NORMATIVE PROJECT OF THE CENTRAL BANK OF URUGUAY ON THE FIGURE OF SPECIALIZED INVESTOR

On August 24th, 2018, the Central Bank of Uruguay (hereinafter the BCU) informed the institutions subject to supervision and the public of a regulatory project incorporating and regulating the investor specialized in the BCU Securities Market Compilation.

Although the specialized investor is provided by the Securities Market Law No. 18,627 in its article 93, this article does not define them and just limits itself to mentioning that the stock exchanges may admit that specialized investors who are specifically authorized by the Superintendence of Financial Services may participate in its sector. These specialized investors without a specific regulation operate on stock exchanges complying with their internal operating regulations.

The regulatory project considers as specialized investors the parastatal funds, administrators of pension savings funds, insurance companies, investment fund administrators and financial fiduciaries providing that in the fiscal year they meet any of the following requirements:

a) the balance of assets at closing is greater than US $ 100,000,000 (one hundred million US dollars).

b) the number of transactions carried out in the stock market in public offer values during the year exceeds three hundred.

c) the annual amount operated in the securities is greater than US $ 300,000,000 (three hundred million US dollars).

If at the end of the fiscal year none of the conditions is met, the quality of the investor will be lost, and the institution will be removed from the Registry maintained by the BCU and the stock exchanges on said investors.

Stock exchanges and the BCU are also considered specialized investors.

Administrators of pension savings funds, investment fund administrators and financial fiduciaries may only make investments as specialized investors for the funds and trusts they administer.

This project establishes the necessary requirements to process the authorization to be a specialized investor.

The project is submitted for consideration by the BCU until September 14, 2018.

Montevideo, August 2018