Regulatory Alerts2015-06-04 | JB-2015-3451Banking Board Resolution JB-2015-3451
The Banking Board of Ecuador upheld a US$1,500 fine against Jeanette Maritza Yépez Avilés, a board member of the Teachers' Retirement Fund, for creating an illegal 'Preferred Single Account' that allowed non-affiliated retirees to make deposits with higher interest rates and periodic withdrawals. The Board determined that this product violated the Social Security Law and Banking Regulations by functioning as a savings vehicle rather than a supplementary pension fund, and by permitting individuals who had terminated their employment to remain affiliated without liquidating their individual accounts. Additionally, the resolution confirmed sanctions related to the Fund's improper investments in the Sabanilla Hydroelectric Project and other governance failures identified during a special audit.