Regulatory Alerts2015-06-04 | JB-2015-3448Resolution No. JB-2015-3448 of the Banking Board of Ecuador
The Banking Board of Ecuador issued Resolution JB-2015-3448 to uphold a personal fine of US$1,500,000 against Hugo Andrade Chuma, a member of the Board of Directors of the Magisterium Pension Fund (FCME), for regulatory violations. The resolution confirms that the Fund's 'Cuenta Única Preferencial' (Single Preferred Account) and its investment in the Sabanilla Hydroelectric Project violated the Organic Law on Social Security and Banking regulations by allowing non-affiliated retirees to maintain participation with preferential terms and engaging in non-previsional investments. The Board rejected the appellant's arguments regarding the legality of the account structure and the project's nature, ruling that superior legal norms regarding the mandatory social security system and the specific purpose of complementary pension funds prevail over the Fund's internal statutes.