Business Management Regulation of Pension Fund Administrators

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997

DECRETO No. 60.-
THE PRESIDENT OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I. That by Decree No. 97, dated December 20, 1996, published in the Official Journal No. 243 dated the 23rd of that same month, the Pension Savings System for Workers in the private, public, and municipal sectors was created, which comprises the set of institutions that will administer the resources destined to pay the benefits that must be recognized to affiliates to cover the risks of Common Disability, Old Age, and Death.
II. That it is necessary to issue the Business Management Regulation of Pension Fund Administrators, which must contain all the provisions that, in accordance with the Law of the Pension Savings System, must be complied with for the adequate administration of these companies.
THEREFORE, in exercise of its constitutional powers DECREES the following:

BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS.

TITLE I
GENERALITIES

UNIQUE CHAPTER
DEFINITIONS

Art. 1.- In the text of this Regulation, the following denominations and concepts will be used:
AFP: Pension Fund Administrators.
Agent: Pension Services Agent.
Agency: Those public service locations that can perform all SAP processes according to the Law and its Regulations.
Central Bank: Central Reserve Bank of El Salvador.
Stock Exchange: Stock Exchange.
CIAP: Individual Pension Savings Account.
Fund: Pension Fund.
Law: Law of the Pension Savings System.
Organic Law: Organic Law of the Superintendence of Pensions.
Representation Offices: Those offices of the AFP that, without being agencies, established abroad, can perform affiliation tasks, provide information to the public, and all those established by the Superintendence through the corresponding Instruction. National Offices: Those offices of the AFP that, without being agencies, established within the national territory, can perform affiliation tasks, provide information to the public, except for collection. SAP: Pension Savings System Superintendence: Superintendence of Pensions Days: Calendar days, unless it is expressly stated that they are business days.

TITLE II
OF PENSION FUND ADMINISTRATORS

CHAPTER I
GENERAL CONSIDERATIONS.

Art. 2.- The name or trade name of the AFP must include the phrase "Pension Fund Administrator" or the acronym "AFP" must precede it, and in no case may it include acronyms or names of existing natural or legal persons, nor names that, in the opinion of the Superintendence, could induce confusion regarding its patrimonial or administrative responsibility or the activities carried out by the AFP.

This qualification will be determined by the Superintendence in accordance with the Regulation for Authorization to Constitute Pension Fund Administrators.

Art. 3.- The premises where the agencies, national offices, and representation offices of an AFP operate must be independent and exclusively used by the same. Consequently, under no circumstances may they be located in buildings where companies or entities operate that, due to the nature of their activities, could lead the public to identify the AFP with those companies.

In this regard, the operation of agencies, national offices, and representation offices of the AFP is prohibited under the following conditions:
a) When any other entity belonging to the Financial System operates in the same building; b) When any of the legal persons that are shareholders and hold one percent or more of the social capital of the AFP operates in the same building; c) When any legal person linked to the legal persons holding shares in the AFP operates in the same premises, and its trade name implies association with them; and d) When the building, due to the signs installed in it, can be commercially associated with any of the legal persons holding shares, even if these do not operate in the same.

The provisions of this article will not apply to premises intended for the use of administrative offices of the AFP, where there is no public service. In such cases, they are prohibited from being identified with external signs or any other similar element.

Art. 4.- The AFP, in the buildings where they carry out public service activities, must place a commercial sign that clearly identifies the company name or trade name.

Art. 5.- The opening of agencies, national offices, and representation offices by the AFP will be subject to the procedures contemplated in this Regulation and the respective Instruction.

CHAPTER II
OF THE MANAGEMENT BODIES

Art. 6.- The General Shareholders' Meetings held by the AFP will be subject to the provisions and procedures contemplated in the Company's Bylaws, the legal or regulatory norms that regulate the SAP, and, failing that, what is regulated by the Commercial Code and Common Law.

Art. 7.- The Superintendent may, ex officio or at the request of any shareholder, convene a General Shareholders' Meeting when deemed appropriate for the interests of the affiliates, stating the matters to be discussed in the Meeting and specifying the place, day, and time of the meeting, its purpose, and who will preside over it, all in accordance with the Commercial Code. The costs of these Meetings will be borne by the AFP.

Art. 8.- Without prejudice to what is established in the deed containing the social pact and the bylaws of the AFP and in the Commercial Code, the Superintendent or the officials designated by him have the right to attend the General Shareholders' Meetings held by the AFP.

Art. 9.- The AFP, as long as the General Shareholders' Meeting has not approved the general balance sheet of the accounting year and the corresponding distribution of profits, may not distribute them from the net profits of an annual exercise, nor grant participation in profits to its shareholders.

Art. 10.- The directors of the AFP are obligated to inform the Superintendence within the following business day about all operations carried out with their own resources in the financial instruments in which the investment of the Fund's resources is authorized, according to the format approved by the Superintendence through the corresponding Instruction. This information must be communicated to the Board of Directors before its execution, and once executed, the directors must report its execution.

Art. 11.- The directors are jointly responsible for the acts they perform in their capacity as such, pursuant to what is established in the Commercial Code, especially for the following:
a) Adopting agreements or approving operations transgressing the provisions contained in the Law, Organic Law, its Regulations, Instructions, or Resolutions issued by the Superintendence; b) Failing to comply with the criteria established by the Risk Committee for the investment of the resources of the Fund administered by the AFP, as well as the criteria established by the Superintendence regarding capital, equity, special guarantee contribution, and profitability fluctuation reserve; c) Failing to comply with the limits set for the investment of the resources of the Fund administered by the AFP; d) Failing to adopt necessary measures to correct irregularities in the management of the company; e) Failing to attend to the Promotion Regulation and other general or particular provisions issued by the Superintendence; f) Failing to provide information or providing false information to the Superintendence regarding activities and operations whose effects substantially negatively impact the economic or financial situation of the AFP or the Fund; and g) Failing to adopt measures to ensure the timely execution of internal and external audits in the AFP.

Art. 12.- In addition to the causes provided in the Commercial Code, the Regulation for Authorization to Constitute Pension Fund Administrators, and the social pact and bylaws of the AFP, the position of director will become vacant in the following cases:
a) By failing to attend Board of Directors sessions for a continuous period of three months, without permission or leave from said body; and b) By failing to attend Board of Directors sessions in a proportion greater than one-third of the total sessions held in a twelve-month period.

CHAPTER III
OF THE OPENING OF AGENCIES, NATIONAL OFFICES, AND REPRESENTATION OFFICES

Art. 13.- The AFP must open and maintain at least one agency or office at the national level dedicated to public service. However, considering the volume of operations it carries out or the target market it covers, it may open other agencies and offices at the national level anywhere in the territory of the Republic. Optionally, it may open and maintain agencies or representation offices abroad.

Art. 14.- For the approval by the Superintendence of the opening of an agency or national office, the AFP must submit to the Superintendence a request along with the following information:
a) Copy of the certification of the minutes entry in which the agreement adopted by the Board of Directors regarding said opening is recorded; b) A statement of reasons detailing: the background of the AFP's operation, the characteristics of the zone where it will operate, specifying its address and geographic location, and the grounds justifying the opening of the new premises; c) Feasibility profile containing: the geographic influence area, the main characteristics of the target market on which it will operate, estimates of the economically active population, structure and age levels, and average remuneration of potential affiliates in the zone where it will start operations, the organizational chart specifying the description of tasks to be performed by each functional area, personnel requirements, indicating also the estimated number of agents necessary for the development of its activities, pre-operational investment, and marginal contribution regarding the number of affiliates and the growth of the Fund, as a result of the operation of the new agency or national office, as well as the impact on the AFP's income and expenses.

For the relocation of an agency, national office, or representation office, the procedure established for the opening or closing of the same must be followed. For this effect, the Superintendence will issue the corresponding Instruction.

Art. 15.- Regarding agencies or representation offices abroad, in addition to what is established in the previous Article, the AFP must submit the following information:
a) The relevant legal justification, provided by a recognized Salvadoran professional, which clearly determines that the laws of the country where the agency or representation office is intended to be installed permit it; b) Sworn declaration authenticated by a Notary, by which it submits to the supervision of the Superintendence of Pensions and to the examination of the external auditors of the respective AFP, without prejudice to those corresponding to foreign authorities; and c) Contract signed between the AFP and the life insurance company, which includes a clause establishing that the coverage of disability and survivorship insurance extends to affiliates abroad.

Art. 16.- The Superintendence, once it has acknowledged receipt of the request, will proceed to evaluate the documentation attached to it, being authorized to propose, based on the studies and reviews of the case, the changes it deems necessary in the presented documents. To this effect, within a period of ten days, the Superintendence will communicate to the representatives of the AFP, only once, the observations it deems necessary to make regarding the received request. After said period has expired or the aforementioned observations have been satisfied, the Superintendence may order, at the AFP's expense, the performance of an inspection visit to verify the operating conditions and operability of the referred agency or representation office, with the AFP demonstrating optimal conditions for the service of affiliates and the general public. The Superintendence will inform the AFP in cases where it does not exercise this power.

Art. 17.- Once the period has concluded, observations have been corrected, or, if applicable, the general and specific verifications referred to in the previous article have been carried out, the Superintendence, within a period of three days, will issue the corresponding Resolution, granting, in case of an approving resolution, a certificate stating that the opening of an agency or national office or representation office is authorized.

Art. 18.- The certificate referred to in the previous article has indefinite validity, and may be revoked by the Superintendence when the operating conditions of the agency, national office, or representation office do not correspond to the requirements that supported the granted authorization, or at the request of the AFP.

Art. 19.- The text of the certificate must be published in two newspapers of national circulation at the AFP's expense, and must be permanently displayed in a visible place to the public, in the premises of the agency or national office. In such publication, the start date of operations of the same must be specified.

When it concerns an agency or representation office abroad, the same publication procedure referred to in the previous clause must be carried out, and additionally, it must be published in two newspapers of the locality where the agency or representation office abroad is opened.

Art. 20.- When the AFP decides to close a national agency or representation office, it must submit a request to the Superintendence, attaching the following:
a) Copy of the document in which the agreement adopted by the competent social body regarding its closure is recorded. b) A statement of reasons detailing the reasons supporting the adopted decision and additionally specifying the procedures that will be adopted for the service of affiliates in the zone.

Once the closure authorization is obtained or if, within a period of five days of receiving the request, the Superintendence does not rule, the AFP, within a period that cannot be less than ten days prior to the closing date, will publish a notice in two newspapers of national circulation, communicating the closure of the agency, national office, or representation office, specifying in the same the procedures for the service of affiliates and the general public in the zone where it operated. Regarding an agency or representation office abroad, the same publication must be made in two newspapers of the locality. Additionally, the AFP must communicate the closure of the same to affiliates by any means it deems appropriate.

TITLE II
OF THE SPECIAL GUARANTEE CONTRIBUTION

Art. 21.- The AFP, in order to guarantee the minimum profitability of the Fund and independently of the Profitability Fluctuation Reserve, must constitute and maintain at all times with its own resources a Special Guarantee Contribution, which will be equivalent to three percent of the Fund it administers.

The Special Guarantee Contribution will be calculated daily according to the average value of the Fund during the previous fifteen consecutive days. It may only be used as backing for minimum profitability and will be invested in Fund quotas that the AFP administers. This Contribution is unseizable for obligations other than those incurred with the Fund.

Art. 22.- When the Superintendence knows that the AFP does not maintain the amount required as Special Guarantee Contribution, it must notify it to remedy said deficiency, within the period specified by the Law. The aforementioned notification must be in writing, without prejudice to the advance electronic communication of data transmission, without prejudice to applying the corresponding sanction.

The non-compliance with the provisions of the previous clause, without prejudice to the monetary sanction, will lead to the revocation of the operating authorization, and the procedures for the dissolution and forced liquidation of the company, referred to in articles 61 to 65 of the Law and the respective Regulation, must be initiated.

Art. 23.- The AFP must strictly adhere to what is prescribed in the previous article and to the account dynamics defined for the Fund and the AFP in the Instruction referred to the Accounting Plan, in order to keep separate the resources or own equity of the Fund from those that are the property of the AFP.

TITLE III
OF INFORMATION

CHAPTER I
TO SHAREHOLDERS

Art. 24.- The AFP are obligated to provide the reports and explanations that shareholders request outside of the General Meeting, in accordance with what is established by the Commercial Code.

Art. 25.- In cases where information related to the Fund, which has a confidential character, is requested, due to the effects its disclosure could have on third parties or on the SAP, the AFP may refrain from providing such information to the requesters.

In case the shareholders who have requested such information from the AFP are not in agreement or disagree regarding the confidential nature of the request, they may address themselves to the Superintendence so that it resolves the nature and validity of the petition, with the parties obligated to strictly comply with the decision adopted by the Superintendence.

CHAPTER II
TO AFFILIATES

Art. 26.- The AFP, due to the activities and services they provide, are obligated to make available to the public informational brochures for orientation purposes. To this end, before making such brochures available to the public, the AFP must obtain prior approval from the Superintendence. To this end, the AFP must send to the Superintendence a draft of each brochure, as well as any other informational document intended for public distribution. The Superintendence will have a period of no more than ten business days to formulate observations regarding the referred draft.

Complementarily, the AFP are obligated to make available to the public the brochures or prospectuses of an informational character that the Superintendence publishes and provides regarding the SAP.

Art. 27.- Regardless of what is established in the previous Article, the AFP must maintain in all their agencies, national offices, and representation offices in a place easily accessible to the public, informational brochures that as an excerpt contain the following information. a) Name, address, registration data in the Commerce Register, entry in the Register kept for this purpose by the Superintendence, and resolution of authorization to start operations; b) List of the Board of Directors and Administrators. c) The location of their agencies, national offices, and representation offices; d) General balance sheet of the last exercise and the result statements determined by the Superintendence, both of the AFP and of the Fund it administers. In any case, they must make available to the public the last two result statements of the Fund and the AFP; e) Amount of Social Capital, of the Fund, of the Profitability Fluctuation Reserve, and of the Special Guarantee Contribution; g) Amount of commissions, detailing the average percentage of the disability and survivorship insurance premium; f) Value of the Fund quotas. h) Fund investment policy and composition of the investment portfolio, and i) Profitability of the last twelve months of the Fund administered.

The aforementioned information must be updated at least monthly, within the first ten days of each month. The letters a), b), c), and f) referred to in the previous clause, will be updated when their change occurs.

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997

Art. 28.- The information detailed below must be published by the AFP, quarterly in a newspaper of national circulation, within a period of ten days counted from the last day of each quarter:
a) The amount of Social Capital. b) The amount of the Fund. c) The amount of the profitability fluctuation reserve; d) The special guarantee contribution; e) The value of the Fund's shares. f) The amount of commissions charged, detailing the average percentage of the insurance premium for disability and survivorship; g) The composition of the Fund's investment portfolio; and, h) The profitability of the last twelve months of the Fund administered. For this purpose, the following shall be considered as quarters:

1. January – March.
2. April – June.
3. July – September
4. October – December.

Art. 29.- The AFPs, without prejudice to what is provided in this Regulation, must communicate in writing to their affiliates, at least every six months, regarding all movements and balances recorded in their CIAP (Individual Capitalization Accounts), indicating the number of shares recorded, their value, and the date. In the event that the account recorded no movements, the AFP is obligated to communicate the movements and balances when new contributions are perceived. However, the AFP is obligated to inform affiliates, at least once a year, of the balance of the CIAP. To this end, they must send to the address of each of their affiliates, an account statement called "Affiliate-AFP Account Statement," which details the aforementioned information and whose corresponding format will be subject to what is provided in the Affiliation and Contributions Regulation.

Art. 30.- For the purpose of identifying the semi-annual periods for the issuance of the "Affiliate-AFP Account Statement," the following shall be considered:

• Period 1: January - June.
• Period 2: July - December.
  The aforementioned statements must be issued and dispatched within the first fortnight of the month following the expiration of the semester, including the accreditation of contributions for those months.

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997

Art. 31.- Any information other than the aforementioned account statement that the AFP sends to its affiliates will be subject to the provisions established by the SAP Promotion Regulation.

Art. 32.- Regardless of the Account Statement sent by the AFP to affiliates, it is obligated to provide them with a "Pension Savings Booklet" in which it will record, each time the affiliates request it, with a maximum of six times a year, the number of shares credited to their CIAP and their value as of the date. The AFP may substitute this Savings Booklet with any electronic mechanism previously approved by the Superintendence. The format and content of the Pension Savings Booklet will be determined by the Superintendence and will be approved as an annex in the Affiliation and Contributions Regulation to the SAP.

CHAPTER III
TO THE SUPERINTENDENCE

Art. 33.- The AFPs, based on the activities they carry out, must provide the Superintendence, within the timeframes indicated, the following information:
a) The call for a General Shareholders' Meeting, within a period of two days after it has been agreed upon; b) The certification of the agreements adopted by the General Shareholders' Meeting within a period not greater than five days after they have been approved. When the Financial Statements are approved in such agreements, they must attach them duly audited; c) The election of vacant directors that occur and the designation of the persons who cover them, within a period not greater than five days after they occur; d) The shareholding composition of the AFP valid at the end of the month, according to the detail established by the Superintendence through Instruction, within a period that will not exceed the first five days of the following month; and, e) Any transfer of shares involving a percentage equal to or greater than one percent of the Social Capital of the AFPs, within a period that will not exceed five days of said transfer being carried out, as established by the Superintendence. In the case of literals c) and d), it must be complied with attaching the sworn declarations required from shareholders and administrators. According to the information provided in Literals d) and e), the Superintendence will verify the quality of the shareholders to meet the requirements established by the Law and its Regulations. If there are disqualifications, or cases that contravene such provisions, the aforementioned shares must be alienated within a period of thirty days.

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997

Art. 34.- The AFPs, in accordance with what is provided by Article 39 of the Law, may contract services with other companies. The respective draft contracts, for the purpose of being previously authorized by the Superintendence, must be presented ten days before their signing.

Art. 35.- For the purposes referred to in the previous article, the AFPs must necessarily consider, among others, the following clauses:
a) Specific detail of the object of the contract and the duration thereof; b) The submission of the supplier to the norms of the SAP and those established by the Superintendence, regarding the services provided by the AFP. c) The submission of the supplier so that the Superintendence, when it deems appropriate, can directly access the documentation, information, and any detail related to the object of the contract; and d) The obligation that the costs incurred by the execution of the obligations subject of the contract will be exclusively the responsibility of the AFP requesting the service, without prejudice that it is always the responsibility of the same to provide the contracted services, in the fulfillment of the supplier.

Art. 36.- The specific aspects of contracts related to the collection and deposit and custody of the instruments in which investments are made with the resources of the Fund administered, and which are signed by the AFPs with other legal entities, will be determined in the Affiliation and Contributions Regulations of the SAP and Investments, respectively.

Art. 37.- The AFPs will structure their financial statements according to the Chart of Accounts Instruction issued by the Superintendence. The same information will be used for the purpose of inscribing and registering the shares representing their social capital in a stock exchange.

Art. 38.- The AFPs, by virtue of the activities inherent to them, are obligated to provide the Superintendence with all information regarding the composition, amounts, and limits concerning the investments of the Funds they administer, as well as the Special Guarantee Contribution.

Art. 39.- The AFPs must comply with presenting the Annual Report to the Superintendence within five business days following its approval by the competent social body.
The information that must appear in the Report, in addition to what is required by the Securities Superintendence for companies issuing securities registered in the stock exchange, is the following:
a) Organizational chart and current organizational structure of the society at the end of the fiscal year and the changes that have occurred during the period; b) Structure of the AFP's commissions during the fiscal year, distinguishing the concepts that gave rise to them;

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997 c) Statistical information regarding the age structure of its affiliates, number of affiliates, contributors, pensioners, average contribution base income, benefits granted, number of agents, and others that in the judgment of the Superintendence it is necessary to add; d) Composition of the Fund's portfolio administered; e) Valuation of the Fund's share; f) Value of the Fund administered; and g) The fulfillment and amount of the Special Guarantee Contribution. Literals b), c), and g) referred to will be detailed monthly. The information referred to in literals d), e), and f) must be detailed at the close of each month of the fiscal year.

TITLE IV
OF THE PENSION SERVICE AGENTS

CHAPTER I
GENERAL ASPECTS

Art. 40.- Agents are understood to be those natural persons who, with prior authorization from the Superintendence and registration in the corresponding Registry, enter into employment contracts with an AFP to participate in the promotion of the AFP's services and the incorporation of workers as affiliates to the SAP. Agents may be contracted by the AFPs, according to the existing labor contracting modalities in the market, always in a direct relationship of dependence. It is prohibited to contract for the incorporation of workers to the SAP persons other than the Agents. Each Agent will provide their services exclusively to one AFP at a time.

Art. 41.- The employment contracts that the AFPs enter into with their Agents must be previously approved by the Superintendence, and must contain at least clauses establishing the following:
a) Declaration by the Agents of knowing and submitting to the norms governing the SAP. b) Declaration by the AFP recognizing that the Agents act on its behalf, and, in turn, declaration by the Agents that their actions bind the AFP whenever they act on its behalf. c) Commitment by the Agents to refrain from performing affiliations or transfers of affiliates, offering additional benefits not contemplated in the norms regulating the SAP. d) Commitment by the Agents to the AFP to maintain confidentiality regarding the affiliate-AFP relationship with other AFPs, even after the labor link has been dissolved.

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997 e) Providing as a cause for termination of the contract, the non-compliance with the declarations and commitments by the Agents, especially those referring to the confidentiality they must maintain regarding matters within their knowledge. Regardless of the contractual effects generated by the non-observance of what is prescribed in literals c) and d), the Superintendence will consider the same as offenses subject to administrative sanction. The text of the contract may not incorporate concepts or clauses that contravene what is established in this article.

Art. 42.- The hiring of Agents by the AFP must be due to a rigorous selection process, ensuring that they meet the conditions of competence, moral solvency, and suitability regarding the labor they will perform.
In no case may the AFP incorporate as Agents persons who have been dismissed for serious misconduct in a similar position, or who having provided services in another AFP, less than fifteen days have elapsed since the date of their resignation.

Art. 43.- By virtue of the provisions of the previous article, the AFPs are obligated to develop training programs for those who apply to perform the role of Agents.
At the end of the program and as a necessary condition to access the Registry of Agents maintained by the Superintendence, the AFPs, in coordination with the same, will subject the applicants to a comprehensive knowledge examination on the Pension Systems.

Art. 44.- The coordination referred to in the previous article consists of the preparation of the examination by the Superintendence, which will additionally dispose of the security conditions it deems necessary for the conduct of the evaluation. The AFPs will request the Superintendence to conduct the examination for applicants to Agents, sending together with the request, the definitive list of all applicants who will be subjected to the test, prior to verification of the applicant's identity with the birth certificate. The Superintendence, after the examination has been conducted, will inform the AFPs of the results obtained by each of the applicants included in the aforementioned list. In both cases, the formats for the submission of information as well as the coordination tasks of the examination will be established by the Superintendence through Instruction. Applicants who pass the examination and meet the requirements indicated in the Registration Instruction will be inscribed in the same, at the request of the AFP.

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997

Art. 45.- The first-time hiring of the applicants referred to in the last paragraph of the previous article, will be valid once the Superintendence inscribes them in the Registry of Agents, by assigning the Unique Agent Code.
Prior to processing the inscription request in the Registry, the AFP must ensure to request and maintain in the Agent's personal file the curriculum vitae, according to the format established by Instruction by the Superintendence and the clearances of criminal records and the National Civil Police. The code of each agent will remain invariable while this person performs labor in the SAP, regardless of the AFP for which they provide services. For any activity developed by the Agent in such capacity, they must necessarily identify themselves with the aforementioned code. If falsity is proven in the information contained in the documents presented for their hiring, the Agent will be permanently disqualified from performing such duties.

Art. 46.- The AFPs are obligated to inform the Superintendence, within a period of three days of signing the respective contract, the incorporation of Agents who are already inscribed in the Registry.
In such communication, they must inform the first and last names of the Agent, the code, and the start date of the contract.

Art. 47.- The AFP is obligated to publish in a newspaper of national circulation at the close of each month, the list of Agents contracted by it.
Likewise, the Superintendence will publish, at the expense of the AFP, in a newspaper of national circulation, only once, any dismissal for cause or resignation of an Agent occurring during a specific month. Such publication will be carried out within the first three days of the immediately following month. The provisions in the preceding paragraphs apply to agencies, offices at the national level, and representation offices abroad, ensuring that they are additionally published in a local newspaper. Regarding representation offices, the publication will be carried out in a local newspaper in the Castilian language.

Art. 48.- The dismissal or resignation of an Agent must be informed by the AFP to the Superintendence within a period not greater than three days after the event occurred. In the first case, the AFP must inform about the causes of the dismissal. The following are typified as offenses that originate cause for dismissal:

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997 a) Performing Agent labor in another AFP without respecting the period established in the Regulation from the date of resignation or dismissal, b) The Agent presenting false documentation or information to support their inscription in the Registry, c) Performing Agent labor without being inscribed in the Registry, d) Performing incorporations and/or transfers offering benefits not considered in the Law, providing incorrect, incomplete, or altered information in affiliation and transfer contracts. (1) e) Performing incorporations and/or transfers of affiliates by falsifying their documents. f) Falsifying the worker's signature and/or impersonating their fingerprint in affiliation and transfer contracts or their copies. (1) g) Performing affiliations or transfers of deceased or non-existent persons, h) Performing affiliation and transfer of affiliates without providing them complete information regarding the requirements or deadlines required, i) Performing affiliations of persons who evidently fall within the causes of exclusion from the SAP, j) Having the affiliation contract signed by a person other than the affiliated worker, k) Performing Agent labor while disqualified from doing so. l) Obstructing and/or not facilitating the investigation process to which they are subject, m) Having affiliation contracts signed prior to the valid transfer procedure, n) Performing incorporations and/or transfers using partial arguments or arguments without objective basis that abate to the detriment of other AFPs, o) Performing incorporations and/or transfers evidencing behavior contrary to ethics and morality, p) Appearing as signing affiliation contracts in whose process persons not inscribed as Agents have participated, q) Substituting or allowing the substitution of their signature in the affiliation formats. When there is dismissal for any of the offenses referred to in this article, the Superintendence will revoke the authorization granted to the Agent to operate as such, canceling the inscription in the Registry. This sanction may be subject to rectification within a period of three days of notification of the cancellation in the Registry.

Art. 49.- The Superintendence will dispose that periodic evaluations be conducted on Agents, to verify the degree of updating of their knowledge regarding the Pension Systems.
For this purpose, it may opt for a mechanism similar to that established in Article 43 of this Regulation, with the approval of this examination being a requirement to remain in the Registry of Agents.
In all cases, the Superintendence will inform the AFP of the date of the examination in advance.

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997

Art. 50.- SAP Agents must necessarily be inscribed in the Registry of Agents, therefore any person not inscribed in said Registry will not be authorized to perform promotional and affiliation labor, regardless of the civil responsibility corresponding to the AFP for the damages that might result for affiliates as a result of the actions of unregistered persons. In the case where an AFP accepts the affiliation of persons who have been incorporated by an Agent who has ceased to be one, the responsibility for the offense is attributable to said AFP. This circumstance does not authorize the AFP to disaffiliate the said worker. The Agent who has resigned from an AFP and performs labor as such before fulfilling the period referred to in the second paragraph of Article 42 of this Regulation, will be permanently disqualified from participating as an Agent in the SAP.

Art. 51.- Each AFP will be responsible for verifying prior to processing the authorization request for its Agents, the fulfillment of the requirements established by this Regulation.

Art. 52.- The AFPs are responsible for maintaining a system of control and permanent training, directed to safeguard at all times the labor of the Agents, ensuring that they are developed within a framework of efficiency in accordance with the requirements of the Superintendence.

CHAPTER II
AGENT INVESTIGATION PROCEDURE (1)

Art. 53.- The Superintendence, ex officio or at the request of a party, will subject to investigation those Agents who have indications of having incurred any of the offenses referred to in Article 48 of this Regulation.

Art. 54.- Affiliates or third parties may present complaints to the Superintendence, within a period of one year from the occurrence of the alleged offense, of which the AFP where they work will be informed, which in turn must notify the Agent so that, within a period of five business days, they appear before the Superintendence to know of the process.

Art. 55.- The Superintendence in its investigation will take into account the defense arguments of the Agent, who must present them within a period of ten business days, counted from the day following notification of the complaint.

Art. 56.- When within the investigation procedure, the Superintendence concludes that the Agent has incurred any of the offenses referred to in Article 48 of this Regulation, it will issue a reasoned resolution on the matter, indicating the corresponding sanction, which will be notified to the offenders, through the same channel established in Article 54.

DE No. 60/1997
DECRETO No. 60/1997
BUSINESS MANAGEMENT REGULATION OF PENSION FUND ADMINISTRATORS Approval: 21/07/1997 Validity: 05/08/1997

Art. 57. - Affiliation and transfer contracts in which an Agent participates in a process of investigation and while it lasts, must be signed by an Agent accredited by the AFP before the Superintendence, who will be designated by the AFP. The signatures will be stamped in those boxes where the Agent's signature should appear, who will have joint liability for the veracity of the documentation presented and the authenticity of the affiliate's signature.

Art. 58. - The withdrawal by the complainant will not suspend the investigation process.

CHAPTER III
INVESTIGATION PROCEDURE IN CASE OF SIGNATURE FALSIFICATION OR FINGERPRINT IMPERSONATION. (1)

Art. 59.- The investigation procedure will be initiated by complaint or ex officio by the Superintendence, without prejudice to the corresponding penal action.

Once the procedure is initiated, the complainant will be cited in writing, to obtain, in addition to their statement, an impression of their fingerprint and sample of their signature, to compare them with those recorded in the affiliation or transfer documents subject to examination.

In the event that the complainant does not attend the hearing, the Superintendence may declare the investigation process concluded and close the file opened for such reason.

Art. 60.- The procedure for verification of signatures and/or fingerprint impersonation will be in charge of experts inscribed in the Registry of the Superintendence; the expenses incurred for the services provided by them will be covered by the AFP.

If the expert appraisal reveals indications that a crime has been committed, a certification of the proceedings will be sent to the Attorney General's Office for its respective investigation.

Art. 61.- The provisions of Arts. 56, 57, and 58 of this Regulation shall apply to the procedure set forth in this Chapter.

Art. 62, Art. 63, Art. 64, Art. 65, Art. 66, Art. 67, REPEALED (1)

TITLE V
OF THE COMMISSIONS OF THE AFPs

Art. 68.- The AFPs, for the provision of their services, will receive remuneration in the form of a commission.

Art. 69.- The commission referred to in the preceding article shall be stated as a percentage, applied uniformly to all its affiliates, and determined freely according to the service provided, within the following limits:

a) For the administration of individual savings accounts for pensions and the disability and survivorship insurance contract, established as a percentage of the Base Contribution Income (BCI): up to three percent; b) For the administration of the programed annuity: up to one and a half percent of the monthly pension; c) For the management of individual savings accounts for pensions inactive for more than one uninterrupted year with balances exceeding one hundred minimum wages: up to five percent, which shall be deducted from the annual return of the account, without exceeding the equivalent of one and a half percent of the BCI of the last twelve months of contributions; d) For the administration of the Individual Capitalization Accounts (CIAPs) of pensioned affiliates or affiliates who meet the age requirements but do not exercise their right and continue contributing: up to one and a half percent of the BCI.

The commissions to be used by the AFPs at the start of their operations shall be those presented in the Feasibility Study referred to in the Regulation for the Authorization of Constitution of AFPs and which have been approved. The Superintendence, at the time it grants the Resolution to commence operations, will communicate to the AFP, so that together with the publication of the respective certificate, it publishes in a separate notice the commissions it will receive as remuneration for its services.

When AFPs modify their commissions, these must be brought to the knowledge of the Superintendence, who, for the purpose of public information, will order their publication, at the expense of the AFP, only once, in two newspapers of national circulation. If the AFP has agencies, offices nationwide, and representation offices, it must carry out the aforementioned publication in two newspapers of the locality. The modifications to the commissions will take effect ninety days after the date of communication to the Superintendence. However, when it concerns a reduction in commissions, the aforementioned period shall be reduced to thirty days.

The information that the AFP sends to the Superintendence must be supported by the cost structure that justifies the charging of such commissions. Such support shall be presented by the representatives of the AFP upon request of the Superintendence.

To execute the collection of commissions referred to in literal c) of this article, the Superintendence will issue the corresponding Instruction.

Art. 70.- In all cases where AFPs establish their commission for the administration of the CIAPs and the disability and survivorship insurance contract referred to in literal a) of the preceding article, they must explicitly indicate the percentage of the average Base Contribution Income corresponding to the disability and survivorship insurance contract.

Art. 71.- The AFPs may establish incentive mechanisms for the retention of their affiliates, whose determination and procedure shall be established by an Instruction of the Superintendence.

Art. 72.- The payment of the commission referred to in literal a) of article 69 of this Regulation shall be made effective at the moment when the employer and, if applicable, the independent worker, materializes the payment of the contributions.

Art. 73.- For the purposes of the settlement of commissions by the AFP, the following irregular circumstances shall be taken into consideration:

a) Delinquency: the situation that occurs as a result of the failure to make timely payments to the AFP by the employer regarding their workers' contributions. b) Suspension: the situation that arises when a non-pensioned affiliate temporarily stops contributing to their CIAP, due to resignation, dismissal, or any other reason. c) Backlog: the situation that arises as a result of contributions deposited by the employer in excess in the AFP where the worker is affiliated or mistakenly in a different AFP than the one the worker is affiliated with, as well as those indicated in the Chart of Accounts Instruction.

Art. 74.- In cases where there are situations of delinquency regarding the contributions of a dependent worker, upon regularizing such situation, the employer must additionally include the return and the late payment surcharge established in article 161 of the Law, which accrue for the period of delay incurred.

The application of the return and the late payment surcharge, which shall be credited to the worker's CIAP, shall adhere to the procedures that the Superintendence establishes through an Instruction for this purpose.

In all cases, the failure to make full payment referred to in this article determines that the outstanding amounts continue to generate returns and late payment surcharges.

Art. 75.- In the case of backlog, the settlement of the commission shall be applied at the moment when the AFP where the worker is affiliated receives the transfer of the contribution from the AFP that maintained the deposit erroneously made by the employer and in each of the situations established by the corresponding Instruction.

Art. 76.- The excessive receipt of commissions by the AFP, resulting from an improper determination in the calculations, shall be sanctioned with the return to the Fund of three times the sum received in excess, adjusted by the annual variation of the Consumer Price Index determined officially, or the indicator that substitutes it, considering for this purpose the period that elapses between the date of the commission charge and the date of the return of the excess to the Fund.

For the purposes of what is contemplated in the preceding paragraph, it shall be understood that the return to the Fund shall be credited specifically to the CIAP that originated said excessive charge by the AFP.

Art. 77.- The Superintendence may, at any time, conduct or order external audits to verify the charging of commissions based on existing costs. The AFP shall submit to the result of the audit, being obligated to demonstrate to the Superintendence the corrections derived from the opinion within the timeframes established by the Superintendence for this purpose, in each case.

FINAL PROVISIONS

Art. 78.- When the Superintendence requests additional or clarifying information regarding the requests submitted by AFPs, concerning the procedures contemplated in this Regulation, the corresponding timeframes shall be interrupted while the applicants are correcting the observations made to them and submitting them to the Superintendence. The correction period shall not exceed ten business days; upon expiration of this period, the Superintendence shall declare the procedure abandoned, proceeding to return the records.

Art. 79.- In the case where, by the date of commencement of its operations, the AFP has not implemented the application of all commissions referred to in article 69 of this Regulation, at the time it decides to apply them, it must follow the procedure indicated in said article.

Art. 80.- Transitionally, the limit referred to in literal a) of article 69 of this Regulation shall be established as follows:

YEARS PERCENTAGE
1997 – 1998 3.50%
1999 – 2000 3.25%

Art. 81.- The interconnection of the AFPs' computer systems with the Superintendence's system must observe the technical specifications established by the corresponding Instruction of the Superintendence.

Art. 82.- Any aspect not contemplated in this Regulation shall be resolved by the Superintendence.

Art. 83.- This Decree shall enter into force eight days after its publication in the Official Gazette.

GIVEN IN THE PRESIDENTIAL HOUSE: San Salvador, on the twenty-first day of the month of July of one thousand nine hundred and ninety-seven.

ARMANDO CALDERON SOL.
President of the Republic.
MANUEL ENRIQUE HINDS CABRERA.
Minister of Finance.
JOSE EDUARDO TOMASINO.
Minister of Labor and Social Security.

MODIFICATIONS:
(1) Modified by Executive Decree No. 19, published in Official Gazette No. 90, Volume No. 367, dated May 16, 2005.

Published in Official Gazette No. 139
Volume 336, July 28, 1997.
Reform published in Official Gazette No. 90
Volume No. 367, dated May 16, 2005.
This compilation is an exact copy of what is established in the Official Gazette.