Surveillance Committee

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The Surveillance Committee that has its origin from Law N° 18.876 of December 1989, “Incorporation and Operation of Private Entities for the Deposit and Custody of Securities”, which Article 32 provides, among other matters, that the General Assembly of Participants’ is responsible of “appointing a Surveillance Committee that will be comprised of 5 participant representatives. In turn, this Committee may recruit professionals for the execution of the inspection activities and verification of the Company’s performance and operations, having to render detailed account of these recruitments and the amount of their remuneration to the Annual Participants’ Assembly.”

Powers:

The following are some of the supervising powers granted to the Surveillance Committee by the referred Law: Verify that the custody, clearing, settlement and transfer operations are completed thoroughly and on time.  Perform quarterly company audits and verify the exactness and reconciliation of participants’ accounts. Verify that the information available is sufficient, true and expedient. Check the quality of the installations and security systems, as well as the quality and amount of the guarantees and insurance in force.

Constitution:

The Surveillance Committee is constituted by 5 members, selected annually by the General Assembly of Participants. From March 2018 until the next Assembly – to be held in March  2019 – the Surveillance Committee will be comprised of the following people:

 

Budget and plan of activities 2019:

 

1.- Four Arches and Confirmation of titles in custody in the DCV.
2.- Evaluation of the Internal Control Environment of the company.
3.- Revision of the trial balances size.
5.- Other Activities the Committee may require.

All the above, plus those expenses corresponding to the Committee members’ allowances, those related to administrative and financial support represent a total budget for 2019 of UF 7,368.00, less the cash surplus of UF 706.12. So, the amount to finance with the Participants’ installments in 2019 amounts to UF 6,661.88

Procedure for the estimation of participants’ installments:

The Surveillance Committee’s proposal to the Assembly regarding the installments to be paid by Participants for the funding of the Committee’s activities and the way to determine same was to maintain the payment system of the past twelve years.  This formula consists of the distribution of 70% as a fixed installment for all Participants and the remaining 30% proportionally distributed according to the fees Participants pay to DCV in the semester prior to the collection of the respective installment on account of custody (Fixed Income; plus Financial Intermediation and Variable Income), payment that is performed in two installments, in the months of April and October together with DCV invoicing.

Complaints:

As part of its responsibilities, the Surveillance Committee acknowledges any abnormalities Depósito Central de Valores may show during its operations and that may affect Participants. For this purpose, there is a special procedure established under Chapter 3.2 of DCV’s Bylaws.  The following steps are summarized in the regulation:


1.- The complaint must be submitted in writing to the President of the Committee within a term of 5 days from the occurrence of the event. The President’s domicile, for these purposes, is Av. Apoquindo 4001, piso 12, Santiago.
2.- The Committee shall report the complaint to the affected party in writing so that the latter may file his defense within 10 days from notice.  
3.- The Committee has a 15-day term to reach an agreement, which shall be founded and bear the consenting vote of at least 3 of its members.