Compilation of Regulatory and Control Rules for Pension Funds - Adjustments under Law No. 20.130 of 2/5/2023 and Regulatory Decree No. 413/023 of 19/12/2023

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Montevideo, March 8, 2024
Ref: COMPILATION OF REGULATORY AND CONTROL RULES FOR PENSION FUNDS - Adjustments pursuant to Law No. 20.130 of 2/5/2023 and Regulatory Decree No. 413/023 of 19/12/2023.
The market is informed that the Financial Services Superintendence, on March 1, 2024, adopted the following resolution:

1. SUBSTITUTE in Chapter V – Investment Limits, of Title II – Pension Savings Funds, of Book II – Stability and solvency, article 79.3 with the following:
   ARTICLE 79.3 (INVESTMENT LIMIT FOR EACH ISSUE MADE BY FINANCIAL TRUSTS).
   The investment of the resources of the Pension Savings Fund and the Voluntary Pension Fund considered jointly, in public offer securities issued by the same financial trust, shall not exceed 70% (seventy percent) of the issue of securities in circulation of each series. The Financial Services Superintendence shall inform the amount in circulation of each trust for the purposes of calculating the limit established in the first paragraph of this article. TRANSITIONAL PROVISION: Holdings of securities issued by financial trusts that exceed said limit shall not be considered excess when they were acquired prior to the entry into force of Circular 2328 of November 15, 2019, or subsequently by commitments assumed previously under the provisions of article 61.1.

2. RENAME in Chapter VII – Information to the Affiliate, of Title I – Customer Relations, of Book IV – Protection of the user of financial services, Section II – Account Statement, which shall be renamed Section II – Account Statements of the Voluntary Pension Fund and the Pension Savings Fund.

3. SUBSTITUTE in Section II – Account Statements of the Voluntary Pension Fund and the Pension Savings Fund, of Chapter VII – Information to the Affiliate, of Title I – Customer Relations, of Book IV – Protection of the user of financial services, article 125.1 with the following:
   ARTICLE 125.1 (ACCOUNT STATEMENT OF THE VOLUNTARY PENSION FUND).
   For the Voluntary Pension Fund, an account statement shall be prepared considering the provisions of articles 126, 127, and 129.
   Such Account Statement shall be presented according to the model elaborated for such purposes by the Financial Services Superintendence and shall contain the following elements:
   a. Identification of the Pension Savings Fund Administrator and the reported period. b. Identification of the affiliate: account number, name, address, and identity document number.
   c. Individual account balance, on the last day of the month preceding the period to which the information refers, expressed in units, in pesos, and in Adjusted Units.
   d. Detail of all credit and debit movements, expressed in pesos and in units, balance in units, and registration date, identifying the sub-account and explicitly stating:

• voluntary deposits;
• agreed deposits, disaggregated by depositor;
• administration commissions, if applicable;
• custody commission;
• monetary sanctions, disaggregated by company and month of charge;
• any other account movement with its detail.
  e. Information on the adjustments included in the value of the unit for the concept of profitability. f. Account balance, at the end of the reference period, expressed in units, in pesos, and in Adjusted Units. g. Information on:
• Nominal and real annual profitability.
• The values in effect on the last day of the reported period of the following figures: Pension Savings Fund Administrator commission; bonus in the commission, if applicable, and custody commission.

4. SUBSTITUTE in Section II – Account Statements of the Voluntary Pension Fund and the Pension Savings Fund, of Chapter VII – Information to the Affiliate, of Title I – Customer Relations, of Book IV – Protection of the user of financial services, article 126 with the following:
   ARTICLE 126 (FREQUENCY OF SENDING ACCOUNT STATEMENTS).
   Pension Savings Fund Administrators shall issue account statements of the Voluntary Pension Fund and the Pension Savings Fund with a semi-annual periodicity, on June 30 and December 31 of each year.
   Such information shall be sent to affiliates within a maximum period of 45 (forty-five) days following the close of each reported semester.
   In the event that no movements have occurred in the account during the semester to be reported, the sending of the statement may be suspended, with the obligation to send it in the following semester.

5. SUBSTITUTE in Section III – Advice to Affiliates, of Chapter VII – Information to the Affiliate, of Title I – Customer Relations, of Book IV – Protection of the user of financial services, article 129.1.1 with the following:
   ARTICLE 129.1.1 (ADVICE TO AFFILIATES ON MOVEMENTS BETWEEN SUBFUNDS).
   Pension Savings Fund Administrators shall communicate to their affiliates with an advance of between 3 (three) and 12 (twelve) months when it corresponds to incorporate them into a Subfund different from the one to which their contributions are received, indicating the possibility of choosing to remain in the Subfund for an additional period of between 1 (one) and 5 (five) years for the case of the passage from the Accumulation Subfund to the Withdrawal Subfund and of between 1 (one) and 10 (ten) years for the passage from the Growth Subfund to the Accumulation Subfund. This information shall include as a minimum:

• the comparative information of real annual gross profitability of each Subfund of the last 60 (sixty) months.
• the composition of the investments of each of the Subfunds.
  The Administrator shall keep the corresponding record of the documentation delivered to the affiliate by means that allow its verification, in accordance with the provisions of article 144.7.

6. SUBSTITUTE in Chapter II – External Auditors, of Title II – Information Regime, of Part I – Pension Savings Fund Administrators, of Book VI – Information and documentation, article 148 with the following:
   ARTICLE 148 (EXTERNAL AUDITORS' REPORT).
   Pension savings fund administrators shall present the following reports issued by external auditors:
   a. At the close of the annual fiscal year, within the period of 2 (two) months counted from the end of the economic year:
   a.1) Opinion on the financial position at the close of the annual fiscal year and the results statement corresponding to said period of the Administrator. a.2) Opinion on the financial positions at the close of the annual fiscal year for each Pension Savings Subfund. a.3) Opinion on the Voluntary Pension Fund. b. Annual report on the accounting system used and its adequacy to the norms and the Chart of Accounts dictated by the Financial Services Superintendence, and on the concordance with said accounting system, of the statements and other information presented to said Financial Services Superintendence, whether referred to the Company, each Pension Savings Subfund, or the Voluntary Pension Fund, within the period of 2 (two) months counted from the end of the economic year.
   c. Triennial report on the comprehensive evaluation of the adequate functioning of the comprehensive risk management system and annual reports on materially significant deficiencies or omissions detected, the recommendations issued to overcome them, and the corrective measures adopted by the institution. The aforementioned reports shall be presented within the period of 5 (five) months and 3 (three) months counted from the end of the economic year, respectively.
   d. Annual report on the suitability and functioning of the policies and procedures adopted by the Administrator to prevent and detect operations that may be related to money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, and partial reports on their significant deficiencies or omissions, the recommendations issued to overcome them, and a comment on the observations made in the previous exercise that have not been resolved, within the period of 5 (five) months counted from the end of the economic year.

7. SUBSTITUTE in Chapter V – BIS – Information to insurance companies and to the Social Security Bank, of Title II – Information Regime, of Part I – Pension Savings Fund Administrators, of Book VI – Information and documentation, article 155.1.1 with the following:
   ARTICLE 155.1.1 (INFORMATION TO BE SUPPLIED TO INSURANCE COMPANIES IN RELATION TO PENSION INSURANCES). It is the obligation of the Pension Savings Fund Administrator to provide to the insurance company in relation to pension annuity insurances and to the collective insurance for disability and death, the information that allows correctly appreciating the risk that may influence the conditions of the contract.
   Once the claim has occurred, and within a period of 5 (five) business days from when the Pension Savings Fund Administrator took knowledge of it from the information provided by the corresponding pension entity, it shall make available to the insurance company the necessary background to accredit the referred claim and allow its correct settlement. In relation to the benefit for partial incapacity, the period during which it shall be paid shall be indicated.

8. SUBSTITUTE in Chapter VI – Other Information, of Title II – Information Regime, of Part I – Pension Savings Fund Administrators, of Book VI – Information and documentation, article 160.2 with the following:
   ARTICLE 160.2 (INFORMATION ON PAYMENTS OF BENEFITS TO HEIRS OF DECEASED AFFILIATES OR TO AFFILIATE CONTRIBUTORS TO THE PENSION SAVINGS SYSTEM).
   Pension savings fund administrators shall send monthly to the Financial Services Superintendence information for the control of the payment of benefits to heirs of deceased affiliates or to affiliates contributing to the pension savings system, in accordance with the instructions that will be issued. This information shall be sent within the first 10 (ten) business days following the month being reported.

9. SUBSTITUTE in Chapter I – Accounting and Financial Statements, of Title I – Information Regime, of Part II – Pension Savings Funds, of Book VI – Information and documentation, article 161 with the following:
   ARTICLE 161 (ACCOUNTING STANDARDS AND CHART OF ACCOUNTS).

10. The accounting standards established in the current legal and regulatory provisions, as well as the special criteria and procedures established by the Financial Services Superintendence, shall apply to the Pension Savings Subfunds and the Voluntary Pension Fund.

11. The respective Chart of Accounts shall be adjusted to the provisions dictated by the Financial Services Superintendence.

12. The coding of the account plans shall respond to the following concepts:
    1st.- Divisions
    2nd.- Chapters
    3rd.- Accounts
    4th.- Sub-accounts
    5th.- Opening of sub-accounts
    6th.- Term
    7th.- Currency
    8th, 9th and 10th.- Coding of financial intermediary institutions or insurance companies.
    The opening of the term and currency codes shall be adjusted to the provisions dictated by the Financial Services Superintendence.

13. The possibility of using other currencies shall be subject to authorization by the Financial Services Superintendence, which shall assign the corresponding numbering to it.

14. Administrators that have in their accounting program an auxiliary incorporated into the accounting, which enables the opening in the balance sheet of financial institutions and insurance companies, shall be authorized to include such disaggregation through the mentioned auxiliary.

15. SUBSTITUTE in Chapter III – Profitability, of Title I – Information Regime, of Part II – Pension Savings Funds, of Book VI – Information and documentation, article 164.2 with the following:
    ARTICLE 164.2 (INFORMATION FOR THE CALCULATION OF NET PROFITABILITY).
    Pension savings fund administrators shall provide to the Financial Services Superintendence, in accordance with the instructions that will be issued, monthly information for the purposes of verifying the calculations of the net profitability of the pension savings fund within the 3 (three) business days following the month being reported.

16. SUBSTITUTE in Title I – General Regime, of Part I – Sanctions for Pension Savings Fund Administrators, of Book VII – Sanctioning and procedural Regime, article 167 with the following:
    ARTICLE 167 (REGIME).
    Pension Savings Fund Administrators included in the individual savings retirement regime established in Law No. 16.713 and its amendments, who infringe legal or regulatory norms or general norms and particular instructions in the matter dictated by the Central Bank of Uruguay, shall be subject to the following sanctions:

17. Observation

18. Warning

19. Fine of up to 400,000 UI (four hundred thousand indexed units).

20. Temporary or definitive revocation of the license to operate.
    The Central Bank of Uruguay may, likewise, propose to the Executive Power the adoption of intervention measures for Pension Savings Fund Administrators that seriously infringe the laws and decrees governing their activity or the general norms or particular instructions dictated regarding them.

21. SUBSTITUTE in Title VI – Other Sanctions, of Part I – Sanctions for Pension Savings Fund Administrators, of Book VII – Sanctioning and procedural Regime, article 192.2 with the following:
    ARTICLE 192.2 (FINE FOR NON-COMPLIANCE WITH NORMS ON OUTSOURCING).
    Pension savings fund administrators who fail to comply with the norms on outsourcing of services shall be sanctioned with a fine not less than 2 (two) nor greater than 50 (fifty) times that established in article 168.
    In the event that the infringement refers to the hiring of third parties without authorization as established in article 30.1.1, the institutions shall be sanctioned with a fine not less than 26 (twenty-six) times nor greater than 80 (eighty) times that established in article 168.

JUAN PEDRO CANTERA
Superintendent of Financial Services
2023-50-1-01182