Lima, 4 November 2016

S.B.S. Resolution No. 5785-2016

The Superintendent of Banking, Insurance and Private Administrators of Pension Funds

WHEREAS:

That, by Supreme Decree No. 054-97-EF, the Single Ordered Text of the Law of the Private Pension Fund Administration System was approved, hereinafter the SPP Law's SOT;

That, by Supreme Decree No. 004-98-EF, the Regulation of the aforementioned SPP Law's SOT was approved;

That, by Law No. 30425, the Law that modified the SPP Law's SOT and that extends the validity of the special early retirement regime, hereinafter REJA, was approved, in order to establish, among other aspects, the possibility that members, from 65 years of age, may choose between receiving the pension corresponding to them in any retirement modality or requesting the AFP to deliver up to 95.5% of the total available fund in their individual capitalization account (CIC), in the installments they consider necessary, it being understood that the member who exercises this option shall not be entitled to a state guarantee;

That, additionally, Law No. 30478 has modified the twenty-fourth final and transitory provision of the SPP Law's SOT, referring to the pension and/or withdrawal options available to the member when they reach 65 years of age, or access the Special Retirement Regime for the unemployed;

That, the option of disposal of the accumulated funds of the members referred to in the preceding recital, in accordance with the provisions of the aforementioned Law No. 30478, is perfected when the member decides to receive their funds in the installments they consider necessary;

That, complementarily, the last paragraph of article 40 of the SPP Law's SOT and incorporated by Law No. 30478, establishes that members of the Private Pension System may dispose of up to 25% of the accumulated fund in their Individual Capitalization Account of mandatory contributions to pay the down payment for the purchase of a first property, provided that it is a mortgage loan, or to amortize a mortgage loan that has been used for the purchase of a first property, in both cases granted by an entity of the financial system;

That, the aforementioned disposal of a percentage of the pension fund must be exercised within a framework of transparency of the obligations of the entities involved that, in terms of more efficient procedures and greater information for the member, guarantee the purpose of its application, that is, only for the purchase of a first

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property, provided that it is a mortgage loan, or to amortize a mortgage loan that has been used for the purchase of a first property, in both cases granted by an entity of the financial system;

That, for this reason, it is necessary to establish the corresponding modifications to the Operating Procedure for the exercise of options of the member when they reach retirement age or access the Special Retirement Regime for the Unemployed (REJA), approved by SBS Resolution No. 2370-2016 and its amendments, in order to provide a framework of greater flexibility in their decision-making process and, complementarily, to the Operating Procedure to dispose of up to 25% of the Pension Fund of the members of the Private Pension System destined for the purchase of a first property, approved by SBS Resolution No. 3663-2016, in order to establish clarifications regarding the deadlines and communications that the entities participating in this type of operations must comply with;

With the approval of the Deputy Superintendencies of Private Pension Fund Administrators, of Banking and Microfinance, of Market Conduct and Financial Inclusion, and of Legal Affairs; and,

In use of the powers conferred by numeral 9 of article 349 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law No. 26702 and its amendments, subsection d) of article 57 of the Single Ordered Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 054-97-EF, as well as by the provisions of the Third Final and Transitory Provision of its Regulation and on the basis of the exception conditions provided in Supreme Decree No. 001-2009-JUS and its amendments;

RESOLVES:

Article One.- To replace subsections b), c) and h) of Article 1, subsection d) and the text corresponding to heading d) of the third paragraph of Article 5, and subsections b), e) and vi. of Article 8 of the Operating Procedure for the exercise of options of the member when they access retirement by reaching age or access the REJA, approved by SBS Resolution No. 2370-2016, under the following texts:

"Article 1.- Definitions:

(…)

b) Installments: number of parts into which the delivery of the percentage of the available fund of their CIC would be fractioned. The member may request the withdrawal of a percentage or nominal value of the available fund on the occasions they require it, without it being necessary to define a term beforehand, subject to the conditions of valuation of the pension fund - in accordance with the provisions of article 8, Step 3 of this operating procedure -, based on the value of the current quota of the corresponding pension fund, at the date of delivery;

c) Applicant for fund withdrawal: member who, complying with the conditions to access a fund withdrawal, provided in subsection a), executes said decision as follows: i) partial, when the delivery or sum of the delivered installments correspond to a percentage less than 95.5% of the balance of their CIC; ii) total, when the delivery or sum of the delivered installments correspond to 95.5% of the balance of their CIC. According to the provisions of the text corresponding to subsection g) of Article 5, a similar treatment by the AFP extends to those new funds collected with

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after its withdrawal decision; in the case of the applicant for total withdrawal, he/she does not have the status of pensioner; (…) h) CIC: for the purposes of this operating procedure, the CIC corresponds to the individual mandatory contribution account; and, (…)”

“Article 5.- Step 2:

(…) d) Informs the member about the situation provided for by effect of Laws No. 30425 and No. 30478, regarding the care and coverage for health benefits provided by EsSALUD, with respect to those who choose to request from the AFP the delivery of 95.5% of the balance of their CIC; (…)

Text corresponding to subsection d): “Mr.(Ms.) member: Please note that, in accordance with current legal provisions, if you arrange the withdrawal of 95.5% of the balance of your CIC, your potential pension beneficiaries –spouse or cohabitant, children under 18 years of age, children over 18 years of age with disabilities, or parents in a condition of economic dependency or in a condition of disability– upon your death, would NOT have the right to coverage for health benefits provided by EsSALUD.” (…).”

“Article 8.- Step 3:

(…) b) If you arrange the withdrawal in installments, you must communicate it to the AFP, subject to the provisions of subsection b) of Article 1. The withdrawal is subject to the valuation of the units of the corresponding pension fund, as of the date of each delivery; this will also be applicable in case the member has arranged the withdrawal of a percentage or nominal value of the fund on one or more occasions; (…) e) Based on the decisions made by the member, he/she may sign on one or more occasions the “Withdrawal and/or Pension Option Decision Form”; (…) vi. If the withdrawal of the CIC balance in installments is chosen, the accumulated sum or percentage of the member's CIC balance must be recorded. (…)”

Article Second.- Incorporate a final paragraph to Article 8 of the Operating Procedure for the exercise of options by the member when he/she accesses retirement by reaching age or accesses the REJA, approved by SBS Resolution No. 2370-2016, under the following text:

“In case the member has chosen to sign the “Withdrawal and/or Pension Option Decision Form” under the provisions of subsection b), on a subsequent occasion he/she must adhere to the provisions of Step 3 of this operating procedure.”

Article Third.- Replace numeral 5.1. of Article 5 of the Operating Procedure to dispose of up to 25% of the Pension Fund of the members of the Private Pension System destined for the purchase of a first property, approved by SBS Resolution No. 3663-2016, under the following texts:

“5.1. Step 1: Application by the member to the Company

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The Company must verify that the requested amount from the accumulated fund in the CIC will be destined in accordance with the provisions of Article 40 of the TUO of the SPP Law. Likewise, it evaluates that the member is eligible under any of the subparagraphs I or II of the literals established in Article 3. For this purpose, it must use all means reasonably available to verify such conditions, and must at least adhere to the following:

a) Application addressed to the Company, duly subscribed and signed by the member, indicating his/her disposition to use up to 25% of the accumulated fund in the CIC of the AFP to which he/she belongs, for the payment of a down payment or amortization of a mortgage loan used for the purchase of a first property, complying with the provisions of subparagraph I or II of Article 3 of this operating procedure, as applicable.

b) Copy of the identity document of the member and of his/her spouse in the case of a community property regime.

c) Index Search Report by the name of the member in the SUNARP Real Estate Registry of the office of the registry zone where he/she has resided, of the one corresponding to his/her current address, according to official identity document, and of the office of the registry zone where the first property subject of this application is located, if different from the previous one. For this purpose, a search by name must be available through computerized indexes of active and inactive properties in the Property Registry of the office of the registry zone in question of SUNARP.

d) Information on the balance of the member's CIC at least as of the close of the month prior to the date of submission of the application for the mortgage loan or amortization. For this purpose, the aforementioned report may be the member's last account statement or the available information contained in the virtual platforms of his/her private zone in his/her AFP.

All requirements and declarations made within the framework of this provision, as applicable, have the character of a sworn statement. For this purpose, members must submit a written document. Likewise, the documentation submitted by the member to the Company must be considered as part of the credit file, and the Company must carry out the actions, collections, and procedures corresponding to the granting or amortization of a mortgage loan, as applicable, under the terms and conditions usually carried out in the financial system.

In order to have the document indicated in subsection c), the member shall request from the Company the search in the registries referred to in the aforementioned subsection, for which purpose said entity must use the search facilities by virtual means provided by SUNARP. If it is found that the affiliate has a Search Report of Indices with a negative result, continue with the procedure. If the result of the Search Report of Indices is positive, and shows the existence of active or inactive assets, the Company must require the affiliate to provide the registry certificates and/or the literal certificates of the archived title of the property, as applicable, so that the company, after review and evaluation, confirms that the condition required in subsection b) of numeral 4.1 is met as of the date of granting of the mortgage loan.

Once this is completed, the Company will deliver to the affiliate, in original and copy, a “Pre-conformity Document”, so that with said document the affiliate can continue with the procedure before their AFP for the availability of a percentage of the accumulated fund in their CIC. If the Company identifies that the mortgage loan is not for the purchase of a First Property, the Affiliate may not avail themselves of the benefit provided in this operating procedure, and the processing of said request for availability of up to 25% mentioned above shall be rendered ineffective.

Said “Pre-conformity Document” must contain, at a minimum, the following information:

i. Personal data of the affiliate.

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ii. Note of whether the mortgage loan is for the payment of the down payment, or to amortize the debt of the mortgage loan in the financial system for the purchase of a first property.

iii. Amount of the pre-approved loan, in the case of a down payment, or total amount of the debt subject to amortization, in the case of the provisions of subsection b) of article 40º of the TUO of the SPP Law.

iv. Amount in soles representing twenty-five percent (25%) of the accumulated fund in their CIC, or indication of the percentage of up to twenty-five percent (25%) of the accumulated fund in their CIC at the request of the affiliate, regardless of the currency in which the mortgage loan is requested.

v. Determination of periodic payments, in case this option has been chosen.

vi. Account number of the Company where the AFP will disburse the amount of the CIC requested by the affiliate.

vii. Place and date of issuance of the document.

In the case of requests submitted under the scope of the provisions of literal b) of Article 4°, the Company shall have a maximum term of fifteen (15) business days counted from the day following the date of submission of the required documents to issue the pre-conformity document. Exceptionally, said term may be subject to an extension, provided that the characteristics of the particular case justify it, in which case the basis for the extension of the term must be available to the Superintendency. This extension must be communicated by physical or electronic means to the affiliate before the expiration of the initial term.”

Article Four.- Replace literal c) numeral 5.2. of Article 5º of the Operating Procedure to dispose of up to 25% of the Pension Fund of the affiliates of the Private Pension System destined for the purchase of a first property, approved by Resolution SBS Nº 3663-2016, with the following text:

“c) Note of the nominal value in soles or percentage, to be requested from the AFP for:

c.1) Pay the down payment or;

c.2) Amortize with up to twenty-five percent (25%) of the accumulated fund of their CIC.”

Article Five.- Replace numeral 5.3. of Article 5º of the Operating Procedure to dispose of up to 25% of the Pension Fund of the affiliates of the Private Pension System destined for the purchase of a first property, approved by Resolution SBS Nº 3663-2016, with the following texts:

“5.3. Step 3: Disposition of the amount of the CIC requested by the affiliate

The disbursement of the percentage of the accumulated fund in the affiliate's CIC, whether for the payment of a down payment or to amortize a debt, with respect to a mortgage loan granted by an entity of the financial system for the purchase of a first property, is made to the account that the Company indicated in the “Pre-conformity Document” within a term no greater than seven (7) business days, considering the following:

i) In the case of down payment, from the receipt of the instruction by the Company. For this purpose, the Company must keep the “Communication of proceeding” in the file of the granted mortgage loan.

ii) In the case of amortization, from the issuance of the “Communication of proceeding”.

iii) In both cases, the AFP must send a communication to the affiliate notifying them of such disposition for the use of a percentage of the balance of their CIC, indicating the effective date of disbursement of the amount of the CIC requested by the affiliate.

República del Perú

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP

In the case of amortization, the Company must apply the funds of the affiliate's CIC to the amortization of the mortgage loan on the date of the credit made by the AFP in the account of the Company, in compliance with the provisions of article 22° of the Transparency Regulation of Information and Contracting with Users of the Financial System, approved by Resolution SBS N° 8181-2012 on advance payments.

If the mortgage credit operation ultimately does not take effect, the Company must communicate said event to the affiliate and proceed to restore to the affiliate's pension fund account the amount initially disbursed, within a maximum term of two (2) business days counted from the determination of the non-proceeding of the mortgage credit operation.”

Article Six.- Replace the last paragraph of article 87º of Title V of the Compendium of Regulations of the Superintendency Regulating the SPP, with the following text:

(…) Likewise, in the case of members who have made use of the options to withdraw their available funds upon reaching retirement age or accessing the Special Early Retirement Regime for the Unemployed (REJA), the conditions set forth in this subparagraph a) shall be applied to them. For this purpose, they must inform their employer of such status, providing a copy of the “Withdrawal and/or Pension Option Form” referred to in Superintendency of Banking, Insurance and Private Pension Fund Administrators Resolution No. 2370-2016 and its amendments.”

Article Seven.- This resolution shall enter into force on the day following its publication in the Official Gazette “El Peruano”, except for the provisions of Article Three, which shall enter into force ten (10) calendar days after its publication.

Register, communicate and publish

SOCORRO HEYSEN ZEGARRA
Superintendent of Banking, Insurance and
Private Pension Fund Administrators