Regulatory Alerts2021-03-30 | DOF 5614774Added · Updated
Amending Circular 4/21 of the Single Insurance and Surety Circular
This circular amends Annex 6.4.11 of the Single Insurance and Surety Circular to establish specific Basic Adjustment Factor (FBA) and Credit Risk Adjustment Factor (FA) values for the fourth quarter of 2020. The updated factors apply to insurance institutions issuing guaranteed financial securities, including government bonds, asset-backed securities, and guaranteed values with or without collateral. The amendment sets a uniform FBA of 12.7059 for government bonds and assigns FA values ranging from 12.7059 to 23.6059 based on credit ratings from Standard & Poor's, Moody's, and Fitch. The modification entered into force the day following its publication in the Official Gazette of the Federation on March 30, 2021.