do business in the Dominican Republic - Pellerano & Herrera

DOING BUSINESS INTHE DOMINICAN REPUBLICdefined as a changing patrimony formed of contributions made by physical orlegal persons for their investment in publicly offered securities, which are managedby an administration company at the members risk. Contributions or fundinstallments (“cuotas del fondo”) may be repurchased at any time, which is notthe case in the Closed Funds.22Titling Companies (“Titularizadoras”). Titling activities (defined as the placingof property with the purpose of backing up the interests granted to the holdersof the securities issued on the basis of such property, the transfer of assets tosuch property and the issue of the respective securities) may be executed byauthorized institutions or by companies that carry out exclusively this kind ofactivities.c) Regulatory BodiesThe supervision and regulation of the Dominican stock market is granted to theSuperintendence of Securities (“Superintendencia de Valores”) and the NationalSecurities Commission (“Comisión Nacional de Valores”).The Superintendence of Securities promotes, regulates and supervises the stockmarket, seeing to the compliance of the law, and being entitled to apply administrativesanctions and fines, and to file legal actions. It is an independent organ,with its own legal personality and patrimony, and relates to the State through theMonetary Board. It is partly financed by contributions charged on the commissionsmade by brokers, as well as annual contributions of administration andtitling companies.This office shall authorize the entry of, and supervise, all market actors, as well asthe placing of public offers of securities, and shall maintain a Stock MarketRegistry,with all public information related to the securities offered,and the institutionsparticipating, at the market.The National Securities Commission proposes the candidates for the appointmentof the Superintendent and the Intendent of the Superintendence ofSecurities, and serves as an appeals institution for the decisions of the supervisoryoffice, as well as arbitrator in the conflicts arising between market participants.It is composed of seven members: one Central Bank officer appointed by theMonetary Board, an officer appointed by the Ministry of Finance, theSuperintendent of Securities and four private sector members appointed by theExecutive Power for periods of two years, two from a pool of three candidatesproposed by the stock exchange and stock brokers associations, and two from apool of three candidates proposed by the product stock exchange associations.d) Public OffersThe Superintendence of Securities must previously authorize any public offers ofsecurities in the market, after having verified that the offer complies with the relevantlegal requirements, which depend on the nationality and time of operationof the issuer.