred to the Ecuadorian Institute of Educational Credit and Scholarship, IECE (0.5%) and the Ecuadorian Professional Training Service SECAP (0.5%), on the basis of Supreme Decree No. 623-A of 3 August 1976, referred to in Article 13 verbatim (a) of the Law Substitute to the Law of the Ecuadorian Institute of Educational Credit and Scholarships, and in Art 14 literal a) and Art. 14-A of the Law of Creation and operation of the SECAP, will be deposited in the National Treasury's Single Account as part of the General budget of the State as from 1 January 2015. Tenth second.-Competition to sanction. The jurisdiction to sanction breaches of securities and insurance market entities, their administrators, officers or employees, internal and external auditors, ratings firms Risk, expert experts and others carrying out supervision support services, corresponds to the Superintendence of Companies, Securities and Insurance. 10th Third.-Transferability. The Ecuadorian State shall ensure the free transferability to the foreign currency of the periodic earnings or profits and returns of foreign direct investment, once the obligations are fulfilled. tax, employment and those laid down in the legislation. 10th Quarter: People who receive credit operations including credit card deferred credit, financing, portfolio purchase, change letter discounts, and reporting with industry entities Private finance, controlled by the Superintendency of Banks, will pay a contribution of 0.5% of the amount of the operation. This fee may be reduced in duly justified cases for reasons of economic or social nature, by executive decree, up to 0.01%, in general or by segments, on the basis of the Board of Policy of Regulation Monetary and Financial. This contribution will also apply to the financing of the overdue credits. The institutions of the State defined in Article 225 of the Constitution of the Republic are not subject to the payment of this contribution. Entities in the private financial sector shall act as withholding agents for this contribution. The amounts collected will be deposited daily, with a lag of up to 48 hours, by the withholding agents in the National Treasury's Single Account. The resources of this contribution will be allocated to the financing of comprehensive cancer care. The funding for the different nuclei of the Society of Fight Against Cancer-SOLCA-will be
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transferred by the Ministry of Public Health on a quarterly and advance basis. The transfer in favor of the different nuclei of SOLCA is subject to the fulfillment of the policies that for the effect dictate the Ministry of Public Health in relation to the integral oncology care, to the co-payment by the users and the accountability of the correct use of these resources based on the regulations issued by the National Health Authority. The use of the resources will be subject to audit and control by the Ministry of Public Health and the control bodies, in the field of their competences. The Cancer Society-SOLCA-will continue to receive resources at least equivalent to those it would have received for the purposes of the repealed Financial Security Network Creation Law, subject to compliance with the provisions of the this provision. This provision shall be effective 30 days after the entry into force of this Code. Tenth fifth: The State may transfer resources equivalent to those it would have received for the purposes of the repealed Financial Security Network Creation Act to private law organizations doing social work. Transfers shall be subject to the accountability for the use of these resources, on the basis of the regulations issued for this purpose by the governing body of public finances. 10th 6th: The Monetary and Financial Policy and Regulatory Board will use the instruments set out in this Code to promote and facilitate access to credit to human mobility, considering their circumstances and specifics. Tenth seventh: Exchange of information: State institutions, their agencies, agencies, and persons acting under state authority may exchange, without restriction, any information they possess, necessary for the fulfilment of its objectives. The personal information is reserved and will not lose this condition through the exchange with other institutions of the State, who will be transferred to that reservation. Tenth Eighth: Structure of the Code. The provisions corresponding to the Monetary and Financial System contained in Titles I, II and III of this instrument constitute Book 1, the Securities Market Law with its reforms incorporated as Book 2 and the General Law of Insurance with its reforms is incorporated as Book III of the Monetary and Financial Organic Code. In all cases where a term has to elapse for a given performance or for a given legal effect to occur, only business days or useful days will be accounted for.
REFORMATTER PROVISIONS AND DEROGATIONS
CHAPTER 1
Reforms First.- In the current legislation, the following reforms are carried out: 1. Replace "Superintendence of Banks and Insurance" and
"Superintendent of Banks and Insurance" by "Superintendency of Banks" and "Superintendent of Banks", respectively;
2. Replace "Superintendence of Companies and Securities"
and "Superintendent of Companies and Securities" by "Superintendence of Companies, Securities and Insurance" and "Superintendent of Companies, Securities and Insurance", respectively; and,
3. Replace "Organic Law of Popular Economy and
Solidarity and the Financial Sector Popular and Solidarity" with "Organic Law of Popular and Solidarity Economy".
Second.- In the Civil Code, replace in article 1611 the text: " The Directory of the Central Bank of Ecuador "by" The regulatory body of the monetary and financial systems ". Third.- In the Organic Code of Planning and Public Finance, carry out the following reforms: 1. In Article 74 replace the number 22 with the
following: " 22. Use instruments and operations of national and/or international financial markets to optimize the financial management of the State; ";
2. In Article 75, add the following final paragraph:
"For the fulfilment of its duties and attributions, the governing body of the SINFIP shall have coactive jurisdiction, which shall be exercised in accordance with the law";
3. In Article 129, first paragraph, delete the
following text:
"Public banking may do so only in favor of public companies in which the State has the majority stake.";
4. Following Article 130, incorporate the
next numbered item:
" Article ....- Income Pignoration. The payments of any debt contract with entities in the Public Financial Sector, which will be held by public entities, including public sector companies, will be supported by the income of the entity's entire income. debtor at the Central Bank of Ecuador, in accordance with the respective regulations ";
5. In Article 137 amend the title of the article by
the following: " Contracts that contribute to the implementation of internal, external public borrowing operations
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and/or hedges, "and after the phrase" repurchase of securities issued by the State, "add the word" cover ";
6. In Article 144, second indent, following the
text: "stock exchanges" add "and/or trading platforms";
7. In Article 157, first paragraph, replace the text:
Financial institution of the non-financial public sector "by" Public Sector body ";
8. In Article 158, delete the text 'non-financial'; 9. In Article 168, incorporate the following
as a second indent: " The investment and operation of the international investment assets of the Central Bank of Ecuador, including the International Reserve of Free Availability, will be carried out without prior authorization. ";
10. " It incorporates the following general provisions: TWENTIETH FIRST: Any contribution that would remain pending the State by way of payment of the contribution of 40% of the retirement pensions since the enactment of the Constitution of the Republic, with the Ecuadorian Social Security Institute, which has not been transferred in the forecast period will be settled by applying to the capital owed the interest rate equivalent to the weighted average yield of each year of the Bank of the Ecuadorian Social Security Institute. The values that differ from the above calculation methodology shall be reviewed and entered into the consolidation and settlement process. For this purpose, minutes of definitive consolidation shall be carried out. TWENTIETH SECOND: The National Customs Service of Ecuador (SENAE), will collect and deposit in the National Treasury's Single Account the product of the auction of the goods of prohibited import, which are definitively confiscated. TWENTIETH THIRD.- The resources to be charged for the fines imposed by the courts and tribunals of the Republic, will be charged according to the technical standard that the governing body of public finances will dictate for the effect and will be transferred to the National Treasury's Single Account, as part of the fiscal resources that form part of the General Budget of the State. TWENTIETH FOURTH.- For the purpose of the reform of Article 30 of the Organic Law of the Comptroller General of the State, which eliminates the allocations in favor of the Comptroller General of the State, and with the purpose of financing that institution, They will be transferred to the General Budget of the State, the five per thousand of the budgeted revenues of the Autonomous Decentralized Governments, Public Enterprises, Social Security, Public Financial Entities, and in the proportional part of legal persons governed by private law whose share capital, equity, fund or tax participation is integrated,
with public resources. Except for the collection of this contribution, only income from internal and external borrowings, donations, initial cash balances. The Central Bank of Ecuador shall automatically debits these resources from the accounts of the entities named in the preceding paragraph, according to the settlement that the governing body of the public finances will issue. TWENTIETH FIFTH: The Public Law Enforcement and Management Unit of the AGD-CFN Trust No More Impunity will have co-active jurisdiction for the recovery and recovery of the obligations in its favor. The legal representative of the entity or its delegate shall be the judge of the co-working party, and shall exercise the coercive jurisdiction subject to the provisions of the Code of Civil Procedure. The administrators, shareholders and legal representatives of the financial institutions, who have declared their technical assets unreal, altered the figures for their balance sheets or charged interest rates, shall ensure with their Personal wealth deposits from the financial institution, and the Public Law Management and Enforcement Unit of the AGD-CFN Trust No More Impunity will be able to seize those goods that are of public knowledge of property of these administrators, shareholders and legal representatives. The seizure may be challenged on the basis of the regulations that have been issued for the effect or issue the Public Law Enforcement and Management Unit of the AGD-CFN Trust No More Impunity, after which, if the seizure resolution does not The property of the seized assets will be transferred in full to the Ecuadorian State through the entity. In this case, the Registrar of the Property, the Commercial Registrars, and any other organ or official that holds the record of transfer of goods, must register the transfer of domain of the goods that it requests the Public Law Management and Enforcement Unit of the AGD-CFN Trust No More Impunity, being exempt from the payment of taxes, fees, contributions, fines and expenses. The value for the records of the goods seized shall be the cadastral in the case of buildings, the value established in the registration number in the cases of the registered vehicles, or the one that determines a contract expert for the effect in other cases, except for the companies. The value of these goods will be determined according to the date of seizure. The value of the companies seized shall be that of the assets declared to the Internal Revenue Service in respect of the immediate economic year preceding the date of seizure. If this statement has not been made, the value of the company shall be the nominal value of its shares or units. In the case of shares or shares seized, which do not correspond to the whole of the capital of the company, their value shall be that corresponding to the percentage seized on the basis of the said equity. "
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Fourth.- In the Tax Code the following reforms are made: 1. In Article 35 insert as number 5 the
next: " 5. The measures provided for in the process of exclusion and transfer of assets and liabilities, of an entity of the National Financial System, in accordance with the Monetary and Financial Organic Code, in any form; " and, as number 6 the following: " 6. The process of extraordinary merger of the entities of the National Financial System, in accordance with the Monetary and Financial Organic Code, " and reenumerate the following numerals. Equal exemption will have savings and credit cooperatives when merged with others;
2. In article 43, after the sentence: "tax credit",
add the following ", titles of the Central Bank of Ecuador" and after the phrase: "active subject" add "and the Central Bank of Ecuador"; and,
3. In Article 220, as the final point, the
follows: " The District Court of Tax Litigation will not be competent to know the challenges against credit titles whose content, this is the obligation tax, has already been known and settled in judicial headquarters. "
Fifth.- In the Production, Trade and Investment Code, carry out the following reforms: " 1. Replace Article 12 with the following: " Art. 12.-
Risk Capital.- The State shall constitute venture capital funds with the contribution of public resources to finance the different stages of the innovation process, from the fields of research and knowledge, and production. These funds may, in turn, constitute collective investment funds and trusts that will be able to invest in and out of the securities market or contribute to existing funds, in accordance with the provisions of the Securities Market Act and the the regulations that the Board of Monetary and Financial Policy and Regulation dictate.
The investments and allocations of such venture capital funds will be made in specific research, incubation and production projects, preferably of an innovative nature, which must be temporary and previously agreed. The allocation of resources through the mecca-nisms provided for in this article and in the regulation will require the issuance of a feasibility analysis of the project, carried out by natural or legal persons, specialized. The delivery of resources may be carried out in accordance with Article 104 of the Organic Code of Planning and Public Finance. The shares of the collective funds may be acquired both by the public sector and by the private sector. The control of the risk capital fund management will be carried out by the control bodies of the
State, within the scope of their respective competencies, which in their supervisory and control actions will have to consider the nature of the risk capital. The executive order will determine the institutional and operating mechanisms necessary for the management of venture capital funds. ";
2. Delete Articles 62 and 65; 3. In Article 67, replace the following text: "The
body with the competition to promote and regulate popular micro-finance" by the following " The Monetary and Financial Policy and Regulatory Board "; and delete the second indent; and,
4. In Article 94, replace the text: "The public sector body
by" The public or public entity entity that determines the Monetary and Financial Policy and Regulatory Board ".
Sixth.- In the Work, in Article 36, incorporated as a last point, the following: " Except for the solidarity mentioned in the previous paragraph to the entities that make up the public sector and to the public companies. Consequently, no precautionary measure may be ordered or any judgment against the legal representatives or administrators of those entities or undertakings. ' Seventh.- In the Commercial Code as the final article 201, insert the following text: " Trade companies may exclusively engage in the professional and usual conduct of factoring and their operations. related operations, in accordance with the regulations that the Board of Monetary and Financial Policy and Regulation issues for the effect. " Eighth.- In the Organic Law of the Comptroller General of the State, replace Article 30, by the following: " Art. 30.-Budget.-The budget of the Comptroller General of the State will be financed by: a) With the allocation that is delivered through the
General Budget of the State; and b) The resources of self-management. " Ninth.- In the Organic Law of the Popular and Solidarity Economy and the Popular and Solidarity Financial Sector, carry out the following reforms: 1. Replace the first paragraph of Article 45 by the following
: " The manager is the legal, judicial and extra-judicial representative of the cooperative, being of free designation and removal by the Board of Directors and will be responsible for the management and its integral administration, in accordance with the Law, its Rules of Procedure and the social status of the cooperative. ";
2. In Article 61 replace the last indent with the following
: " The liquidator may or may not be a Superintendence server; otherwise, it will not be related to
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any labor dependency with the cooperative or the Superintendence, and shall be free of removal, without any right to compensation.
The liquidator shall in no case be liable in solidarity with the obligations of the entity in liquidation. "; 3. In Article 79, replace "the Central Bank of the
Ecuador" with "the Monetary and Financial Policy and Regulatory Board";
4. Replace Article 95 by the following: " Article
95.-Sigil and Reserve. The secrecy and the reserve of deposits and the captions of the organizations of the Popular and Solidarity Financial Sector shall be governed by the provisions of the Monetary and Financial Organic Code. ";
5. In Article 140, replace the text: "Grant the Bank
Ecuadorian Housing and" for "granting them"; 6. In Article 142, first remove the two
references that say: "and the Popular and Solidarity Financial Sector";
7. Following the second paragraph of Article 144
add: " For these purposes, the aforementioned Ministry will have a Technical Secretariat, which will also exercise the privileges granted in the Law of Popular and Solidarity Economy and its Regulation of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament Monetary and Financial Organic Code ";
8. In Article 158, first indent, replace the text:
"as a body governed by public law, endowed" by the following: "as a financial institution governed by public law, provided"; following the first indent, add another of the following tenor: "The Corporation will have the power to act as a Trustee.";
9. In Article 159, second indent, replace the text
that says: "to dictate the Superintendence", for the following: " arranged in the Monetary and Financial Organic Code, and in the regulations issued by the Board of Policy and Regulation Monetary and Financial ";
10. In Article 168, replace the literal (d) with the
below; ' Buy property from the administrators, officials or employees of the entity or persons acting on their behalf and in their representation and establishing agreements, agreements or contracts with natural or legal persons, outside the organisation, allowing them to participate directly or indirectly from the benefits arising from the promotion, promotion and incentive measures granted by this Law; '; and,
11. Delete Articles 81, 82, 83, 84, 85, 86, 87, 88,
89, 90, 91, 92, 93, 94, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119 and 120.
Tenth.- In the Organic Law of Regulation and Control of Market Power, carry out the following reforms: 1. In Article 53, incorporate the following final point:
" For the case of entities of the National Financial System, Since the beginning of the investigation procedure, the Superintendence of Banks and the Superintendence of Popular and Solidarity Economy, in its fields, will have to be counted. "; and,
2. In Article 56, incorporate the following final point:
" When the investigation relates to entities of the National Financial System, it must be counted with the Superintendence of Banks and the Superintendence of Economy. Popular and Solidarity, in their fields. ".
Tenth first.- In the Organic Law of the National System of Public Procurement, Article 2 below the numeral 9, insert another numeral of the following tenor:" 10. The contracts required by the Central Bank of Ecuador provided for in Article 37 of the Monetary and Financial Organic Code. " Tenth second.- In the Repeal Organic Law of the Law on Credit Information, delete Articles 4, 5, 6 and 7, and replace the First Transitional Provision by the following: " FIRST.- The Policy Board and Monetary and Financial Regulation will determine the date from which the Credible Data Registry in charge of the National Directorate of Public Data Registry will enter into full operation. The Credit Information Buros will continue to provide their services according to the regulations established by the National Directorate of Public Data Registry and the Superintendency of Banks until 90 days after the entry into force of the Record Of Credible Data. " Tenth third.- In the Organic Law of Public Enterprises, carry out the following reforms: 1. In Article 38, add the following final point:
" The operations carried out by public institutions or public companies, either in the country or abroad, through the Central Bank of Ecuador, as the financial agent of the State, are not commercial in nature but public. "; and,
2. In Article 42, incorporate the following
as a second indent: " Public companies engaged in the exploration, exploitation or marketing of non-renewable natural resources, or the transportation and refining of hydrocarbons, may be issue certificates of credit content, the amount of which will be based on the projection of future revenues derived from the activity of the public undertaking. Your registration in the stock market cadastre will be subject to the provisions of article 21 of the Securities Market Act. "
Tenth fourth.- In the Organic Law of Consumer Defense, article 47 is incorporated as final indent. the following: " The fees charged by the institutions
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financial or any other natural or legal person for all activities and services inherent in the court or judicial collection An out-of-court credit should be previously agreed with the borrower when the credit is granted. Fees for judicial or extra-judicial charges may not exceed the percentage determined by the Board of Monetary and Financial Policy and Regulation, which shall be calculated on the remaining value of the original capital of the credit, taking for market criteria, amounts, rates, segments, deadlines, among others. " Tenth fifth.- Remove the following pre-assignments in the Special Telecommunications Act and the Civil Aviation Act: 1. In the Special Telecommunications Act,
replace Article 37 by the following: " Article 37.- resources arising from the application of fees and charges for the use of radio frequencies, as well as the resources of the funds that have been created under laws and regulations, will be deposited in the National Treasury's Single Account. "
2. In the Civil Aviation Act, replace the article
31 with the following: " Art. 31.-Five percent (5%) on the value of each gallon of fuel and aviation lubricants that are expended in the country for the use of all aircraft in international commercial service will be deposited into the National Treasury Single Account. "
Tenth sixth.- In the General Insurance Act, carry out the following reforms: 1. In all the text of the law replace "Superintendence
of Banks and Insurance" by "Superintendence of Companies, Securities and Insurance" and " Superintendent of Banks and Insurance "by" Superintendent of Companies, Securities and Insurance ";
2. In Articles 52 replace "Banking Board" by
"Monetary and Financial Policy and Regulatory Board";
3. Replace Article 67 with the following: " Funds
to address the expenses of the private insurance area control body and contributions to the Private Insurance Fund will be obtained from the 3.5% contribution on the value of the premiums net of direct insurance, which may be increased up to 5%, by resolution of the Monetary and Financial Policy and Regulatory Board and at the request of the holder of this control body, in accordance with the constant powers of the law for the approval of the budget of the control body. Insurance companies will act as agents to retain this contribution.
4. Replace item 14 with the following:
" Art. 14.- The legal minimum paid capital for the formation of the companies that make up the insurance system will be as follows:
a) Insurance, it will be USD 8 ' 000,000 (eight million dollars from the United States of America). (b) Reinsurance shall be 13 million dollars from the United States of America (USD $13 ' 000,000, 00). In the case of companies operating in insurance and reinsurance, the capital will be 13 million dollars from the United States of America (USD $13 ' 000,000.00); the paid capital must be contributed in money. The Monetary and Financial Policy and Regulatory Board, at any time, may increase the minimum capital requirements. ";
5. Incorporate below article 14 other
innumbered of the following tenor: " Art ....- Paid capital may not be reduced to a quantity below the legal minimum and shall be increased by a decision of the general meeting of shareholders or by the Superintendent of Companies, Securities and Insurance. The resources for increased capital paid will come exclusively from: a) Amounts in money that may not come from
loans or other direct or indirect financing that have been granted by the company itself;
b) From the surplus of the legal reserve; c) From the accumulated profits; and, d) From the capitalization of reserve accounts,
whenever they are destined for this purpose. The Superintendence of Companies, Securities and Insurance will verify the legality of the payment of this capital, its provenance and the application of the funds and to establish the opposite will cease to be the increase of capital. " 6. Replace Article 22 by the following: " Art. 22.- Insurance and reinsurance undertakings shall maintain, at all times, the general solvency requirements or by classes governing the Monetary and Financial Policy and Regulatory Board, as follows: (a) The reserve system (b) a risk management system; (c) a technical heritage; and (d) compulsory investments. The solvency requirements will be reviewed by the Monetary and Financial Policy and Regulatory Board.
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The Monetary and Financial Policy and Regulatory Board shall issue the regulations necessary to implement the solvency regime. provided for in this Article; it may determine the time-limits, conditions, measures and actions necessary for its implementation; in order to avoid or mitigate the risk exposure of insurance companies and reinsurance undertakings in benefit of the insured. Insurance companies and reinsurance undertakings shall be the technical reserves for ongoing risks, mathematical reserves, catastrophic reserves, reserves for outstanding liabilities and reserves for deviation from claims; by the regulations issued by the Board, who will determine their methodology. The technical reserves shall cover all the risks incurred by insurance companies and reinsurance undertakings. The Board may create other types of technical reserves and/or modify existing ones and their calculation formula according to the dynamics of the development of the insurance business. The system of technical assets includes the determination of the minimum technical heritage required, which is established on the basis of an adequate level of capital to protect insurance companies and reinsurance undertakings against the effects generated by deviation in the frequency and severity of the underwriting risk, as well as any other risk and in particular the credit risk arising from reinsurance operations. The requirements of the system of technical heritage laid down in this Chapter shall be complied with in addition to the provisions relating to minimum capital laid down in the law, and other rules issued by the Board of Policy and Monetary and financial regulation in this respect. Any insurance company and reinsurance company shall establish efficient and effective management and control of technical risks, market, liquidity, credit and operational schemes "; Replace Article 23 by the following: " Art. 23.- Insurance companies and reinsurance companies must invest their technical reserves, at least 60% (60%) of the capital paid and the legal reserve, in securities market securities, investment funds, financial instruments and real estate, in the segments and percentages defined by the Monetary and Financial Policy and Regulatory Board, through general rules, seeking an adequate combination of risks, liquidity, security and profitability. Insurance companies and reinsurance companies are prohibited from trading shares or convertible bonds with Financial System institutions. In no case shall investments in financial instruments issued by institutions of the financial system exceed 10% of the total investment instruments; the
Board shall define the maximum percentages of other investments. "; 8. Delete Article 24; 9. Replace Article 25 by the following: " Art. 25.- The Superintendence of Companies, Securities and Insurance will determine the clauses that will compulsorily contain the policies, as well as the prohibited clauses, which will be devoid of effects and will be without written in case of existence. Premium rates and technical notes will require prior authorisation from the Superintendence. Copies of the policies, fees and notes will be sent to the Superintendence, at least thirty days before its use, for verification, control and sanction purposes. Policies shall be subject to the following minimum conditions: a) To respond to standards of equality and equity between the
contracting parties; b) Cenir their content to the law on the contract
of constant insurance in the Code of Commerce, the Supreme Decree No. 1147, published in the Register Officer No. 123 of 7 December 1963 to this Law and any other applicable provisions;
c) Be clearly worded so that
is easy to understand for the insured; d) The characters typographs must be easily
readable; e) Include basic coverages and exclusions with
characters highlighted in the policy; (f) Include the list of basic documents required
for claim of a disaster; g) Include a clause stating the option of the
parties to submit to an arbitration decision or mediation the differences that originate from the insurance contract or policy; and,
h) Point out the currency in which the premiums will be paid and
claims. The value of the sale of the foreign currency will be in force at the effective date of payment of premiums and compensation.
When the general conditions of the policies or their special clauses differ from the rules established in the legislation on the insurance contract, the latter will prevail over those. Premium rates shall be subject to the following principles: 1. Be the result of the use of information
statistics that meet the requirements of homogeneity and representativeness; or,
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2. Be the result of reinsurers ' backing of
recognized technical and financial solvency. In any insurance contract, the rules of the Organic Law on Consumer Protection are understood. Any clause opposing the laws, to the detriment of the insured, or to prohibitions determining the Superintendence under the first paragraph of this article shall be unwritten. " 10. Incorporate the following
article 27 below: " Art ....- The Monetary and Financial Policy and Regulatory Board shall issue the corresponding regulations for the hiring of reinsurance, and shall define the conditions and maximum percentages for the disposal of insurance and reinsurance by class, in accordance with the characteristics of the risks covered, the profile of the portfolios, the claims of the portfolios and other technical factors necessary. In addition, it may define cases where the contracting of reinsurance is not necessary. '; 11. Enter the following article 31 other
numbered as follows: " Art ....- Insurance, reinsurance, insurance-producing, risk-inspecting, casualty-adjusting and intermediary-of-insurance companies reinsurance shall have internal control by an auditor qualified by the Superintendence of Companies, Securities and Insurance. The internal auditor shall submit his control reports to the company and to the Superintendence of Companies, Securities and Insurance, in accordance with the control rules issued by that body. Natural persons who provide their services as insurance-producing advisors, risk inspectors, claims adjusters and insurance intermediaries shall carry out their activities on the basis of seriousness, accuracy, efficiency and effectiveness "; 12. Replace the first paragraph of Article 32 by the following
: " Insurance companies, reinsurance, are obliged to hire external auditors as well as risk-rating firms which must be legal persons subject to the rating and reporting standards issued by the Superintendence of Companies, Securities and Insurance. '',-13. Incorporate below Article 33 another
numbered as follows: " Art ....- Insurance and reinsurance companies must have actuarial services, which may be provided by natural or legal persons, qualified by the Superintendence of Companies, Securities and Insurance, in order to generate the technical notes of the products offered and to have an opinion on the
adequacy and sufficiency of the amounts contained in the financial reports, or on the methodology, or on the assumptions assumed for these. The Superintendence of Companies, Securities and Insurance, with respect to the actuarial studies to be carried out will have full verification powers and will require the minimum requirements that the technical reports must meet. "; 14. Replace Article 40 by the following: " Art. 40.- The fines imposed by the Superintendence of Companies, Securities and Insurance, in no case, shall be less than thirty (30) basic wages unified, nor more than 5% of the sales reported by the offending entity, with the exception of (a) to be imposed on employees or officials, who may not be less than three unified basic wages of the worker in general. Penalties shall be graduated in respect of the seriousness of the fault, damage caused to third parties, negligence, intentionality, recidivism or any other aggravating or mitigating circumstance. The imposition of the sanctions provided for in this Law is independent of any other sanction that could be applied for acts of violation of other provisions and do not limit the application of the civil or penal sanctions that correspond to compliance with the law. In no case can a person be administratively sanctioned two (2) times by the same entity, for the same cause, without prejudice to the criminal actions that are relevant. The fines imposed on the company, its legal representative, administrators, directors, employees or officials shall be made effective by means of securities which may be collected through the co-active jurisdiction or by any other means. "; and, 15. Replace Article 42 by the following: " Art. 42.- Insurance and reinsurance companies have an obligation to pay the contracted insurance or the part corresponding to the duly proven loss, as the case may be, within the period of thirty (30) days of the claim by the insured or beneficiary, accompanying the documents specified in the policy. Insurance and reinsurance undertakings may object in writing and in a reasoned manner within the time limit referred to in the total or partial payment of the claim, however, if the insured or the beneficiary is in charge of the company's objections insurance, it shall immediately pay the agreed compensation. If the insured or beneficiary does not object to the objections, it may lodge a complaint with the Superintendence of Companies, Securities and Insurance, in order to require the insurer to justify its refusal to pay. Within 30 days of filing the claim, and completed the documents that
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supports it, the control body will administratively address the dispute, fully or partially accepting the claim and ordering the payment of the claim within 10 days of the notification of the decision, or by denying it. The decision may be contested at the administrative seat in accordance with Article 70 of this Law. Failure to comply with the ordered payment will be a cause of forced liquidation of the insurance company. The interposition of actions or judicial remedies shall not suspend the effects of the resolution ordering the payment. In judicial offices, the insured person whose claim has been denied will be able to sue the insurer in the face of ordinary justice or to resort to the alternative dispute settlement procedures stipulated in the insurance contract. The insurer, for its part, may demand the revocation or annulment of the resolution that has forced the payment of the compensation, in administrative litigation jurisdiction, only when it has honored the obligation of payment. If the decision has been revoked or annulled, in order to obtain the restitution of the compensation paid, the insurer must also necessarily sue the insured or beneficiary who has charged it, who will intervene as part of the trial. The filing of the claim governing the present article suspends the prescription of the action that the insured or the beneficiary has against the insurer, until the notification of the resolution to the insurer. All insurance claims against insurers will be subject to the preceding rules. Consequently, the procedure laid down in the Organic Law on Consumer Protection is not applicable to them. In addition, in the case of insurance policies of faithful compliance with the contract and of good use of the advance which is contracted for the benefit of the entities provided for in Article 1 of the Organic Law of the National System of Public Procurement, the insurance companies must issue them in compliance with the requirement that they be unconditional, irrevocable and immediately charged, so that they have an obligation to pay the value of the contract insurance, within the period of ten (10) days following the order in writing where the insured person or the beneficiary is required to execute it. Insurance companies shall be prohibited in the case of the aforementioned policies for the benefit of the entities provided for in Article 1 of the Organic Law of the National System of Public Procurement, requiring the insured person for payment of the guarantee, additional documentation or compliance with any administrative procedure, other than that provided for in that law and in its rules of procedure. Any clause to the contrary shall be understood as unwritten. Failure to comply with these provisions will also lead to the forced liquidation of the insurance company '';
16. Replace the title of Chapter XI with the following. "From regularization and intervention";
17. Add the following unnumbered item to
continuation of article 53: " Art. ....- The Superintendent may order the intervention of the companies subject to their control and supervision under this Law, in accordance with the rules of Section XI and related to the Law of Companies. " 18. As a last item of Article 60, the following
should be included: " From the settlement, they are considered to be an expired term and the active transactions with persons linked to the entity are due, without the need for a requirement. In the event of non-payment, the liquidator will charge the obligation by means of co-activator, and can be subject to the principles and procedures of the Law of Defense of Labor Rights. In relation to related passive transactions, all other creditors determined in Article 62 shall not be required but after paid. Any administrative or judicial decision which infringes this principle shall be ineffective. ' 19. Add as a last point in Article 64 the
below: " In order to conclude settlement processes, the Superintendent in accordance with the rules that the Board may dictate may authorize or dispose of the assets and liabilities of the entities that are in liquidation, are temporarily or irrevocably contributed to a trust so that the assets and liabilities arising from those entities can be jointly managed, with the mandate to comply with the payment of the obligations to the extent that the assets are made. The Superintendence will continue to exercise the coactive jurisdiction on behalf of the trust, so that what is collected will be given to him to fulfill those obligations. " 20. Add the following
of the 65, the following: " Art ....- Legal or conventional representatives, directory vowels, administrators, and shareholders with 12% or more participation in the capital, or that exercise significant influence in the administration, shall be personally responsible and pecuniarily responsible for the deficit to be determined to cover the liabilities of the institution in liquidation. In order to recover this obligation, the Superintendent may do so by means of a co-active procedure, after duly substantiated decision, the challenge of which shall not suspend the recovery order. " 21. Replace Article 70 by the following: " Art. 70.- Of the resolutions issued by the competent body of the Superintendence of Companies, Securities and Insurance, in the field governed by this Law, an appeal may be brought before the Superintendent, within ten (10) days countedSecond Supplement -- Official Record No. 332 -- Friday, September 12, 2014 -- 91
from the date of notification of the resolution. The decision that the Superintendent will take will cause state, without prejudice to the administrative litigation actions, and of the precept in article 42 this law. No recourse should be made to the decision of the Superintendent of Companies, Securities and Insurance, or in the event that his pronouncement has been issued in the first administrative instance. Extraordinarily, through review, the Superinten-dente de Companies, Valores y Seguros will be able to revoke or reform any administrative act, either on its own initiative or on the occasion of the filing of the respective appeal, within a period of one year, which will be shall be based on the notification of that act. The review shall take place only if the contested administrative act has been made with obvious error of fact or of the right to appear in the documents appearing in the file or express legal provisions; or, where, after that, Documents of transcendental value shall be disregarded when the act or resolution concerned is issued. " 22. Replace Article 62 by the following: " Art. 62.- In any settlement the payments shall be subject to the following order of preference: 1. The debts arising from maturities, claims and
redemption values in the class of life, in accordance with the respective policies and costs judicial;
2. Claims obligations in general classes, will be
considered to be privileged over all common claims and obligations. This prelation does not affect the rights of the creditors on the assets committed. The Superintendent of Companies, Insurance and Securities will apply the provisions contained in the Code of Civil Procedure;
3. The values that are owed to the workers by
salaries, salaries, allowances, reserve funds and retirement pensions from the employer, up to the amount of the settlements that are practiced in the terms of the Work, and the obligations to the Ecuadorian Social Security Institute derived from industrial relations;
4. The securities paid by the Insurance Corporation of
Deposits, Liquidity Fund and Private Insurance Fund; and,
5. Taxes and contributions. The other credits will then be treated according to the order and form determined in the Civil Code, as soon as they are relevant. The Superintendent of Companies, Securities and Insurance may order partial payments, in accordance with the funds available for settlement. "
Tenth seventh.- In the Securities Market Act, the following reforms are carried out: 1. Replace in all the text of the Law "Registration of the
Stock Market" by "Public Registry of the Stock Market";
2. Replace in all the text of the Law "Board of
Securities Market Regulation" by "Monetary and Financial Policy and Regulatory Board";
3. Replace in all the text of the "Superintendence
of Companies and Values" Act with "Superintendence of Companies, Securities and Insurance";
4. Replace the "Superintendent of
Companies and Values" Act with "Superintendent of Companies, Securities and Insurance";
5. In Article 2, replace the last paragraph with the following
: " Any limitation to the free negotiation and circulation of securities not established by law shall not have legal effects and shall be unwritten. For the negotiation and circulation of securities issued by public sector entities and institutions, it shall be observed as applicable in the Organic Code of Planning and Public Finance. ";
6. In Article 4, delete the third indent; 7. Articles 5, 6, 7 and 8; 8. In Article 9, carry out the following reforms:
1. In the numeral 12 replace the text "the regulation" with "rules"; and,
2. Remove the number 9.
9. In Article 11, replace the fourth indent with the
below: " The securities issued for submission to a public offering process must be dematerialized. The securities issued by public sector entities may be physical if they are authorised by the Monetary and Financial Regulation Board. ";
10. In Article 21, incorporate the following point: "Be
excepted from the inscription detailed in the preceding article the Titles of the Central Bank of Ecuador TBC.";
11. In Article 57, remove the following; "and, in the
OTC market to the general rules issued by the C.N.V."
12. In Article 58, number 1 replace: "in the
stock markets and OTC" by "on the stock market";
13. In Article 59, numeral 3 remove the following:
"except in the cases provided for in numeral 5, in article 58 of this legal body or when carried out through the mechanisms established in this Law"
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14. In the third numbered article "Constitution of the
" of Chapter II "Compensation and settlement" added pursuant to Article 73 of the Securities Market Act, remove the fourth indent.
15. In Article 76, carry out the following reforms:
1. In literal (b) remove the following: "Exclusively for this type of funds, the administrator may serve as the issuer of securitization processes."
16. In Article 79, literal (a) below "fund
collective" include ", listed"; and, in literal (b) below "collective funds" include " or from quoted funds ";
17. In Article 115, replace the last item by the
below: " For the purpose of fulfilling its purpose, the autonomous patrimony may obtain financing from institutions of the financial system, through the issuance of securities established in this law, and through other mechanisms that regulate the Board. "; and,
18. In Article 197, remove the last indent. Tenth Eighth.- In the Social Security Law, carry out the following reforms: 1. Replace Article 82 with the following: " Art. 82.-
WITHHOLDING OF CREDIT FROM THE IESS and BIESS.-The credits in favor of the Ecuadorian Social Security Institute and the Bank of the Ecuadorian Social Security Institute, including the interest of arrears and fines, will be collected through withholding of the salaries and salaries of the members. At the request of the respective institutions, the paying officers and officers are obliged to carry out the corresponding deductions under their personal responsibility. ";
2. Replace the last paragraph of Article 306, by the following
: The Superintendence of Banks, according to Article 213 of the Constitution, will control the economic activities and services provided by public and private institutions. social security, including public or private supplementary pension funds, in the general interest and subject to the legal rules in force. "
Tenth ninth.- In the Law of the Bank of the Ecuadorian Social Security Institute, make the following reforms: 1. Replace in the law "Banking Board" with "Board of
Monetary and Financial Policy and Regulation"; 2. Articles 5, 19, 20 and general provision fourth
replace "Superintendence of Banks and Insurance" with "Superintendence of Banks".
3. Replace the penultimate paragraph of Article 4 by the following
: " The Monetary and Financial Policy and Regulatory Board, the Superintendency of Banks
and the Superintendence of Companies, Securities and Insurance, in the field of its The powers laid down in the Monetary and Financial Organic Code may authorise the Bank to carry out additional activities as provided for in this Article. '
4. Replace Article 8, by the following: " Article 8.-
From the directory.- The Board of the Bank of the Ecuadorian Social Security Institute, will be made up of four (4) members: as permanent delegate of the President of the Republic shall be the President of the Board of Directors of the Ecuadorian Institute of Social Security who shall preside and have a vote of dirimente, the head of the Secretariat of State in charge of the economic policy or its delegate, a (1) delegate of the Member of the European Parliament and of the Council of the European Parliament. public opposition and merit contest with the leadership and oversight of the Council of Citizen Participation and Social Control, who will last 4 years in their duties since the date of their possession.
The principal members, delegates and alternates be qualified prior to their possession by the Superintendency of Banks. " 5. In Article 10 numeral 2, replace
"Superintendence of Banks and Insurance" by "Superintendence of Banks"; and, in numeral 4 replace "Superintendence of Banks and Insurance" by "Board of Monetary and Financial Policy and Regulation";
6. In Article 12, replace numerals 1, 4 and 7 by
the following: " 1. Those laid down in the Monetary and Financial Organic Code and in the Securities Market Act "," 4. Request the Monetary and Financial Policy and Regulatory Board, Superintendency of Banks and the Superintendency of Companies, Securities and Insurance, the corresponding authorization to implement new operations "," 7. Name and remove the General Manager and the internal auditor. "; in numerals 8 and 19 replace" Superintendence of Banks and Insurance "with" Superintendence of Banks "; and, in numeral 18 remove:" or when this requires it; ";
7. In Article 14, incorporate as a second indent the following
: "The members of the board shall act only in the sessions to which they are summoned and participate in the committees that are required by regulations."
8. Replace article 15 by the following: " Article
15.- General Manager of the Bank.- The General Manager of the Bank shall be appointed by the Board, The period, powers, duties and functions shall be laid down in the Statute of the Bank. Bank. The General Manager will act with no vote in the Directory. Before entering into office, you must be qualified by the Superintendence of Banks. "
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9. Replace article 18 by the following: " Article
18.- Control.- The Bank shall be subject to the supervision and supervision of the Superintendency of Banks and the Superintendence of Companies, Securities and Insurance, in accordance with the nature of the activities detailed in Article 4 of this Law. "
10. Replace the general provision second by the
below: " SECOND.- The resources of the public pension funds of the Ecuadorian Social Security Institute will be transferred to the Bank, in the form and with the periodicity. establish the Monetary and Financial Policy and Regulatory Board, in the rules it will issue for the effect. "
Twenty.- In the Encoding of the Internal Tax Regime Act, carry out the following reforms: 1. In Article 10, number 3, after the phrase
"tax credit" add ", nor the penalties established by law ";
2. In Article 10 (9) add the following
final point: "For the case of the administrators of the entities of the national financial system, only the remuneration and the social benefits established by law will be deductible."
3. In Article 10, number 11, replace the
following text:
" Provisions shall be deductible up to the amount of the Banking Board, the Financial Sector or the Financial and Solidarity Financial Sector Regulatory Board, for the Popular and Solidarity Financial Sector, establish it. If the Banking Board or the Board of Regulations of the Popular and Solidarity Financial Sector, in their respective sectors, established that the provisions have been excessive, it may order the reversal of the surplus; this surplus will not be deductible. next: "Provisions will be deductible up to the amount that the Monetary and Financial Policy and Regulatory Board establishes.";
4. In Article 41, number 2 do the following
reforms: (a) In the literal (b) replace the fifth indent by the following
: " Companies, the undivided succession required to keep accounts and natural persons obliged to keep accounts which obtain income from activities (a) the value of the land on which they carry out such activities shall not be considered in the calculation of the advance, exclusively in the field of assets, in the calculation of the value of the land on which they carry out such activities. ';
b) Replace the literal j) with the following: " The
societies, as well as the successions indivisas and natural persons, required to keep accounts, whose income is obtained in the form of commissions or similar, by the marketing or
distribution of goods and services, only for the purposes of the calculation of the advances in this activity, will consider as taxable income exclusively the value of commissions or similar received directly, or through discounts or by margins established by third parties; and as costs and expenses deductible, those different to the cost of the goods or services offered. For the other operations of these taxpayers, if the entire taxable income and deductible costs and expenses are considered, coming from these other operations. In the exercise of its powers, the Tax Administration shall verify the effective compliance with this provision. "
5. In Article 55, replace the number 16 by the following
: "Gold acquired by the Central Bank of Ecuador directly or through public and private economic agents, duly authorized by the Bank itself."
6. Replace the last paragraph of Article 44 of the Law
Internal Tax Regime Organic by the following:
" In the case of interest of any kind of financial returns, generated by mutual transactions and, in general, all kinds of money placements, made by persons other than banks or other financial intermediaries, subject to the supervision of the Superintendency of Banks, the paying agency shall carry out the withholding tax on the value paid or Credited to the account. The interest and financial returns paid to banks and other entities subject to the supervision of the Superintendents of Banks and of the Popular and Solidarity Economy, will be subject to retention at the source, in the percentages and through the mechanisms to set up the Internal Revenue Service by resolution. "
Twenty-first.- In the Internal Revenue Service Creation Act, delete Article 19. Twenty-second.- In the Companies Act, carry out the following reforms: (a) In Article 371, delete the first subparagraph; and (b) Article 454 shall be deleted. Twenty-third.- In the Law on Hydrocarbons, Article 54, delete the following sentence: " aimed at promoting scientific and technological research, development and services in the field of hydrocarbons and, in general Mining, by the Ministry of the Ramo. " Twenty-fourth.- In the Mining Act, the following reforms are carried out: (a) Replace Article 49 with the following: " Art. 49.-
Free trade law.-The holders of mining concessions may freely market their production in or out of the country. However, in the case of gold from small mining and artisanal mining, the Central Bank of Ecuador
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will make its marketing directly or through the intermediary of public and private economic agents previously authorized by the Bank.
The Monetary and Financial Policy and Regulatory Board through regulation will establish the preferential right of purchase of gold by the Central Bank of Ecuador to public and private economic agents authorized by the Bank. Bank. '; and,
b) Substitute Article 149 by the following: " Art. 149.-
Gold purchases.-Gold purchases made by the Central Bank of Ecuador directly or indirectly, as well as purchases made by public and private economic agents duly authorized by the Bank itself, will be taxed with value added value zero rate. "
Twenty-fifth.- In the National Public Data Registry System Act, article 34, delete the literal c) and add the following General Disposition: " FOURTH: Tariffs that generate and collect the Records Commercial at the national level, they will be deposited in the National Treasury's Single Account. " Twenty-sixth.- In the Law on State Modernization, Privatizations and Public Service Provision by the Private Initiative, it will eliminate the Article 39. Twenty-seventh.- In the Law for the Economic Transformation of Ecuador (Trole I), the following chapters: I, II, III, IV, X, XI, XIII and XIV, Article 99 literals (b), (c), (d), (e), (f) and (j). Twenty-eighth.- In the Law for the Promotion of Investment and Citizen Participation (Trole II), the following titles are listed: 2, 4, 14, 15, 16, 17, 18, 19, 20, 21, 25, 26, 27, 28, 29 and 31. Twenty-ninth.- In the Tourism Law, replace the literal and article 40 by the following: " e) A fee for the issuance of each airfare to travel from Ecuador to anywhere abroad. The value of this rate will be regulated and its segmentation will be fixed by the National Tourism Authority. " 30th.- In the Forest Law of Conservation of Natural Areas and Wildlife, carry out the following reforms: 1. Take the second indent of Article 1; 2. Replace Article 76 with the following:
" Article 76.-For the financing of forest programs by the Ministry of the Environment, the following resources will be provided:
a) The allocation of resources that will be included in the
General Budget of the State; b) The resources to be collected by concept of
land, forests, contracts of
harvesting and fauna and flora, industrialization, marketing and other, as provided for in this Law. What exceeds the funding of the forest programs will enter into the National Treasury Single Account;
c) Revenue from fines, seizures, or
compensation for violations of this Law; d) The proceeds of the sale plant and material
vegetative from nurseries, as well as other forest products, exploited or industrialized by the Ministry of the Environment;
e) National or international loans
forest development; f) Voluntary contributions from
any source, legacies and donations; g) The resources to be obtained by granting
patents for tourism operation in national parks and other similar permits;
h) The product of the sale of licenses for hunting,
wildlife collection and marketing; i) Visitor income rights to natural protected areas
natural protected areas; j) Resources from internal loans and
external; k) Legacies, donations and contributions
volunteers in favor of the Institute, as well as the funds generated by the debt negotiation In favor of the conservation of natural resources; and,
l) The other resources generated by the application of
this Law. "; 3. Delete Article 77; and 4. Replace Article 97 by the following: "Art. 97.-
The seized forest products will be sold by the sanctioning authority itself immediately after the judgment of the first instance, under its personal responsibility. The value of the sale of the forfeiture will be deposited in the National Treasury's Single Account. The means of transport used for these purposes shall be retained until the end of the administrative or judicial procedure on the forest product. "
Trigth first.- In the Law on Narcotic Drugs and Psychotropic Substances, carry out the following reforms: 1. Get the numeral 3 of Article 9; and, 2. Substitute Article 10 by the following: " Article
10.- Destination of the fines.-The resources to be collected for fines imposed for violations to
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this Law, will be deposited on a monthly basis to the National Treasury Account. "
Trigth second.- In the Law on Prevention, Detection and Eradication of the Crime of the Laundering of Assets and the Financing of Crimes, carry out the following reforms: 1. Delete the literal f) of article 6; and, 2. Incorporate as the eighth general disposition the
next:
" EIGHTH.- The resources to be collected for the fines imposed for violations of this Law, shall be deposited in the National Treasury Single Account. ".
Third third.- In the Law of Creation and Operation of the Ecuadorian Professional Training Service SECAP, article 14, remove the literals a) and b). 30th 4th.- In the Special Law of the Coffee Sector, in Article 8, delete the literal a). 30th fifth.- Substitute Article 4 of the Law on Free Motherhood and Childcare by the following article: " Art.-4 The resources necessary for the implementation of this Law shall be provided by the State with the responsibility of the State. General budget of the State and will not be smaller than those allocated in the immediate year prior to the validity of this law, plus an estimated increase according to the increase in the coverage of the projected service. The competent ministry, in accordance with the law, will present the corresponding budget planning. " Trigth-sixth.- In the Organic Law for the closure of the 1999 Banking Crisis, the following reforms will be carried out: 1) Add the following provision after point
fifth of Article 14 of the Organic Law for the Closing of the Banking Crisis of 1999:
" In the case of the debtors of the Central Bank of Ecuador, who have filed within the time limit laid down in the law supporting documents which justify payments made which have not been recorded, may submit invoices for legal studies, third-party undertakings responsible for carrying out recovery actions or lawyers who have exercised collection activities, account statements, payment receipts, deposits or cheques drawn and charged to For the benefit of the external financial institutions. The debtor shall provide a sworn statement detailing the documents attached to it and indicating to which operation the payments correspond and shall be responsible for its declarations and for the effects they have on the process of recovery and liquidation, under penalty of perjury. Documentation may be submitted up to 30 days after the publication of this Code. The Central Bank of Ecuador will respond up to 60 days from its presentation. "
2) Add the following provision after the sixth paragraph of Article 14 of the Organic Law for the Closing of the 1999 Banking Crisis:
" For debtors who have received the recalculation and have two or more operations, to the debtor's request, the remainder of a debt, understood as the value of the credits made minus the initial capital of the same debt, may be applied as the capital payment of other debt held by the debtor with any financial institution extinct. They will not be considered as credits made from credits granted by the extinct financial institutions to cancel dividends from other debts and which were not redeemed by the debtors. This provision will also apply to the rediscounted portfolio with the National Finance Corporation. The ECB and the CFN shall make the corresponding compensation and shall communicate to the control body for the purposes set out in the Act. The preceding paragraph shall apply only to those debtors for which the total sum of the initial capital of their operations is a maximum of one hundred and fifty thousand dollars. "
3) Add the following paragraph at the end of the article
14 of the Organic Law for the Closing of the Banking Crisis of 1999:
" Commercial leasing operations held with the financial institutions extinct will receive the benefits set out below:
a) If for lack of payment the good was returned
to the financial institution liquidated or to the National Finance Corporation, the obligation will be extinguished.
b) is inside the goods
transferred to the Central Bank of Ecuador and the debtor has paid the all the obligation, and opted for the option of purchase will proceed to transfer of the good to the debtor.
c) If the good is in usufruct of the debtor, to
request of the same will be terminated the lease agreement and will be the same in a portfolio operation for the amount of the outstanding obligation. Upon completion of the payment of the obligation, the transfer of the good to the debtor shall be carried out. In the event of failure to comply with the recalculation agreement, the furniture shall be killed and the buildings transferred to the appropriate entity, as provided for in this law. "
4) Add the following provision after the
second paragraph of Article 15 of the Organic Law for the Closing of the Banking Crisis of 1999:
" The recalculation contracts may be signed up to ninety days after the publication of this Code. The 120-day deadline set in the second indent of the
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this article. In no case will requests for claims that have not been filed within the original time-limits of the law be received. "
5) Add the following provision at the end of
Article 19 of the Organic Law for the Closing of the 1999 Banking Crisis:
" The applications of Articles 18 and 19 that are submitted for up to 30 days will be covered. after the publication of this Code. '
Trigth seventh.- In the Comprehensive Criminal Code, the following reforms are carried out: 1. In Article 278 of the Comprehensive Criminal Code
replace the fourth indent by the following: " They are responsible for peculing the civil servants or servants, the officials, administrators, executives or employees. of the institutions of the National Financial System that perform financial intermediation activities, as well as the members or vowels of the boards and boards of these entities, which with abuse of their own functions of his position: (a) the funds, assets, money or private effects which represent them are fraudulently appropriated or distracted; b) they have executed dolously operations which reduce the asset or increase the liability of the institution; or any form of freezing or arbitrary or generalized withholding of funds or deposits in the institutions of the National Financial System, directly causing economic injury to its partners, depositors, unit-holders, or holders of the goods, funds or money. In all these cases, they will be punished with a penalty of imprisonment of ten to thirteen years.
If the subjects described in the preceding paragraph cause the fraudulent bankruptcy of entities of the National Financial System, they will be punished with punishment. The freedom of the freedom from ten to thirteen years. "
2. In Article 557 of the Penal Integral Organic Code,
numeral 3, after "for the effect." add: "In the event of fraudulent financial bankruptcy of a financial legal person with a negative equity, the money obtained from the auction shall be used for the payment of the rights of the creditors of the entity."
CHAPTER 2 Derogatoriums
Without prejudice to the provisions of the Transitional Provisions, as of the date of validity of this Code, all rules are repealed as soon as they object to the provisions of this Code. In addition, the following laws are expressly repealed with all of their reforms and regulations: 1. Coding of the Law on the Ecuadorian Bank of
Housing and Mutual Associations of Savings and Credit for Housing;
2. Law of General Deposit Stores; 3. Law of Cheiques; 4. Articles 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
13A, 14, 15, 19 and 20, general provisions and transitional provisions of the Financial Security Network Creation Act;
5. Law of Creation of the Credit Guarantee System; 6. Law of Water Development of Manabi; 7. Debt Restructuring Law Pending
Payment with the National Bank for the Promotion and Capitalization of the Institution;
8. Law of Rehabilitation of Producers who are in
arrears with the National Bank for the Promotion and Capitalization of the Institution;
9. Law of Reorder in Economic Matters, in the
Tax Area-Financiera; 10. Emerging Law of Support for the Productive Sectors
of the Border Cord; 11. Special Rehabilitation Law of the Bank of
Loans S.A. In Liquidation; 12. Special Law for the Capitalization and Sale of the Bank
Continental S.A.; 13. General Law of Institutions of the Financial System; 14. Law Interpretative to the Special Rehabilitation Law
of the Banco de Loans S.A., in Liquidation; 15. Organic Law of the National Financial Corporation; 16. Organic Law of Monetary Regime and Bank of the
State; 17. Organic Law of the National Development Bank; 18. Law for the Protection of the Social Capital that they provide
for Rehabilitation, clients harmed by the Liquidation of a Financial Institution;
19. Law that Regulates the Emission of Mortgage Cedulas; 20. Law Reforming the Law of the Law of
Monetary System and State Bank; 21. Law Substitute to the Law of the Ecuadorian Institute of
Educational Credit and Scholarships; 22. Article 5 of the Law on Maternity Free and the
Attention to Children; 23. Law on the Development of Agricultural Viality and
Development of Manpower; 24. Law Reform of the Law on the Development of Road
Agricultural and Development of Labor and of
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Creation of the National Environmental Sanitation Fund, National Forstation and Reforestation Fund;
25. Article 6 literal (d) and (f) of the Law of Forstation and
Reforestation of the Province of El Oro; 26. Law of Creation of the Commission for the Development of
the North Zone of Manabi CEDEM; 27. Law No. 70-06, published in the Official Register No.
413 of 17 April 1970; 28. Law 76 published in the Official Register No. 457 of 13
June 1990; 29. The Exoneration of Interest to Debtors Act of
Foncultura; 30. Supreme Decree No. 623-A published in the Register
Official No. 155 of 23 August 1976.
TRANSIENT provisions First.- Vigency of resolutions and regulations. The resolutions that are contained in the Resolution Coding of the Banking and Insurance Superintendency and the Banking Board, the regulations contained in the Codification Of Regulations of the Board of the Central Bank of Ecuador, the regulations issued by the Board of Regulations of the Popular and Solidarity Financial Sector, and the rules issued by the control bodies, maintain its validity in all that it does not object to the provisions of the Monetary Organic Code and Financial, until the Monetary and Financial Policy and Regulatory Board resolves what is appropriate, as the case may be. Second.-Servers. The public servants to the date of issue of this Code, which in any form or any title will work or provide services for the Banking Board, Board of the Central Bank, Board of Regulatory of the The Popular and Solidarity Financial Sector, after evaluation, qualification and selection, according to the institutional requirements and this Code, will be able to become part of the Ministry of State in charge of the Presidency of the Board of Policy and Monetary and Financial Regulation. Within 180 days from the promulgation of this Code, the public servants or workers, who in any modality, provide their services to the Executive Unit of the Law of Free Motherhood and Care to the Childhood may pass, after evaluation by the Ministry of Public Health, to this entity. The Ministry of Public Health shall assume the responsibilities, assets, rights and obligations that remain in force at this date. The resources that for free maternity and childcare effect were handled by the aforementioned implementing unit, will be transferred, after inventory to the Ministry of Public Health.
Third.-Applications, claims and all the claims and resources and other administrative procedures presented before the validity of this Code, before the Board of the Central Bank of Ecuador and the Board of Regulations of the Popular and Solidarity Financial Sector will be resolved by the Monetary and Financial Policy and Regulatory Board, within one hundred and eighty years (180) days counted from the time of the Code; to this effect, these collegiate bodies must transfer, within thirty (30) days, the administrative files of the claims and resources. The Board may extend the period to be resolved by up to one (1) year. The Banking Board will continue to act until all the claims, resources and other administrative procedures that are known to the date of validity of this Code are resolved, within one hundred and eighty (180) days, extendable at the discretion of the Monetary and Financial Policy and Regulatory Board. The Banking Board from the time of this Code will cease to know the challenges against normative acts. The actions against the current rules issued by the Banking Board, the Board of Directors of the Central Bank of Ecuador and the Regulatory Board of the Popular and Solidarity Financial Sector, will be brought before the Board of Policy and Regulation. Monetary and Financial. Fourth.-Payment networks and compensation systems. Private payment networks and private compensation systems operating in the National Financial System should be classified as an auxiliary payment system and have the authorization of the Central Bank of Ecuador to support its operations, within the period of one (1) year counted from the validity of this Code. Fifth.-Authorization of ancillary payment systems. Within a maximum period of ninety (90) days from the date of this Code, the entities that are operating as auxiliary payment systems shall apply to the Central Bank of the Ecuador the respective authorization to continue operating, in accordance with the provisions of this Code. Sixth.-Advertising auxiliary payment systems. The Central Bank of Ecuador, within a maximum period of one hundred and eighty (180) days from the validity of this Code, will publish in a national circulation journal and on the institutional website, the entities authorized to operate as systems payment auxiliaries, as well as those in the process of authorization. Seventh.-Compensation and settlement of entities in the Popular and Solidarity Financial Sector. Within a maximum period of one hundred and eighty (180) days from the date of this Code, the Central Bank of Ecuador will establish the clearing and settlement to be applied by institutions acting as ancillary payment systems for transactions carried out by entities in the popular and supportive financial sector. Eighth.-Credit Guarantee System. The credit guarantee system referred to in the Credit Guarantee System Creation Act shall continue to operate in accordance with the provisions applicable to the date of
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validity of this Code, until its transformation into the credit guarantee system referred to in Article 149, according to the regulations issued by the Monetary and Financial Policy and Regulatory Board. Within ninety (90) days of validity of this Code, the National Guarantee Fund established by the National Financial Corporation under Article 65 of the Organic Code of Production, Trade and Investments shall be be reformed in order to integrate it into the Credit Guarantee System referred to in Article 149. Ninth.-The validity of the authorization certificates. The certificates of authorization issued by the Superintendence of Banks and Insurance, which protect the functioning of public and private financial institutions, with the exception of financial system auxiliary services entities, which are currently operating, are valid and will be in force until they are replaced by the authorizations for the financial year and the corresponding permits operation referred to in Article 144, in accordance with the types of entity; prior to compliance with the levels of capital, equity, liquidity, solvency and other requirements determined in this Code, and in the regulation issued by the Monetary and Financial Policy and Regulatory Board. The replacement of the certificates by the authorizations must be carried out within eighteen months from the date of the validity of this Code. The Superintendency of Banks, in agreement with the Monetary and Financial Policy and Regulatory Board, may extend the deadline for up to eighteen months, for only one time, for duly justified reasons. Within these deadlines, private financial institutions must reform their social status and carry out the other actions necessary to comply with the provisions of this Code. In order to comply with this transitional provision, public and private financial institutions may merge, become, or cease to operate and initiate a liquidation process in accordance with the rules that the Superintendency of Banks dictates. " Tenth.-Public cadastre of financial institutions. Within ninety (90) days of the validity of this Code, the superintendences must convert the database of the entities under their control in the Public Catastro disposed in the present legal body. Tenth first.-Publication of the superintendencies. The publication of the financial and statistical information, as provided for in Articles 221, 222 and 224, of the entities of the Financial Sector Popular and Solidarity will be published and reported by the Superintendence of Popular and Solidarity Economy, progressively, as well as the supervision of the entities of the popular and solidary financial sector, within three (3) years since the validity of this Code.
Tenth second.- Deposit Insurance and Liquidity Fund Corporation: The Insurance Corporation of Deposits and the Liquidity Fund created by the Financial Security Network Act will be transformed into the Deposit Insurance Corporation and the Liquidity Fund of the private and popular financial sectors and in solidarity, within sixty (60) days from the time of this Code. Until this transformation is perfected, the Deposit Insurance Corporation and the Liquidity Fund will continue to operate in accordance with their law of creation. 10th Third.-Deposit Insurance, Liquidity Fund, and Private Insurance Fund: Until the new Deposit Insurance and Liquidity Fund trusts set forth in this Code are constituted, the Trusts will continue to operate. Commercial of the Deposit Insurance Funds and the Commercial Investment Trust Fund of Liquidity. Once the new Deposit Insurance, Liquidity Fund and Private Insurance Fund trusts are established in this Code, the Deposits Insurance Funds and the Investment Mercantile Trust Liquidity Fund, they will transfer their resources to the new trusts and will subsequently be liquidated. The time limit for the transfer referred to in this Article may not exceed 60 days after the new trusts are operational. The Private Insurance Fund will begin operating from January 1, 2016. All public servants who are directly and indirectly related to the fulfilment of this provision will, as a matter of priority, take care of the necessary procedures for the improvement of the provisions. The governing body of public finances will, for this time, contribute to the General Budget of the State, the sum of forty million (40 ' 000,000.00) of the United States of America, to the trust of the insurance of deposits of the Sector Financial Popular and Solidarity. " Tenth 4th.-Deposit Insurance Coverage for savings and credit cooperatives and mutual savings and credit associations for the Popular and Solidarity Financial Sector: The savings and credit cooperatives and the mutual savings and credit associations for the housing of the Popular Financial Sector and Solidarity that are not part of segment 1, which are registered in the Public Catastro in charge of the Superintendence of Popular and Solidarity Economy, maintain a deposit insurance cover of a thousand dollars from the United States of America (USD $1,000,00); this value shall be increased to the value set out in Article 328, depending on the presentation of the information required by the Deposit Insurance and Liquidity Fund directory, within the time limit defined by it.
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As of the enactment of this Code, the Popular and Solidarity Financial Sector savings and credit cooperatives Under the previous paragraph, they have an obligation to contribute to Deposit Insurance, in accordance with the regulations issued by the Monetary and Financial Policy and Regulatory Board. The Deposit Insurance Cover of a thousand dollars from the United States of America (USD $1,000.00), established in this provision, will apply to the entities of the Financial Sector Popular and Solidarity that at the time of issue of this Code are in the process of being wound up in accordance with the provisions of the Organic Law on Popular and Solidarity Economy and the Popular and Solidarity Financial Sector. In this case, the provision of Article 330, second indent, is not applicable. Instead, the Deposit Insurance Corporation and Liquidity Fund will be creditor for the amounts covered according to the order established for the effect. " 10th fifth.-Tax compliance of foreign accounts: For the period of four (4) years from the date of this Code, the control bodies may authorise the delivery of information referred to in Article 354, 7, without reciprocity, until the intergovernmental conventions for the provision of reciprocal information are signed. 10th 6th.-Public Financial Sector: The State Bank, the National Development Bank, the National Finance Corporation, and the National People's Finance and Solidarity Corporation will continue to operate in accordance with their laws of creation, until the President of the Republic issues the corresponding executive decrees by which the entities of the Public Financial Sector are reorganized or liquorated and the authorizations and operating permits are granted, as the provisions of this Code. Tenth seventh.-Workers and servers of the Public Financial Sector: For the purposes of the reorganization of the Public Financial Sector, the workers and public servants who at the date of issue of this Code, that in any form or to any title, work or provide services in such entities, after evaluation, qualification and selection, in accordance with the institutional requirements and this Code, may become part of the new public financial institutions. In the case of public servants, if unnecessary charges exist, the process of removal of posts provided for in the Public Service Organic Law and/or the compensation process provided for in executive decree No. 813, published in the Official Register No. 489 of 12 July 2011. The Secretariat of State in charge of industrial relations, within the period of one hundred and eighty (180) days of validity of this Code, shall carry out the analysis and corresponding studies, for the purpose of establishing a differentiated remunerative scale and specifies for the servers of the Public Financial Sector entities and the insurance and securities public entities.
Tenth eighth.- Reversal of accounting records: Accounting records on interest due in favor of the Central Bank of Ecuador by the Ministry of Finance regarding the bonds issued on the basis of Law No. 98-17, which were the property of that bank until 31 December 2008, within thirty (30) days of the issuance of this Code, will be reversed. 10th 9th.- The Central Bank of Ecuador's International Asset Investment Regulations: The provisions relating to the management of external assets and liabilities of the Central Bank of Ecuador established in this Code shall apply from the fiscal year 2014. Twentieth.- Restructure of the Central Bank of Ecuador: In order to implement the new management structure of the Central Bank of Ecuador, within one year from the date of validity of the Code, the General Manager is empowered General to execute and arrange all necessary action, in accordance with the law, to improve the management of the human talent of the Central Bank of Ecuador, in accordance with the rules of this Code and other applicable regulations. The new functional organic structure of the Central Bank of Ecuador will be integrated as much as possible with the current servers and workers who are qualified for the evaluation and selection process, which will be carried out by the Government of Ecuador. Central bank of Ecuador. This evaluation process may be carried out by a firm specialized in the field and in it will be considered, among other aspects, the competencies, academic training, specialization, training courses, experience and those determined by the Organic Law of the Public Service and the governing body of matter. To this end, the Central Bank Administration of Ecuador will issue the corresponding resolution, describing the terms of the evaluation and selection process to which the servers and workers of the institution will be subjected. evaluation mechanisms to be applied. The staff selectively defined and the additional one to be incorporated, must necessarily meet the requirements stated for the position, and comply with the provisions of the internal regulations that for the effect dictate the General Management of the Central Bank Ecuador, which will have to obtain a favorable opinion from the Ministry of Labor Relations. The servers and workers of the Central Bank of Ecuador who are not selected in this process will receive the compensation provided for in the Organic Law of the Public Service or Labor Code, as the case may be. The provisions of the Organic Law of the Public Service and other existing provisions relating to the matter shall apply for all that is not covered by this transitional provision. Pensions which, by retirement, montepio, widowhood, invalidity and others established by the governing body of social security shall be adjusted in accordance with the amounts.
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permitted by the law of the matter as soon as the beneficiaries have met the requirements laid down in the law. No benefits will be recognized whose origin is contrary to those provided for in the Social Security Law and will not be entitled to receive pensions or any other nature and the former servers of the Central Bank of Ecuador that compensated in time or paid early contributions as a retirement requirement as also former members of the Monetary Board or Board that passed resolutions or regulations contrary to the retirement requirements and of which they were direct beneficiaries. The administrative and judicial processes in respect of retirement pensions, which are in the process or litigation in the different courts, will continue to be substantiated in accordance with the procedural rules of the matter until their conclusion. Officials and employees of the Central Bank of Ecuador who committed or committed serious misconduct in the performance of their duties or those who would present significant increases in their assets not justified and incompatible with their statements of income submitted for tax purposes, shall be removed in their duties under the law and internal regulations that the effect of the administration of the bank, guaranteeing due process, without prejudice to the other actions to which it has taken place. The Central Bank of Ecuador shall compulsorily denounce before the competent judges, when it has knowledge that the officials and former officials who have worked until five (5) years ago or whose spouses or relatives within the fourth degree of consanguinity and second of affinity, have obtained non-justified and incompatible property increases with their declarations of income presented for tax purposes. Twentieth first.-Bank of the Ecuadorian Social Security Institute: The appointed members representing the active and retired members of the Board of the Bank of the Ecuadorian Social Security Institute, which were After the National Assembly on November 25, 2009, they will remain in their posts until they are legally replaced by the winners of the contest and merit called by the Council for Citizen Participation and Social Control on 20 March 2009. April 2014 who in the exercise of their duties will be subject to the provisions of this Code. The other members of the Board and the General Manager of the Bank of the Ecuadorian Social Security Institute shall cease their duties within thirty (30) days, counted from the promulgation of this code. Within one hundred and eighty days (180) since the promulgation of this code in the Official Register, the Superintendence of Banks and Superintendence of Companies, Securities and Insurance along with the Bank of the Ecuadorian Institute of Social Security, They will implement all the activities necessary for the implementation of
the reforms to the Law of the Bank of the Ecuadorian Social Security Institute laid down in this legislation. Until such time the Bank will continue under the control of the Superintendency of Banks. Twentieth second.-Ecuadorian Housing Bank: The Ecuadorian Housing Bank will be liquidated within the maximum period of 90 days, counted from the date when the Superintendency of Banks issues the regulations for the effect. Until such time the Bank will act in accordance with its constitutive law. In the settlement process, the following shall be observed: 1. The real estate owned by this
entity, shall be transferred to the value in books to the Public Sector Real Estate Management Service, PANAMA or to the Secretary of State. Housing charge.
The Public Sector Real Estate Management Service, DAR ar is empowered to clean, regularize and take all necessary actions to resolve the affections of the real estate that is transferred, and dispose of them according to the law;
2. The deposits in sight and assets equivalent to
such deposits recorded in the balance sheet of the Ecuadorian Housing Bank will be transferred to the National Development Bank or its successor in rights, which will assume them without any restrictions;
3. The Deposit Insurance Fund and Mortgage Insurance Fund will be
liquidated and the resources that are not guaranteed to guarantee current housing credit operations will be transferred to the National Treasury Single Account;
4. The commercial discount portfolio with collateral
mortgage and equivalent time deposits will be transferred to the value in books from the State Bank.
5. The Bank
Ecuadorian Housing shares and shares will be transferred to the value in books from the State Bank; and,
6. All other assets, liabilities, assets and
other obligations of the Ecuadorian Housing Bank shall be disposed of in the process of liquidation of the entity; for the purpose, the liquidator may constitute a trust whose beneficiary be the Ministry of Finance, which will be responsible for the disposal of the remaining assets.
The settlement process may not exceed two (2) years. Workers and public servants who at the date of issue of this Code, who in any form or any title, work or provide services in the Ecuadorian Housing Bank, after evaluation, qualification and selection, according to with institutional requirements and this Code, they may become part of other public financial institutions.
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Public servants unable to relocate to other entities will undergo the process of deleting positions disposed of the Organic Law of Public Service. " Twenty-third.-Replacement of the debtor of operations of the National Development Bank: In the credit operations granted by the National Development Bank whose financial resources have been delivered directly to different third parties the recipient or client and that the amounts delivered have not been met with the objective for which the credits were granted, the original debtor of that transaction shall be replaced by the person who actually received such resources or by the public servant who authorized the disbursement in favour of the said third party, compliance with the regulations established by the Bank's board. This provision will apply even to the credits provided prior to the entry into force of this Code. Twenty-fourth.-Ecuadorian Institute of Educational Credit and Scholarships: The Ecuadorian Institute of Educational Credit and Scholarships, IECE, created with the Law Substitute to the Law of the Ecuadorian Institute of Educational Credit and Scholarships, from the This Code will cease to operate and in its place by Executive Decree, the new public institution will be created in charge of the administration of scholarships, follow-up and academic advice, belonging to the Executive Function, until both the Ecuadorian Institute of Educational Credit and Scholarships, IECE will continue to act in accordance with its constitutive law . The new public institution will be the successor in law of the Ecuadorian Institute of Educational Credit and ECEC Scholarships, assuming the patrimony, rights and obligations, contracts, agreements and other legal instruments. Grant jurisdiction, in the terms of Article 10 of this Code, to the public institution, which is responsible for the administration of scholarships, follow-up and academic advice. The maturities that has been generated in the framework of the placement of educational credits granted up to December 19, 2013 by the Ecuadorian Institute of Educational Credit and ECEC Scholarships, as well as the expired portfolio that is generated from the placing of educational credit in the quintiles determined by the specific agreements signed by that institute with the financial institutions for that purpose, will become owned and managed by the new public institution responsible for the administration of scholarships, follow-up and academic advice. The control of the management of this coactivated and punished portfolio shall be carried out by the Comptroller General of the State, a body that shall carry out such control considering the financial nature of the operations. Financial institutions which are entitled to the provision of educational credit should observe public policy on the subject, which for the purpose of which the governing body of higher education, science, technology and innovation is concerned.
Twenty-fifth.-Association Agreements: Within the period of one (1) year since the validity of this Code, private financial institutions and their domestic and foreign subsidiaries shall be required to dispose of shares held in other private financial institutions as a result of the association agreements concluded with the amparo of the General Law of Institutions of the Financial System. Twenty-sixth.-Disinvestment: Private financial sector entities and shareholders of such entities with wealth ownership, within one (1) year of the validity of this Code, shall disinvest their assets. equity shares in foreign financial institutions that are domiciled in tax havens or lower tax jurisdictions in accordance with the criteria of the Internal Revenue Service. In the event that an Ecuadorian private financial institution or the shareholders of those entities with property ownership with influence, maintain shareholding in a country that is qualified by the Internal Revenue Service as a paradise Tax or jurisdiction of lower taxation, after the date of validity of this Code, such persons shall disinvest such participation within one (1) year. Twenty-seventh.-Mortgage Secondary Market Development Corporation: The entity incorporated under the General Financial System Institutions Act as a secondary mortgage market development corporation, in the (1) the term of a (1) year of the validity of this Code, shall transfer the quality of trust in the securitization processes that it currently administers to a fund and trust management company, while maintaining the other required powers to develop third-party, own and third party securitization processes. If no such transfer is held within the indicated period, the entity shall be settled. The State's participation in this corporation will be assumed by the State Bank, an entity that will be able to maintain, increase or alienate it. Twenty-eighth.-Transportadoras de valores y seguridad: The entities of auxiliary services of the financial system whose object is the transport of monetary and security and security species, which have been constituted as companies of limited liability, within one year they must be converted into anonymous companies. Twenty-ninth.-Mutual associations of savings and credit for housing: The mutual associations of savings and credit for housing that at the date of validity of this Code are operating, within eighteen months They shall resolve their stay in the People's and Solidarity Financial Sector or their conversion to a Financial Institution in the Private Financial Sector. In case of passing to the control of the Popular and Solidarity Financial Sector, the Superintendence of Banks and Insurance will transfer all the documentation and files to the control body of the mutual associations of savings and credit for the housing. This deadline may be extended by the Monetary and Financial Policy and Regulatory Board,
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for a single time for an additional eighteen months. The accumulated historical patrimony of the mutual associations of savings and credit for the dwelling registered as an irreparable legal reserve, will be recorded as patrimony of the entity. In the event that the entity becomes an entity of the Private Financial Sector, the accumulated historical patrimony, constituted by the irreparable legal reserve, will be contributed to the Deposit Insurance. 30th.-Insurance, reinsurance, insurance-producing, insurance-producing, risk-inspecting and reinsurance-intermediary companies: Insurance, reinsurance, insurance-producing companies, insurance companies, insurance companies, insurance companies, insurance companies, insurance companies, risks and adjusters of reinsurance claims and intermediaries that as of the date of validity of this Code are constituted, within eighteen months they will have to conform to the reforms to the General Law of Insurance arranged in this Code. The Monetary and Financial Policy and Regulatory Board will be able to extend the deadline for up to eighteen months, for one time. Companies that cannot comply with this Transitional Provision will cease to operate and initiate a liquidation process in accordance with the rules that the Superintendency of Companies, Securities and Insurance will dictate. The Superintendent of Banks will know and resolve the appeals that have not been resolved by the Banking Board under the third transitional provision, for the claims that are filed until the competition in this matter is assumed by the Superintendence of Companies, Securities and Insurance, in accordance with the following transitional provision. In the claims, the terms or deadlines that have begun to elapse to the date of enactment of the reforms to the General Insurance Law introduced by this Code will be respected. The rules of the Organic Law of Defense of the Consumer are incorporated into the insurance contracts in force at the date of enactment of this law. The reforms to the General Insurance Law introduced by this Code, in respect of the forced liquidation of companies regulated by that law, shall be applicable to the settlement in process to the date of enactment of the reforms. " 30th first.-Control of the insurance regime: The Superintendence of Companies, Securities and Insurance will assume the powers that this Code and the reforms introduced to other laws assign to it, within a given year since its publication in the Official Register. During that period, the files, documentation and systems currently in the Superintendence of Banks and Insurance will be transferred, and will be determined and obtained the human, technological, financial, and material resources in
The workers and public servants of the Superintendency of Banks, who at the date of issue of this Code, are providing services in the area in charge of the insurance system, prior to the assessment, qualification and selection, in accordance with institutional requirements and this Code, they will be able to become part of the Superintendence of Companies, Values and Insurance. If there are unnecessary charges, the process of abolishing the posts provided for in the Public Service Organic Law will apply. " 30th 2nd.-Public Accounts Non-Financial Public Sector: Within two (2) months of the date of this Code, the entities of the national financial system will convert exclusively to the accounts of resources, all bank accounts with a rotating capacity that the institutions of the non-financial public sector maintain. Failure to comply with this provision shall entail the administrative, civil and criminal liability to which it is responsible. Third.-Investments Public Sector Non-Financial: The financial investments that the non-financial institutions of the Public Sector maintain in the private and popular financial sectors and in solidarity, and in securities securities issued by private national entities or foreign entities, at their maturity, may not be renewed. If the maturity of the investment exceeds one (1) year from the date of this Code, such financial investments shall be in place. The resulting resources will be credited in the respective accounts that the entities maintain in the Central Bank of Ecuador, in accordance with the rules that the governing body of the public finances dictates. Entities of the Public Sector Non-Financial constituent of the commercial trusts BANK OF THE MIGRANT, JESTRES, FICA, and any other trust established for the purpose of carrying out credit operations in favor of the priority care groups, terminate these trust contracts and the restitution of their assets to the constituents so that they in turn transfer the resources resulting from the liquidation to the People's Finance Corporation and Solidarity, within one hundred and eighty (180) days of the validity of this Code. The Corporation of Popular and Solidarity Finance will allocate these resources exclusively for programs and projects oriented to the same priority attention groups in favor of which the trusts were formed. Within the same time limit, it is also available to terminate the commercial trusts FONDESME AND CREATOR. The money assets of such trusts will be transferred to the risk capital fund provided in the Organic Production Code and the remaining assets to the respective constituents.
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The failure to comply with this provision will bring the administrative, civil and criminal responsibilities to which it occurs. 30th fourth.-Resources from the National Environmental Sanitation Fund (FONASA) and the National Forstation and Reforestation Fund (FONAFOR): Under the repeal of the Reform Law of the Law on the Development of Agricultural Viality and Development of the National Environmental Sanitation Fund, the National Environmental Sanitation Fund (FONASA) and the National Forstation and Reforestation Fund. (FONAFOR), after liquidation, will be transferred to the National Treasury's Single Account. 30th 5th.-Resources of the Commission for the Development of the North Zone of Manabi CEDEM: By virtue of the repeal of the Law of Creation of the Commission for the Development of the North Zone of Manabi CEDEM, the resources allocated to the The Commission, after liquidation, will be transferred to the Single National Treasury Account. 30th sixth.-Coactive jurisdiction: Financial and insurance entities in which the State retains majority ownership, shall have co-active jurisdiction for the collection of claims and any kind of obligations in their favour or third parties, as long as the State retains such participation. The co-active jurisdiction shall be exercised in accordance with Article 10 of this Code. The Superintendency of Banks will continue to exercise the coactive jurisdiction for the collection of the property losses of the financial institutions whose liquidatory processes culminated until December 2010. The co-active processes shall be initiated against the shareholders representing six per cent (6%) or more of the equity capital at the time the financial institution is submitted to the restructuring, reorganisation or forced liquidation process, as well as against the principal administrator and legal representative. The Superintendence of Banks will determine the qualities referred to in the previous paragraph, and may issue real precautionary measures, within the coactive, on the goods that are of public knowledge are owned by those shareholders, administrators or legal representative, if any. The above, without prejudice to the civil, administrative and criminal responsibilities to which the financial institutions were administered during the reorganisation or restructuring period by the Guarantee Agency of the European Union. Deposits and subsequent settlement. In the event that the control entities determine the responsibilities of temporary administrators and liquidators, they grant the same jurisdiction to the Superintendency of Banks to exercise against such officials. "
Trigth-seventh: The twenty-fourth general provision of the Organic Code of Planning and Public Finance introduced by the reformation and repeal provision of this Code, shall govern from the financial year 2015. 30th 8th: In the case of the State Bank, instead of the headlines mentioned in Article 373 (2), they will participate in the directory: a representative of the regional governments, a representative of the provincial governments, a representative of the cantonal governments, a representative of the parish governments and two heads of state secretaries whose scope of action is directly related to the purposes and objectives of the respective financial institution, or its permanent delegates. This entity will have its subscribed and paid capital divided into shares and will have a General Shareholders ' Meeting Trigth novena: The sale of the shares or assets of the companies acquired by the Deposit Insurance Agency or the Management and Enforcement Unit of the AGD-CFN Trust No More Impunity at the disposal of Article 29 of the Law on Economic Matters in the Tax-Financial Area, implemented with credit or financing operations made by the National Finance Corporation and paid, in whole or in part, with Certificates of Guaranteed Liabilities (CPG) in favour of workers or employees of such companies, shall be reliqued according to the following criteria: a. The price of the traded goods will be reliqued: (i) a
its value in books at the date of the sale; (ii) the lower value to which similar goods of the same company were publicly sold, or (iii) to the current book value, the lower of the Three.
These criteria will be applied in future sales by the AGD-CFN Commercial Trust No More Impunity to the workers or employees of the companies determined in the first paragraph.
b. Credit or financing operations will be
reliqued as follows: (i) The AGD-CFN Commercial Trust No More Impunity shall pay the National Finance Corporation the difference in the capital between the credit (ii) the financial terms of the reliqued operations shall be at least 15 (15) years and at a rate of no more than five per cent of the financial conditions of the reliqued transactions; (5%), the AGD-CFN Commercial Trust No More Impunity shall pay to the Financial Corporation National the difference by reliquidation of these interests; and, (iii) interest paid in excess for the purpose of the indicated relief, shall be paid to the capital.
c. In those cases where the Commercial Trust
AGD-CFN No More Impunity does not have sufficient resources to make the payments provided for in the preceding paragraph, the difference, total or partial, will be assumed by
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the AGD-CFN Trust's Management and Enforcement Unit No More Impunity, for which the Ministry of Finance will allocate resources that
Superintendency of Banks will have, within the maximum period of 180 days, the performance of external audits of the Complementary Supplementary Funds Closed 40th First: Until the respective decrees that permit the operation of the public banks are issued, the Board of Monetary and Financial Policy Regulation will determine, by regulation, considering segments, activities economic and other criteria, all cases in which the payments are first charged to the capital, for the operations of loans in force or due to the public financial sector entities, which have been granted before or after the issuing this Code.
Quadrumpth second: Transmissibility and Check-in, and cross-check issuance, will continue to be done in accordance with the Cheiques Act, until the Monetary and Financial Policy and Regulatory Board dictates the regulations determined in this Code. FINAL DISPOSITION.- This Code shall enter into force from the date of its publication in the Official Register. Given and subscribed, at the headquarters of the National Assembly located in the Metropolitan District of Quito, Pichincha Province, two days in September, two thousand fourteen. f.) GABRIELA RIVADENEIRA BURBANO, President. f.) DRA. LIBYA RIVAS ORDONEZ, General Secretariat.
The OFFICIAL REGISTER is not responsible for spelling, grammatical, background and/or errors in the form that contain the published documents, such documents submitted by the different institutions for promulgation, they are transcribed faithfully to their originals, the same ones that are archived and are our support.
