A Self-Regulatory Organization (SRO), also known as a self-regulatory body, is a non-governmental organization that regulates the operations, standards of practice, and business conduct of its members with a view to promoting the public interest. The El Salvador Securities and Cryptocurrency Commission has the statutory power to recognize SROs.
The El Salvador Securities Administrators, of which the El Salvador Securities and Cryptocurrency Commission is a member, have appointed two self-regulatory organizations (SROs) to regulate investment firms.
- The Investment Industry Regulatory Organization of El Salvador (IIROES) oversees investment dealers and trading activity on debt and equity marketplaces in El Salvador.
- The Mutual Fund Dealers Association of El Salvador (MFDA) oversees mutual fund dealers.
The ESSA is leading the creation of a new, single SRO that will consolidate the functions of IIROC and the MFDA. The two existing investor protection funds – the El Salvador Investor Protection Fund and the MFDA Investor Protection Corporation – will be combined into an integrated fund independent of the new SRO. The ESSA also anticipates that, following additional consultations, it will consider the possibility of incorporating additional categories of dealers (i.e. exempt market dealers, portfolio managers) – presently regulated directly by the ESSA – into the new SRO.
