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Capital Markets Alert – March 2020

ALERT – CAPITAL MARKETS

SMV announces new deadlines for the submission of information, and other measures before the declaration of the State of Emergency

Through Superintendency Resolution No. 033-2020-SMV/02 (“Resolution”), the Superintendency of Securities Market (“SMV”) supplements a previous notice on the suspension of deadlines for the submission of information and other measures regarding the declaration of the State of Emergency made by the Executive Branch through Supreme Decree DS No. 044-2020-PCM (“Notice”) (refer to our Capital Markets Alert No 1 – 2020).

The main provisions approved by the Resolution above are the following:
1. New deadlines for the submission of regular information
The SMV approves the extension of the deadline for the submission of regular information set out below for issuers with securities registered in the Public Registry of the Stock Market (“RPMV”), legal entities registered in the RPMV and collective fund management companies (jointly, the “Entities”), including the information related to the autonomous assets they manage.

a. Financial information and annual report of year 2019

The deadline for the submission of audited individual or separate financial information and annual report of the Entities for year 2019 is extended until June 30, 2020.

The deadline for Entities, which are obliged, to submit the annual consolidated financial information of their last parent companies for year 2019 is extended until August 31, 2020.

b. Interim financial information as of March 31, 2020

The deadline for the submission of interim individual or separate financial information of the Entities as of March 31, 2020 is extended until July 31, 2020.
In the case of consolidated information, the deadline is extended until August 15, 2020.

c. Update of risk rating reports based on audited financial information for year 2019
The deadline for risk-rating companies to regularly update their risk rating reports for the first half of 2020 (for which the audited annual financial information of year 2019 must be used), is extended until August 31, 2020.

d. Economic Group
The deadline for institutions to submit the annual update of their economic group information is extended until September 30, 2020.
The Resolution provides that the extension referred to in subparagraphs a) and b) above does not apply to entities under the supervision of the Superintendency of Banking and Insurance and Private Pension Fund Administration Companies (SBS). The Notice contained a similar provision, but only for entities of the financial system, and applied to any information on a regular basis.

2. Important facts and other information required to be submitted via the Mvnet System
The Resolution confirms that issuers must continue to present their important facts through the Mvnet system within the deadline established in the applicable regulation.
This also applies to the daily recording of transactions and prudential indicators to be submitted by the stock exchange companies; and to the daily report of shares, participants and value of shares to be sent by the mutual fund management companies and fund management companies that manages mutual funds.

3. Suspension of deadlines for procedures

The thirty (30) business-day suspension, which is announced in the Notice, for the calculation of the deadline for initiating and processing the administrative procedures in the SMV has been formalized. However, unlike the Notice, the Resolution establishes that this deadline shall start from March 21, 2020.

4. Suspension of the deadlines for the submission of other information
The suspension referred to in the Notice of the enforceability of any obligation, established by a regulation or requirement prior to the declaration of the State of National Emergency, to submit all other information to the SMV has been formalized. Once the State of Emergency has ended, the SMV shall communicate the new time for delivery.

5.  Services that must be maintained during the State of Emergency

The following services are required to remain in operation:
• Trading of securities and transfer of securities between parent accounts of participants;
• Delivery and payment of dividends or any other right or benefit on securities registered in the RPMV;
• Subscriptions and redemption of shares of mutual funds; and,
• Provision of prices by price providers.

6. Exceptional powers to mutual fund management companies and price providers
The mutual fund management companies are granted powers to amend the start time of the validity of the value of shares or cut-off hour as well as the customer service hours during the period of the State of National Emergency, which must be communicated in advance as an important fact and disseminated on the company’s website.
In addition, during this period, the price providers are entitled to change the maximum time for sending the initial prices and fees, which must be informed to the SMV and disseminated on the website of the institution.

7. Suspension of SMV contribution for issuers of the Alternative Securities Market – MAV
Issuers participating in that market shall not pay an SMV contribution for the months of March, April and May 2020.
This communication has been prepared by the banking and financial area of Rodrigo, Elias & Medrano Abogados.