Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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DECREE NO 592
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I.-That the legal framework under which the functioning of the supervisory institutions of the financial system is regulated is currently established in the
Organic Law of the Superintendence of the System Financial, contained in Legislative Decree No. 628 of 22 November 1990, published in Official Journal No. 278, Volume 309 of 10 December 1990; in the Organic Law of
the Superintendence of Values, contained in Legislative Decree No. 806 of 11 September 1996, published in the Official Journal No. 186, It took 333, of October 4, 1996; and in the Organic Law of the Superintendence of Pensions,
contained in Legislative Decree No. 926, dated December 19, 1996, published in Official Journal No. 243, Volume 333, of December 23 1996;
II.-That Article 101 of the Constitution determines that the State shall promote development In order to achieve this, macroeconomic stability and adequate promotion and channelling of domestic savings and investment through the financial system are necessary, as demonstrated by the
experience and international;
III.-That the transparent, efficient and orderly functioning of the markets
allows for adequate allocation of channeled resources through the financial system and requires the institutions and institutions that integrate it, compliance with prudential regulations and good practice of management
risk and corporate governance, the proper handling of potential conflicts of interest, the disclosure of relevant information and the existence of controls to prevent the misuse of inside information;
IV. The current situation in the international financial markets and the respective impact on the real sector of the world's economies have
reaffirmed the need for effective systems of supervision and financial regulation;
V.-That the local financial system and regional financial systems, as well as the rest of the world, they meet the demand for financing through the joint provision of a wide range of services in their various modalities
of intermediation of funds of the public, through entities that provide such services in several places or forming financial conglomerates integrated by different types of entities, making it necessary to have a new framework
institutional of supervision and regulation that will keep harmony with that reality, that it propitie the compliance with the highest standards in the field of financial services and facilitate the exercise of effective consolidated supervision that allows for proper management of the risks to which the financial system is
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exposed;
VI.-That for the attainment of social welfare it is in the interest of the State to ensure a sound and stable financial system and the wealth resources of depositors, policyholders, investors, pensioners and contributors, being
necessary for this to be done by the administrative authority in charge of supervision financial instruments and mechanisms that enable it to detect circumstances and evaluate micro and macroeconomic factors, which may
affect the viability of financial intermediaries; as well as timely dictate the necessary corrective measures that minimize the associated social costs financial difficulties, prevailing in these cases the
social interest; and
VII.-That for all the above, it is necessary to strengthen the organization of the State
adapting its institutions to the economic reality with relationship to the supervision and regulation of the financial system, integrating into a single institution all supervision, taking advantage of the technical and management experience gathered in
the different supervisory bodies that have been responsible for such activity in each of the different segments of the financial system; and coordinate it with the macroeconomic and financial experience of the Central Bank of El Salvador in the stability and development of the financial system.
BY TANTO,
in use of its constitutional powers and Initiative of the President of the Republic, by means
of the Minister of Economy.
DECRETA the following:
FINANCIAL SYSTEM MONITORING AND REGULATION LAW
TITLE ONE OF THE FINANCIAL MONITORING AND REGULATION SYSTEM
SINGLE FUNDAMENTAL ASPECTS
System Composition
Art. 1.- The System of Financial Supervision and Regulation is constituted by the Superintendence
of the Financial System, hereinafter referred to as "Superintendence", and by the Central Reserve Bank of El Salvador, hereinafter referred to as " Bank Central '. The supervision of the financial system members and others supervised in accordance with this Law is the responsibility of the Superintendence;
the approval of the Prudential Macro Normative Framework necessary for the proper implementation of this and the other laws that regulate the members of the financial system and others supervised, it is up to the Central Bank. The execution and implementation of this Leyse will be carried out by the Superintendence and the Central Bank within their respective fields of competence.
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Create the Superintendence of the Financial System as an Institution of Public Law,
integrated into the Central Bank, with its own legal personality and its own patrimony, with an indefinite duration, with administrative and budgetary autonomy for the exercise of the powers and duties provided for in this Law and other laws , with principal address in the city of San Salvador, being able to
establish offices in other cities of the country, having competence throughout the territory of the Republic.
The heritage of the Superintendence will be constituted by:
a) The movable and immovable property which, at the date of entry into validity of this Law, would have been the property of the Superintendents of the Financial System, of Securities and
of Pensions whose respective organic laws are repealed by reason of this Law;
b) The movable or immovable property that acquire or be granted any title to
the development of its functions;
c) The income that you acquire or are awarded to any title by persons, entities,
national or foreign institutions or bodies;
d) Other income or property that you can legally obtain.
The Central Bank, for its part, will continue to be governed by its Organic Law, by the provisions of this Law and by the provisions of other laws applicable to it.
System Object
Art. 2.- The System of Financial Supervision and Regulation aims to preserve the stability
of the financial system and to ensure the efficiency and transparency of the financial system, as well as to ensure the safety and soundness of the members of the financial system. financial system according to this Law, other applicable laws, regulations and technical standards that will be dictated, all in accordance with the
best international practices on the subject.
The good operation of the Financial Regulation and Supervision System requires
members of the financial system and others supervised, compliance with existing regulations and the adoption of the highest standards of conduct in the development of their business, acts and operations, in accordance with the provisions of this Law, in the other applicable laws, in the
regulations and in the technical rules that are dictated for that purpose.
SUPERVISION TITLE II
CHAPTER I SUPERINTENDENCE OF THE FINANCIAL SYSTEM
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Of Superintendence
Art. 3.- The Superintendence is responsible for supervising the individual and consolidated activity of the members of the financial system and other persons, operations or entities that command the laws. For the exercise of such privileges, they will have operational independence, transparent processes
and adequate resources for the performance of their functions. The Superintendence is the responsibility of the Superintendence:
a) To comply and enforce, in the field of its competence, the laws, regulations, technical standards and other provisions applicable to the supervised ones. Likewise, issue and enforce the necessary instructions for the application of the laws and rules governing
to them;
b) Authorize the constitution, operation, start of operations, suspension of
operations, modification, revocation of authorization, closure and other acts of the members of the financial system, in accordance with the laws, regulations or technical regulations established in this respect. In the event of closure,
will coordinate actions that establish laws with other institutions involved;
c) Preemptively monitor the risks of financial system members and how they manage them, Ensuring the prudent maintenance of its solvency
and liquidity;
d) Fostering efficient, transparent and orderly functioning of the financial system;
e) Monitoring of financial and supervised system members carry out, as appropriate, their business, acts and operations according to best practices
financials, to avoid insider trading and market manipulation;
f) Co-operate with the institutions responsible for consumer and competition rights protection, as well as with the institutions charged with ensuring public deposits and the prevention of financial crimes, in accordance with what
prescribes laws;
g) Agreed to the intervention of any member of the financial system in whose laws
applicable would be such a measure, except in the case of the market entities of securities for which the intervention is regulated in Article 75 of this Law;
h) Authorize the registrations, the registered seats, the modifications and cancellations to the same, of the persons, institutions and operations that are subject to such a requirement, in accordance with the laws of the matter;
i) Require that supervised entities and institutions be managed and controlled in accordance with international best practices relating to management of risks and good corporate governance, according to the technical standards to be issued;
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j) Require the collaboration of other State Institutions for the realization of their
attributions; likewise, to take care of their technical capacity and legal powers, the requests made by the latter within the framework of their respective competences, in order to support the development of their corresponding tasks; and
k) To exercise the other functions that correspond to the laws.
The Superintendence will be able to enforce and enforce preventive and corrective measures. Likewise, where there is a place, it shall impose the penalties that are legally applicable to the supervised persons who are responsible for the acts, acts or omissions that give rise to them.
For the purposes of this Law, the term "supervise" includes: monitoring, monitoring, evaluating, inspecting and controlling; whereas within the term "operations", all those
assets assigned to a particular purpose, such as the Fund of Titularization, will be understood; Pension funds and others that point to the laws.
Faculties of the Superintendence
Art. 4.- The Superintendence will have the following powers:
a) Issue the relevant resolutions for the supervised, within the powers conferred upon it by the laws;
b) Define the policies and criteria under which they are conduct oversight;
c) Perform individual and consolidated supervision of financial system members,
as well as the supervision of other subjects regulated by this Act;
d) Authorize public promotion, constitution, operation and start of operations,
modification of social pacts and of the statutes in their case and merger of the members of the financial system in accordance with the provisions of the special laws of the matter;
e) Authorizing the institutions or entities constituted under foreign laws that they intend to operate as banks or insurance companies, to establish branches
and, in the case of banks, to establish offices or to serve as information centers for their clients, or to place funds in the country in credits or investments, without performing passive operations and authorizing the closure of the same;
f) internal policies of the members of the financial system, in the field of risk management, codes of conduct and other requirements which are required of them,
in particular those referred to in Article 35 (c) and (d) of this Regulation. Law, being able to request explanations and extensions when considering it relevant, in attention to international best practices;
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g) Requiring the supervised, by way of reasoned and reasoned resolution, to apply the preventive and corrective measures, considered in this Law or in the specific laws
that govern them, or a combination of these measures, according to the case in question;
h) Authorizing the suspension of operations, revoking of authorization to operate and the closure
of the financial system members, when legally applicable. In the latter case, it will coordinate the actions that establish the laws with other institutions involved;
i) Impose the corresponding sanctions in accordance with the laws;
j) Report to the Prosecutor General of the Republic of any event that is alleged to be
constituting a crime, upon which it is aware in the exercise of its functions;
k) To monitor the settlement of financial system members in accordance with what
specific laws determine;
l) Oversee Bank Central Bank operations Reserve of El Salvador
realized in the financial system, as well as the administration of the reserves of liquidity and its own reserves; it will also audit the processes of management and custody of monetary species that the Central Bank; and, will certify the Financial Statements when it is estimated to reasonably represent the financial situation
of the Central Bank;
m) Order the suspension of operations to natural or legal persons without the
corresponding authorization, perform system members ' own activities financial or requiring a specific authorization to be made;
n) Cooperate, coordinate and exchange information with other supervisory bodies that perform functions of a similar nature in other jurisdictions, with the object to facilitate compliance with the functions entrusted in accordance with the applicable laws and regulations
, which may have the effect of concluding cooperation agreements and exchange of information with such bodies;
o) Publish information on the members of the financial system and the various financial markets;
p) Exercise all other supervisory activities and other powers that correspond to the Superintendence, in accordance with the specific laws applicable to the supervised, in so far as they do not contradict this Law; and
q) Set the rates for records that the Superintendence takes.
Art. 5.- With respect to the Stock Market, in addition to the above, it is up to the Superintendency to:
a) Authorize, suspend or cancel the public offering of securities and the operation of
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persons or operations performed on the stock market, pursuant to established in the applicable provisions;
b) Authorize, modify, suspend or cancel the seat in the Public Registry of securities of public offering, issuers, broker-dealers ' houses, broker brokers
stock exchanges, external auditors, risk classification societies, companies specialized in the deposit and custody of securities, securitizers, securities valuation agents, administrators of entities subject to
registration and others that point to the laws.
c) Order suspension of securities securities quotes when in the market there are
disorderly conditions or operations not conforming to healthy uses or practices;
d) Order the suspension of propaganda or advertising information of persons (a) legal tender for securities issued by the public and persons engaged in securities trading; when they contain characteristics other than the emission of
values settled by the Superintendence, or when it is found that, according to the law, the advertising or advertising information is misleading or that it contains data that is not veridic, without prejudice to the application of the corresponding penalties;
e) Monitor the public bids for the acquisition of securities entered in the Public Stock Register and require the bidders to disclose information that they consider necessary for proper information and transparency to be carried out, in order to ensure that
the interests of the investing public; and
f) Promoting effective self-regulation in the securities market within the legal framework
in force.
Art. 6.- With respect to the Pension Savings System and the Public Pension System and
other pre-viewing systems, in addition to the above mentioned in the previous articles, it is up to the Superintendence:
a) Monitor the compliance with the applicable provisions and the operation of the Pension Savings System and the Public Pension System, particularly the Salvadoran Social Security Institute, hereinafter referred to as the "ISSS" of the National Institute
of Public Employees ' Pensions, hereinafter referred to as "INPEP", of the Pension fund management institutions; will also supervise the Social Security Institute of the Armed Forces, hereinafter referred to as the "IPSFA" and the ISSS professional risk regime
b
Monitor the investments made with the resources of the pension funds and thestructure of the investment portfolio;
c) Access in real time to the information of the pension fund managing institutions, concerning the operations made with resources from the background of
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pensions;
d) Designate and remove members of the Qualifying Commission Invalidity, regulated in the Law of the Pension Savings System;
e) Oversee the constitution, maintenance, operation and application of guarantees of minimum profitability, reserve of fluctuation of profitability, special contribution of guarantee, social capital and equity established in the relevant law for the Institutions
Pension Fund Administrators;
f) Establish, in accordance with the law, the clauses of the affiliation contracts and
transfer between the pension fund management institutions and their affiliates and determine the minimum requirements for insurance contracts related to the Pension Savings System, as well as the tender mechanisms for hiring them,
monitoring their operation and compliance;
g) technical studies that favor the development and strengthening of the System
for Pensions;
h) Monitor the process of granting the benefits set forth in the Pension Savings System Act, in the ISSS, INPEP, IPSFA, and in their
regulations;
i) Monitor the processes for estimating and managing the pre-viewing titles;
j) Monitor the processes of financial resource management by the corresponding institutions of the Public Pension System, as defined in the Law of the System
for Pension Savings, to the legally responsible institution or entity;
k) Monitor the acquisition and disposal of those movable and immovable assets of the ISSS
and INPEP, as regards the Public Pension System as well as those of the IPSFA; and
l) Coordinate and monitor the mechanisms INPEP
personal and mortgage treatment portfolio, according to what was established in the Pension Savings System Act.
Supervisas
Art. 7.- They are subject to the provisions of this Act and therefore to the supervision of the
Superintendence:
a) The Central Reserve Bank as regards the provisions of Article 4 (l)
of this Act;
b) Banks constituted in El Salvador, their offices abroad and their subsidiaries; the branches and offices of foreign banks established in the country;
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c) Companies that in accordance with the law, integrate financial conglomerates,
or that the Superintendency declares as such, which includes both its controlling societies and its member societies;
d) The institutions managing pension funds;
e) Insurance companies, their overseas branches and corporate branches
of foreign insurance established in the country;
f) Stock exchanges, brokerage houses, specialised companies
in the deposit and custody of securities, risk classifiers, institutions providing services of a character ancillary to the stock market, securities valuation agents and general warehouse warehouses;
g) Cooperative banks, savings and credit companies and federations regulated by the Cooperative Banks Act and Savings and Credit Societies;
h) Mutual guarantee companies and their
i)that offer services complementary to the financial services of the
financial system members, in particular those in which they participate as investors;
j) (k) The Social Fund for Housing and the National People's Housing Fund;
l) The INPEP and the ISSS, the latter with respect to the System of Public Pensions, to the Regime
of Professional Risks and Health Technical Reserves;
m) Institute of Social Security of the Armed Forces;
n) The Agricultural Development Bank, the Mortgage Bank of El Salvador, S.A., and the Multisectoral Investment Bank;
o) The Salvadoran Investment Corporation;
p) foreign currency exchange houses;
q) The securitizers;
r) The Deposit Insurance Institute and the Financial Sanitation and Strengthening Fund in all matters related to its laws and regulations;
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s) The product and service bags;
t) THE LEGAL PERSONS PERFORMING OPERATIONS TO SEND OR RECEIVE MONEY SYSTEMATICALLY OR SUBSTANTIALLY, BY ANY MEANS, AT NATIONAL AND INTERNATIONAL LEVEL. THE CENTRAL BANK WILL ISSUE TECHNICAL REGULATIONS
RESPECTIVE TO DEVELOP THE PROVISIONS OF THIS LITERAL AND THE CURRENTLY APPLICABLE LEGISLATION; AND, (2)
OR) THE OTHER ENTITIES, INSTITUTIONS AND OPERATIONS THAT POINT TO THE LAWS. (2)
When reference is made to the financial system or financial system members you should
understand that they are the ones mentioned in the preceding literals.
In addition, they are subject to the supervision of the Superintendence. operations performed by the
entities and institutions listed above, as well as members of the administrative bodies, legal representatives, officers, officials, directors, managers, internal auditors and other staff of the members of the financial system. Also supervised, be these persons
natural or legal, external auditors, companies specialized in the provision of credit information services operating in El Salvador, insurance intermediaries, brokers, stock exchange brokers, stock exchanges, and licensees referred to in the Goods and Services Bags Act, the pre-viewing service agents, the experts, the actuaries,
the interventors, the (a) liquidators and other liberal professionals, specifically in relation to the performance of its functions and services in the financial system's members.
Also, the supervision of the Superintendence is subject to the issuers of securities of public offering, with special emphasis on the respect of the the obligations imposed on them by the laws, regulations and technical standards.
When in the text of this Law reference is made to the supervised or supervised, it should be understood that they are those mentioned in this article.
Superintendency Conformation
Art. 8.- The Superintendence for the exercise of its competence, attributions and faculties is composed of a Board of Directors, the Superintendent of the Financial System, the Adjunto Superintendents and the officials and employees that the institution requires.
In the text of this Law, the Board of Directors and the Superintendent of the Financial System, will be called respectively, "the Council" and "the Superintendent". Also, when in the text of this
Law is alluded to the expression "Superintendence officials", it will be understood that it refers to the persons who perform positions of direction and command within the different technical units and administrative established within the organizational structure of the Superintendence.
Chapter II of the Board of Directors
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Conformation
Art. 9.- The Council shall be the ultimate authority of the Superintendence and is responsible for the exercise of the powers, powers and powers conferred upon it by this Law. The Council shall be integrated as follows:
a) The Superintendent appointed in accordance with this Law, who shall preside over the Council;
b) The Adjunto Superintendents appointed in accordance with the procedure established in this Law;
c) A Director appointed by the Council of Foreign Ministers proposed by the Ministry of Economy;
d) A Director appointed by the Council of Foreign Ministers proposed by the Ministry of Finance;
e) A Director appointed by the President of the Republic of a third party proposed by the College of Economic Sciences professionals; and
f) A Director appointed by the President of the Republic of a third party proposed by the Board of Directors of the Public Accounting and Audit Office.
The members of the Board will last. in his duties five years. The officials may be re-elected once for an equal period.
For each of the directors referred to in the literals c, d, e and f of this article, there will be an alternate director who will be able to attend the sessions with voice but
They will be appointed in the same way as the owners to whom they will replace as members of the Council in case of absence.
The terns referred to in the literals c, d, e and f shall be proposed with thirty days of anticipation of the end of the period of the Director to be appointed. If the terns have not been proposed in the above mentioned period, the superintendent shall propose them.
In the event of death, resignation, final absence or final impairment of any of the members of the Council except for the Superintendent and Superintendents Adtogether, will proceed
to appoint the replacement, to terminate the period of his predecessor, according to the procedure established in this article.
Remotion
Art. 10.- The members of the Council may be separated from their position only by a decision taken by the appointing authority. Peer procedure will be observed
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in the case of the removal of the Superintendent, the Adjunto Superintendents and the Members of the Committee of Appeals of the Financial System regulated in this Law. The following
are caused by removal:
a) Stop meeting the requirements of your appointment;
b) Incur any of the prohibitions set forth in this Act;
c) Incur serious and manifest defaults legal in the exercise of their duties or not to act diligently in the exercise thereof;
d) Haber has been convicted of a criminal offence;
e) Haber lost or have been suspended in his or her rights of citizen;
f) Observe immoral conduct that may compromise the seriousness or impartiality of the exercise of his office; or
g) Exercise undue influence by prevailing from office.
When by any means the competent authority becomes aware of
causalremoval, it will commission the investigation and documentation of the situation within a non-longer period. of 10 working days counted from the day following the day on which he became aware of such a cause. With the informational, you will issue the appropriate resolution, either dismissing or opening the
removal procedure. In the latter case, the investigating officer shall be notified of the decision, who, within a period of five working days from the notification, may decide on the matter, attaching the evidence which he considers to be relevant. The decision shall be issued within twenty days
working time to count from the date on which the official under investigation has acted, or if it is not delivered, this period shall be counted from the following day on which he was given notified of the relevant decision. In addition, the competent authority in any state of the proceedings may be required to order
provisional suspension in the office of the official concerneda precautionary measure which may be amended or revoked if appropriate.
The same procedure will be observed in the disable cases as applicable.
Art. 11.- The members of the Council must be Salvadorans, over thirty years of age,
of recognized honorability, probity, university degree and notorious competence in matters related to their faculties. In addition, they must have at least five years of experience in economic and financial matters.
The members of the Council, prior to assuming their position, shall be required to give an affidavit regarding the non-existence of a conflict of interest. for the exercise of the position, obliging to exercise it with
independence in respect of the person or entity that proposed it, in the same way with respect to the fulfilment of the requirements that the law establishes for the completion of the charge and of not to contest in his/her person causing some inability for the appointment and exercise of the same.
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Members of the Council must keep strict confidentiality on matters treaties and documents which, by reason of their quality as a member of the Council, are delivered to them; neither shall
use or take advantage of such information for personal purposes, in favour of third parties or to the detriment of the functions and decisions of the Superintendence or the State, in which case they shall be liable for damages and damages caused without prejudice to any legal actions or
administrative actions of any nature that correspond.
The members of the Board, upon assuming and at the end of their duties, shall comply with what is established by
the Law of Illicit Enrichment of Officials and Public Employees.
Incompatibilities
Art. 12.- For the members of the Board, participation in the administration of any of the members of the financial system, or in the direct or indirect ownership of the capital
or investments of any of the persons supervised by the Superintendency as well as the participation in supervised operations.
Except for the operations they perform as users, the members of the Council may not conduct any business with the members of the financial system or other subject or operation supervised by the Superintendence, the situation will be extended to their spouses and children; they will also not be able to contract obligations with them acting as legal representatives of legal persons.
The members of the Council, their respective spouses, children under age or financially dependent children must report to the Council on the debts and obligations they have or have
contracted with the financial system members. The same information will be required in case of extension, refinancing or any modification to the terms of the contract that documents the original obligation.
The position of Superintendent and Deputy Superintendent will be incompatible with the the provision of paid services with public funds or by entities in which the State has participation, except for teaching and academic work.
Inability to do so
Art. 13.- They are unfit for the position of a member of the Council:
a) Those who are legally incapable;
b) The officials referred to in Article 236 of the Constitution;
c) The spouse or relatives within the fourth grade of the consanguinity or second affinity of the President or Vice President of the Republic or the members of the Council of Ministers;
d) The spouse or relatives within the fourth degree of consanguinity or second degree of affinity of the President, Vice President of the Central Bank or any other member of its Board of Directors;
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e) The spouse or relatives within the fourth degree of consanguinity or second degree of affinity
of any of the members of the Board and their partners in any type of company;
f) Directors, officials, managers, administrators, employees, shareholders or associates of the entities or institutions under the supervision of the Superintendence, as well as the spouse or relatives of those within the second degree of consanguinity;
g) The debtors of the financial system for credits to which a consolidation reserve of fifty per cent or more of the balance has been constituted. This inability will be
also applicable to those who hold twenty-five percent or more of the shares of companies that are in the situation mentioned above;
h) Those who are in a state of bankruptcy, suspension of payments or competition from creditors or those who have been judicially qualified as liable for a wrongful or wrongful bankruptcy;
i) Those who have been administrators as directors, managers or officials of a member of the financial system in which it is administratively shown its responsibility to Member of the Commercial Banks and of the Savings and Loan Associations, which is an integral part of the Law on Privatization
, has incurred in the property deficiencies of twenty percent or more of the minimum required by law; or has received contributions from the State or the Deposit Insurance Institute for its
sanitation; or that has been intervened by the competent body, restructured or has been revoked its authorization to operate. In the case of legal representatives, general manager, executive director and directors with charges
executives of financial institutions, they will be presumed to have had responsibility for any of the above mentioned circumstances. The presumption above shall not apply to persons who have ceased their positions two years before the date of the
such a situation, nor to those who participated in the reorganisation of financial institutions or institutions, compliance with the provisions of the Law on the Sanitation and Strengthening of Commercial Banks and Savings and Loan Associations, without prejudice
of the liability in which they are incurred after that sanitation;
j) they have been convicted in executed or other
resolutions similar effect, in the country or abroad, for having been involved in activities related to kidnapping, organized crime and crimes under the law of drugs, as well as terrorism, money laundering and other assets;
k) Those who have been convicted in execution or in other similar resolutions, in the country or abroad, for having committed or participated
dolously in the commission of any crime;
l) Who have been declared to be indefable to carry out charges or who, by another name of similar effect, are prevent you from performing charges on the system
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financial, or in supervisory and regulatory institutions at home or abroad; or have been punished administratively or judicially for their participation in
serious infringement of the laws and rules of a financial nature, in particular the collection of public funds without authorization; the granting or receipt of related loans in excess of the permitted limit and the offences of character financial, be it
that the statements of inability or the imposition of sanctions have been dictated at home or abroad;
m) The advisors, the proxies and the external auditors, as well as the partners or shareholders of the of any of the entities or institutions under the supervision of the Superintendence; and
n) Lawyers and notaries who are directly or indirectly providing their professional services in any of the financial system.
The causes contained in the first part of the literal g) and in the literals (h), (i), (j), (k) and (l) that are in the spouse of any of the members of the Board, shall carry for this their inability.
Statement of Inskill
Art. 14.- When any of the causes of inability mentioned in the
are present or exceeded, the management of any of the members of the Council shall lapse and shall be replaced in accordance with the provisions of this Law. However, acts authorized prior to the inability to be declared shall not be invalidated with respect to the Superintendence or third parties.
Correspond to the authority that appointed it, either on its own initiative or by denunciation of any interested, in summary form, to qualify or declare the inability of any member of the Board.
Faculties
Art. 15.-They are the powers of the Council:
a) Issue the relevant resolutions for the supervised, within the powers conferred upon it by the laws;
b) Define the policies and criteria under which supervision will be carried out;
c) Authorizing the suspension of operations, revoking authorization and closing the members of the financial system. In the case of closure, it will coordinate actions that establish laws with other institutions involved;
d) Authorize public promotion, constitution, operation, start of operations, modification of social pacts and articles of association, merger and other acts of the like
nature of the members of the financial system, in accordance with the laws, regulations or technical regulations established in this respect;
e) Authorizing the institutions incorporated in accordance with the foreign laws which are
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propose to operate as banks or insurance companies, to establish branches and, for banks, to establish offices or to serve as information centers of
their clients or to place funds in the country in credits or investments, without performing passive operations and to authorize the closure of the same;
f) Pre-emptively monitor the risks of financial system members and the way in which they they manage them, ensuring the prudent maintenance of their solvency and liquidity;
g) Requiring of those supervised when legally applicable, the filing and the fulfilment of a regularisation plan, having the restructuring, request the
judicial intervention, dispose of the suspension of operations, the recall to function, closure of offices and the voluntary liquidation of the members of the financial system;
h) Acordar the intervention of some Member of the financial system in whose applicable laws it is contemplated measure, except in the case of the entities of the
stock market for which the intervention is regulated in Article 75 of this Law;
i) Require the supervised, by way of reasoned and reasoned resolution, to implement measures preventive and corrective, considered in this Law or in others of similar
nature contained in the specific laws that govern them, according to the case in question, except those that in this Law are attributed to the Superintendent;
j) Designate and remove the members of the Validity Qualifier Commission, regulated in the Law of the Pension Savings System;
k) Set the rates of records that the Superintendency takes;
l) Authorize, suspend, or cancel the public offering of values and the operation of
persons or operations that are perform on the stock market, in accordance with the applicable provisions;
m) Authorize, modify, suspend or cancel the registration seats in the records bearing the Superintendence of the persons, institutions and operations which are subject to such a requirement, in accordance with the laws of the matter, when such acts
are not the result of a penalty;
n) Order the suspension of operations to natural or legal persons who without the
corresponding authorization, perform activities of the members of the financial system or requiring a specific authorization to be made;
or) Issue within the powers conferred upon it by this Law, the Rules of Procedure, the Rules of Procedure and other rules necessary for the development of the tasks of the Superintendence;
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p) Define and approve the organizational structure of the Superintendence, establishing the hierarchy levels, responsibilities, attributions, and functions that enable an
efficient performance for the achievement of its objectives;
q) Agreed to the creation or deletion of advisory, technical, operational and
unitsadministrative, as well as offices;
r) Approving the draft budget that is submit to the Council of Ministers for their
approval;
s) Exceptionally and with the prior approval of the appropriate legal authority,
to declare as confidential the information collected by the Superintendence regarding the members of the Financial System and others supervised when, at their discretion, the disclosure or publication of the same may cause harm to the public interest; the same as
faculty will have the board of directors of the Central Reserve Bank;
t) Create a Unit against Money and Asset Laundering; and
u) Other faculties, competencies and attributions set forth in this or other applicable laws.
Administrative resolutions related to the faculties established in literals (c), (g), (h), (i) and (n) exhaust the administrative path.
Sessions
Art. 16.- Council meetings shall be convened by the person who chairs it and shall be held at least
once a month. The Superintendent may propose to carry out the same in order to comply with his or her mandate established in this law.
In order for the Council sessions to be considered valid, the assistance of half plus one of its members with the right to vote, including the Superintendent, or who exercises his or her duties. Resolutions shall be adopted by a simple majority. In case of tie the Superintendent will have
quality vote. Alternate members of the Council will be able to attend the sessions with voice but no vote.
Excuses
Art. 17.- When any member of the Council has any personal interest in any matter to be discussed or resolved, or his spouse, relatives within the fourth degree of consanguinity
or second of affinity, his or her partners or co-directors in any kind of company or company, or their agents or lawyers are intervening in the case, must be excused from a given case with a reasoned and duly substantiated cause of cause to the Council.
The excuse must be entered in the minutes of the respective session.
Advice that you have knowledge of some potential conflict of interest of
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any of the other members must manifest it in order for it to be deliberated if applicable or not the removal of the session member.
CHAPTER III OF THE SUPERINTENDENT AND ASSISTANT SUPERINTENDENTS
Art. 18.- The Superintendent shall be responsible for the execution of the resolutions of the Council and the higher management of the activities of the Superintendence. He will be appointed by the President of the
Republic for a period of five years, being able to be re-elected once. The Superintendent will exercise his or her full time and will not be able to perform any liberal profession or provide professional services, except for teaching and academic duties.
Corresponding to the Superintendent or to times, the legal, judicial and extra-judicial representation of the Superintendence, who in turn will be able to grant the administrative or judicial powers
that are necessary for the normal development of the activities of the Superintendence. The legal, judicial and labor representation of the Superintendence may also fall on that person named the Superintendent or who does his or her times, and must be conferred with the authority to exercise the
procuratorate and as maximum for the same period as the name of the authority. This representation will have no more limits than those entered in the respective agreement.
Art. 19.-Corresponds to Superintendent:
a) Directing the Superintendence;
b) Running the Council agreements and resolutions;
c) Issue relevant resolutions for the supervised, within the powers that
give you the laws;
d) Know the internal policies of the financial system members, in terms of
risk management, codes of conduct and other requirements that are required of them, in particular those referred to in (c) and (d) of Article 35 of this Law, which may request explanations and extensions When you consider it relevant, focus on the
best international practices;
e) Perform individual and consolidated supervision of financial system members,
as well as the supervision of other subjects regulated by this Act;
f) Communicating the supervised subjects with the irregularities or violations that you will notice in
their operations;
g) Impose the corresponding penalties in accordance with the laws;
h) Report to the Attorney General of the Republic of any event that is presumed to be a crime, on which you have knowledge in the exercise of your functions;
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i) Monitor the settlement of financial system members in accordance with what the specific laws determine;
j) Order the suspension of stock quotes when on the market there are disordered conditions or operations not conforming to healthy uses or
practices;
k) Order the suspension of advertising or advertising information of people
legal to make public offering of securities and of persons performing intermediation of securities, where they contain characteristics other than the issuance of securities settled by the Superintendence, or where it is established that, in accordance with
the law, propaganda or advertising information is misleading or contains data that are not true, without prejudice to the application of the corresponding penalties;
l) Monitor the public bids for the acquisition of securities entered in the Register Stock Market and require bidders to disclose information that they deem necessary To ensure that information and transparency are properly practiced, in order to ensure that
the interests of the public investor;
m) Monitor compliance with the applicable provisions and the functioning of the Savings System for Pensions and the Public Pension System, particularly from the Instituto
El Salvador del Seguro Social, hereinafter referred to as the "ISSS", of the National Institute for Pensions of Public Employees, referred to as "INPEP", Institute of Social Welfare of the Armed Forces and the administrative institutions of Pension funds
will also monitor the ISSS professional risk regime;
n) Monitor investments made with pension fund resources and the
investment portfolio structure;
or) Acceding in real time to the information of the fund management institutions
of pensions, concerning the operations carried out with pension fund resources;
p) Oversee the constitution, maintenance, operation and application of the guarantees of
minimum return, reserve of fluctuation of profitability, special contribution of guarantee, social capital and equity established in the relevant law for the Pension Fund Management Institutions;
q) Establish, in accordance with the law, the clauses of the contracts of affiliation and transfer between the pension fund management institutions and their affiliates
and determine the minimum requirements for insurance contracts related to the Pension Savings System, as well as the mechanisms to contract them, monitoring their operation and compliance;
r) Conduct technical studies that favor the development and strengthening of the Pension Savings System;
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s) Monitor financial resource management processes by institutions corresponding to the Public Pension System, as defined in the System Law
for Pension Savings, to the institution or entity legally responsible;
t) Oversee the acquisition and disposal of those movable and ISSS buildings
and INPEP, as regards the Pension System Public as well as those of the Social Security Institute of the Armed Forces;
u) Coordinate and supervise the treatment mechanisms of INPEP's personal and mortgage loan portfolio, as established in the Law of the Pension Savings System;
v) Present to the Council reports on the results of supervised subjects ' supervision;
w) Audit the Bank's management and custody processes of monetary species Central and certify the financial statements of the bank;
x) Cooperate, coordinate and to exchange information with other supervisory bodies that perform functions of a similar nature in other jurisdictions, in order to facilitate the individual and consolidated monitoring activities of the members of the system.
financial, which may have the effect of concluding cooperation agreements and exchange of information with these agencies;
and) Present to the Council the draft Annual Budget and the Salaries ' Regime of the Superintendence as well as its modifications, for approval; and
z) To exercise the other functions of surveillance, inspection and audit that correspond to you in accordance with applicable laws and other provisions.
Art. 20.- For the performance of his duties, the Superintendent shall propose to the Council for approval the organizational structure of the Superintendence by establishing the levels of hierarchy, responsibilities, attributions and functions that permit a efficient performance of the institution in the
supervision regarding risks, market conduct, institutional management of the supervised and in other areas, ensuring in any case because the supervision is specialized in nature the nature of the operations performed by the different members of the system financial, counting
to this effect with the support of the Adjunto Superintendents and the different technical, administrative and operational areas that are necessary, being able to name and remove the staff of the Superintendence.
necessary or appropriate for the Superintendence to comply with its legal responsibilities and for the execution of the budget, including contracts for the provision of
services with natural or legal persons outside the institution, for the execution of temporary and specific tasks and for hiring corresponding to the acquisition of goods and services and all prior acts to them.
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Art. 21.- In the event of the absence or temporary impediment of the Superintendent, he shall be replaced by one of the Superintendents Adjoined in the order of precedence that he determines. In case of resignation,
removal, absence or final impairment of the Superintendent shall be appointed to another Superintendent, to end the period within a maximum period of thirty days from the event or circumstance, pursuant to the first paragraph of Article 18 of this Law; as long as this
appointment is not made, the Council will decide who will perform the functions of the Superintendent.
Art. 22.- The Adjunto Superintendents will be full-time officials, must comply
with the same requirements as the Superintendent and will apply the same inabilities, incompatibilities and prohibitions that apply to it. At least four Adjunto Superintendents shall be appointed, each responsible for the address of the specialised unit designated at the time
of their appointment, which are: banks, insurers and other financial institutions; State institutions of a financial nature; of securities; of pensions. They will be appointed by the President of the Republic of the Council of Ministers for a period of five years, being able to be
appointed again for a single period. At least four Deputy Superintendents shall be appointed, in accordance with the organisational structure which the Council defines, ensuring that such structure responds to the need for specialised supervision on the basis of the nature
of the operations performed by the different members of the financial system. The Assistant Superintendents shall exercise the privileges and powers inherent in their own specialization and those that the Superintendent delegates to them, including the sanctioning faculty.
In the event of the absence or temporary impediment of a Deputy Superintendent, the Deputy Superintendent shall be replaced by the Superintendent appointed by the Superintendent, provided that the said period does not exceed thirty days. must meet the requirements of the Superintendent
Deputy and his acts shall have the same effects as those made by the replaced official, including on the participation and agreements to be adopted in the Council referred to in the Article 9 of this Act.
Internal Coordination of Superintendence
Art. 23.-To facilitate the coordination of the monitoring tasks, the Superintendent and the
Adtogether Superintendents shall share among themselves the information of which they have knowledge, mainly related to:
a) strategy designed to monitor financial system members and their operations according to their risk profile;
b) Results of individual and consolidated supervision of financial system members, measures adopted and the effectiveness of the measures, as well as their risk profile, evolution, nature and causes thereof;
c) Breaches detected as well as the effectiveness of measures taken against such breaches;
d) Studies on trends, transparency, efficiency and orderly functioning of the financial markets, financial system members and how they manage their risks, identifying the impact on trust of
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depositors, investors, contributors, pensioners and policyholders; and
e) Analysis vulnerability of financial system members considering their historical performance, expectations of future performance of the financial system, formulation of contingency plans in case of crisis and the environment in which they are
unwrap.
Competition Delegation
Art. 24.- The Superintendent may delegate to the Adjunto Superintendents or other officials of the Superintendence the exercise of the powers, privileges and powers that the law
entrusts to this and that they are of his responsibility, defining guidelines for his/her performance and the way in which he/she will report. Notwithstanding the foregoing, the power referred to in Article 4 (i) may be delegated only to the Deputy Superintendents.
The administrative acts dictated by delegation shall expressly state this and shall be shall be deemed to be dictated by the delegator.
The delegate shall be responsible for the manner in which he exercises the delegated power, unless he has acted on the written and precise instructions of the delegate, in which case the responsibility for the action It will fall on the latter. The powers that have been delegated may not be delegated. The
Superintendent will be able at any time to revoke the delegation conferred.
Delegation of Actuations and Signature
Art. 25.- The Superintendent and the Adjunto Superintendents may delegate to any member of staff the practice of inspections, reviews, audit procedures, surveillance, control,
sites, citations, notifications, audits, holding of reconciliatory hearings, substantiation of procedures, signature of correspondence, transcripts, certifications or any other administrative diligence. The delegate must relate the delegation with which it acts in the act
respective administrative. Such delegation shall not alter the competence of the delegator. The final administrative acts may not be the subject of a signature delegation.
The Council may delegate to any member of staff the practice of citations, notifications, audits, signature of correspondence or any other administrative diligence related to their functions.
Replacing Officials
Art. 26.- Superintendence officials will be able to be replaced by whoever appoints the Superintendent when they submit to the Adjunto Superintendents.
Art. 27.- The members of the Council, the Superintendent and the Superintendents Adtogether may only be tried by the common courts for the official offences which they allegedly committed, after declaring that there is a training of cause given by the Supreme Court of Justice. Notwithstanding the above, the above mentioned officials will be subject to the procedures
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ordinary, for the common crimes and faults that they may have committed.
Equal treatment will apply to members of the Central Bank's Board of Directors.
The Superintendent will appear to answer interrogations in court trials and proceedings
that relate to the activities of the Board of Directors of the Central Bank.
Damage Responsibility
Art. 28.- Any resolution, action or omission of the members of the Council, the Superintendent or the Deputy Superintendents that contravene the constitutional provisions
will make them incur personal responsibility for the damages that they have caused in accordance with Article 245 of the Constitution.
Communication of Resolutions
Art. 29.- For its validity, the resolutions of the Council, of the Superintendent, of the
Adjunked Superintendents or of other Superintendence officials when they act by delegation of the Superintendent, that must be fulfilled by the supervised, shall be made known directly to them, by fax or other electronic means guaranteeing their authenticity and reception.
All resolutions adopted shall be reasoned and substantiated. The final decisions shall be published in summary form in the work of the Superintendence, in accordance with the materiality criteria previously established by the Council. Additionally, decisions in
firm that impose sanctions will be published in full on the Superintendence website on a monthly basis, and in a summary form in a national circulation newspaper.
Administrative acts governed by this Law shall enjoy the presumption of legitimacy, enforceability and enforceability. However, the fines imposed must be executed according to the provisions of Article 52 of this Law.
Coordination with the Central Bank
Art. 30.- The Superintendence and the Central Bank in order to preserve the stability of the financial system and to ensure the efficiency and transparency of the financial system, acting within the legal competence of each institution, must establish the mechanisms that allow them to act in a coordinated manner,
in a transparent and efficient manner, with a permanent exchange of information for which this Law empowers them. For these purposes, they will have to subscribe to the coordination, cooperation and information exchange agreements that will detail the scope of the coordination.
CHAPTER IV OF THE SUPERVISION PROCESS
Art. 31.- The Superintendent and Adtogether Superintendents will determine and develop the
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principles and characteristics of the monitoring process, objectives and phases understand and make the knowledge of the financial system members, the criteria and policies they will adopt
to implement risk-based supervision and to verify compliance with the legal framework, considering the international best practices. The Superintendent and the Adjunto Superintendents will value the technical contributions that the members of the financial system will make to the individual.
When defining the policies and criteria under which they will carry out the supervision, the Superintendent and Assistant Superintendents should consider quantitative and qualitative factors to assess
the suitability, adequacy and effectiveness of the management and control performed by the supervised, the management of conflicts of interest, disclosure of relevant information and the existence of controls to avoid use Insider or reserved information. They will also keep track of
financial markets to identify practices or behaviors that could undermine their efficiency and transparency by applying the relevant measures.
The Superintendent and the Assistant Superintendents will meet at least every six months with members of the financial system and with the Central Bank, to analyze the trends of the financial system and to comment on the principles and characteristics of the supervisory process.
Information Requirement
Art. 32.- The Superintendence, through the Superintendent, the Adjunto Superintendents or
the persons to whom they delegate, may require the supervised the direct access to all the data, reports or documents on their operations by the means and the form it defines. When you consider it convenient, the Superintendence may require real-time direct access to
systems. Likewise, without prior notice, you may be able to perform audits, inspections, checks, and any other diligence necessary for the enforcement of the law. In cases where the Superintendence finds that the supervised has published information that does not reflect
its actual financial situation, the publication of duly corrected information should be required, without prejudice to other legal actions to be initiated.
The Superintendence, through the Superintendent, the Adtogether Superintendents, or the persons to whom these delegates, may arrange for special inspections to be performed on a supervised to verify the aspects of the conduct of the business or of the conglomerate to which belongs, for the purpose
to establish compliance with applicable legal, regulatory and regulatory requirements.
The Superintendent, Adjunto Superintendents or the persons to whom they delegate,
communicate to the supervised the deficiencies, excesses, irregularities or infractions that I will notice in their operations, demanding their normalization in accordance with the current regulations, without prejudice to the administrative processes and the application of the penalties to be applied.
For the purposes of this Law, members of the financial system may make use of microfilm, optical discs, magnetic media, electronic means or any other means to archive
documents and information, with the object of saving a efficient manner of records, documents and reports that correspond, including securities. Copies or reproductions derived from microfilm, optical disc, magnetic media, electronic means or any other means shall have the same evidentiary value as the originals, provided they are certified by notary.
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Information Confidentiality
Art. 33.- The information collected by the Superintendence will be confidential and may only be disclosed to the Central Bank, the Financial System Appeals Committee governed by this Law, the Deposit Insurance Institute, the Court of The Republic's accounts in the audit of funds
public, to the Office of the Prosecutor General of the Republic, to the judicial authorities, where appropriate, to the Supreme Court of Justice and to other institutions, when expressly authorize the law.
The information collected by the Superintendence may be shared with foreign supervision exercising similar powers to those of the Superintendence, for the purpose of being used exclusively by those bodies in the exercise of their powers, provided that the Superintendence
considers it appropriate or that such bodies demonstrate a legitimate interest and undertake to preserve the reservation and confidentiality of the information shared, provided that there are agreements concluded for the reciprocal exchange of information. The Superintendent must report monthly
to the President of the Republic of the relevant facts that occurred in that month, in the financial system.
Collaboration with Foreign Homologues and Other State Institutions
Art. 34.- Superintendence may act on behalf of foreign counterparts when they apply for such action in the performance of their duties and where they are subject to cooperation rules which, at least, be comparable to those established by the laws
Salvadoran, being able to subscribe the necessary cooperation documents for this purpose. The Superintendence will require these organizations to collaborate in order to fulfill their functions.
Facultate to the Superintendence to require and obtain from other dependencies of the Public Administration and especially the Ministry of Finance, of the Superintendence of Commercial Obligations,
of the Superintendence of Competition, of the Consumer Ombudsman, Ministry of Labor and Social Welfare, of the ISSS, of the INPEP, of the National Registry of Persons Natural and National Records Center, information and data you consider necessary for the performance of their functions.
This information will be of a confidential nature. When the Superintendence requires any information, the certification of the Superintendence will not be subject to the payment of any rights. The institutions
and dependencies mentioned must provide to the Superintendence, with due diligence, the information that it requires and that they possess by virtue of the exercise of their own attributions and functions, for which the Superintendence must agree or establish direct access mechanisms
to the databases of these institutions and dependencies
Obligations of the Supervisas
Art. 35.- Without prejudice to any other obligations that may correspond to them, directors, managers and other officials who hold management or administrative positions in the financial system members
shall conduct their business, acts and operations complying with the highest ethical standards of conduct and acting with due diligence of a good trader in his own business, being obliged to comply and to ensure that in the institution they run or work comply with:
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a) Knowledge of the laws, regulations and regulations governing the activity of the financial system members as well as the instructions
issued by the Superintendence in accordance with their legal powers;
b) Compliance with the laws, regulations and regulations which regulate
the activity of the financial system members so as the one of the instructions issued by the Superintendence in accordance with its legal powers;
c) The adoption and updating of policies on ethical standards of conduct, handling of conflicts of interest, use of information privileged, prevention of conduct that may involve market manipulation or abuse, as well as compliance with
principles, rules, or standards in the management of business that they establish to achieve corporate objectives;
d) The adoption and updating of policies and mechanisms for risk management; among other actions, identifying, evaluating, mitigating and revealing them in accordance with international best practices. These policies must include the measures
that will be adopted to prevent possible breaches of regulatory requirements and those that will be adopted in the event that they have incurred them, and must define in both situations the parameters that will guide the performance and those responsible for implementing them;
e) The appropriate implementation of measures to correct the violations of the policies and irregularities that have been detected, as well as the requirements that
in the exercise of its faculties would have formulated the Superintendence;
f) The proper accounting disclosure of the economic and financial reality of the member of the
financial system, which shall have the support of its internal and external audits;
g) The efficient operation of the systems for recording, processing, storage, transmission, production, security and control of information flows;
h) The adequate disclosure of information, the timely availability of relevant information on the performance of the data activities, the transparency of operations and the economic and financial state for the
i
The quality and sufficiency of the reports to be presented to the General Boardsof Shareholders or higher administrative bodies;
j) systematic and specialized training of their management and other staff,
in accordance with international best practices;
k) The adoption and implementation of corporate governance standards in management, management and control of their operations;
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l) The adoption of mechanisms, in all its offices, to ensure compliance with the
notarial freedom in cases where special laws determine it, and
m) Inform the Superintendence of all relevant facts as determined in the
technical regulations that will be issued to the effect.
Policies and mechanisms referred to in subparagraphs (c), (d) and (l) of this Article,
as well as the modifications to them, they must be made of the knowledge of the Superintendence by the members of the financial system within a period not greater than ten working days after approved.
Art. 36.- Without prejudice to other statutory, regulatory and regulatory obligations, the external auditor shall, before the general meeting of the shareholders or the board of directors and the board of directors of the governance of the
financial system member concerned, on the integrity, adequacy and effectiveness of internal control systems.
Directors, administrators, managers, internal and external auditors, other officials and
other persons providing services to any member of the financial system, shall report to the Superintendence the operations which it has required, in particular those which are or have been carried out between that and its shareholders or directors and those relating to the financial conglomerate; If this is the case. The form, periodicity and circumstances in the
to be reported for these operations will be set out in the technical rules that will be issued for this purpose.
Art. 37.-The must provide, at the request of the Superintendence, by means which it considers appropriate, without any confidentiality or reservation, the examination of its business, acts, operations, goods, books, accounts, files, documents, correspondence, databases
data and information systems, in all relevant to the monitoring activity. Likewise, its administrators and staff must provide, at the request of the Superintendence, all the antecedents and explanations that are necessary to clarify any matter of its competence,
being obliged to lend the
The supervised, as well as their shareholders or partners, must provide all the information
necessary to keep the public records mentioned in the laws that govern them up to date, of the deadlines and how it is set.
Employers of the affiliates to the Pension Savings System and the Public Pension System will have to point out a specific place in the city of San Salvador to hear notifications, or if necessary, to commission a person resident in that city to hear them and to present or remove
documents to your name.
Art. 38.- The directors, administrators, officers and managers of the members of the system
financial that contravene the provisions of the laws, regulations or rules applicable or that for acts or omissions cause damages to the Member or third party shall be punished in accordance with the provisions of this Law, without prejudice to the liability for damages caused to them.
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They will be sanctioned in the same way as those who will disclose or disclose any information about a reserved or secret nature on the business, acts and operations of the members of the system
financial or on matters communicated to them, or take advantage of the information for their personal or third-party profit, without prejudice to criminal sanctions that may be imposed on them.
Not understood in the foregoing paragraph, the information required by the judicial authorities, the Office of the Prosecutor General of the Republic and the other authorities in the exercise of their legal powers, or the information to be provided to the public as They have the laws. Also not the one that must
provide to the Superintendence in relation to the bank credit information service, the one determined by this Law and the other applicable; as well as the information that is required by supervisory bodies
The information required by the tax offices will be provided by those supervised in accordance with the special law governing that matter.
The financial system of the private sector will be jointly and severally liable for damages they cause third parties the actions or omissions of their directors, administrators,
officials and employees in the performance of their duties. Regarding the members of the public sector financial system, they will respond according to the provisions of Article 245 of the Constitution.
Audit Committee
Art. 39.- Each member of the financial system shall have an Audit Committee, whose conformation shall be established by means of technical standards to be issued by the Central Bank for this purpose,
Audit at least two external directors, if any. The Audit Committee shall have the following obligations:
a) Vellar for the fulfilment of the agreements of the General Meeting or the maximum body, the Board of Directors or its equivalent and the provisions of the Superintendence and the Bank Central and other public institutions where appropriate;
b) Follow up on the observations made in the reports of the internal auditor, the external auditor, the Superintendency and other public institutions, for
correct them or contribute to their fading, which should be informed in due time to the Superintendence;
c) Collaborate on the design and application of internal control, proposing appropriate corrective measures; and
d) Other technical standards to be established in order to strengthen corporate governance the aforementioned members and internal control, according to international best practices.
Statement and Report
Art. 40.- The Superintendent may cite or make a statement at all times to any person
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that is aware of some fact that needs to be clarified in some operation of the
when, for the second time, the persons mentioned are abstaining from appearing without a fair cause, the Attorney General's Office will be informed. When presented and the statements made are presumably false, the Superintendent will inform the Attorney General's Office that the
will initiate the appropriate legal actions.
The directors, managers, managers, employees, external auditors, other officials and
other persons providing services in any member of the financial system, should inform the Superintendence of all those events of the which have been aware of the performance of their functions which make the existence of facts or circumstances that could
be considered illicit, or that could put at risk the stability and functioning of the financial system member.
Lack of Collaboration
Art. 41.- If the exercise of its
legal powers, including the carrying out of on-site inspections, review and withdrawal of material and electronic documents or of any other, is prevented, impeded, or deferred to the Superintendence of its
Another diligence that would have been done, this one will be able to request the assistance of the institutions in charge of the public safety, being able to be accompanied in all these actions by delegates of the Public Ministry, having the express power to the institutionsmentioned for the performance of this activity, without prejudice to the deduction of liability to occur.
CHAPTER V PREVENTIVE MEASURES
Preventive Measures
Art.42.- In case a member of the financial system shows difficulties in complying with the
technical relations which are required, or exhibit a poor management of the risks that may affect its level of liquidity, solvency or market integrity, the Council based on technical reports and without prejudice to the application of the set in the specific laws, may preemptively require the
immediate implementation of the measures defined by the member of the financial system, in accordance with the provisions of Article 35 (d) of this Law, by determining a time limit for complying with them.
Also, when a member of the financial system, is performing a practice that will likely cause a significant reduction in the value of its assets or its revenues or a
weakening in its financial economic condition, the Council by resolution reason may require the institution concerned to treat the immediate cessation of such practice and the taking of actions to prevent further weakening and/or improve your condition.
When by any means it is determined that the books and records of a supervised entity are incomplete or inaccurate, in such a way that it is difficult to know through of the normal monitoring process its true financial condition, or the details and/or purpose of any transaction that
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could have a significant effect on the financial and economic condition of such an entity, the Council by reasoned resolution may require any practice that has resulted in such
inaccuracies and actions to restore the books and records to a complete and accurate state.
When the member of the financial system has not foreseen the measures to be taken for the situation
in question, or that the measures taken are not effective or sufficient, the Council by reasoned resolution may require the respective entity, the following measures:
a) The restriction on the granting of new credits, in the making investments, in the granting of refinancing and restructuring; in the acquisition and sale of assets and in the conduct of other operations;
b) The disposal or liquidation of assets, the reduction of assets or contingencies;
c) Renegotiation of its liabilities or its restructuring, including debt subordinated;
d) The reduction of operating expenses;
e) The absorption of losses from the property accounts, the capitalization of reserves, provisions or profits actually received, as well as the reset or increase and integration of the capital of the member concerned;
f) The increase of capital while implementing permanent solutions aimed at strengthening the position of the institution;
g) The performance of guarantees, guarantees, Guarantees received and the prohibition of the replacement and release of guarantees to the member concerned,
h) The suspension or limitation of the dividends to be distributed; and
i) Other than those provided for in the specific laws applicable to the members, for the situations covered by the
a)Council shall, in its turn, make use of the above measures or other measures which it considers appropriate, where it advises an unfavourable environment which could lead to deterioration in the economic and financial situation of the institutions. under its audit.
The measures taken by the Council in accordance with this Article, shall enter into force on the day of the notification to the respective entity.
The above measures shall be maintained as long as the situation that prompted their adoption persists and shall be communicated to the Central Bank.
The Council, with resources of the Superintendence, may arrange for audits, consultations, actuarial studies, other studies or specific hires, in order to clarify aspects or to present or implement the measures deemed necessary for Address situations to which
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this article is referred to.
Resolutions issued on the basis of this article The administrative path is exhausted.
CHAPTER VI VIOLATIONS AND SANCTIONS
Art. 43.- The Superintendence, observing the sanctioning procedure established in this Law, may impose on the supervised, the following sanctions: written admonition, fine, disablement, suspension, cancellation in the respective register or revoking the authorization that
has granted.
When the conduct that has caused the breach or breach is classified and
sanctioned in another law of a financial character applicable to the alleged infringer, the Superintendence will impose sanctions set by the other legal body observing the sanctioning procedure established in this Law.
Art. 44.- The institutions and persons supervised by the Superintendence shall be subject to the penalties provided for in the previous article, which, in the case of fines, may be up to two percent of the assets in the case of persons legal or up to five hundred minimum wages
urban of the business sector in case of natural persons, when they incur in infractions to the following:
a) Obligations contained in this Law and in the following applicable: Law of
Banks; Law of Insurance Companies; Law of the System of Savings for Pensions; Law Securities Market; Securities and Exchange Act; Law on Cooperative Banks and Savings and Credit Companies; Law on the Titling of Assets;
Foreign Currency Exchange Act; Law of the System of Reciprocal Guarantees for Micro, Small and Medium Enterprises Rural and Urban; Law of the Social Fund for Housing; Law of the Social Welfare Institute of the Armed Forces; Law of the Bank of
Agricultural Development; Law of the Mortgage Bank of El Salvador; Law of the National Fund for Popular Housing; Law of the Solidarity Fund for the Family Microbusinesswoman; Organic Law of the National Bank of Industrial Development and the Salvadoring Corporation of
Investments; Law of Creation of the Multisectoral Investment Bank; Law of Credit Institutions and Auxiliary Organizations; Law of Privatization of Commercial Banks and Savings and Loan Associations; Bank Incorporation Regime
Mortgage of El Salvador to the Law on Sanitation and Strengthening of Commercial Banks and Savings and Loan Associations and Other Special Provisions; Law on Sanitation and Strengthening of Banks Commercial and Savings Associations and
Loan; Law Against the Laundering of Money and Assets; Law of the Salvadoran Social Security Institute regarding the Invalidity, Old Age and Survival Regime and the Professional Risk Regime; Law of the National Pension Institute of the
Public Employees; Organic Law of the Central Bank of the Reserve of El Salvador; Code of Commerce; or other laws, which are applicable to the financial obligations. monitored subjects;
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b) Provisions contained in the regulations, technical and instructional rules develop the obligations laid down in the aforementioned laws;
c) Resolutions to be complied with by the persons supervised, issued by the Board of Directors of the Central Bank for this purpose, in accordance with this Law, to its Law Organic
and the other laws that apply to them;
d) Instructions to do comply with the laws, regulations, technical and instructional rules
governing the supervised;
e) Regulations contained in the social covenants, statutes and internal rules that the supervised
dictate in compliance with the law; and
f) Other rules that apply to them.
The perceived resources of the sanctions applied must be deposited with the General Fund of the Nation.
Art. 45.- The director, official, administrator or manager of the financial system member who does not permit, impede, differ or prevent the inspection ordered by the Superintendence, or will not provide the information to If it is obliged to the express member or to do so in a way
extemporanea, inexact or partial, it will incur the penalties provided for in this Law that, if it will be dealt with fines, these will be of an amount up to a thousand urban minimum wages of the Trade.
The members of the administrative bodies, the legal representatives, representatives, officials, managers and other staff of the members of the financial system, external auditors, broker-dealers, insurance intermediaries, whether natural or legal persons,
For the purpose of the provision of services, the experts, the actuaries, the actuaries, the liquidators, the liquidators and other liberal professionals shall incur the penalties provided for in this Law which, in the case of fines, shall be of up to a thousand salaries urban minimums in the Commerce sector.
Art. 46.- The supervised persons who engage in the following conduct: elaboration or presentation of altered or false financial statements, alteration of data or background on balance sheets, books,
states, accounts, correspondence or other document any, or that hide or destroy these elements, hindering, diverting, hindering or circumventing the supervision that corresponds to exercise to the Superintendence according to the law, will be sanctioned according to the previewed This Law,
that in the case of fines, may be up to four In the case of legal persons or up to a thousand urban minimum wages in the trade sector in the case of natural persons. When the Superintendence considers that an act could be a crime,
must communicate it to the appropriate authority.
Equal administrative punishment will be imposed on those who will take advantage of the information to the
having access to the development of their functions and using it for their personal or third-party benefit.
Without prejudice to the foregoing and the criminal liability that may be deducted when it is dealt with
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of natural persons, these will be disabled, at least for ten years, To fill in any management, administration or surveillance charges on financial system members,
provided that due process has been determined their responsibility has been determined.
Art. 47.- The directors, officers, administrators or managers of the members of the system
financial that negotiate directly or indirectly with their respective entities or institutions in violation of the laws or regulations in force, shall incur in any of the penalties provided for in this law, which, in the case of fines, may be of an amount whose maximum amount shall be equivalent to
of the operation in question, without prejudice to the invalidity of the act.
Art. 48.- directors, officers, managers or administrators of the members of the financial system
shall be punished in accordance with the provisions of this law; if the penalty is fine, it may be up to Five hundred minimum urban wages in the trade sector, where one of the following situations occurs in any of the members:
(a) Items in the accounts on which the accounts are not presented documented justifications;
b) Financial statements have not been prepared and published in its legal period;
c) Having published financial statements contain errors or omissions;
d) Dividends that are repaired or capital increases by capitalization of profits do not originate in real earnings
e) Losses of an exercise against non-distributable utilities are applied;
f) Hayan authorized credits in violation of laws or other provisions governing the members of the system financial; or
g) Hubien made false statements about the ownership and conformation of the capital of the
Without prejudice to the above, the Superintendence may require the correction of the respective situation from the moment it becomes aware of it.
Art. 49.- The external auditors, the experts, the agents of the pre-viewing services, the brokers and the insurance intermediaries entered in the records of the Superintendence must be punished for the non-compliance of the registration requirements in the register
corresponding to the professional or legal obligations; and for non-compliance with the provisions contained in other regulatory bodies that must comply with their external auditor quality, expert, pre-viewing agent, broker broker or insurance intermediary with the penalties provided for
in this law; if the penalty is fine, its amount will be up to five hundred minimum urban wages of the trade sector, or particularly with suspension or cancellation in the respective registry that carries the Superintendence.
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The external auditors will particularly be punished when they lose the independence from a member of the financial system by being the holder of one of its shares
directly or through others; or when, at least, twenty-five per cent of its annual income is dependent on a single customer or when engage in their freedom of professional practice, in the context of best practice
The sanctions that will be imposed will be released to the Audit Board of the Public Accounting and Audit Office.
The experts will particularly be punished when they are observe any of the following behaviors:
a) Realize values in the members of the financial system where they, their spouse or their relatives within the fourth degree of consanguinity or second degree of affinity are
directors, administrators, managers, officials or employees, or have a conflict of interest. The companies that carry out expert opinions will be sanctioned when the Legal Representative, the members of the Board of Directors or the equivalent organ and the General Manager or
the one who does his or her times, perform valuos on the aforementioned members they, their spouse or their relatives within the fourth degree of consanguinity or second degree of affinity are directors, administrators, managers, officials or employees, or have a conflict of interest; and
b) Make misuse of the number of registration, or permit or empower another person to use the authorization granted to him by the Superintendence.
Aspects to Consider for Sanctions Imposition
Art. 50.-In event, for the imposition of a penalty, the Superintendence must take into account the following aspects: the severity of the damage or the probable danger to those who could be affected by the offence committed, the deterrent effect in the offender with respect to the offending conduct,
the duration of the offending conduct and the recidivism of the same, in cases where it has not been expressly considered by the legislator for the establishment of the sanction respective. In addition, when the penalty to be imposed is a fine, it must take into account the economic capacity of the
infringer, being able to be determined by means of the last statement of income of the alleged infringer or by means of any evidentiary means, as required by the Superintendence.
Art.51.- The penalties provided for in this Chapter shall be imposed without prejudice to the criminal liability to which the Superintendent shall inform the Prosecutor General of the Republic to exercise the functions that the Constitution of the Republic command you.
Art. 52.- The offenders who have been fined, must find out their value in the Central Collecturia or regional offices of the Treasury Department of the Ministry of
within thirty days. following the respective notification, for which the Superintendent will extend the corresponding commandment.
When the obligated to pay the fine I will not find its value in the term stated in the paragraph
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Earlier, the Office of the Prosecutor General of the Republic, at the request of the Superintendent, will effective through the executive route. The certification of the resolution that the Superintendent will extend will have executive force.
The delay in the payment of any fine imposed by the Superintendence in accordance with the law, will accrue the legally established interest to tax obligations in arrears.
Art. 53.- When the penalties referred to in this Law are imposed, the external auditor, in his/her respective report, shall include the disclosure of violations, breaches or acts in which
directors, officers, officers have incurredmanagers, managers, auditors or liquidators, in order to ensure that they become aware of the General Shareholders ' Meeting or the higher administrative bodies of the member of the financial system.
CHAPTER VII SANCTIONING PROCEDURE AND RESOURCES
Stages of Procedure
Art. 54.- This administrative procedure is established to determine whether the laws, regulations, resolutions, rules, orders, instructions or other provisions applicable to the members of the system have been infringed. financial or supervised in accordance with this Law and, where applicable, impose the respective penalties.
The phases or stages of this procedure shall be as follows: start, placement, response, test term and final resolution, without prejudice to the final resolution
and for any reason or legal circumstance may be terminated.
In this proceeding the rights of the hearing, of
defence, the presumption of innocence and the principles of legality, proportionality and liability.
The administrative responsibility to the supervised persons shall be deductible when they fail to comply with the
obligations that are due to them, except fortuitous cases or force majeure, which must be alleged and checked by the alleged offender.
Art. 55.- The official responsible for sanctioning, following the respective administrative procedure sanctioning, is the Superintendent. This power can be delegated in accordance with the provisions of article 24 of this Law in the Adtogether Superintendents.
Start of Procedure
Art. 56.- The sanctioning procedure may be initiated on its own motion, by complaint or upon reasoned request from Public Institutions or other State Bodies.
Any Director, President, Chief Executive, Executive Director, Manager or Member of the financial system who is aware of an offence attributable to a member of that system shall, within five working days, give written notice to the Superintendent or to his delegate.
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Employees, officials or other persons who for any degree provide services to the Superintendence will inform the Superintendent or the respective delegate, by any written means
of internal communication, the detailed relationship of the facts that make up the infringement and can add the disposition infringed, any is its nature, the identification of the alleged infringer and, if exist, offering to present the relevant evidence in their opportunity. If, from the beginning, the
will have the instrumental or other evidence of another nature that leads to the existence of the infringement, it must add them to that report without prejudice to any other subsequent contribution.
Previous Research
Art. 57.- The Superintendent or his delegate may promote an earlier investigation, in case of not having sufficient elements to justify the initiation of the sanctioning procedure.
Art. 58.- Based on the outcome of the ordered investigation or the report received and if appropriate, the Superintendent or his/her delegate shall give reasoned resolution ordering the instruction of the relevant procedure, the aggregation of the report and placement to the alleged offender, for
that, within ten business days counted from the day following that of the site, can make use of their rights.
To that effect, it shall be made of the knowledge of the alleged offender the resolution mentioned,
appending a copy of the report that the reason and Annexes and tests added to the process shall be made available to the Superintendence so that they can be consulted or photocopied within the Superintendence at the expense of the alleged infringer.
Notifications
Art. 59.- The site will be made to the alleged infringer in accordance with the following:
a) In the case of a legal person, it will be done through its legal representative and not
being found, it will be done by means of cutting that, together with the corresponding documentation, the director or executive of the highest administrative hierarchy present in the respective institution or entity, or in his defect, of any
employee who is in his or her facilities; b) In the case of a director, official, manager, or administrator of an
system financial, will be made personally in the establishment of the member referred to
and not to be found, the placement will be practiced by means of corner that, together with the corresponding documentation, will be left in the power of any other employee of the respective member; and
c) In the case of other natural persons, it will be done personally at home and if not found, the placement will be practiced by means of cutting that, together with
the documentation corresponding, will be left in the power of your spouse, living, relatives or employees.
placement to be practiced, the delivery of the documentation referred to in the subsection
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above and all that occurs at that stage of the procedure must be left
for the purposes of the placement or of any other notification or appointment, persons shall be sought as follows: whether it is a legal person or one of its directors, officials, managers
or administrators, will be searched in the direction of their offices registered in the Superintendence, if you have it.
In the event that the legal person does not have a registered address in the offices of the Superintendence, the communication will be published once in one of the major newspapers national movement which shall contain the resolution to be communicated or an extract from it. The same procedure will apply
in the case of the natural person who has no registered office in the Superintendence.
In these publications, you will have to express that the following notifications will be made
An edict that will be placed on a board placed in a visible place of the first floor where the Superintendence is located, provided that it does not appear or appear not to indicate place to hear notifications. The aforementioned edict should also be placed on the website of the
Superintendence. In both cases, the edicts will remain in the referenced sites until the final resolution is signed.
The term to answer about the facts that started the procedure will be counted from
the day after the the practice of the placement, whether practiced personally, through minutes or through edict.
The notifications to the alleged offenders who have been part of the procedure will be made in the address indicated by them. or by means of the fax number designated by them for such purposes. Notifications to third parties will be made by observing the rules in this article.
Of The Procedure
Art. 60.- If the alleged offender does not make use of his or her rights for failure to appear in the legal term, the facts that initiated the procedure will be negatively answered.
The procedure will be opened to evidence by the end of the procedure. of ten working days, within which evidence shall be provided which is relevant.
When the alleged infringer appears in the legal term and confesses the offence, or shall be raided, the opening shall be omitted and shall be delivered. the resolution which corresponds to, within the period of 30 working days after the day of the
The public instruments, the authentic ones, the private instruments, the witness statements, the results of the expertise, the inspection of the places or the things, the
confession, the reports, the reports, the reports audit of the Superintendence, including the respective work papers and other annexes, any other information that has been provided by the alleged infringer to the Superintendence or obtained by it in the course of the monitoring activities, legal assumptions and any other evidence of evidence legally admissible.
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When the Superintendent or his delegate, on its own initiative or at the request of a party, will consider necessary to carry out inspection, compels or expertise, or the presentation and aggregation of test by
instruments, will order the immediate realization of such measures in the probative term of the procedure. The check shall only be carried out in respect of files or files of an administrative nature and in that headquarters. Experts shall be appointed by the Superintendent or his delegate. In exceptional cases,
for substantiated and party-based resolutions, the Superintendent or his delegate may add evidence.
The party to which a term has been established may waive or consent to its abbreviation. by express expression.
However, in the case of the infringements set out in the first paragraph of Article 45 (b) and (g) of Article 48 of this Law, the procedure referred to above shall not apply. within ten working days, the final administrative act, after hearing of the
alleged infringer for the term of five business days unextendable, to the effect that it expresses the allegations it deems necessary and presents the relevant and appropriate evidence.
of the Final Resolution
Art. 61.- Upon completion of the test term, if any evidence has taken place, and received the evidence to be presented or practiced in its case, the Superintendent or his delegate will dictate final resolution
within thirty working days based on the applicable legal rules, the documentation that served as the basis for the initiation of the procedure and the evidence discharged during the procedure.
If the final resolution establishes the existence of an infringement, in addition to the sanction, (a) the offender shall, if appropriate, fix a reasonable period of time for the offender to remedy the deficiencies or defaults that gave rise to the procedure, in the event that they were not remedied.
Art.62.- If the corresponding appeal against the final resolution is not filed within the legal period, the final decision will be signed.
If the final resolution establishes the obligation to pay a fine, it must be paid in accordance with Article 52 of this Law.
Review
Art.63.- Of the Superintendent who do not impose sanctions, may be brought before the same official and within four working days from the date of the notification, review facility.
The review facility shall be optional and shall not be a requirement to exhaust the administrative route.
In the interposition paper of the resource, the appellant's points of failure must be alleged, with the corresponding motivating basis.
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Receiving the request, the Superintendent or your delegate will resolve whatever is appropriate within thirty business days.
Rectification
Art. 64.- Of the final decisions delivered by the Superintendent or his delegate imposing sanctions, he may be brought before the same official who issued the order and within the term of four working days, counted from the following the notification, rectifying facility.
The rectification facility will have an optional character and will not be a requirement to exhaust the administrative path.
In the interposition document of the appeal the points of the appellant's failure to comply with the relevant motivating basis, The resource that
is interposed. If the procedure is nullity, the procedure must be invoked in the same document.
The application, the Superintendent or his delegate will dictate within the third working day
providence in which he will decide on the admissibility of the The Court of First Instance has held that the contested decision is inadmissible. Later, within thirty business days with a view of the cars, the appeal will be resolved.
Appeals Committee
Art. 65.- Create the Financial System Appeals Committee, referred to in this Law
"Appeals Committee", which will be the competent administrative authority to hear appeals that are brought about in the resolutions
Appeals Committeebe of permanent character, with functional autonomy and its operating budget will be covered in the manner provided for in the article. 85 of this Law.
THE APPEALS COMMITTEE SHALL BE COMPOSED OF A PRESIDENT AND FOUR VOWELS, WHO WILL SERVE FULL TIME, WILL BE APPOINTED BY THE PRESIDENT OF
THE REPUBLIC FOR A PERIOD OF FIVE YEARS. MEMBERS MAY BE RE-ELECTED ONLY FOR ONCE. (1)
THE PRESIDENT OF THE REPUBLIC WILL APPOINT THE PERSON WHO WILL SERVE AS CHAIRMAN OF THE APPEALS COMMITTEE. EACH OF THE VOWELS WILL BE APPOINTED TO THE PRESIDENT OF THE REPUBLIC BY THE CENTRAL BANK OF
RESERVE OF EL SALVADOR, THE SUPREME COURT OF JUSTICE, THE MINISTRY OF FINANCE AND THE MINISTRY OF JUSTICE. ECONOMY, A MEMBER OF EACH OF THESE TERNS SHOULD BE APPOINTED. (1)
THE MEMBERS OF THE APPEALS COMMITTEE SHALL BE SALVADORAN, OF RECOGNIZED HONORABILITY, OVER THIRTY-FIVE YEARS OF AGE, HAVING AT LEAST FIVE YEARS OF NOT WORKING IN THE SUPERINTENDENCE OR INSTITUTIONS SUBJECT TO THE FISCATION
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OF THE SAME, WITH UNIVERSITY DEGREE AND HAVING AT LEAST FIVE YEARS OF EXPERIENCE CLEARLY DEMONSTRABLE FINANCIAL, PROVIDING THEM WITH THE SAME INABILITIES AND
REGULATED INCOMPATIBILITIES FOR THE SUPERINTENDENT AND, CONSEQUENTLY, THE PROVISIONS OF ARTICLES 10, 14, 17 AND 27 OF THIS LAW. AT LEAST ONE OF THE MEMBERS OF THE APPEALS COMMITTEE SHALL BE A LAWYER OF THE REPUBLIC, WHO SHALL ALSO HAVE
KNOWLEDGE OR EXPERIENCE IN PROCEDURES AND RESOURCES IN THE ADMINISTRATIVE FIELD. (1)
Resolutions adopted by the Appeals Committee shall require at least three compliant votes and the member opposing the decision shall reason to vote. In the event of the President's absence, he will be replaced by one of the Vocals whom he himself has appointed to this effect.
THE VOCAL OF THE APPOINTED APPEALS COMMITTEE OF THE SUPREME COURT OF JUSTICE SHALL BE LAWYER OF THE REPUBLIC, IT WILL BE WHO WILL ACT AS
SECRETARY AND WILL AUTHORIZE THE RESOLUTIONS ADOPTED BY THE COMMITTEE, WILL RECEIVE DOCUMENTS, WILL ENSURE THAT ALL THE NECESSARY ACTS OF COMMUNICATION ARE CARRIED OUT AND WILL HAVE UNDER ITS RESPONSIBILITY THE FILES AND FILES. (1)
The Central Bank and the Superintendency, at the request of the Appeals Committee, will provide the resources and support necessary for the performance of their functions, and are expressly empowered by this Law to provide them.
THE COMMITTEE OF APPEALS WILL HAVE TWO ALTERNATE MEMBERS, WHO WILL BE APPOINTED BY THE PRESIDENT OF THE REPUBLIC OF TERNAS WHO FOR THAT PURPOSE WILL BE
PRESENTED BY THE CENTRAL BANK AND THE SUPREME COURT OF JUSTICE; SAME GENERAL REQUIREMENTS SET OUT IN THIS LAW FOR THE OWNERS AND THEIR OWNERS APPOINTMENT WILL BE FOR THE SAME PERIOD AS THE
VOCAL MEMBERS OF THE COMMITTEE. THEY MAY APPLY WITHOUT DISTINCTION TO ANY OF THE OWNERS. (1)
Of The Appeal
Art. 66.- Of the final resolution or the rectification pronounced by the Superintendent or his/her
delegate, where appropriate, an appeal shall be made to the Appeals Committee.
This appeal shall be duly written in writing. founded, before the Superintendent or its
delegate, within the term of ten working days after the notification of the contested act and such official shall have the obligation to inform the interposition of the appeal to the Committee of Appeals, sending the case no later than the next business day.
When the The appellant tries to produce evidence in the appeal procedure, it will offer it with the interposition paper, specifically pointing out the fact that it intends to prove.
The interposition of the resource before the Superintendent or its delegate, not suspends the execution of the contested act except where the final resolution or rectification imposes a financial penalty.
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Processing
Art. 67.- The Appeals Committee shall decide within the following five working days of the receipt of the file on: (a) the admission of the appeal; (b) the suspension of the contested act if appropriate; and (c) the opening to evidence, if the This is requested or if it is deemed appropriate, by an
end of eight working days. In conclusion, the Appeals Committee will have a maximum period of thirty working days to resolve.
The Appeals Committee may appoint delegates to carry out the practice of inspections, reviews, procedures and procedures. audit, surveillance, control, sites, citations, notifications, audits, signing of correspondence, holding of reconciliatory hearings and substantiation of
procedures. The placement and the notifications will be made in accordance with the provisions of this Law.
The evidentiary stage will be in accordance with the provisions of this Law for the administrative sanctioning procedure.
When the Committee of Appeals, on their own initiative or at the request of a party, shall consider it necessary to carry out inspection, compaction or expertise, or to submit and aggregate evidence by instruments, order the immediate realization of such measures in any state of the procedure before the final administrative act. The command will only proceed with files or files of character
administrative and in that headquarters. The experts will be appointed by the Appeals Committee.
Before issuing the final administrative act to resolve the appeal, the Appeals Committee
will send the Superintendent to listen to the Superintendent, if he deems it appropriate, is pronounced in this regard.
Art. 68.- The Appeals Committee shall decide on the final administrative act and return the information
to the Superintendent or his delegate, with certification of the same, after notification to the person concerned. Such certification shall be enforceable in its case and shall be effective in the manner set out in Article 52 of this Law.
The final administrative acts of the Appeals Committee shall be limited to the points of appealed and to those who must have been decided and were not in the providence
impugned, despite having been proposed and ventilated by the parties, being able to confirm, revoke, reform or annul the providence under appeal, according to is entitled.
Of the administrative acts which have been decided by the Committee Appeals will not be allowed for any recourse, the administrative route being exhausted.
The Superintendence will have to publish on its website the final resolutions dictated by the Superintendent or the Appeals Committee that impose penalties, within five business days after the offender has been notified of the state of firmness of the offenders.
Prescription
Art. 69.- The limitation period for promoting the sanctioning procedure set forth in
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this Chapter shall be ten years from the date on which it was terminated. commit the act or the default, subject to sanction.
The limitation period mentioned will be considered interrupted:
a) When any director, official, manager or administrator of the financial system member acknowledge, by any means, the commission of the act or the omission, subject to sanction; and
b) For any performance of the Superintendence that has the purpose of investigating the facts and omissions related to it or its extension, provided that it precedes
written communication to the alleged infringer.
Rights and Duties of Alleged Offender
Art. 70.- The alleged offender will have the right to appoint a lawyer as a proxy from the beginning of the procedure and to be respected in the Constitutionally configured process and to bring the
corresponding resources.
The case The offender must exercise his rights with due restraint, point out the place and the means to hear notifications and if he appears through a lawyer, the latter must legitimize his
personeria.
The beginning and processing of the information will remain confidential with respect to third parties,
except for the final resolution and the provisions of Article 59 of this Law.
Nullity Causals
Art. 71.- They are established as grounds of absolute nullity in this proceeding only the following:
a) Acts dictated by manifestly incompetent authority;
b) Failure to receive proof or refusals of , except that the alleged infringer will be raided;
c) Acts whose content is impossible to execute;
d) Acts issued against express and terminating law; and
e) Failure to subpoena, place or notify to which refers to this procedure, when it makes the right of defence impossible or prejudiced.
nullity may be declared on its own initiative or at the request of a party in any state of the proceedings. The declaration of nullity does not proceed even in the cases provided for in the Law if the act although vitiated has achieved the purpose to which it was destined, except that it has generated the defensiveness to the
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monitored. Acts that incur any vice that do not constitute absolute nullity are relatively void, which may be validated in accordance with the provisions of this
. vices that they suffer. The validated act will produce effect from the date of issue.
Art. 72.- The resolution terminating the sanctioning procedure must be particularly motivated, containing a detailed relationship of the facts, the assessment of the evidence of charge and
discharge " and the legal arguments in which it is base the decision.
In the accreditation of the investigated facts the probation will prevail, allowing
any legitimate, appropriate and pertinent means of proof.
The evidence will be appreciated according to the rules of the healthy, with the ability to fix in each
case the facts to be taken by established by examining and evaluating them, whatever their number and quality.
CHAPTER VIII OF ADMINISTRATIVE INTERVENTION AND SETTLEMENT
Art. 73.- Where in the law applicable to an integral part of the financial system the administrative intervention is contemplated
, the Board of Directors may decree the intervention of that member in the following cases:
a) the member concerned has incurred any of the causes referred to in the respective law;
b) In the case of Roman III of Article 187 of the Code of Commerce; and
c) In any other in that its legal or financial situation would seriously jeopardize the
interests of the public.
Art. 74.- When the intervention is decreed, the conditions of the intervention shall be determined, the appointment
of one or more interventors and whether or not the provisional separation of its directors, administrators, managers and legal representatives is appropriate. Where the separation of these does not proceed, a financial controller shall be appointed from the box.
If the separation of the administrators and legal representatives has been agreed, it shall be the responsibility of the appointed controllers, the administration (a) the general system member
s)in the operation and its assets with sufficient powers to take such measures as are necessary to restore their financial equilibrium or to legalise their legal status. The financial controller shall also be appointed to have the legal representation of the member involved. The intervention may be
agreed for up to a year, however it may be extended for an additional year.
The situation and previous report of the financial controllers, the Council will be able to terminate the intervention at any time. If within the maximum period of the two years of intervention is not
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possible to achieve economic recovery or the arrangement of the legal situation, or if still Before the expiry of that period the reports of the financial controllers confirm the impossibility of recovery of the member
of the financial system intervened, the Council may require the Prosecutor General of the Republic to request his dissolution and settlement.
Art. 75.- As long as the special laws do not have a different treatment, the Council be able to agree to the intervention of the brokerage houses, the stock exchanges and the specialized companies in the deposit and custody of values, for which you will designate an interventor and the attendees
that are necessary and determine their functions in the respective agreement. The said intervention will aim to protect the interests of the public.
The intervention may be agreed upon in any of the following circumstances with respect to the entities listed in the preceding paragraph:
a) Where it incurs any of the situations referred to in Article 187 of the Code of Commerce;
b) Where the legal situation is in serious danger to the interests of the public; and
c) When it does not regain its normal within the time limits the Superintendency, or if the Superintendence or its shareholders do not comply with the obligations that you are
point to.
The Board of Directors of the entity concerned shall not be able to hold a session without the presence of the financial controller,
considering the sessions to be held and the decisions to be taken without their participation. The financial controller shall have the right of veto in respect of any kind of measure taken by the Board of Directors or the administration of the entity where, according to its criteria, the situation of
may deteriorate or affect the interests of the institution.
In any case, the liability of the Interventor and its assistants for those
acts or decisions that, corresponding to their competence, were not subject to their consideration.
In the event that, within one year of the date on which the agreed the
intervention, which may be extended for an additional year, the institution that has intervened has not solved the situations that gave origin to its intervention, must proceed to its dissolution and liquidation according to the relevant legal provisions, for which, the Board will convene the shareholders
of the entity to the General Board to inform them of the results of the measures taken, so that they will recognize and resolve voluntarily according to corresponds, its dissolution and liquidation.
If the respective General Shareholders ' Meeting does not recognize the cause of dissolution, the Council will ask the Attorney General of the Republic to request judicially the dissolution and forcible liquidation of the intervention entity, proposing in its opportunity for such effects, the name of one or more
liquidators, who will have the same functions as established in the Commercial Code.
The auxiliary organs of the administration of justice and other authorities in general, are in the duty to give the support and the collaboration necessary to the or the interventors for the effectiveness of their
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committed.
Monitoring on Liquidation
Art. 76.- When at the initiative of the members or creditors of an integral member of the financial system
the process of liquidation of the financial system has been initiated, the Council without prejudice to the laws applicable to the member in question, may appoint a delegate to supervise the liquidation process, and must be regularly aware of the development of the settlement to the Council and,
eventually if it corresponds, the latter will inform the Prosecutor General of the Republic.
In the situation provided for in this article, the aforementioned member of the financial and
persons who provide services to you, must provide the said delegate, all your collaboration and provide all the information you request for the performance of your function.
If the settlement process (a) a voluntary failure to conclude within the two-year term of the Code of Commerce, which is an integral part of the financial system, shall be regarded as enforceable against unlawful acts and shall be applicable accordingly to Article 349 of the Code of Trade in the relevant.
Art. 77.- The agencies responsible for public safety and other authorities in general are under the obligation to provide necessary support and collaboration to the financial controller or delegate for the effectiveness of their tasks.
Financial controllers or delegates appointed in accordance with this Chapter shall not, in any way, affect the budget of the Superintendence, unless circumstances
merit it, which shall be related motivated in the deal that is issued to the effect.
The Superintendence will not assume the obligations of the intervening entity, whatever
the nature of the same. Nor will any other state institution. All expenses incurred during the intervention shall be charged at the time of the intervention, except as provided in the preceding paragraph.
CHAPTER IX OF THE REGISTER
Art. 78.- The Superintendence will organize and keep up to date the records that the laws entrust to it and those relating to:
a) The members of the financial system and its shareholders, which must provide the necessary information to the Superintendence, as well as any changes affecting that information within the time limit provided for in the respective law or, failing that, within
the thirty days following the fact that it is motivated;
b) The shareholders who are holders of more than ten percent of the share capital of the
registered issuers. For these purposes, issuers must provide the Superintendence with the relevant information on any change in ownership within the time limit provided for in the respective law or, failing that, within thirty days of the fact to motivate it;
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c) The administrators of the members of the Financial System. For the purposes of this Act,
shall be deemed to be the administrators of the members of the financial system, the members of the board, the directors or chief executives and the managers of these or those who perform their duties, as well as
thecontrollers and liquidators
d) The experts, in the cases that the law points out;
e) The insurance intermediaries authorized by the Superintendence;
f) The authorized broker brokers by the Superintendence;
g) Previewing services agents;
h) Auditors (i
and persons providing services related to the Pension Savings System, such as collecting and processing companies;
j) Other records than laws
k) the Bags, licensees, agents and stock exchange positions referred to in the Law on the Stock Exchanges of Products and Services; and
l) Companies and persons providing services related to information and credit history.
The Council will set the rates of the Public Stock Registry taking in consideration, among others, of the costs incurred by the Superintendence and the necessary infrastructure to carry it. In all
cases, the amounts to be paid must not exceed the cost of the Superintendence for the provision of the public registry service.
The Council will be able to reorganize the records in charge of the Superintendence to promote their efficiency.
All the records mentioned above will be public.
Art. 79.- For the purposes of the preceding article, the institutions of the fund management of
pensions shall provide the following information:
a) A certified copy of the testimonies of the public constitution
or modification in their case, duly registered in the Register of Commerce, certified copy of the statutes and of their modifications, if they have, deposited in the said Registry, certified copy by notary of the writings of fusion, dissolution and liquidation of the institutions
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pensions duly registered in the Register of Commerce, the executors of the (b) duly audited financial statements of each accounting period; and
c) Documents in which the Commission has issued a statement of reasons for a declaration of nullity or order
declared invalid or ordered.
the respective investment policies.
Shareholders and administrators of Pension fund management institutions shall provide the following information: certification of the shareholders ' payroll and their social participation, certified copy of the board credentials duly certified registered and the payroll of the
administrators and certified copies of public records of administrative, judicial and special powers.
Insurance companies of persons offering contracts of invalidity and survival and for life income, under the Law of the Savings System for Pensions, they must provide the following information: listing of their managers and shareholders, format of the contracts that the companies of
secure with the institution managing pension funds and with the affiliate and the risk rating of the company, as provided in the Law mentioned above.
Previewing services agents must provide the following information: names of the
agents and their generals, unique code assigned to the agent and copy of the contract signed between the institution pensions and the agent. The Superintendence may incorporate other information to the Registry based on the authorization it gives to the agents of the provision of services, according to
to the Law of the System of Savings for Pensions and its regulations.
companies that provide services related to the Pension Savings System must
provide the following information: listing of the shareholders that are holders of more than three percent of the capital and of the administrators, the states financial year for each financial year and specify the type of services it provides to the Savings System for Pensions
Art. 80.- The Council, when authorizing the commencement of operations of an institution administering pension funds, shall carry out without further processing the respective registration. Likewise, it will proceed when
authorizes a modification of the social pact or the statutes, dissolution, liquidation or merger of the institutions before them. Also, by revoking the authorization to operate a pension fund management institution, it must be recorded in the Register.
pensions, the Council will order the corresponding registration with the relevant information that each
of these present at the time of requesting authorization for the start of operations. These companies, after having made the appointment or change of an administrator, must report it to the Superintendence within three working days of the appointment or the event of the
change
the purpose of keeping the information of the Registry, the institutions of the pension fund, the insurance companies, the pre-viewing service agents and the companies updated.
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providing services related to the Pension Savings System will be required to submit The Superintendence information about any change in the required by such Record, within the
deadline of eight days after the change occurred, except as provided in the previous paragraph.
Requirements for Enrollment Experts
Art. 81.- The requirements for natural persons to be and to be registered in the Superintendence Registry are as follows:
a) Contar with university or specialized training for the type of good that
will value, provide proof of knowledge about valuation matters as determined by the Superintendence;
b) Meet the regulations that apply to it in the exercise of its professional duties;
c) Not to be debtor, co-debtor or guarantor in the members of the financial system of credits to which they are has constituted fifty percent or more of the reserves of sanitation, according to the respective regulations and not to be in a state of bankruptcy, suspension of payments or contest of creditors;
d) Not having been convicted for any crime dolous; and
e) Not being a director, administrator, manager, official or employee of any member of the financial system. This requirement shall apply to the spouse or relatives within the fourth degree of consanguinity or second degree of affinity of the experts.
In the case of legal persons, the above requirements shall apply to their legal representative, to the members of the Board of Directors or equivalent body and the general manager, or the general manager, or the general manager, or the general manager, or the general manager, or the general manager, or the general manager, or the general manager, or the general manager, or the general manager.
Requirements for Enrollment of Insurance Brokers, of Stock
Art. 82.- The requirements to be met by natural persons to be and to be registered in the Register of Insurance Brokers, in the Register of Agents of the Stock Brokers of the
Superintendence and in the records to which they make Article 78 (k) and (l) of this Law are as follows:
a) Meet the requirements laid down in the applicable regulations for your authorization by the Superintendence;
b) Comply with the regulations which are applicable to him in the exercise of his professional duties; and
c) Not having been convicted for any wrongdoing.
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In the case of legal persons, if applicable, the above requirements shall be applicable to your
legal representative, board members or equivalent body and general manager, or who does your times.
CHAPTER X
GENERALATIONS
Securing the Quality of the Monitoring
Art. 83.- For the purpose of ensuring compliance with the monitoring processes, the Superintendent will propose to the Council for approval, the creation of the organizational unit that
will monitor compliance with the policies adopted and the quality in the execution of the processes, methodologies, policies and compliance of the manuals, mainly those related to the definition of the risk profile of the members of the financial system, as well as the manuals of the process
monitoring.
Additionally, the Superintendence will be able to contract " foreign national experts or
foreign experts on the subject, where appropriate, to carry out an assessment of the quality of the implementation of the monitoring process. The respective reports must be submitted to the Board.
Audit
Art.84.- The inspection and surveillance of the operations and the Superintendency accounting shall be carried out by an internal auditor, appointed by the Council and the examination of the financial statements
of the Superintendence by an external auditor, contracted in accordance with the law of Procurement and Contracts of the Public Administration, who will exercise their functions according to the generally accepted Audit Standards.
The external auditor will give your reports to the Superintendence. It will last a year in its functions, being able to be hired for new periods provided they do not exceed three successive periods and are
comply with the provisions contained in the Law of Procurement and Contracts of the Public Administration. Such auditor, if he is a natural person, shall not be a spouse or a relative until the fourth degree of consanguinity or second degree of affinity or partner of the Superintendent or Adjunto Superintendents
and, if legal person, the marital relationship and the above mentioned degrees of kinship shall be considered in relation to their partners, administrators, managers and auditors, respectively. The external auditor of the Superintendence must be registered previously in the Register that for this purpose
carry the referred institution.
From the Budget of the Superintendence and the Appeals Committee
Art. 85.- The Superintendence and the Appeals Committee, four months in advance at the beginning of the respective exercise, will draw up their respective annual budget and regime projects of
salaries according to their needs and objectives. The Superintendent and the President of the Appeals Committee must present them to the Minister of Finance for their approval. The President of the Republic shall submit the respective draft budget for its corresponding consideration and approval of the Council of Ministers
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Approved the budgets of the Superintendence and the Appeals Committee will be made of the knowledge of the members of the financial system.
Members of the financial system will contribute to cover the approved budgets in proportion to the services received, paying monthly to the Central Bank, which send these funds
to the account that the Ministry of Finance has. The Central Bank will determine the amount of the contributions that will be paid to the supervised according to the following:
a) State institutions, up to a maximum of zero point fifteen percent of their total assets annually. The total assets do not include endorsements, bonds and other contingent items;
b) Banks up to a maximum of zero point fifteen percent year of their total assets. Total assets do not include guarantees, bonds and other contingent items;
c) Pension fund management institutions, up to a maximum of four percent of the total annual revenue that they receive in the form of commissions net
of the invalidity and survival insurance payment;
d) Insurance companies, up to a maximum of zero point eight percent annual net returns and annual cancellations;
e) Stock exchanges, brokerage houses, companies specializing in the deposit and custody of securities, risk classifiers, securitizers,
securities valuation agents and general warehouse warehouses, up to a maximum of zero point seventy-five per cent annual total revenue;
f) The cooperative banks, the savings and credit societies, the federations regulated by the Law of Cooperative Banks and Companies of Savings and Credit and the societies of
mutual guarantee will pay up to a zero point zero seventy five percent a year in a manner proportional to its total assets. The total assets do not include guarantees, bonds or other contingent items;
g) Other members of the financial system, with the exception of the following institutions: FONAVIPO National Housing Fund, IPSFA, ISSS, INPEP, Fund Social for
the FSV Housing, CORSAIN Salvage Corporation, Deposit Insurance Institute, and the Financial Sanitation and Strengthening Fund; they will pay on the basis of the calculation of half of the rate paid by the banks, in a way
proportional to their total assets. The total assets do not include endorsements, bonds or other contingent items;
h) Other that establish the laws in the percentages that they determine.
The calculation of the participation of the members of the financial system in the Superintendence budget coverage will be made based on financial statements at the end of the financial year
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previous accounting and the Central Bank will determine annually the percentages to be applied in the
Central Bank will cover up to a maximum of ten percent of the budget of the Superintendency in cash, in kind or through the provision of services, for which this Law does so
empowers. Also, the Central Bank will be responsible for the Superintendency receiving the funds to cover its budget in a timely manner.
At the end of a fiscal year, the Superintendency and the Appeals Committee will transfer the funds. balances not used by the Ministry of Finance, which will serve to finance subsequent financial years, and these surpluses should be allocated in proportion to the corresponding contributions in
the following year.
Budget of the Superintendence and the Committee of Appeals will be the understanding
between the first of January and the thirty-one of December of each year. The execution of the budget of the Superintendence and the Appeals Committee will be subject to the audit of the Court of Auditors of the Republic.
Report on Budgetary Execution
Art. 86.- The Superintendence and the Appeals Committee shall report to the Council of Ministers
on the execution of their respective budgets at least on a quarterly basis.
The budget execution report shall be become aware of the institutions and
entities that finance your budget.
Labors ' Memory
Art. 87.- The Superintendent will approve the annual work memory and present it within the first four months of each year to the President of the Republic, who after approving it will forward it
to the Legislative Assembly and the Superintendent proceed to order its publication on the Superintendence website.
Statistical Bulletin
Art. 88.- The Superintendence will edit a statistical bulletin at least twice a year, which
contains detailed information of the financial system members and the operations they perform.
Disclosure of information to the Public
Art. 89.- The Superintendence must inform the public periodically, by means it deems appropriate, the purposes and the functioning of the financial markets, for the purpose of creating culture
financial and social security in the users.
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Inter-Agency Coordination for User Care
Art. 90.- The Superintendence shall receive and attend to the consultations, requests or claims that the depositors, investors, users or other legitimate persons interested in matters of its competence formulate and in which it will coordinate with the Institution legally responsible for ensuring the
consumer rights and with the Institution responsible for ensuring compliance with the Competition Act.
It will also receive and address the queries, requests or claims that (a) to make the contributions and pensioners, in relation to the institutions managing funds of pensions, ISSS, INPEP and its administrators, as well as others related to the Pension Savings System, the Public Pension System
and the Professional Risk Regime.
Internal Work Regulations
Art. 91.- The staff of the Superintendence shall be governed by the provisions of the Rules of Procedure and other internal administrative instruments approved by the Superintendent for the
adequate development of the functions of the Superintendence, after consulting with the Adjunto Superintendents.
The Rules of Procedure of Labor will consider the labor regime to be implemented especially
concerning the system of remuneration, promotions, training and the staff performance evaluation methodology.
Staff Development
Art. 92.- The Superintendent and Superintendents Adtogether, will approve the annual plan of
training and updating of the staff of the Superintendence, based on the trends and best practices of supervision at international level.
From Officials and Employees
Art. 93.- No officials or employees of the Superintendency may be the spouse, relatives
within the fourth degree of consanguinity or second degree of affinity of the Superintendent or the Adjunto Superintendents and other members of the Tip.
Personal Incompatibilities
Art. 94.- The staff members of the Superintendency will not be able to be directors, advisors,
managers, administrators, shareholders or employees of the members of the financial system; nor will they be able to maintain with them relations professional, commercial or financial, except those arising from their user situation of the services usually provided by the referred
members.
Also, until after three years of having stopped providing services in the Superintendence, they will be able to make representations to the Superintendence and to the Central Bank, directly or
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indirect, in favor or representation of members of the financial system.
Legal Assistance
Art. 95.- When any of the members of the Council are sued for the exercise of
their legal powers, the Superintendence must provide the necessary legal assistance, for which they may contract external professional services.
Likewise, the Superintendence will provide legal assistance to the members of its staff who are sued by any person or institution, for acts executed in the performance of their duties or obligations, and in this case also hiring external professional services.
Equal assistance will provide the Central bank to the members of its Board of Directors and to those of the Appeals Committee for acts executed in the performance of their duties and duties, as soon as
to their actions related to the administrative acts in which they must formulate an opinion in accordance with the applicable laws.
If in the respective final judgment declared firm, I will find that the official or employee has acted in excess of its legal powers, it must reintegrate the Superintendence or the Central Bank, where appropriate, the fees for professional services which the Superintendence has contracted to provide the respective legal assistance.
The limitation period to promote the civil, commercial and criminal claims referred to in this Article and to be promoted against the members of the Board of Directors and
other staff referred to in this Article shall be ten years from the date on which the adoption of the relevant decision has been notified, unless in the special legislative decrees it is established a shorter time frame.
Bans
Art. 96.- official, employee, delegate, agent, adviser, auditor, supplier, proxy or person who is served by the Superintendence shall be prohibited from disclosing any details of the reports he has issued or giving. news of any reserved fact that there is
taken cognizance of in the performance of his position. Those who infringe this provision will be removed from their positions or their contractual relationship will be terminated without responsibility for the Superintendence as appropriate, without prejudice to the civil and criminal liability to which it takes place.
prohibits Superintendence staff from receiving directly or indirectly money and other effects which, as a prize, gift, gift or other form of remuneration, comes from the supervised
or from the officials or employees thereof; or provide them with any paid service class.
Also, employees and Superintendence officials who are notaries will not be able to exercise
this function in the case of notarial instruments awarded by the Superintendence supervised, except in the case of instruments in which the Superintendence has some interest.
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Reporting or Requiring Authorization
Art. 97.- Officials and employees of the Superintendence shall inform the Superintendent when they perform any relevant operation with an integral member of the financial system, in accordance with the provisions of the Rules of Procedure of the The Superintendence,
will set the cases that require prior authorization.
Affiliate
Art. 98.- The staff of the Superintendence will be a member of the Fund for the Protection of Officials and Employees of the Central Reserve Bank of El Salvador. Also, it will be affiliated to the ISSS
for the coverage of the Risk of Illness, Maternity and Professional Risks, while, for the coverage of the Risk of Invalidity, Old Age and Death, it will be affiliated to the pension institution that corresponds, according to the provisions of the Pension Savings System Act.
TITLE III
TECHNICAL REGULATION
ART.
Art. 99.- The Central Bank under this Law, is the institution responsible for the approval of the technical regulatory framework that must be dictated in accordance with this Law and other laws that regulate the supervised ones. In the fulfilment of this responsibility, the Central Bank shall ensure that the
regulatory framework applicable to the financial system is reviewed periodically by seeking its timely update. For these purposes, please Central a Committee of Standards, which will be composed of the President of the Central Bank, the Vice President of the Central Bank, the Superintendent and the Directors
of the Board of Directors that have been proposed by the Ministers to whom Article 10 of the Organic Law of the Central Reserve Bank of El Salvador.
The Committee Rules shall be coordinated and chaired by the President of the Central Bank, who shall appoint one of the members of the Central Bank as secretary. In the event of a temporary or permanent absence of any of the members of the Standards Committee, they will be supplied by those
legally to do their time.
The Committee of Standards will meet the times that are necessary for the compliance with
its legal mandate and at least once every three months; sessions shall be validly held with the assistance of three of its members and decisions shall be taken by a majority of those present. In the event of a tie, the President of the Central Bank shall have a vote of quality. The assistants to their sessions must
keep strict confidentiality on the matters treated there and the documents that in reason of their quality of member of the referred Committee are delivered to them; neither should they use nor take advantage of such information for personal purposes, in favor of third parties or to the detriment of the functions and decisions of the
Central Bank, of the Superintendence or of the State, in which case they will incur liability for the damages caused, without prejudice to the legal or administrative action of any kind that is coming. It will be up to the aforementioned Standards Committee to issue resolutions on the following:
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a) The approval of technical standards, of instructions and provisions that laws that regulate the supervised state that they must be dictated to facilitate their application,
especially those relating to solvency requirements, liquidity, provisions, reserves, classification of risk assets, criteria for establishing the need for consolidation, good corporate governance practices, transparency of information and about any
another aspect inherent in risk management by the monitored;
b) Approval of technical standards for financial system members
to provide published sufficient and timely information on legal, economic and financial aspects of each, in accordance with the laws governing them, as well as the products and services they offer;
c) technical standards for the production, approval, presentation and disclosure of the states financial system and additional information for the members of
system; for the determination of accounting obligations and the principles under which they will have to keep their accounts and the establishment of criteria for the valuation of assets, liabilities and the constitution of provisions and reserves by risks, all
the foregoing in accordance with this Law and other applicable laws, in order to reflect the actual liquidity situation and solvency of the members concerned;
d) The approval of technical standards for the establishment and monitoring of technical and mathematical reserves, investments and reinsurance of insurance companies;
e) The establishment of technical criteria for the determination of acts and operations which are considered to be contrary to the
f) The issuance of requirements to the internal and external auditors as well as to the Audit Committees of the members of the financial system. Additionally, it will dictate the rules that are necessary to coordinate the monitoring tasks of the
Superintendence with the tasks of the internal auditors;
g) The approval of technical standards in which the conditions are defined minimum that
must physically gather the premises and their security measures, such as the conservation and documentation file of the financial system members;
h) The approval of technical standards in which they are define the minimum requirements for insurance contracts related to the Savings System for Pensions;
i) Prior approval of regulations and instructions issued by stock exchanges to regulate the operability of market negotiations and the mechanisms to be implemented for the conduct of transactions and instruct the changes that
consider necessary, no later than fifteen working days counted from the respective approval request, in accordance with applicable provisions and international best practices;
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j) Approval prior to entry into force of the regulations and operating manuals, contract formats and other documents relating to the companies
specialised in the deposit and custody of securities, ensuring that the systems established by those companies grant security and efficacy guarantees required for market security and stability; and
k) Other resolutions
It shall also be for the Central Bank, the approval of other resolutions which, in the field of its competence, are necessary for the proper functioning of the System of Supervision and Regulation Financial, as well as for the application of this Law and other laws
applicable to the supervised ones.
Additionally, it will be up to the Central Bank through its President to propose to the
President of the Republic the issuance, modification and repeal of the Regulations establishing the Law of the Savings System for Pensions, the Insurance Companies Act, the Securities Market Act, the Goods and Services Bags Act, and any other that establish the laws governing the
financial system members.
Previous functions will be performed by the Standards Committee in accordance with this Law, for which it is empowered.
Art. 100. Prior to the approval of technical standards, these will be put to the supervision of the supervised ones so that, if they consider it appropriate, they can issue their observations properly
within the time limit that in this respect they are established. The consultation may be carried out by means of multidisciplinary consultative committees, which are based on the subject matter. In no case shall the observations be binding.
The technical standards approved by the Central Bank in accordance with this Law shall be duly reasoned, shall establish the date of their validity and shall be made of the knowledge of the
supervised at least 15 days prior to its entry into force, by publication on the Central Bank's website, which shall be communicated directly to the corresponding supervised by printed media or electronic. Additionally, the Central Bank will be able to publish
the referred rules in the Official Journal or other physical or electronic means to be determined by its Board of Directors, which will make public knowledge. The technical standards will be mandatory as of its validity.
The Superintendence will have to keep updated on its website the related rules during its corresponding periods of validity. Exceptionally, in circumstances that make provision for
the occurrence of possible imbalances in the financial system or for reasons of social interest, the Standards Committee with at least two of its members may issue, without further processing, rules temporary and immediate term techniques, without the prior consultation referred to in this Article. The validity of
these rules may not exceed one hundred and eighty days.
The technical standards to be approved by the Standards Committee shall be drawn up by the Central Bank. The Superintendence must provide the Central Bank with the necessary inputs or make proposals
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of rules that you deem necessary for the functioning of the markets.
TITLE IV SINGLE CHAPTER
SPECIAL PROVISIONS
Continuity and Power Transfer
Art. 101.- The Superintendence shall be governed by the provisions of this Law and by the provisions of other laws applicable to it, and shall transfer to the Ministry of Law all powers,
powers, powers, powers and duties that are mentioned in the laws and that, prior to the date of entry into force of this Law, were attributed to the Superintendency of Values, to the Superintendence of Pensions and to the Superintendence of the Financial System created by Decree
Legislative No. 628 of 22 November 1990, published in the Journal Official No 278, Volume 309 of 10 December 1990.
When in the different laws reference is made to the Organic Laws of the Superintendents that this Law will repeal, it should be understood that it refers to this Law.
Similarly, they are transferred to the Superintendence, to the Appeals Committee and the Bank
Central, in the manner provided by this Law, all powers, powers, powers, powers and duties that are established in the laws and which, prior to the validity of the present law, were attributed to the Superintendents or the Directive Councils of the Superintendents before
mentioned, unless such powers have been granted to other entities, institutions or authorities in accordance with this Law.
The powers of approving, amending and amending the Central Bank are hereby transferred to the Central Bank. to repeal technical standards that must be met by the financial system members and others supervised and that were attributed to the Superintendents or the Directive Councils of the Superintendents whose laws
organic repeals the present.
Art. 102.- For the purpose of imposing sanctions, when reference is made in the different laws
to the procedure laid down in the Organic Law of the Superintendence of the Financial System, to the procedures established in the Organic Law of The Superintendence of Values and in the Organic Law of the Superintendence of Pensions that by this Law will be repealed, it must be understood that it is made
reference to the procedure established in Chapter VII of Title II of the present Law.
Regulations and Other Provisions Vigency
Art. 103.- The regulations, instructions, resolutions, rules, agreements and other general and particular provisions applicable to the supervised, as well as the administrative dictates
for the internal functioning that have been issued by the competent authorities of the Superintendence of the Financial System created by the Legislative Decree referred to in Article 101 of this Law, will maintain its validity in all that it does not object to the present, while not are expressly repealed or amended.
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The regulations, instructions, resolutions, rules, agreements and other provisions general and private applicable to the supervised, that have been issued according to the law by the authorities
competent of the Superintendence of Pensions and of the Superintendence of Values, whose organic laws are repealed by this Law, shall maintain its validity in all that it does not object to the present, as long as they are not expressly repealed or amended; those concerning its internal functioning
and in administrative, personal and budgetary matters, are repealed from the beginning of the functions of the Superintendence created by this Law.
Regulations issued by the Presidency of the Republic for the implementation of the Pension Savings System Act and the ISSS and INPEP laws as appropriate, and those applicable to the Securities Market and other audited compliance with the Organic Law of the Superintendence of
Values that this Law repeals or any other regulations applicable to the supervised, shall remain in force in any way that does not object to this Law, as long as they are not expressly repealed or amended.
Consequently, failure to comply with obligations established in the legal orders referred to above will be sanctioned by the Superintendence created and regulated by this Law, of
conformity to the procedure established therein.
Art. 104.- For the purposes of this Law, where the issue of instructions is issued in other laws, it will be understood to be the issue of rules referred to in Article 99 of this Law, according to its
nature.
Risk Commission
Art. 105.- The Risk Commission referred to in Article 89 of the Pension Savings System Act will be integrated, as of the validity of this Law, by the Superintendent who will be the
Chair, by the Superintendents Attachments, by the President of the Central Bank and by the Minister of Finance and shall be governed in accordance with the provisions of the Pension Savings System Act in so far as it does not contradict the present.
Records
Art. 106.- The Superintendence created and regulated by this Law shall carry the records referred to in Article 78 of this Law. Consequently, they are transferred to the Superintendence from the validity of this Law, the records previously carried by the Superintendents whose laws
are repealed by this Law, which will retain all the legal characteristics and purposes for which they were created. The seats or inscriptions that have been made in the above records will remain valid and will not require any subsequent ratification or any processing.
Non-Preview Situations
Art. 107.- As not provided for in this Law, the following legislation will apply:
a) Financial laws, such as the Law of Banks, the Law of Cooperative Banks and Savings and Credit Societies, the Law of the Market of Values, the System Act
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Savings for Pensions;
b) The Code of Commerce; and
c) Legislation
Exclude Exclude
Art. 108.- For their extra character, the provisions of the Law of Procedure for the Imposition of the Arrest or Administrative Fine contained in Legislative Decree No. 457 shall not apply to the procedures laid down in this Law. of 1 March 1990, published in the Journal
Official No. 70, Volume 30, of March 21, 1990.
TITLE V
ONLY CHAPTER
TRANSIENT Provisions
Rights and Obligations Transfer
Art. 109.- They are transferred to the Superintendence of the Financial System created by this Law, all
the goods, rights and this contracts all the obligations of the Superintendence of Values, of the Superintendence of Pensions and of the Superintendence of the Financial System, created by Legislative Decree No. 628 of 22 November 1990, published in Official Journal No. 278, Volume 309, of 10
December 1990.
The staff of the Superintendence of the Financial System created by Legislative Decree No. 628
of 22 November 1990, published in Official Journal No. 278, Volume 309 of 10 December 1990, which worked in the Intendence of Values of this institution, which in the year of a thousand nine hundred and ninety-seven have moved to work to the Superintendence of Values, will be entitled to a gratification
for the services provided to the referred Superintendence of the System Financial, in terms of recognition for the time they worked respectively in that institution in the terms that the Council dictates, empowering the Superintendence created by this Law to do so.
Art. 110.- The Superintendent and the Adjunto Superintendents and the other members of the Council shall be appointed on the same day as the entry into force of this Law.
of the Appeals Committee
Art. 111.- The Appeals Committee shall initiate its duties within thirty days of the validity of this Law.
The time limits in the proceedings of appeal initiated, as well as the time limit for such proceedings. resource, will be suspended while the Appeals Committee has not started its functions.
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Prescription Transitional Term
Art. 112.- During the first year of validity of this Law, the limitation period for promoting the procedure laid down in this Law shall be five years from the date on which it is completed to commit the event or to occur. the default subject to sanction.
Financial System Integrative Policies
Art. 113.- In order to comply with the provisions referred to in Article 35 (c) and (d) of this Law, the members of the financial system shall submit to the Superintendence a plan to adopt the policies and mechanisms to which the refer to those provisions, within six months
following the validity of this Law and to communicate the update of this Act when appropriate. Annually, the members of the Financial System shall submit an assessment of the implementation of the Financial System. Once the plan has been presented, the aforementioned members will have to implement it within a period
maximum of six months from their presentation, communicating the related policies or dispositions adopted to the Superintendence within the twelve months following the validity of this Act.
Superintendence Transitional Budget
Art. 114.- Notwithstanding the provisions of Article 85 of this Law, the Budget of the
Superintendence to conclude the operating year corresponding to the year 2011, will be covered with the resources considered in the approval of the three total annual budgets for the aforementioned exercise for the Superintendence of the Financial System, the Superintendence of Values and the
Superintendence of Pensions based on the organic laws that govern them and the resources already approved in the General Budget of the Nation for the Superintendence of Securities and Superintendence of Pensions. Under this Law, the referred resources for the Superintendents of Securities
and of Pensions, will be transferred to the Central Bank by the Ministry of Economy, to whom this Law authorizes to make it, in order that the
Superintendence will have to estimate the budget for the year 2012 within thirty days of the current law, it will be approved according to the established in Article 85 of this Law and shall be covered as follows:
a) The Bank Central will cover with its resources up to a maximum of thirty-four percent;
b) The Ministry of Finance will cover with its resources up to a maximum of sixteen percent;
c) Banks, including the Multisectoral Bank of Investments, the Banco Mortgage de El Salvador, S.A., and the Agricultural Development Bank, up to a maximum of thirty-four percent;
d) The institutions administering pension funds, up to a maximum of sixteen percent;
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e) Insurance companies, agents specializing in the valuation of securities, securities exchanges, brokerage houses, companies specializing in the
securities deposit and custody, risk classifiers, securitizers and general warehouse warehouses will pay up to a maximum of two percent.
f) Cooperative banks, savings and credit companies, the banks of the federations regulated by the Law of Cooperative Banks and Savings and Credit Societies, mutual guarantee societies and other members of the financial system, with the exception of the Fund
National People's Housing FONAVIPO, IPSFA, ISSS, INPEP, FSV Housing Social Fund, CORSAIN Investment Saving Corporation, Deposit Insurance Institute and the Financial Sanitation and Strengthening Fund, will pay up to a
maximum of two percent.
One The budget for the financial year 2012the Central Bank shall be notified to the Ministry
of the Treasury the amount corresponding to the literal b) of this article, so that the Ministry incorporates what is necessary in the General Budget of the State for the year 2012 and transfers to the Central Bank the corresponding resources in the month of January 2012. The Superintendence regulated by this Law will be
in any case exempt from compliance with the regulations of the Government Accounting Subsystem.
Art. 115.- The broker brokers who are currently providing their services in brokers authorized by the Superintendency, within a given year period
from the date of entry into force of the This Law must be registered in the register which for this purpose will take the Superintendence owing for that effect to comply with the requirements laid down in article 82 of this Law and in the technical regulations that the effect is emitted by The Central Bank.
The provisions of the foregoing paragraph shall also apply to the subject Article 78 (K) and (l) of this Act.
Transitional Legal Assistance
Art. 116.- For pending court proceedings and for those which are initiated during the year following the entry into force of this Law, the legal assistance referred to in Article 95 shall also be applicable to those who have been Superintendents or Members of the Superintendency Directives
existing before the validity of this Law and whose organic laws are repealed by this Law. Similarly, they will have legal assistance from the Central Bank who have served as members of their Board of Directors.
Process Liquidations
Art. 117.- The settlement processes initiated in accordance with the laws that are repealed by this Law will continue under the supervision of the Superintendence.
Vigency of Procedures and Resources
Art. 118.- The administrative procedures and resources that are pending the entry into force of this Law will continue to be processed in accordance with the law with which they were initiated.
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and by the authorities regulated by it with the powers it attributes to them, the following form:
a) The procedures, formalities, proceedings or any other procedural acts that are pending final resolution before the previous Superintendence holders whose
organic laws are repealed by the This Law will continue to be processed before the Superintendent or the Superintendent Deputy who delegates;
b) The rectification resources that are in the process before the previous Superintendents of the Financial and Pensions System will continue to be processed before the Superintendent or the Deputy Superintendent delegating;
c) Appeal resources that are being processed before the previous Financial System Superintendency and Securities Superintendency Directivesare
will continue processing before the Appeals Committee, as regulated in Article 65 of this Law;
d) Procedures that are being dealt with by subordinate officials, delegates or similar of the above mentioned Superintendence holders will continue to be dealt with by the officials whom the Superintendent delegates; and
e) refers to article 113 of the Law of the System of Savings for Pensions, will continue to be processed by the Validity Qualifier Commission, created according to the Law and according to the procedure established in the
Article.
The final resolutions of the Superintendents referred to by the organic laws
that by this Law will be repealed and from which the deadline for bringing the resources regulated by those laws has not elapsed, may be used as the case before the Superintendent, the Deputy Superintendent that has been delegated or to the Appeals Committee regulated by this Law.
Art. 119.-The repeal of Article 14, the amendments to Articles 4, 5, 13, 15, 17 and 29 and the incorporation of Article 5-A of the Law on Goods and Services Bags, which in this Law
are made, shall enter into force One year, counted from the time of the year.
Art. 120.- THE MEMBERS OF THE BOARD OF DIRECTORS AND MEMBERS OF THE COMMITTEE OF
APPEALS APPOINTED UPON ENTRY INTO FORCE OF THIS LAW, SHALL LAST IN THEIR DUTIES UNTIL THE THIRTIETH AND ONE OF MAY OF THE YEAR TWO THOUSAND FOURTEEN. (1)
TITLE VI REPEAL AND VALIDITY
ONLY CHAPTER
Art. 121.- Defeat the following provisions:
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a) The Organic Law of the Superintendence of the Financial System, contained in the Decree Legislative No. 628 of 22 November 1990, published in Official Journal No. 278,
Volume 309, of December 10, 1990 and its reforms;
b) The Organic Law of the Superintendence of Securities, contained in the Legislative Decree
No. 806, of September 11, 1996, published in Official Journal No. 186, Tomo 333, of October 4, 1996 and its reforms;
c) The Organic Law of the Superintendence of Pensions, contained in Legislative Decree No. 926, dated 19 of 1996. December 1996, published in Official Journal No. 243, Volume 333, of December 23, 1996 and its reforms.
d) Article 238 of the Law of Banks;
e) Article 58 of the Law of Cooperative Banks and Savings and Credit Societies;
(f) Article 97 of the Securities Market Act;
g) Article 14 of the Commodity Exchanges Act and Services; and
h) The second paragraph of Article 3 of the Foreign Currency Exchange Act.
Exchange Houses
Art. 122.- The powers conferred on the Central Bank of El Salvador in the Foreign Currency Exchange Act are transferred, by the Ministry of Law, to the Superintendence of the Financial System regulated by this Law, except for the The issuance of the Instructive for the application of the
Foreign Currency Exchange Act that regulates the operations of the exchange houses, which will continue to be the responsibility of the aforementioned Bank.
The files that contain information about the Exchange Houses that are currently operating, as well as the The respective guarantees must be transferred by the aforementioned Bank to the aforementioned Superintendence, within three months of the validity of this Law.
Appointment of External Auditors
Art. 123.- The power to appoint external auditors to the Central Reserve Bank of El Salvador in the laws governing the following institutions: Multisectoral Investment Bank, National Administration of Aqueducts and Sewers, Salvadoran Institute of Agrarian Transformation,
Autonomous Port Executive Commission and Social Welfare Institute of the Armed Forces, will be exercised from the time of this Law, by the maximum authority of the institutions mentioned above.
Art. 124.- This Law shall, in its special character, prevail over any other which is opposed to it or contrarié; in order to amend or repeal it, it shall be expressly mentioned.
In the event of conflict in the application of the laws, it shall prevail This Law.
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Art. 125.- When in other legal systems reference is made to the Organic Law of the Superintendence of the Financial System, to the Organic Law of the Superintendence of Values and to the Law
Organic of the Superintendence of Pensions, understand that the applicable law is the present; likewise, when in other legal orders the Superintendent of the Financial System, the Superintendent of Securities and the Superintendent of Pensions are referred to, the authority to the that
refer to is the Superintendent to which this Act relates.
Art. 126.- This Decree shall enter into force 180 days after its publication in the Official Journal
.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at fourteen days
of the month of January of two thousand eleven.
CYRUS CRUZ ZEPEDA PEÑA,
PRESIDENT.
OTHON SIGFRIDO REYES MORALES, GUILLERMO ANTONIO GALLEGOS NAVARRETE,
FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.
JOSÉ FRANCISCO MERINO LÓPEZ, ALBERTO ARMANDO ROMERO RODRÍGUEZ, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.
FRANCISCO ROBERTO LORENZANA DURAN, FIFTH VICE PRESIDENT.
LORENA GUADALUPE PEÑA MENDOZA, CESAR HUMBERTO GARCIA AGUILERA, FIRST SECRETARY. SECOND SECRETARY.
ELIZARDO GONZÁLEZ LOVO, ROBERTO JOSÉ D' AUBUISSON MUNGUÍA, THIRD SECRETARY. FOURTH SECRETARY.
IRMA LOURDES PALACIOS VÁSQUEZ, FIFTH SECRETARY. SIXTH SECRETARIAT.
MARIO ALBERTO TENORIO GUERRERO, SEVENTH SECRETARY.
CASA PRESIDENTIAL: San Salvador, at twenty-six days of the month of January of the year two thousand eleven.
PUBESLOSE, Carlos Mauricio Funes Cartagena,
President of the Republic.
Juan Ramón Carlos Enrique Cáceres Chávez, Minister
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Hector Miguel Antonio Dada Hirezi, Minister of Economy.
D. O. No. 23 Took Nº 390 Date: February 2, 2011.
REFORMS:
(1) D.L. No. 64, JULY 12, 2012, D.O. No. 152, T. 396, AUGUST 20, 2012.
(2) D.L. No. 65, JULY 23, 2015,
D.O. No. 146, T. 408, AUGUST 14, 2015.
JCH/sv
JCH/adar 18-02-11
JCH
12/09/12
SV 07/09/15
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