General Financial Provisions for Retirement Savings Systems

DOF: 18/09/2019

GENERAL PROVISIONS on financial matters of the Retirement Savings Systems

At the margin, a seal with the National Coat of Arms, which says: United Mexican States.- TREASURY.- Ministry of

Finance and Public Credit.- National Commission of the Retirement Savings System.

GENERAL PROVISIONS ON FINANCIAL MATTERS OF THE RETIREMENT SAVINGS SYSTEMS

The President of the National Commission of the Retirement Savings System, based on

articles 1st, 2nd, 5th fractions I, II, III, VI, VI bis, VII, XIII bis, and XVI; 12 fractions I, VI, VIII and XVI; 18, 25, 29,

30, 36, 39, 42, 42 bis, 43, 44, 44 bis, 45, 46, 47, 47 bis, 48, 64, 64 bis, 67, 68, 69, 70, 89, 90 fractions II, IV,

V, VI, VII, IX, XII and XIII, 100 bis, 100 ter and 100 quáter of the Law of the Retirement Savings Systems; 106

of the Law of the Institute for Security and Social Services of State Workers; 1st, 2nd, 14, 17, 18,

19, 20, 21, 22, 23, 24, 25, 33 subsection A fraction VIII and subsection B, 139, 140, 141, 154 and 155 of the Regulation of the

Law of the Retirement Savings Systems and 1, 2 fraction III, and 8 first paragraph of the Internal Regulation of

the National Commission of the Retirement Savings System, and

CONSIDERING

That all operations carried out by Administrators for the investment of Workers' resources must be carried out exclusively in the interest of these, therefore establishing a uniform and harmonious legal framework regarding Generational Funds or TDF (Target Date Funds), will allow their implementation with fewer operational or legal setbacks, promoting their compliance for the integral benefit of savers and investors;

That the mandatory inclusion of environmental, social and corporate governance factors (ESG) fosters among Specialized Investment Societies for Retirement Funds a deeper awareness regarding contemporary trends such as demographic growth, scarcity of raw materials and globalization; the way in which these have an impact on the risks and opportunities of the strategies they develop;

That international experience has shown that investment strategies that use ESG criteria or factors can help investors look beyond traditional financial reports and better understand the long-term risk of a company and its profitability prospects. Even companies with healthy balance sheets can be susceptible to controversial events with media coverage, and influence the price of shares. Therefore, ESG metrics can provide investors with a transparent and standards-based mechanism to identify entities that may be prone to controversy and contribute to obtaining lower portfolio volatility in the long term;

That it is necessary to clarify various operating rules of Mutual Funds, including those with active strategies, to provide a greater range of certainty and legal security to regulated entities regarding the minimum factors that must be fulfilled to give operational and financial viability to the investment that is developed, considering the investment potential of these instruments, and

That compliance is given to what is established in article 78 of the General Law of Regulatory Improvement, as well as to the Fifth Article of the "Agreement that establishes the guidelines that must be observed by the dependencies and decentralized organisms of the Federal Public Administration, regarding the issuance of general administrative acts to which article 69-H of the Federal Administrative Procedure Law applies", since the corresponding eliminations from the Modifications and Additions to the General Provisions on financial matters of the Retirement Savings Systems, published in the Official Gazette of the Federation on November 16, 2018, were utilized, from which for the present 12 eliminations or simplifications were considered, as detailed in the Regulatory Impact Analysis form corresponding; with this it was evidenced that the eliminations and simplifications carried out by this Decentralized Organ represent benefits and savings superior to the implementation costs, has issued the following:

GENERAL PROVISIONS ON FINANCIAL MATTERS OF THE RETIREMENT SAVINGS SYSTEMS

INDEX

TITLE I.

GENERAL PROVISIONS

Single Chapter.

Definitions

TITLE II.

ON THE FINANCIAL RISK MANAGEMENT OF THE INVESTMENT SOCIETY

Chapter I.

On the Financial Risk Committee

Chapter II.

On the Comprehensive Risk Management Unit

Chapter III.

On the Manual of Policies and Procedures for Financial Risk Management

TITLE III.

PROVISIONS ON INVESTMENTS

Chapter I.

On the Investment Committees

Chapter II.

On the Head of the Investment Area

Chapter III.

On the Investment Manual

Chapter IV.

On the Investment Process

Chapter V.

On the Portfolio Behavior Tests

TITLE IV.

ON SOUND PRACTICES

Chapter I.

On Corporate Rights

Chapter II.

On Good Practices

Chapter III.

On Practices to Avoid Conflicts of Interest

Chapter IV.

On the Certification of Officials

Chapter V.

On Independent Directors

TITLE V.

ON PRICE PROVIDING AND VALUATION OF ASSETS SUBJECT TO INVESTMENT

Chapter I.

On Price Providing for the Valuation of Assets Subject to Investment

Section I.

On Price Providing for the Valuation of Assets Managed by the Investment Society

Section II.

On Price Providing for the Valuation of Assets Managed by Mandatories

Section III.

On Price Providing for the Valuation of Assets Subject to Investment

Section IV.

On the Hiring of the Price Provider

Chapter II.

On the Valuation of Assets Subject to Investment

Section I.

On Contingent Valuation Procedures for Assets Subject to Investment that form part of the

Asset Managed by the Investment Society

Section II.

On Contingent Valuation Procedures for Assets Subject to Investment that form part of the

Asset Managed by the Mandatory

Section III.

On the Hiring of Valuation Societies

Section IV.

On the Valuation of Shares Representing the Paid-in Capital of Investment Societies

TITLE VI.

ON ACCESS TO INTERNATIONAL MARKETS

Chapter I.

On the Mechanisms of Access to International Markets

Chapter II.

On Vehicles

TITLE VII.

ON THE CUSTODIAN

Chapter I.

On the Hiring of the Custodian

Chapter II.

On the Contract Requirements

TITLE VIII.

ON DERIVATIVES OPERATIONS

TITLE IX.

ON THE OPERATION WITH STRUCTURES LINKED TO UNDERLYING ASSETS

TITLE X.

ON THE OPERATION WITH STRUCTURED INSTRUMENTS, FIBRAS AND BURSÁTILES CERTIFICATES LINKED TO REAL PROJECTS

TITLE XI.

ON NON-COMPLIANCE WITH THE INVESTMENT REGIME AND THESE PROVISIONS

TITLE XII.

ON PORTFOLIO RECOMPOSITION OF SPECIALIZED INVESTMENT SOCIETIES FOR RETIREMENT FUNDS

Chapter I.

On the Portfolio Recomposition Procedure

Section I.

On Rating Downgrade

Section II.

On Variations in the Prices of Assets Subject to Investment that make up the Asset Managed

by the Investment Society and on the violation of investment limits in the Equity Components

for causes not attributable to the Investment Society

Section III.

On Portfolio Recomposition for failing to meet the limits established in the Investment Regime

Authorized by acquisition or sale of Assets Subject to Investment and for the violation of investment limits

that make up the Total Asset of the Investment Society in the Equity Components for causes

attributable to the Investment Society

Section IV.

On Portfolio Recomposition for exceeding the limit of Tracking Error, Conditional Value at Risk Differential, Liquidity Coefficient or Value at Risk

TITLE XIII.

ON INFORMATION PROSPECTUSES, EXPLANATORY BOOKLETS AND THEIR UPDATE

TITLE XIV.

ON THE CHOICE OF INVESTMENT OF THE RESOURCES OF THE RETIREMENT INSURANCE SUB-ACCOUNT, RETIREMENT SAVINGS SUB-ACCOUNT AND VOLUNTARY SAVINGS

TITLE XV.

FINAL PROVISIONS

ANNEX "A".

Fixed scenarios that count in the Conditional Value at Risk Differential

ANNEX "B".

On Structured Instruments, FIBRAS and Bursátil Certificates Linked to Real Projects

Chapter I

Elements that must be foreseen in the policies defined by the Investment Committees to make investments

in Structured Instruments, FIBRAS and Bursátil Certificates Linked to Real Projects

Chapter II

Elements that must contain the selection questionnaires for Structured Instruments, FIBRAS and

Bursátil Certificates Linked to Real Projects

ANNEX "C".

Minimum elements that must be included in the analysis of companies

ANNEX "D".

Currency Classification

ANNEX "E".

Methodology to calculate the Market Value of Currency positions

ANNEX "F".

Methodology to verify compliance with limits regarding Foreign Securities

ANNEX "G".

Methodology to calculate the market value of operations that must be considered within the

limits of Issuers or Counterparties

ANNEX "H".

Methodology to calculate the exposure of the Investment Society to Assets Subject to Investment denominated in Investment Units (UDI) or whose interests guarantee a yield equal to or greater than the

UDI or the National Consumer Price Index

ANNEX "I".

Methodology to calculate exposure to Commodities

ANNEX "J".

On the certification of Officials with activities in the management of resources of Investment Societies

ANNEX "K".

Disclosure of Investment Trajectory

and the deviation policy with the investment portfolio

ANNEX "L".

Requirements that the Integrated Automated System for the acquisition, alienation, registration

online of Assets Subject to Investment of the Integrated Automated System must meet

ANNEX "M".

On Derivatives Operations on Derivatives

ANNEX "N".

Methodology to calculate the Liquidity Coefficient

ANNEX "O".

Valuation criteria that will be used to determine the amount of the write-down of assets with which

the Investment Regime is not complied with

ANNEX "P".

Model of Information Prospectus

ANNEX "Q".

Model of Explanatory Booklet

ANNEX "R".

Criteria that Instrumentalized Instruments must meet to be considered as placed by an

independent issuer

ANNEX "S".

Guidelines applicable to independent experts dedicated to evaluating and dictating Vehicles of debt, of Equity Components, of Real Estate Investment Vehicles and of FIBRAS, Indices

Share Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments and

Debt Indices of Eligible Countries for Investments

ANNEX "T".

Methodology to verify compliance with limits regarding Structured Instruments

ANNEX "U".

Methodology to calculate the maximum investment limits for the set of Investment Societies

operated by the same Administrator, in Structured Instruments

GENERAL PROVISIONS ON FINANCIAL MATTERS OF THE RETIREMENT SAVINGS SYSTEMS

TITLE I

GENERAL PROVISIONS

SINGLE CHAPTER

DEFINITIONS

Article 1.- These Provisions have the object of regulating the comprehensive management aspects of the

investment portfolios of Investment Societies, to which Administrators and the

Investment Societies that they operate must adhere.

Article 2.- For the purposes of these General Provisions, in addition to the

definitions indicated by the Law of the Retirement Savings Systems, its Regulation, as well as the

General Provisions that establish the investment regime to which Investment Societies must adhere,

the General Provisions that establish the patrimonial regime to which

Administrators of Retirement Funds, Pensionissste and Investment Societies and the

Special Reserve must adhere, the General Provisions that establish the procedure for the construction

of the net performance indicators of Investment Societies, the General Provisions

on the registration of accounting, preparation and presentation of financial statements to which Investment Societies must adhere, and the Prudential Rules on risk management

issued by the Commission, it will be understood as:

Detailed Minutes, to the minutes of the sessions of the collegiate bodies that are accompanied

by the supporting documentation of the session, which contains the comments made in each one

of the sessions referred to the agreements taken, the explicit agreements for each topic

submitted for consideration and the meaning of the votes of each of the members, as well

as, the attendance list signed by all and each of the members and invited

present at the corresponding session;

II.

Financial Risk Management, to the set of methodologies, models, objectives, policies,

procedures and actions that are implemented to identify, measure, monitor, limit,

control, inform and reveal the different types of Financial Risks to which

Investment Societies are exposed;

III.

Early Warning, to the measure oriented to give prior notice that the limits established

in the regulation or the Prudential Limits of Investment Societies are exceeded;

IV.

Derivatives Exchange, to the legal entities whose object is to provide the facilities and

other services so that Derivatives are quoted and negotiated, supervised by authorities

belonging to the Eligible Countries for Investments;

Basket of Indices, to the set of share indices, or sub-indices derived from them, of

Eligible Countries for Investments, elaborated based on one or more of the share

indices provided in the General Provisions that establish the investment regime to which

Investment Societies must adhere;

VI.

Category, to each of the investment limits linked to the credit rating issued by

some securities rating agency applicable to Debt Instruments, Foreign

Debt Securities or Counterparties, determined in the General Provisions that establish the investment regime to which

Investment Societies must adhere;

VII.

Asset Class, to Debt Instruments, Foreign

Debt Securities, Equity Instruments, Foreign

Equity Securities, Commodities, Structured Instruments,

FIBRAS, Real Estate Investment Vehicles, and Pure Currency Positions, authorized in

conformity with what is provided in the General Provisions that establish the investment

regime to which Investment Societies must adhere, which may attend to

the disaggregation defined by the Investment Committee based on the classification provided in the

present fraction;

VIII.

Liquidity Coefficient, to the value of the provision for exposure to Derivatives with respect to

high-quality assets, provided in these Provisions to mitigate the liquidity requirements

caused by positions in Derivatives. Annex N contains the methodology and

the definitions of the variables used for the calculation of the Liquidity Coefficient;

IX.

Independent Director, to those referred to in article 29 of the Law;

Board of Directors, to that provided in articles 20, fraction III and 29 of the Law;

XI.

Regulatory Comptroller, to the Official provided in article 30 of the Law with which

Administrators and public institutions that perform similar functions must have;

XI bis.

Contribution to Tracking Error, to the proportion of the value of the Tracking Error that

can be attributable to the deviation of each Asset Class, Instrument or Risk Factor

determined by the Financial Risk Committee, of the investment portfolio of the Total Asset of

the Investment Society with respect to the Investment Trajectory;

XII.

Brokerage Costs, to the income other than Advisory Costs that are received by:

Financial Intermediaries, as well as clearing houses and Counterparties,

directly as a consequence of their intermediation labor in the securities market or in

the Derivatives Exchanges, and

Providers of the trading platforms for Assets Subject to Investment

used by Investment Societies, that are linked to each operation

concluded;

XIII.

Advisory Costs, to the charges, commissions or any other type of expenditure that is

generated by reason of the advice, administration, management, handling, maintenance or any

other analogous, whatever the name assigned to it, that are charged directly or

indirectly by Financial Service Providers or Independent Service

Providers. Also included within these costs are the charges, the

commissions or any types of expenditures that derive from the acquisition by the

Investment Societies of Assets Subject to Investment, Vehicles, Real Estate Investment

Vehicles, as well as from the acquisition or structuring of Structures Linked to

Underlying Assets, that are not backed by concluded operations and that are distinct from the

Brokerage Costs;

XIV.

Coupon, to the accessory credit title that comes adhered to a Debt Instrument or Foreign

Debt Security;

XIV bis.

Maximum Deviation, to the maximum value authorized by the Financial Risk Committee that

can take the difference between the weight defined in the Investment Trajectory and the portfolio

of the Total Asset of the Investment Society, for each Asset Class or Factor of

Risk, determined by the Financial Risk Committee, or in its case the Investment Committee,

as determined by the Administrator;

XV.

Permitted Deviation, to the observed difference between the weight assigned to a share that

integrates an index or Basket of Indices and the weight assigned to that same share in a

Equity Component, which in conformity with the General Provisions that establish the investment regime to which

Investment Societies must adhere replicates said index or Basket of Indices;

XVI.

Valuation Day, to the date on which the price of the share of the Investment

Society will be in force;

XVII.

Exercise of Patrimonial Rights, to the payment of dividends in cash or in shares, the

subscriptions, the exchanges or other analogous to the foregoing to which they have right the

investors holders of the titles linked to the corresponding Equity Instrument or Foreign

Equity Security;

XVIII.

Investment Strategy, to the policies defined by the Investment Committee of each Investment

Society that operates the Administrator, regarding the purchase or sale of Assets Subject to

Investment and to the aggregate composition of the investment portfolio, in accordance with the prudential framework

on risk management that defines and that approves the Financial Risk

Committee of the Investment Society, in accordance with these Provisions, the

General Provisions that establish the investment regime to which

Investment Societies must adhere and the Prudential Rules on risk management.

The definition of the Investment Strategy must be consistent with the definition of the

Investment Trajectory and must contemplate the maximum limit established for the Tracking Error

in the General Provisions that establish the investment regime to which

Investment Societies must adhere;

XIX.

Risk Factors, to the interest rates, Currencies, volatilities and other variables that are

used in the determination of the prices of the Assets Subject to Investment;

XX.

Official, to any natural person who performs an employment, position or commission in the

Administrators, in the Investment Societies or both, excepting the Independent

Directors and other external members who participate in the committees and subcommittees of

these;

XXI.

Monthly Report, to the report that the Regulatory Comptroller of the Administrators must present

before the Commission, in conformity with what is provided in article 30, fraction IV of the Law;

XXII.

Financial Intermediaries, to the Credit Institutions, Financial Entities and other

legal entities authorized to issue or operate Assets Subject to Investment, as well as to

act as Counterparties, that are subject to the regulation and supervision of agencies governmental of the Eligible Countries for Investments;

XXIII.

Instrumentalized Instruments,

Titles or securities that represent credit rights, receivables or cash flows issued through

Vehicles and whose underlying assets are said credit rights, receivables or

cash flows, that represent a payment commitment of Coupons, principal or both

for the issuer of the instrument and that have the credit ratings provided in

the General Provisions that establish the investment regime to which

Investment Societies must adhere.

For the case of Instrumentalized Instruments of mortgage credits, the levels of

exposure, retained capital, subordinated series and financial guarantee that are

determined by the Risk Analysis Committee, to which articles 43 fourth paragraph

and 45 of the Law refer.

The instruments referred to in this fraction will be considered as

placed by an independent issuer when they comply with what is provided in Annex R of

these Provisions.

Within the present definition, Structured Instruments are not included;

Bursátil Certificates Linked to Real Projects, to titles whose source of payment

comes from the use or exploitation of real assets;

XXIV.

Generic Instrument, to the market reference that in conformity with its characteristics can be used to approximate, the valuation, the yield, the volatility or some Factor of

Risk, of an Asset Subject to Investment;

XXV.

Prudential Limit, to the limits defined by the Financial Risk Committee or the Investment Committee complementary to the regulatory ones;

XXVI.

Investment Manual, to the document with the rules that each Administrator elaborates to document the Investment Strategy, as well as investment policies authorized by the Investment Committees, in compliance with the responsibilities foreseen in these Provisions for said Investment Committees;

XXVII.

Manual of Policies and Procedures for the Administration of Financial Risk, to the document with the rules that each Administrator elaborates to document the Administration of Financial Risks;

XXVIII.

Governing Body, to the Board of Directors of the Administrators, of the Investment Societies, as well as to the equivalent body of public institutions that perform similar functions;

XXIX.

Off-Market Operation, to the purchase or sale operation of an Investment Asset whose execution price is less favorable for the Investment Society than those firm market prices that are available and documented when carrying out said transaction;

XXX.

Future Operations, to operations in which it is agreed that the obligations on the part of the parties will be fulfilled in a period greater than four business banking days counted from the date of their agreement. Regarding operations on government securities and banking securities indicated in Circular 3/2012 which contains the Provisions applicable to the operations of Credit Institutions and the National Financial Development Institution for Agricultural, Rural, Forestry and Fishing sectors, as well as their respective modifications issued by the Bank of Mexico, as well as those in which it is agreed that the delivery of these and their countervalue or, if applicable, the delivery by differences, will be fulfilled in a period greater than four business banking days counted from their date of agreement. Operations with a settlement period of three business days, counted from the date of their agreement, that are carried out with the following Investment Assets will not be considered within this definition:

Listed Shares, Vehicles and Real Estate Investment Vehicles listed in organized markets of Eligible Countries for Investments and the primary offerings of Exchange Traded Funds that so provide in their placement prospectus, placed in the local market or in markets of Eligible Countries for Investments. Also excluded from this definition are operations that the Bank of Mexico indicates in its Rules relative to operations with Derivatives;

XXXI.

Option Operation, to the operation by virtue of which one of the parties, designated as the option buyer, through the payment of a premium acquires the right to buy (in the case of an option known in practice and in the English language as "Call") or sell (in the case of an option known in practice and in the English language as "Put") authorized underlyings to its Counterparty, the latter designated as the option seller, which is exercisable on an "Exercise Date" and at the "Exercise Price" previously agreed. The payment of the premium can also give the right to receive a sum of money or the underlyings subject to the operation previously determined subject to the conditions that the negotiating parties have determined. "Exercise Date" shall be understood as the day or days on which the option buyer is authorized to exercise its right. The "Exercise Date" may be a specific date or a series of consecutive or separate business banking days. Likewise, "Exercise Price" shall be understood as that at which the option buyer can exercise the agreed right, which may be zero;

XXXII.

Swap Operation, to the contract by which the negotiating parties commit to exchange money flows on future dates foreseen at the time of agreeing the operation;

XXXIII.

Operator, to the Officials assigned to the investment area of the Administrator that operates the Investment Society who have in their charge the execution of the Investment Strategy of the Investment Societies;

XXXIV.

Block Trade Orders, those that the Investment Society executes with a Financial Intermediary, in compliance with the execution practices foreseen in these Provisions and in accordance with the applicable regulations to the securities markets or Derivatives Exchanges to carry out these investments, whose purpose is to formalize the operation on a trading platform. These operations are known in the English language as "block trade" and can be executed off the listed market in accordance with best execution practices;

XXXV.

Dark Pool Orders, those that the Investment Society executes through trading platforms known in the English language as "dark pool", in which the Financial Intermediaries nor certain characteristics of the orders such as the price or the amount are known;

XXXVI.

Parameter, to the representation of a variable or Risk Factor employed in some model of operational risk administration, Financial Risk Administration or valuation used by the Administrator;

XXXVII.

Functions Plan, to that foreseen in article 30, fourth paragraph of the Law and in article 154 of the Regulations, which contains the evaluation activities and the measures to preserve the compliance of the Administrator's Self-Regulation Program;

XXXVIII.

Pure Currency Position, to the Currency position that does not derive from the investment in some Investment Asset denominated in a Currency different from the national currency;

XXXIX.

Updated Price for Valuation, to the market price, or in its case to the theoretical price, obtained based on the algorithms, technical and statistical criteria and valuation models, applicable to each of the Investment Assets, foreseen in a methodology developed by a Price Provider;

XL.

Independent Service Provider, to the entity external to the Administrator or to the Operating Companies, that is contracted to execute activities object of said entities;

XLI.

Financial Service Providers, to the persons or entities authorized to operate with Investment Assets on behalf of third parties, as well as to offer other services related to the Investment Assets, such as advice on investment matters, administration and management of assets, among others, that are subject to the regulation and supervision of government agencies of the Eligible Countries for Investments;

XLII.

Observation Process, to the review activities that the Regulatory Comptroller performs regarding compliance with the internal and external applicable regulations in financial matters, the detection of the deviations observed with respect to said regulations, as well as the follow-up of the mentioned deviations until their resolution. The Observation Process does not include auditing activities nor any operational resource management process of the Investment Societies;

XLIII.

Self-Regulation Program, to the program foreseen in article 29, fraction I of the Law;

XLIV.

Correction Programs, to the report foreseen in article 100 bis of the Law, that the Administrator will present to the Commission through the Regulatory Comptroller regarding the correction of non-compliance in which said entity had incurred with respect to the norms that regulate the Savings Systems for Retirement;

XLV.

Authorized Investment Regime, to that foreseen in the General Provisions that establish the investment regime to which the Investment Societies must be subject and in the information prospectus elaborated in accordance with what is established in these Provisions, as well as in the cases referred to in article 178 of these Provisions;

XLVI.

Regulations, to the Regulations of the Law;

XLVII.

Head of the Investment Area, to the Official of the Administrators that the Investment Committee designates, who has in their charge the area in charge of the execution of the Investment Strategy of the Investment Societies;

XLVII bis. Head of the Risk Area, to the Official of the Administrators that the Financial Risk Committee designates, who reports directly to the General Director of the Administrator and attends the Risk Committee;

XLVIII.

Financial Risk, to the possibility of occurrence of losses or write-downs in the investment portfolio of the Investment Society in question, caused by any of the following causes, or a combination of them:

Credit or credit risk, which refers to the potential loss or write-down occasioned by the total or partial failure to pay by a Counterparty or the issuer, of the commitments established in the issuance prospectus or investment contract of an Investment Asset;

Liquidity risk, which refers to the potential loss or write-down occasioned by the early or forced sale of an Investment Asset carried out at unusual discounts to meet obligations, or by the fact that a position cannot be timely alienated, acquired or covered, the latter through the establishment of an equivalent opposite position, and

Market risk, which refers to the potential loss or write-down occasioned by changes in the Risk Factors that influence the valuation of the Investment Assets.

XLIX.

Automated Integrated System, to the computer system or set of interconnected modules used in an automated manner by the Administrator to carry out the activities described in these Provisions. Said system or set of modules must allow carrying out the following activities:

Acquisition and alienation of Investment Assets;

Online registration of Investment Assets;

Risk administration;

Confirmation of operations;

Assignment of operations;

Settlement of operations;

Accounting registration of the Investment Society;

Generation of financial statements of the Investment Society, and

The others that are required to attend to the needs in the integral management of the investment portfolios of the Investment Societies operated by the Administrator;

Likewise, the Automated Integrated System must:

Allow that accesses to the services of the Automated Integrated System are restricted by users and profiles. The security policies in access must be documented and be susceptible to audit;

ii.

Have inviolable evidence, including date and time, which is registered in the same system, known in practice as "audit trails", which allows identifying the users who participated in the activities described in items a) to i) of this fraction and in their respective functions such as, parametrization, analysis prior to the operation that corresponds, assignment, confirmation, settlement, accounting registration, generation of financial statements, queries, and integration of inputs;

iii.

Have permanent and timely technical support to resolve technical, operational or modeling problems for the Automated Integrated System, and

iv.

Have a database structure that allows compliance with what is provided in these Provisions and in the General Provisions on the registration of accounting, elaboration and presentation of financial statements to which the Investment Societies must be subject.

Exchange Rate, to the exchange rate between the national currency and the United States dollar, provided by the Price Providers;

LI.

Cross-Valuation Exchange Rate, to the applicable exchange rate between two Currencies different from the peso, provided by the Price Providers;

LII.

Fix Exchange Rate, to the exchange rate between the peso and the United States dollar, employed to settle obligations in United States dollars payable in the United Mexican States, determined by the Bank of Mexico;

LIII.

UAIR, to the Unit of Integral Risk Administration of the Administrator specialized in financial risk matters in which the Financial Risk Committees and the Investment Committees of the Investment Societies rely to carry out the Administration of Financial Risk, in accordance with these Provisions and with the Prudential Rules in matter of risk administration issued by the Commission;

LIV.

Last Updated Prices for Valuation Known, to the prices for the valuation of Investment Assets that have been made known by the Price Providers, the Valuation Societies, the Custodians, and in its case, by the Administrator itself, as appropriate in accordance with these Provisions, determined on the business day immediately preceding the Valuation Day;

LV.

Equivalent Delta Value, to the amount in national currency or Currency of the Delta Value for Positions in Derivatives equivalent to the direct position in the underlying at market value, and

LVI.

Delta Value for Positions in Derivatives, to the change in the market value of the position when the value of the underlying changes.

TITLE II

ON THE ADMINISTRATION OF FINANCIAL RISKS OF THE INVESTMENT SOCIETY

CHAPTER I

ON THE FINANCIAL RISK COMMITTEE

Article 3.- The Financial Risk Committee of each Investment Society must define, approve and follow up, within the limits authorized by the General Provisions that establish the investment regime to which the Investment Societies must be subject and the Prudential Rules in matter of risk administration that the Commission establishes to that effect, with the approval of the Independent Advisor who is a member of said Committee, to the following:

The explicit establishment of policies whose objective is to prudently administer the resources of the Workers. For such purposes, it must follow up on the Financial Risks to which the investment portfolio of the Investment Society is exposed;

II.

Prudential Limits applicable to the investments of the Total Asset of the Investment Society in Investment Assets, directly or, through Vehicles or Real Estate Investment Vehicles. These limits may be applied to the Risk Factors, to each Class of Asset, to each Currency or to the groupings of Investment Assets with similar risks defined by the Financial Risk Committee, as well as may be applied as additional limits to those foreseen in the General Provisions that establish the investment regime to which the Investment Societies must be subject or sub-limits of these. The Financial Risk Committee may define the Prudential Limits referred to in this fraction based on its own risk administration policies and on the best international practices observed in the market. To determine these limits, the Financial Risk Committee must consider the complexity of the investment portfolio of the Investment Society, as well as the technical, human capabilities and the processes defined by the Administrator to manage the investment portfolios;

III.

Prudential Limits of maximum exposure to each Counterparty and to each issuer, complementary to those foreseen in the Provisions that establish the investment regime of the Investment Societies. For such purposes, these limits will consider the term, the underlying to which exposure is acquired and the Class of Asset. The credit quality of the issuer or of the Counterparty must be considered, based on internal analyses or opinions of third-party specialists in the matter on the fundamental factors that determine the viability of the issuer or of the Counterparty. These limits must be defined for each Class of Asset with which the Investment Society finances or maintains exposure with the entity in its capacity as issuer and Counterparty. Likewise, an aggregated maximum limit covering simultaneously all Classes of Assets authorized to finance or maintain exposure with the entity in its capacity as issuer and Counterparty must be provided. These limits will apply for direct operations, through Vehicles or Real Estate Investment Vehicles and will also consider the guarantees received by the Investment Society. The Financial Risk Committee may define the Prudential Limits referred to in this fraction based on its own risk administration policies and on the best international practices observed in the market;

IV.

Measures to evaluate the maximum leverage of the investment portfolio, additional to those foreseen in the General Provisions that establish the investment regime to which the Investment Societies must be subject, which each Investment Society must observe. Likewise, the Financial Risk Committee may define leverage measures by Class of Asset, by Risk Factor and by underlying;

Policies to receive and deliver guarantees that back authorized operations with Derivatives, securities lending and repos. These policies must consider the type of issuer of the guarantee and its credit quality based on fundamental factors that determine its viability, as well as the legal structure of the execution of guarantees. Regarding the guarantee, the policies must take into consideration the maturity term, the liquidity, the discount to be applied and the markets in which it can be alienated. Likewise, the policies must establish the following:

Prudential Limits, and the measures to be used, regarding the maximum exposure that the Investment Society can have through each of the following operations:

Derivatives;

ii.

Securities lending, and

iii.

Repo;

Prudential Limits for the Investment Society for each type of underlying authorized in operations with Derivatives, which may be grouped as defined by the Financial Risk Committee, and

Aggregated Prudential Limit of exposure of the Investment Society applicable to each issuing entity, including all Investment Assets that it issues, as well as all operations in which it is a Counterparty;

VI.

Methodologies for the calculation of observed return, expected return, risk-adjusted return, sensitivity and market risk, which will be applied to the investment portfolio of the Asset Managed by the Investment Society and in an aggregated manner for each of the following types of investments or underlyings:

Commodities;

Currencies;

Debt instruments and interest rates;

Foreign Debt Securities;

Equity Components;

FIBRAS, and

Real Estate Investment Vehicles;

Likewise, the methodology for the calculation of observed return, expected return and risk-adjusted return applied to the Investment Trajectory, which must be congruent with the methodology applied to the investment portfolio, so as to allow comparison between the investment portfolio and the Investment Trajectory.

The Investment Committee or, if applicable, the Financial Risk Committee, as determined by the Administrator, must define the methodologies to carry out the calculations of the expected returns referred to in this fraction;

VII.

Methodologies to carry out the attribution of return and risk of the investment portfolio of the Asset Managed by the Investment Society, as well as of the investment portfolio of the Total Asset of the Investment Society with respect to the Investment Trajectory. The Assets Managed by the Mandatories may be excluded from the methodologies. Define policies to present the results in the application of said methodologies at the level of disaggregation by Class of Asset, Risk Factor or underlying that the Financial Risk Committee defines;

VIII.

Methodologies and policies to follow up on the deviation with respect to the Investment Trajectory, at an aggregated level and by Class of Asset or Risk Factor, considering the Maximum Deviation, as well as the Contribution to Tracking Error at an aggregated level and by Class of Asset, Instrument or Risk Factor. Define policies to present the previous results in the corresponding reports with the disaggregation by Class of Asset, Risk Factor, Instrument or underlying that the Financial Risk Committee defines

IX.

Maximum exposure for each authorized depository, through deposits. For such purposes, the credit quality of the depository, the capitalization index, the term of the operation and the Currency will be considered;

Financial Risk control policies that Investment Societies must observe with respect to the Mandatories that they hire;

XI.

Early Warnings for the Liquidity Coefficient, as well as other minimum liquidity parameters for positions in Derivatives. Likewise, Early Warnings for the Tracking Error;

XII.

Prudential Limits for the Maximum Deviation determined at an aggregated level and by Class of Asset or Risk Factor, as well as for the Value at Risk, the Conditional Value at Risk and the Differential of Conditional Value at Risk;

XIII.

Methodologies and measurement elements, whether internal or external, for additional credit evaluation to that provided by securities rating institutions. For this purpose, it must include, by way of example and not limitation, models, information, procedures, inputs, in its case qualitative elements, and those that the Financial Risk Committee defines. In case that qualitative elements are considered, the Financial Risk Committee must define the criteria used for their evaluation. The methodologies and measurement elements referred to in this fraction must integrate environmental, social and corporate governance factors (ESG by its acronym in the English language);

XIV.

Policies for the determination of concentration limits for the Asset Managed by the Investment Society, which in its case are defined, by Counterparty or issuer considering for the latter the structure of each issuance, by way of example and not limitation, the type of payment seniority, enhancers or those known in practice and in the English language as "covenants", in accordance with the additional credit evaluation referred to in the previous fraction XIII. To this effect, the Financial Risk Committee must define and approve the following:

The frequency with which such limits will be reviewed;

The frequency with which the methodology and measurement elements referred to in the preceding subsection XIII will be reviewed;

The frequency with which the inputs used by said methodology and the measurement elements will be updated;

The grouping by additional credit evaluation for each concentration limit.

Likewise, the Head of the Risk Area must present a comparison of the credit ratings granted to issuances and Counterparties by securities rating agencies and the additional credit evaluation prepared by the UAIR;

The frequency with which the Head of the Risk Area must present to this Committee the results of the additional credit evaluation of the issuance considering the type of issuer and Counterparties, as well as the reviews of the methodology and measurement elements, and the criteria with which such information will be presented. For the case of the qualitative elements referred to in the preceding subsection XIII, the provisions of Article 11, subsection XII Bis of these provisions shall apply, and

The Head of the Risk Area must present at each ordinary session of this Committee the usage percentages of the concentration limits.

The frequency of items a), b), d) and e) shall be annual or with a lower frequency.

For item c), the frequency shall be semi-annual or with a lower frequency.

XV.

Verify and follow up on compliance with the criteria issued and notified by the Risk Analysis Committee, as well as the evaluation, follow-up, and update of the Integrated Automated System for risk management activities;

XVI.

Maximum limits for investments in individual stocks that may be exercised by each mandate, subject to the limits and criteria established and notified by the Risk Analysis Committee;

XVII.

Operational risk control policies in the execution of Package Matching Orders, Blind Matching Orders, and other similar mechanisms. Such controls must be located in the risk management module of the Integrated Automated System;

XVIII.

Methodologies and measurement elements, whether internal or external, for the evaluation of liquidity risks of the investment portfolio of the Total Asset of the Investment Society;

XIX.

Policies for the use of Generic Instruments, described in Detailed Minutes, considering the causes or conditions of use;

XX.

Prudential Limits and Early Warnings applicable to investments of the Total Asset of the Investment Society in Structured Instruments considering all pending capital calls;

XXI.

Measurement methodology for the level of coverage of Investment Assets denominated in Currencies belonging to Groups II and III of Annex D of these provisions, as well as the maximum deviations from the defined coverage level;

XXII.

Methodology for determining the distribution of the expected replacement rate with which the Investment Trajectory will be defined, including scenarios, assumptions, and inputs used. Furthermore, this methodology must include, in an enumerative but not limiting manner, the demographic characteristics, income level, and contribution density of the affiliates of each Basic Investment Society operated by the Administrator;

XXIII.

Methodology to determine the weights of the Investment Trajectory by Asset Class or Risk Factor, including the basis in the distribution of the replacement rate, as well as the analysis of the results obtained, and

XXIV.

Policies for the administration and exposure to environmental, social, and corporate governance (ESG by its acronym in English) risks of the investment portfolio of the Investment Society.

To comply with the analyses or studies provided for in Articles 11, subsection III; 30, subsections II, VII, and XIV; 36, subsection III; and 139, subsection I of these Provisions, the Administrator must designate as responsible either the Financial Risk Committee or the Investment Committee. If the Administrator designates the Financial Risk Committee, it must:

1.1.

Designate the Risk Area Officer responsible for complying with the aforementioned analyses or studies, and

1.2.

Verify that the designation and activities to be carried out are included in the Manual of Policies and Procedures for the Administration of Financial Risk.

The policies provided for in this article only apply to Investment Assets in which Investment Societies invest.

The Financial Risk Committee must be aware of the current situation regarding the measures, policies, and criteria provided for in this article, updated by the UAIR, at least once every three months.

Article 4.- The Financial Risk Committees must define the policies and frequency of updating and improvement of the Integrated Automated System that applies to risk management in terms of Article 3 of these Provisions.

The Administrator must designate as responsible one of the following: the Financial Risk Committees, the Investment Committees, or an Officer to define the policies and frequency of updating the Integrated Automated System that apply to the confirmation, allocation, and settlement of operations, as well as the accounting record and generation of financial statements of the Investment Society.

If the Administrator designates an Officer, this person must not have a conflict of interest when carrying out the aforementioned activities.

The Financial Risk Committees or the Investment Committees must verify that the policies, frequency, and designations of the responsible parties referred to in this article are incorporated into the Manual of Policies and Procedures for the Administration of Financial Risk, the Investment Manual, or the manual described in Article 62 of these Provisions, as appropriate, depending on the designation made by the Administrator, in terms of what is provided in the previous paragraph.

Article 5.- The Financial Risk Committee of each Investment Society must be composed of at least the Head of the Risk Area, one Independent Director and one non-independent Director of the Investment Society in question, who must not be members of the Investment Committee of the same Investment Society, and the General Manager of the Administrator operating the Investment Society.

The Detailed Minutes of the sessions of the Financial Risk Committee must be available to the Commission, which may be presented in stenographic version or through recording that has the necessary security means to maintain the integrity of the information and the corresponding transcription. For such purposes, the secretary of said Committee must ensure to draft and integrate the corresponding Detailed Minute. The Commission may request more information about the sessions of the Financial Risk Committee from the secretary of said Committee. The Detailed Minutes must be duly signed by all members who attended the session of the referred Committee within a maximum period of forty-five natural days following the celebration of the session.

This Committee must meet at least once a month, and its sessions will be valid only if they have a quorum of 80% of its members participating with vote, among which the attendance of the General Manager of the Administrator and an Independent Director is required. The absence of the Independent Director or the General Manager of the Administrator can only be excused on two occasions per calendar year, and the Committee must designate a responsible person during the absence of the respective party and solely for such purposes.

Approval of agreements will be made by majority vote, without prejudice to the above, the requirements for the opinion of Independent Directors for the topics provided for in these Provisions must be met. In the case where Independent Directors must pronounce themselves and they have divided decisions tied, prior to this condition, this Committee must define who has the casting vote among said directors.

Article 6.- The Financial Risk Committee may create subcommittees whose purpose is to analyze matters presented before the Financial Risk Committee. For such purposes, the subcommittees must comply with the following:

That they are constituted in the terms determined by the respective Financial Risk Committees;

II.

That the information relative to the functioning of the subcommittees is documented, indicating the members, guests, powers, policies, strategies, and accountability mechanisms towards the Financial Risk Committee, and

III.

The activities carried out by the subcommittees must be approved by the Financial Risk Committee, recorded in the Detailed Minute of the Financial Risk Committee, as well as revealed in the Manual of Policies and Procedures for the Administration of Financial Risk.

Among the activities carried out by the subcommittees, the preparation of the necessary documentation for the decision-making of the cited Financial Risk Committee may be contemplated, which must be available to the Commission.

The creation of subcommittees does not exempt the Financial Risk Committee from having the necessary information for its decision-making and fully complying with what is provided in the Law, these Provisions, and what is provided in the Prudential Rules on risk management.

Article 7.- Compliance with the Prudential Limits provided for in the previous Article 3, defined by the Financial Risk Committee, must be fulfilled using valuations provided by Price Providers, and in accordance with the Manual of Policies and Procedures for the Administration of Financial Risk. The UAIR must provide daily follow-up to such calculations and they must be presented monthly in the Financial Risk Committee. Likewise, the Regulatory Comptroller must ensure that the authorized Function Plan contains an Observation Process on the tasks described in this article.

Without prejudice to the above, the Financial Risk Committee may determine that, to comply with the aforementioned Prudential Limits, independent valuations generated by each Administrator in their Integrated Automated System are used. This must be reflected in the Manual of Policies and Procedures for the Administration of Financial Risk.

The prudential guidelines on capitalization referenced in the General Provisions establishing the patrimonial regime to which administrators of retirement funds, PENSIONISSSTE, and specialized investment societies for retirement funds and special reserves are subject, must be accredited with what is provided for in this article, as well as in the previous Article 3.

CHAPTER II

OF THE COMPREHENSIVE RISK MANAGEMENT UNIT

Article 8.- The UAIR, in matters of Financial Risks, has the objective of identifying, measuring, monitoring, and informing about the Financial Risks faced by Investment Societies to the Financial Risk Committee, the Investment Committee, the General Manager of the Administrator, and the Regulatory Comptroller.

The UAIR must be constituted within the structure of the Administrator and must be formed exclusively by Officers of said Administrator. This unit must be independent of the investment areas, in order to avoid conflicts of interest and ensure adequate separation of responsibilities. The Financial Risk Committee and the Investment Committee will rely on the UAIR.

The Administrator must have a Head of the Risk Area.

Article 9.- Administrators must have a Head of the Risk Area, who reports directly to the General Manager of the Administrator.

Article 10.- The UAIR, in matters of Financial Risk, will perform the following functions:

Propose to the Financial Risk Committee for approval, the methodology to identify, measure, and monitor the different types of Financial Risks to which Investment Societies are exposed, as well as the limits by type of Financial Risk;

II.

Apply the methodology referred to in the preceding subsection I using, for such effect, the models, Parameters, and scenarios for risk measurement and control established by the Financial Risk Committee;

III.

Investigate and document the causes that originate deviations from the established risk limits when they occur, identifying if such deviations occur repeatedly and inform timely of their results to the Financial Risk Committees, the Investment Committees, the General Manager of the Administrator, and the Regulatory Comptroller;

IV.

Propose to the Financial Risk Committee for approval, the methodology that, in case, will be applied for the calculation of the valuation price of operations with Derivatives that each Investment Society carries out in over-the-counter markets, as well as the valuation methodology of other Investment Assets that, according to these Provisions, the Administrator has informed the Commission that it will carry out the valuation of said Investment Assets;

Follow up on the Investment Strategy defined by the Investment Committee, in accordance with the prudential framework on risk management approved by the Financial Risk Committee;

VI.

Propose to the Financial Risk Committee for approval, the valuation methodology that will be applied to optional titles referred to in subsection d) of subsection LII of the Second Provision of the General Provisions establishing the investment regime to which investment societies must be subject, as well as to the shares representing the social capital of the Private Company to which the aforementioned optional titles are adhered, and

VII.

Propose to the Financial Risk Committee for approval, the result of the additional credit evaluation of each issuer and Counterparty, which must be carried out considering the methodologies and risk measurement elements referred to in Articles 3, subsections XIII, and XIV, and 11, subsection XII of these provisions. In case the qualitative elements of the additional credit evaluation are integrated into the Integrated Automated System, the provision in this subsection will not be necessary. The quantitative elements of the additional credit evaluation must be integrated into the Integrated Automated System.

Article 11.- The UAIR, in matters of Financial Risk, must inform monthly or with greater frequency when necessary, to the Financial Risk Committees and Investment Committees, the General Manager of the Administrator, and the Regulatory Comptroller, on the following matters applicable to the investment portfolio of the Total Asset of the Investment Society, except when otherwise stated:

The exposure of the investment portfolio of the Managed Asset by the Investment Society and by type of risk. Reports on risk exposure must include:

Sensitivity analysis of the investment portfolio, which must be disaggregated by Risk Factors and Asset Class, in accordance with what is established in the methodology defined by the Financial Risk Committee, and

Portfolio stress tests under stress scenarios, which must be presented for the investment portfolio of the Managed Asset by the Investment Society, as well as by Risk Factors and Asset Class.

II.

The deviations that may occur with respect to the maximum risk limits, established by the Financial Risk Committee, proposing, when appropriate, the necessary corrective actions;

III.

The observed return, risk-adjusted return, and expected return of the investment portfolio of the Managed Asset by the Investment Society and in aggregate for each of the following types of investments or underlying assets:

Commodities;

Currencies;

Debt instruments and interest rates;

Foreign Debt Securities;

Equity Components;

FIBRAS, and

Real Estate Investment Vehicles.

The return must be calculated for the different time horizons defined by the Financial Risk Committee and must be quantified against the Investment Trajectory, in aggregate for the investment portfolio of the Total Asset of the Investment Society, as well as for the Asset Classes determined by the Investment Committee. Assets Managed by Mandataries may be excluded for the calculations referred to in this subsection. The investment area or, in its case, the risk area, must carry out the calculations of the expected returns referred to in this subsection;

IV.

Attribution to return and attribution to risk, based on the methodology approved by the Financial Risk Committee. For this purpose, the attribution to return and risk of the investment portfolio of the Managed Asset by the Investment Society observed for each Asset Class or Risk Factor that makes up the portfolio of the Investment Society must be identified, which must be calculated for different time horizons. For the case of Derivatives, the attribution to risk must be calculated considering Risk Factors. For the case of the Investment Trajectory, the attribution of return and risk must be calculated, based on the methodology approved by the Financial Risk Committee, of the investment portfolio of the Total Asset of the Investment Society with respect to the Investment Trajectory and must be presented quarterly in the sessions of the Investment Committees and Risk Committees. Assets Managed by Mandataries may be excluded for the calculation referred to in this subsection;

The exposure of the investment portfolio of the Managed Asset by the Investment Society by type of risk including the Equivalent Delta Value of positions in Derivatives, for all underlying assets;

VI.

The percentage of use of the limits of the investment regime and of the Prudential Limits, the available capacities in each of the limits, and, in its case, if Early Warnings were triggered;

VII.

The percentage of use of concentration limits and the available capacities in these limits for the Managed Asset by the Investment Society, as well as carrying out the additional credit evaluation, referred to in subsection XIV of Article 3;

VIII.

The results of portfolio tests applicable to the investment portfolio of the Managed Asset by the Investment Society under stress scenarios assuming adjustments in Risk Factors such as: Currencies, interest rates, volatilities for the case of options and for Structures Linked to Underlyings, inflation, prices of Equity Components, prices of Commodities, as well as those that the Financial Risk Committee deems relevant;

IX.

The results of portfolio tests under stress scenarios defined by the Financial Risk Committee applicable to the investment portfolio of the Managed Asset by the Investment Society. The magnitudes of the adjustments to the Risk Factors of said scenarios must be comparable to four historical financial crises;

The results of hypothetical scenarios applicable to the investment portfolio of the Managed Asset by the Investment Society, defined by the Financial Risk Committee, known in practice and in the English language as "what if" scenarios under extreme conditions;

XI.

The values of sensitivity measures for the investment portfolio of the Managed Asset by the Investment Society must consider the following: duration, convexity, Historical Value at Risk, Parametric Value at Risk, Monte Carlo Value at Risk, Conditional Value at Risk, Differential of Conditional Value at Risk, Greeks for Derivatives, stress scenarios based on a distribution of extreme value theory, weighted average maturities, historical volatility, implied volatility, point-in-time price value, without prejudice to the others defined by the Financial Risk Committee in the Manual of Policies and Procedures for the Administration of Financial Risk, specifying which measures are applicable for each Investment Asset. In case any of the aforementioned measures is not applicable for some Investment Assets, the Financial Risk Committee may define the applicable sensitivity measures, having the approval of the majority of Independent Directors, which they must record in the Detailed Minute of the session in which it is approved by said Committee;

XII.

The risk measurement elements applicable to the investment portfolio of the Managed Asset by the Investment Society, defined by the Financial Risk Committee and the following elements: probability of default using the methodology approved by said Committee, potential severity of loss or write-down, portfolio concentration by degree of credit risk, disclosure and status of instruments with credit ratings outside the investment regime. The Financial Risk Committee must define the level of disaggregation to apply the analyses provided for in this paragraph;

XII BIS.

The result of the additional credit evaluation by issuer and Counterparty, referred to in subsection XIV of Article 3, which must be accompanied by the credit rating provided by securities rating agencies, an opinion of the Head of the Risk Area regarding the viability of the issuer and Counterparty, as well as maximum investment limits for each issuer and Counterparty. The opinion of the Head of the Risk Area must be backed by credit models, information obtained through systems and subscription means authorized by the Investment Committees, qualitative and quantitative elements that the Financial Risk Committee defines. In case the qualitative elements of the

additional credit assessment are integrated into the Automated Integrated System, the provisions of this subsection shall not apply. The quantitative elements of the additional credit assessment must be integrated into the Automated Integrated System;

The review, update, and submission of the report referred to in this subsection must be carried out at least annually or whenever relevant events impact the additional credit assessment, when Investment Societies acquire a new issuance of Debt Instruments or Foreign Debt Securities or operate with a new Counterparty, as well as when the Financial Risk Committee determines so.

For the purposes of this subsection, the Administrator may determine that the Head of the Investment Area be the one to submit the aforementioned opinion;

XIII.

The liquidity risk measurement elements applicable to the investment portfolio of the Asset Managed by the Investment Society, defined by the Financial Risk Committee, considering the following elements: distribution of resources in each Investment Society by specific age, maturity profile over the next ten years, estimates of resource inflows and outflows from financial and operational processes, the latter provided for in the General Provisions on operations issued by the Commission. The analyses referred to in this paragraph must be carried out using demographic, statistical, financial, and actuarial elements. The review and update of the demographic and actuarial elements must be carried out at least annually;

Likewise, for the investment portfolio of the Total Asset of the Investment Society, a classification of the assets constituting the investment portfolios of the Investment Societies must be carried out according to their liquidity characteristics. For Derivatives transactions, the available capacity and the percentage of use of credit lines with Counterparties must be monitored. For the purposes of this paragraph, Administrators may define policies applicable to the Asset Managed by the Mandatories;

XIV.

Exposure of the investment portfolio of the Asset Managed by the Investment Society considering the different types of underlying assets identified by the UAIR, transactions, and sectors or economic activities;

XV.

Leverage measures, which include the Differential of Conditional Value at Risk of the investment portfolio of the Asset Managed by the Investment Society;

XVI.

Prudential leverage measures defined by the Financial Risk Committee distinct from those provided for in the preceding subsection XV;

XVII.

Conditional Value at Risk and Differential of Conditional Value at Risk calculated under stress scenarios applied to the investment portfolio of the Asset Managed by the Investment Society using the dates provided for in Annex A of these Provisions;

XVIII.

The daily level of the Liquidity Coefficient and, where applicable, those minimum liquidity parameters for Derivatives positions applicable to the investment portfolio of the Asset Managed by the Investment Society, defined by the Financial Risk Committee, as well as the Early Warnings at different levels defined by the Financial Risk Committee.

Additionally, this report must be informed daily to the Head of the Investment Area;

XIX.

Standard deviations of returns calculated for at least two horizons applicable to the investment portfolios of the Investment Societies;

XX.

The maximum exposure and credit rating defined by the Financial Risk Committee for each National Issuer, Foreign Issuer, National Counterparty, or Foreign Counterparty;

XXI.

The maximum exposure and credit rating applicable to the clearing houses of the Derivatives Exchanges in which the Investment Societies operate and, where applicable, the Mandatories;

XXII.

The exposure of the investment portfolio of the Asset Managed by the Investment Society by type of underlying for securities lending and repo transactions. The return of these transactions, report on changes in the levels of collateral, credit rating of the Counterparties, percentage of use of concentration limits, liquidity, default on any policy determined by the Financial Risk Committee. The aforementioned Committee may define additional elements to those provided for in this subsection;

XXIII.

The Tracking Error of the Total Asset investment portfolio Managed by the Investment Society with respect to the Investment Trajectory, as well as the Contribution to Tracking Error and the monitoring of the Maximum Deviation;

XXIV.

The activities described in Article 14 of these Provisions, and

XXV.

The coverage level of Investment Assets denominated in Foreign Currencies and the deviations referred to in subsection XXI, of Article 3 of these Provisions.

Article 12.- The UAIR will deliver daily to the General Director of the Administrator, the Regulatory Comptroller, and the Head of the Investment Area, an executive report on the behavior of the Financial Risks of the Investment Societies operated by the Administrator. The General Director of the Administrator may determine a frequency different from that provided for in this paragraph to receive said report, recording this decision in the Detailed Minutes of the Financial Risk Committee.

Article 13.- The UAIR, to carry out the measurement, monitoring, and control of the various types of Financial Risks, as well as the valuation of the positions of the Investment Societies operated by the Administrator, must:

Have models and methodologies for risk management;

II.

Carry out risk management in the Automated Integrated System;

III.

Provide that the Automated Integrated System for the activity of operation registration informs the Operator, prior to execution, when the risk level associated with certain Investment Assets reaches the limits provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject, the Prudential Limits, and the Early Warnings. This risk level must be calculated in the Automated Integrated System for the risk management activity and, where applicable, transmit the applicable alerts to the Operator through the Automated Integrated System. The procedure to be followed to detect the described in this paragraph must be documented in the Policy and Procedure Manual for Financial Risk Management. The Financial Risk Committee must define the maximum time for the validity of the provisions of this paragraph.

In the case of Investment Assets that do not have market prices or Risk Factors, Generic Instruments may be used, based on the policies defined by the Financial Risk Committee;

IV.

Ensure that the information serving as the basis for calculating the positions of the Investment Societies used in the models and in the Automated Integrated System for the risk management activity is accurate, complete, and timely. Any modification to the aforementioned information, as well as the cause that originated it, must be documented;

Conduct semi-annual reviews, or with greater frequency if the Financial Risk Committee so defines, on the assumptions contained in the valuation models and Parameters of the Investment Assets. The findings detected in the review must be reported to the Financial Risk Committee in the session immediately following the date on which the aforementioned periodicity is met. Likewise, it must review and issue an opinion regarding the updates of the Automated Integrated System for the risk management activity in accordance with the policy and periodicity defined by the Financial Risk Committee;

VI.

Generate an independent valuation to that provided by Price Providers for each of the Investment Assets constituting the investment portfolio managed directly by the Investment Society, with the exception of investments in Equity Components, Commodities, Foreign Currencies, FIBRAS, government securities, and Derivatives from listed markets. In the case of Investment Assets that do not have market prices or Risk Factors, Generic Instruments may be used to carry out the aforementioned valuation. Both the inputs for the calculation of the independent valuation and the models defined for these purposes will be determined by the Financial Risk Committee.

The inputs for the independent valuation and market prices other than those of Equity Components, Commodities, Foreign Currencies, FIBRAS, government securities, and Derivatives from listed markets, must be obtained through subscription systems and means, other than Price Providers, that are authorized by the Investment Committees. Without prejudice to the foregoing, for the acquisition of FIBRAS, Investment Societies must adhere to what is established in Article 13, subsection I, section A, numeral vi. of these provisions; likewise, for investment in Equity Components, they must be subject to what is provided for in Article 31, subsection III of these provisions;

VII.

Apply daily portfolio stress tests under stress scenarios for the measurement of all quantifiable Financial Risks including Value at Risk, Conditional Value at Risk, and the Differential of Conditional Value at Risk using the dates provided for in Annex A of these Provisions, to which the Investment Societies are exposed, and

VIII.

Carry out the additional tests derived from the activities provided for in Article 14 of these Provisions.

The UAIR reports regarding Financial Risks may be presented in an aggregated manner by investment portfolio, Asset Class, or Risk Factor, regardless of whether the Automated Integrated System in the risk management activity has the capacity to generate the calculations provided for in this article for each Investment Asset constituting the investment portfolio of the Asset Managed by the Investment Society.

Article 14.- The Automated Integrated System must allow the UAIR to carry out the following activities:

Evaluate the Financial Risk of the investment portfolio of the Asset Managed by the Investment Society. This evaluation must be able to be carried out for each Investment Asset, as well as for each Asset Class or Risk Factor and for the investment portfolio of the Asset Managed by the Investment Society. Likewise, it must allow the calculation of various sensitivity measures, among which are those referred to in Article 11, subsection XI of these Provisions;

II.

Carry out portfolio stress tests applied to the investment portfolio of the Asset Managed by the Investment Societies, as well as to sub-portfolios defined by the Financial Risk Committee and to specific Investment Assets that are part of the investment portfolio of the Asset Managed by the Investment Society. Such portfolio stress tests must consider at least the following:

Extreme events on different Risk Factors that the Financial Risk Committee deems relevant, and

Stress scenarios comparable to the four historical financial crises defined by the Financial Risk Committee;

III.

Monitor the percentage of use of the Prudential Limits and Early Warnings approved by the Financial Risk Committee of the Investment Society, by Asset Class, by issuer or Counterparty, by underlying, for Foreign Securities, by regions, and by economic sectors;

IV.

Analyze the impact on the limits provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject, the Prudential Limits, and the Early Warnings upon the incorporation of new Investment Assets into the investment portfolios of the Investment Societies, with the advance notice defined for this purpose by the Financial Risk Committee. The calculations referred to in this subsection must be carried out using the parametrization defined by the risk area in the Automated Integrated System, for which inviolable evidence registered in the Automated Integrated System must be available to identify the users who carried out the calculations provided for in this subsection. In case market prices or Risk Factors are not available, Generic Instruments may be used. The investment area may carry out the calculations provided for in this subsection;

Calculate the exposure of the Investment Assets, considering different groupings, among which the following must be considered: Asset Class, type of underlying, type of issuer or Counterparty, and those defined by the Financial Risk Committee. This exposure must consider the market value for direct positions and the Equivalent Delta Value for Derivatives positions;

VI.

Calculate the Market Value at Risk, through different methodologies, of the complete investment portfolio, as well as said measures applied to sub-portfolios defined by the Financial Risk Committee and to specific Investment Assets;

VII.

Generate Monte Carlo stochastic simulations of the valuation prices of the different Investment Assets and the corresponding Risk Factors;

VIII.

Allow the parametrization of the different Risk Factors of each Investment Asset. In case market prices or Risk Factors are not available, Generic Instruments may be used to estimate the Risk Factors;

IX.

Ensure that the Automated Integrated System in the risk management activity has access restrictions for different users;

Document the parametrization of each Investment Asset;

XI.

Allow the Head of the Risk Area or that Official designated by him, to integrate new formulas or valuation models for Investment Assets that constitute the investment portfolios of the Investment Societies, as well as new methods for estimating Financial Risk metrics or new modules for financial analysis of investment portfolios, in accordance with the policies defined by the Financial Risk Committee;

XII.

Calculate the Early Warnings at different levels for the Liquidity Coefficient, as well as other minimum liquidity parameters for Derivatives positions defined by the Financial Risk Committee;

XIII.

Calculate the Conditional Value at Risk and Differential of Conditional Value at Risk under stress scenarios applied to the investment portfolio of the Asset Managed by the Investment Society using the dates provided for in Annex A of these Provisions;

XIV.

Monitor the percentage of use of the Prudential Limits approved by the Financial Risk Committee applicable to securities lending and repo transactions, by exposure to the investment portfolio of the Asset Managed by the Investment Society, Asset Class, and type of underlying, return of these transactions, level of collateral, credit rating of the Counterparties, concentration limits, liquidity, and leverage;

XV.

Calculate the measurement elements for the additional credit assessment described in Article 3, subsection XIII of these provisions. The Automated Integrated System must include, at least, the corresponding quantitative elements of the additional credit assessment;

XVI.

Calculate the Tracking Error, as well as monitor the use of the regulatory limit and the early warnings established for this metric;

XVII.

Calculate the Contribution to Tracking Error, as well as monitor the use of the Maximum Deviation and the prudential limits and early warnings established for said metrics, and

XVIII.

Calculate for each Investment Society, the standard deviation of the historical returns of 6 months and 1 year, both of the investment portfolio of the Investment Society, and of the Investment Trajectory, considering the composition of the Investment Trajectory in the quarter in which the corresponding Investment Society is located.

The Financial Risk Committee may opt for a set of variables, Risk Factors, and analyses different from those provided for in subsections V, VI, and VII of this article, provided that it has the approval of the majority of the Independent Directors of said Committee, for which they must record it in the Detailed Minutes of the session in which it is approved by said Committee.

When any Independent Director of the Financial Risk Committee is incorporated, said Director within a period not greater than 60 business days following the session in which they participate for the first time, must express their opinion regarding the policies approved by the Financial Risk Committee that will be in effect on the matters provided for in subsections V, VI, and VII of this article. The list of agreements on which they will issue their opinion must be recorded in the Detailed Minutes of the corresponding session.

The UAIR must ensure that the requirements provided for in this article are met at all times.

CHAPTER III

ON THE POLICY AND PROCEDURE MANUAL FOR FINANCIAL RISK MANAGEMENT

Article 15.- Each Administrator must prepare a Policy and Procedure Manual for Financial Risk Management, which must be approved by the Financial Risk Committee of the Investment Societies and by the Governing Body of the Administrator itself, with the favorable vote of the majority of the Independent Directors.

The Administrator must have available to the Commission evidence of the following:

The Policy and Procedure Manual for Financial Risk Management was reviewed at least by the Head of the Risk Area;

II.

The Regulatory Comptroller supervised that the content of the Policy and Procedure Manual for Financial Risk Management corresponds to what was approved by both the Financial Risk Committee and the Governing Body of the Administrator itself, and

The Policy and Procedure Manual for Financial Risk Management must remain available to the Commission at all times and comply with the quality and characteristics required in this Chapter, as well as what is provided for in Articles 3, 4, subsection III, 13, subsection III, 36, and 41 of these Provisions, as applicable, in terms of what is established in each of said articles.

Administrators must inform the Commission, formally and clearly, about each of the modifications made to the Policy and Procedure Manual for Risk Management, this within a period not greater than 10 business days from the time such modifications are made. Likewise, they must keep available to the Commission evidence that such modifications were approved by the Financial Risk Committee and by the Governing Body of the Administrator itself.

Article 16.- The Policy and Procedure Manual for Financial Risk Management must contain the following:

The policies and Prudential Limits applicable related to exposure to Financial Risks. In their case, the Prudential Limits and Early Warnings will be defined based on their own risk management policies and on the best international practices observed in the market;

II.

The models and methodologies applicable to the investment portfolio for the valuation of Financial Risks, approved by the Financial Risk Committee, impacting the Risk Factors or the groupings of Investment Assets with similar risks defined by the Financial Risk Committee;

III.

The policies and procedures for the use of Generic Instruments;

IV.

The determination and procedure to calculate the limits for taking risks that the Financial Risk Committee of each Investment Society establishes at a global level and by type of risk. Likewise, procedures to be followed when the risk level associated with certain Investment Assets reaches the limits provided for in the investment regime, in the manuals, by the Financial Risk Committee, or when there are extreme market conditions must be provided for;

The process for the measurement, monitoring, and reporting of Financial Risks and operational risk linked to the investment process of the Investment Society;

VI.

The Prudential Limits, as well as the corresponding policies to, where applicable, correct the deviations observed on the risk limits;

VII.

The internal control measures and mechanisms to correct the deviations observed on the tolerance levels for operational risks linked to the investment process of the Investment Society provided for in these Provisions;

VIII.

The process for the authorization by the Financial Risk Committee, of the excesses to the Prudential Limits applicable to the different Financial Risks;

IX.

The methodology employed for the valuation of Derivatives and Certificates Linked to Real Projects;

The methodology employed for the valuation of the optional titles referred to in item d) of subsection LII of the Second Provision of the General Provisions establishing the investment regime to which investment societies must be subject, as well as of the shares representing the social capital of the same Private Company to which the aforementioned optional titles are adhered;

XI.

The methodologies employed for the calculation of observed return, expected return, risk-adjusted return, sensitivity, and market risk, which will be applied to the investment portfolio of the Asset Managed by the Investment Society and in an aggregated manner for each of the following types of investments or underlyings:

Commodities;

Foreign Currencies;

FIBRAS;

Real Estate Investment Vehicles;

Debt Instruments and interest rates;

Foreign Debt Securities, and

Equity Components.

Likewise, the methodology for calculating the observed return, expected return, and risk-adjusted return, applied to the Investment Trajectory, which must be consistent with the methodology applied to the investment portfolio, so as to allow comparison between the investment portfolio and the Investment Trajectory for each of the Asset Classes determined by the Investment Committee.

XII.

The process for the approval of policies, criteria, and strategies for the Management of Financial Risk and, where applicable, for hedges other than Derivatives. For these purposes, there must be a general description of the operation, an analysis of the risks inherent to said operation, and a procedure to identify, measure, monitor, control, report, and disclose such risks;

XIII.

Portfolio stress testing scenarios applicable to the investment portfolios of the Assets Managed by the Investment Companies, referred to in Chapter II of this Title, including portfolio stress testing scenarios applicable to Value at Risk, Conditional Value at Risk, and the Conditional Value at Risk Differential;

XIV.

In the event that operations with Derivatives are intended to be entered into, the logistics for operating them and a description of best execution practices, as well as policies and maximum leverage limits, approved by the Financial Risk Committee, which the Investment Company must observe when using these instruments;

XV.

In the event that operations with Derivatives in over-the-counter markets are intended to be entered into, the policy or, where applicable, the methodology to which the Investment Company will be subject for the valuation of said operations;

XVI.

In the event that operations with Foreign Securities, Commodities, Currencies, Vehicles, Real Estate Investment Vehicles, as well as investing through Mutual Funds or Mandatories, are intended to be entered into, the procedure for operating these and a description of best execution practices or, where applicable, of contracting Mandatories;

XVII.

The methodology used for the valuation of the Investment Assets owned by the Investment Companies, as well as for the shares representing the paid-up share capital of the Investment Companies;

XVIII.

The organizational structure designed to carry out the Management of Financial Risk. Such structure must be established so that there is independence between the Risk Management Unit and those other operational control areas, as well as there must be a clear delimitation of functions and job profiles at all its levels;

XIX.

The powers and responsibilities based on the position or role held by the Officers;

XX.

The description of the Integrated Automated System in the risk management activity and the database structure generated for the tracking of risk for each Investment Company;

XXI.

Action plans in case of contingencies at alternate sites. The alternate site of the Administrator must fully satisfy these Provisions, regarding the minimum functioning defined by the Commission that the Investment Companies must observe, as well as the additional activities determined by the Administrator itself. In the event that it is necessary to recover the continuity of operations, it must be carried out at an alternate site that has not been predictably affected by the same circumstances as the Administrator's site;

It will be understood as the minimum functioning of the Investment Companies for the risk area, complying with fraction III of article 56 of these Provisions;

XXII.

The requirements of the Integrated Automated System in the risk management activity of the Integrated Automated System referred to in Chapter II of this Title;

XXIII.

The methodology for defining Prudential Limits and Early Warning Alarms for maximum exposure for repo and securities lending operations by type of permitted Instrument and for each Counterparty with which such operations are carried out, as well as the aggregated limits by permitted Instrument and by Counterparty, approved by the Financial Risk Committee;

XXIV.

The methodology for defining maximum exposure limits to Counterparties and issuers defined by the Financial Risk Committee;

XXV.

The methodology for calculating Value at Risk, Conditional Value at Risk, and the Conditional Value at Risk Differential applying the dates foreseen in Annex A of these Provisions;

XXVI.

The methodology defined by the Financial Risk Committee to perform sensitivity analysis at the portfolio level, disaggregated by Risk Factor or Asset Class;

XXVII.

The methodology for determining the prudential leverage measures for Derivatives operations referred to in article 11, fraction XVI of these provisions, as well as the maximum leverage limits;

XXVIII.

The methodology for performing performance and risk attribution of the investment portfolio of the Assets Managed by the Investment Company and of the Investment Trajectory applicable to the investment portfolio of the Total Assets of the Investment Company. The Assets Managed by Mandatories may be excluded from the methodology referred to in this fraction;

XXIX.

The methodology for calculating the Maximum Deviation that the investment portfolio of the Investment Company must observe with respect to the Investment Trajectory, detailing with precision the formula for its computation;

XXX.

The methodology for measuring the level of coverage and the maximum deviations referred to in article 3, fraction XXI of these provisions, in the event that hedges of the Investment Assets denominated in Currencies belonging to Groups II and III of Annex D of these provisions are intended to be carried out;

XXXI.

The methodology for determining the distribution of the expected replacement rate with which the Investment Trajectory will be defined, including the scenarios, assumptions, and inputs used. Furthermore, said methodology must include, by way of example and not limitation, the demographic characteristics, income level, and contribution density of the affiliates of each Basic Investment Company operated by the Administrator;

XXXII.

The methodology for determining the weights of the Investment Trajectory based on the expected replacement rate referred to in the previous fraction, and

XXXIII.

The methodology for calculating the Contribution to Tracking Error by Asset Class, Instrument, or Risk Factor.

Article 17.- The Commission may require, at any time, that the Administrator present to it the Manual of Policies and Procedures for the Management of Financial Risk, and that the Administrator make the necessary adjustments to said Manual so that it complies with what is provided in these Provisions.

Article 18.- The Manual of Policies and Procedures for the Management of Financial Risk must be entirely available to the Commission at all times.

Article 19.- The Manual of Policies and Procedures for the Management of Financial Risk must form part of the Self-Regulation Program approved by the Governing Body of the Administrator in terms of article 29 of the Law. The Officers of the Administrator and of the Investment Companies must observe the compliance with said Manual.

TITLE III

PROVISIONS ON INVESTMENTS

CHAPTER I

ON INVESTMENT COMMITTEES

Article 20.- Investment Committees must define, approve, and monitor the Investment Strategy of the Investment Assets, within the limits proposed by the Financial Risk Committee that have been approved by the Governing Body of the Investment Company in question. This obligation will be applicable only to the Investment Assets described in this Title in which the Investment Company invests or has exposure.

The Investment Strategy must foresee the following policies applicable in an aggregated manner to the investment portfolio of each Investment Company:

The liquidity characteristics, where applicable;

II.

The credit quality of the Debt Instruments, Foreign Debt Securities, and Neutral Investments that make up the investment portfolio;

III.

The tolerated sensitivity of the investment portfolio to the changes presented by each of the Risk Factors defined by the Financial Risk Committee;

IV.

The Vehicles, Real Estate Investment Vehicles, investment mandates, and other similar investment mechanisms, authorized in accordance with what is provided in the General Provisions establishing the investment regime to which Investment Companies must be subject, referred to the Investment Assets that will make up the investment portfolio of the Investment Company in question;

The Investment Assets that will form part of the Total Assets of the Investment Company and in particular those regarding Foreign Securities, Neutral Investments, Structured Instruments, FIBRAS, Securitized Instruments, Commodities, Currencies, and the use of Derivatives;

VI.

The Investment Assets foreseen in the regulations issued by the Commission, the Asset Classes and investment mechanisms that can be used for the investments of the investment portfolio of the corresponding Investment Company, as well as the target percentages that they must represent with respect to the value of the Total Assets;

VII.

To adhere to environmental, social, and corporate governance principles (ESG in English), referred to the Investment Assets that will make up the investment portfolio of the Investment Company in question, when applicable, and

VIII.

The policies foreseen in the previous fractions must be defined based on the Investment Trajectory applicable to the investment portfolio of the Total Assets of the Investment Company.

The Investment Committee must specify if the percentages referred to in the previous fraction VI are computed using market value, Delta Equivalent Value for Derivatives positions, or any other measure. Likewise, liquidity, credit, and market measures defined and approved by the Financial Risk Committee of the Investment Company must be employed.

The Investment Strategy must contemplate its validity, the periodicity with which it will be reviewed by the Investment Committee, and the maximum deviation margin allowed to the investment area by the Investment Committee for each of the policies referred to in this article. Without prejudice to the foregoing, it will be the responsibility of the Investment Committee to define and approve additional criteria that make up the Investment Strategy, with the objective of prudently administering pension resources in accordance with the profile of the Investment Company in question.

When new instruments are incorporated into the definition of Investment Assets foreseen in the General Provisions establishing the investment regime to which Investment Companies must be subject, the Investment Committee must analyze the liquidity in the secondary market and the Risk Factors that affect the price of these instruments. The Head of the Investment Area must express an opinion on the information foreseen in this paragraph.

The Investment Strategy must be recorded in the Detailed Minutes of the sessions of the Investment Committees, which must be held in accordance with what is provided in article 42 of the Law.

Article 21.- Investment Committees must designate:

The Custodian(s) and approve the contracts entered into with them in the terms foreseen in these Provisions. For the case of liquidity facilities foreseen in the contracts with Custodians, the Investment Committees must issue their approval;

II.

The Providers of Financial Services and approve the contracts entered into with them in the terms foreseen in these Provisions, and

III.

The Operators and the responsible parties for confirmation, allocation, settlement, accounting registration, and generation of financial statements, as well as the transfer of cash and securities of the Investment Company, based on the policies previously defined by the Investment Committee itself.

Regarding the Head of the Investment Area, the Investment Committees must evaluate and express themselves in the corresponding session regarding the designation made by the Administrator.

Article 22.- Investment Committees must approve portfolio rebalancing programs. Without prejudice to the foregoing, such programs must be approved in case of breaches of the concentration limits defined by the Financial Risk Committee.

Article 23.- Investment Committees must define and approve:

The mechanisms to notify Counterparties about the list of Officers authorized to carry out over-the-counter Derivatives operations, and

II.

The policies to monitor the markets, Counterparties, Financial Intermediaries, and trading platforms with which operations with Investment Assets can be carried out, based on publicly available information.

Article 24.- Investment Committees must define, approve, and monitor the policies for the negotiation of operations with Investment Assets, complementary to the best execution articles foreseen in these Provisions. These negotiation policies for operations on trading platforms must consider, if employed by the Administrator, Block Negotiation Orders, Blind Negotiation Orders, as well as other mechanisms similar to these.

Additionally, Investment Committees must define, approve, and monitor the policies for the negotiation of operations with Mutual Funds through trading platforms.

Likewise, the Investment Committee must foresee policies to avoid Off-Market Operations.

For the purpose of what is provided in this article, the Head of the Investment Area must demonstrate to the Investment Committee compliance with said adopted negotiation policies. For this purpose, the Head of the Investment Area must have evidence by any magnetic, electronic, or documentary means.

Article 25.- Investment Committees may define the horizons in which observed and prospective performance and risk analyses must be carried out, either for each Asset Class in which the Investment Company invests, by Risk Factors, or by types of risk to which the investment portfolios of the Investment Company are exposed. The foregoing, in addition to the mandatory 10-year calculation horizon and when the Investment Committee considers it appropriate to use terms different from 1, 3, 5 years and historical ones from the start of the investment.

The aforementioned calculations must be carried out in accordance with the policies defined by the Investment Committee with the favorable opinion of the majority of Independent Trustees, including the updating of inputs, and must be recorded in the Detailed Minute of the corresponding session of the Investment Committee.

The Risk Factors or types of risk will be identified by the Financial Risk Committee.

Article 26.- Investment Committees must determine, for each Asset Class, the percentages of the Total Assets corresponding to the Assets Managed by the Investment Company and the Assets Managed by the Mandatory, considering all Mandatories that have been contracted for this purpose.

Article 27.- Investment Committees must define the periodicity with which the Head of the Investment Area of the Investment Companies must present information regarding the monitoring and analysis of the contents and obligations foreseen in articles 20 to 26 above. Such periodicity cannot be greater than one year.

Article 28.- When the Administrator has the non-objection of the Commission to carry out operations with Commodities, the Investment Committees must approve and monitor the investment in Commodities, for which they must specifically:

Define and approve the Investment Strategy in Commodities, within the authorized limits in accordance with the General Provisions establishing the investment regime to which Investment Companies must be subject, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risk Committee. For these purposes, the Investment Committee must define the horizon of the investments, the amounts, and the percentages of the Total Assets of the Investment Company in question, that will be invested in Commodities, as well as the policies foreseen in article 20 of these Provisions applicable to Commodities;

II.

Define the long-term objectives sought to be achieved, regarding diversification and expected profitability through investment in mechanisms and Vehicles with exposure to Commodities. Such long-term objectives can be defined in ranges;

III.

Define the policies to approve the investment mechanisms and Vehicles with exposure to Commodities in which the Investment Company invests, in accordance with the General Provisions establishing the investment regime to which Investment Companies must be subject and the criteria defined by the Risk Analysis Committee. For these purposes, the Investment Committee must know the following characteristics of the investment mechanism or Vehicle:

The structure and the agents involved in the management;

The total costs, identifying the concepts that make up said costs;

The estimated transaction costs;

The quantitative or even qualitative estimates, of the liquidity of the investment mechanism or Vehicle and of the markets where the Administrator will acquire said Vehicle;

The underlyings to which it may have exposure, within those authorized by the General Provisions establishing the investment regime to which Investment Companies must be subject;

Where applicable, the leverage and the guarantees it receives or delivers, in accordance with the placement prospectus or equivalent document of the Vehicle in question, and

The Counterparties with which the operations foreseen in the placement prospectus or equivalent document of the Vehicle in question are executed;

Investment Companies may only invest in Commodities through the Vehicles that for such purposes are authorized by the Risk Analysis Committee.

IV.

Monitor the observed and expected performance of investments in Commodities. For this effect, the performance and risk measures that the Investment Committee has approved and indicated in the Investment Manual must be considered. Without prejudice to the foregoing, the measures foreseen in this paragraph cannot substitute for the measures defined by the Financial Risk Committee that must be used to evaluate compliance with Prudential Limits;

Foresee policies so that the investment area of the Investment Company has, prior to carrying out investments in Commodities or authorized Commodity indices, an analysis on the characteristics and risks inherent to each type of underlying. In investments made through Commodity indices, they must have an analysis for the sectors that collectively make up the investment. Such analyses must adhere to what is provided in these Provisions, as well as to what is provided in the Prudential Rules on risk management;

VI.

Analyze the valuation models of the assets, as well as of the Vehicles that provide exposure to Commodities, in accordance with the criteria approved by the Risk Analysis Committee;

VII.

Approve the policies regarding operations with Derivative instruments on Commodities that the Investment Company carries out, as well as the Mandatory, and

VIII.

Approve the active investment policies in Commodities that Mandatories must observe, in accordance with these Provisions, the General Provisions establishing the investment regime to which Investment Companies must be subject, the criteria defined by the Investment Committee, and the criteria defined by the Risk Analysis Committee.

The Head of the Investment Area must present to the Investment Committee the updated information referred to in this article with the periodicity indicated below, or earlier if said Committee so determines:

1.1.

The information from fractions I, II, III, V, VI, VII, and VIII: annually, and

1.2.

The information from fraction IV: every four months.

The Head of the Investment Area must present to the Investment Committee the referred information, in the session immediately following the date on which the aforementioned periodicity is fulfilled.

Article 29.- Investment Committees must approve and monitor the investment in Mutual Funds and Equity, Debt, and Real Estate Vehicles known as Exchange Traded Funds, for which they must specifically:

Define and approve the Investment Strategy through Mutual Funds and, where applicable, Equity, Debt, and Real Estate Vehicles, within the authorized limits in accordance with the General Provisions establishing the investment regime to which Investment Companies must be subject, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risk Committee. For these purposes, the Investment Committee must define the horizon of the investments, the amounts, and the percentages of the Total Assets of the Investment Company in question, that will be invested through these Vehicles, as well as the policies foreseen in article 20 of these Provisions applied to them;

II.

Analyze the structure with which the Mutual Fund operates and, where applicable, Equity, Debt, and Real Estate Vehicles, the entities involved in the investment mechanism, among the

which are listed non-exhaustively: the administrator, the appraiser, the Custodian, the investment advisor, and the Price Provider;

III.

Establish policies so that the investment area of the Investment Society has, prior to making investments in each Mutual Fund and, where applicable, in each equity, debt, and real estate vehicle, an analysis of the characteristics and inherent risks, in accordance with the provisions of these Regulations and the Prudential Rules on risk management, the General Provisions establishing the investment regime to which Investment Societies must adhere, and the criteria defined by the Risk Analysis Committee;

IV.

Define and monitor the Asset Classes acquired through Mutual Funds and, where applicable, equity, debt, and real estate vehicles, within the authorized limits in accordance with the General Provisions establishing the investment regime to which Investment Societies must adhere, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risk Committee, as well as the maximum or minimum percentages in each of them;

Define eligibility policies applicable to the managers of Mutual Funds and, where applicable, equity, debt, and real estate vehicles, in accordance with the General Provisions establishing the investment regime to which Investment Societies must adhere, the criteria defined by the Risk Analysis Committee, and these Regulations. Such policies must include the manager's experience as a vehicle manager, including Mutual Funds and, where applicable, equity, debt, and real estate vehicles, and the minimum amount of assets under management required;

VI.

Define, evaluate, and monitor the structure, liquidity characteristics, and accessibility of the Mutual Fund and, where applicable, the equity, debt, and real estate vehicle, as well as the total costs and, where applicable, entry and exit costs, considering the information available to the public in accordance with applicable provisions;

VII.

Evaluate the costs and net returns of the Mutual Funds and, where applicable, equity, debt, and real estate vehicles in which the Investment Society invests. This evaluation must compare them with other similar investment alternatives regarding the assets to which exposure is acquired. If the Investment Committee has chosen a higher-cost vehicle compared to other authorized vehicles available in the market with the same investment objective, it must expose the reasons for the selection of said vehicle, recording this in the Detailed Minutes of the corresponding session and having the favorable vote of the majority of Independent Directors who are members of the Investment Committee. For Mutual Funds with active strategies, it must evaluate the historical net return provided with respect to the reference index, where applicable, considering the number of times the manager has changed the reference index for the same Mutual Fund;

VIII.

Monitor the observed and expected return of investments in Mutual Funds and, where applicable, equity, debt, and real estate vehicles. For this purpose, the return and risk measures approved and indicated by the Investment Committee in the Investment Manual must be considered. Without prejudice to the foregoing, the measures provided in this paragraph cannot replace the measures defined by the Financial Risk Committee that must be used to evaluate compliance with Prudential Limits;

IX.

Define the policies that the investment area must observe prior to making an investment in Mutual Funds and, where applicable, equity, debt, and real estate vehicles, to verify that the managers of said vehicles do not have pending antecedents or investigations for conflicts of interest, fraud, or negligence in the management of their fiduciary mandate with the corresponding supervisory entities;

For Mutual Funds, analyze the periodicity established in the information prospectuses, supplements, or other documents approved by the regulatory authority of the Eligible Countries for Investments with which the shares of the Mutual Funds can be redeemed in accordance with the Investment Strategy, the type of underlying assets, as well as the investment horizon of the Investment Societies. For this purpose, they must evaluate that the costs of the Mutual Funds reflect the redemption periodicity, as well as evaluate any costs or other types of sanctions imposed by the Mutual Fund manager that could be generated by an early redemption;

XI.

For Mutual Funds, ensure that the maximum amount invested by the group of Investment Societies operated by the same Administrator in each Mutual Fund does not exceed 10% of the net assets of said Mutual Fund. The Investment Committee may determine to invest a percentage higher than that provided in this fraction, and this must be clearly recorded in the corresponding Detailed Minutes, having the favorable vote of the majority of Independent Directors who are members of said committee;

XII.

Define policies to determine the best mechanism to operate Mutual Funds among the available alternatives of trading platforms, custodians, or directly with the administrator or sponsor of the Mutual Fund. Such policies must include the evaluation of the costs of each mechanism for the Investment Society and, where applicable, additional factors that the Investment Committee considers relevant. If a more costly operating mechanism is used for the Investment Society among the available alternatives, the Investment Committee must pronounce on this and, where applicable, justify this choice based on the policies referred to in this fraction, which must be reflected in the corresponding Detailed Minutes, having the favorable vote of the majority of Independent Directors who are members of said committee;

XIII.

If Mutual Funds are chosen to be operated through trading platforms, the Investment Committee must define the eligibility policies for the trading platforms with which operations can be carried out;

XIV.

For Mutual Funds with active strategies, ensure that the administrator, sponsor, or investment advisor meets the minimum assets under management threshold defined by the Risk Analysis Committee. The Investment Committee may modify the cited threshold considering the experience criteria of the administrator, sponsor, or investment advisor, as applicable, in the management of assets in the international markets of the investment strategy object, the performance of the Mutual Fund, as well as the additional criteria determined by the Investment Committee itself. The approved threshold, as well as the criteria considered and the analyses by which the modification of this was determined, must be clearly recorded in the corresponding Detailed Minutes, having the favorable vote of the majority of Independent Directors who are members of said committee, and

XV.

For Mutual Funds, the Investment Committee must have a detailed breakdown of the costs involved in the purchase and sale, whether they were operated through trading platforms, custodians, or directly with the administrator or sponsor, as applicable. For those Mutual Funds that have commission refund mechanisms charged to the Investment Societies, the Investment Committees must analyze and monitor said refund mechanisms. Administrators must keep at the disposal of the Commission the signed contracts in which the commission mechanisms and, where applicable, the aforementioned refund mechanisms are established.

1.1.

The information from fractions I, II, III, IV, V, VI, IX, X, XII, XIII, XIV, and XV: annually, and

1.2.

The information from fractions VII, VIII, and XI: every four months.

The Head of the Investment Area must present the referred information to the Investment Committee in the session immediately following the date on which the aforementioned periodicity is met.

Article 30.- The Investment Committees must approve and monitor the investment in Structured Instruments, FIBRAs, Real Estate Investment Vehicles, and Real Project-Linked Securities, for which they must:

Define and approve the Investment Strategy in Structured Instruments, FIBRAs, Real Estate Investment Vehicles, and Real Project-Linked Securities, within the authorized limits in accordance with the General Provisions establishing the investment regime to which Investment Societies must adhere, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risk Committee. For these purposes, the Investment Committee must define the following:

The horizons in which the investments will be maintained in the investment portfolio;

The amounts;

The classes of underlying investments that will be the object of the investment;

The validity with respect to the Investment Strategy;

The periodicity to review the Investment Strategy, and

The flexibility allowed in the implementation of the authorized Investment Strategy for the investment area for each of the variables described in the previous subsections. For the case of Structured Instruments, the Investment Committee must define in which types of these it will invest.

The Investment Committee may define and approve additional criteria that constitute the Investment Strategy focused on Structured Instruments, FIBRAs, Real Estate Investment Vehicles, and Real Project-Linked Securities. The foregoing, with the objective of prudently managing pension resources in accordance with the profile of the Investment Society in question. If the Investment Committee decides not to add additional elements in the definition of the Investment Strategy, it must clearly record this in the Detailed Minutes of the corresponding session.

For the case of the investment strategy in Structured Instruments, the Investment Committee must define and approve the criteria under which Investment Societies will invest in the instruments referred to in subsection a) and subsection b) of fraction LI of the Second Provision, of the General Provisions establishing the investment regime to which specialized societies for retirement funds must adhere, as determined by the Investment Committee obligatorily for each case.

II.

Establish eligibility policies that the investment area of the Investment Society must apply, or where applicable, the risk area, prior to making investments in Structured Instruments, FIBRAs, Real Estate Investment Vehicles, and Real Project-Linked Securities. Such eligibility policies will include the following:

For Structured Instruments and FIBRAs, which can be acquired individually, the following must be included:

The administrators of the trusts corresponding to the Structured Instruments and FIBRAs, as well as, where applicable, the co-investors of the Structured Instruments, including among other factors, the human and technical resources to manage the asset, the experience of the team in activities related to the investment, as well as the functions of the agents involved in the Instrument;

i bis.

The eligibility policies for co-investors in Structured Instruments, including the type of co-investor and their experience in investing in projects similar to those financed through said Instruments. The Head of the Investment Area or, where applicable, the Head of the Risk Area, as determined by the Administrator, must accredit that the co-investor is a private equity fund manager, a pension fund, a sovereign fund, an operating partner, a state-owned productive company, or an investor who accredits having experience in investing or developing projects similar to those financed by the Structured Instrument;

ii.

The operating structure of the investment vehicles, as well as the development stage of the projects subject to financing, the sectors, the economic activities, the sources of income, and the payment cascades;

iii.

The commission policies charged to investors;

iv.

The interest alignment policies of the trust asset management team corresponding to the Structured Instrument and the FIBRA in question with those of the investors. Within said policies, the percentages of co-investment, previously determined by the Investment Committee, that the administrator must make in the same projects financed through the trust corresponding to the Structured Instrument or the FIBRA in question must be included. This percentage must be determined considering the risks of the financed projects, as well as according to the administrator's evaluation carried out through the questionnaire provided in Annex B of these Regulations. For the purposes of what is provided in this subsection, the Investment Committee must know and take into account if the administrator is a Related Entity or maintains any Financial Link, where applicable, with the co-investor. Finally, the policies provided in this paragraph may be different for each type of Structured Instrument and FIBRA, likewise

The policies containing the additional information disclosure criteria to those provided in the Securities Market Law and the General Provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission, including audits of the asset as well as the Vehicle in question;

For the purposes of the analyses resulting from the determination of the policies provided in this subsection, applicable to Structured Instruments, the Investment Committee or, where applicable, the Financial Risk Committee, must fully identify, and record this, the entity that, among the administrator and the co-investor, is in charge of defining the investment thesis of the referred instruments, as well as the entity in charge of the execution labor, and, where applicable, the relationship that exists between the entity that defines the investment thesis and the one that executes it. Co-investors must adhere to what is provided in Annex B, Chapter I, fraction IV of these Regulations.

For Real Estate Investment Vehicles that can be acquired individually by the Investment Society, the following must be included:

The experience of the management team of the Real Estate Investment Vehicle in the activities subject to the investment;

ii.

iii.

The commission policies charged to investors, and

iv.

The interest alignment policies of the asset management team with those of the investors.

For Real Project-Linked Securities that can be acquired individually, the following must be included:

The settlor, or where applicable, the one who contributes the real assets or projects that generate the collection rights, as well as the operator of said assets, including among other factors, the functions of the agents involved in the instrument, and

ii.

The operating structure of the investment vehicles, including among other factors, the equity and purposes of the trust, destination of the resources of the issuance, payment cascades, guarantees, the sectors or economic activities in which it operates.

The Investment Committee must foresee the eligibility policies on the concepts provided in Annex B, Chapter I of these Regulations. If the Investment Committee decides not to foresee eligibility policies for any of the concepts in the aforementioned Annex, it must justify this decision and record it in the corresponding Detailed Minutes.

The investment area must evaluate compliance with the policies referred to in this fraction, regarding each of the Structured Instruments, FIBRAs, and Real Project-Linked Securities, based on the publicly available information in accordance with the placement mechanism of the instrument in question and in terms of what is provided in the Securities Market Law and the General Provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission.

For the evaluation of Fiduciary Certificates for Investment Projects, the Investment Committee must additionally consider the information that, where applicable, is provided by the co-investor.

For the evaluation of Structured Instruments, the Investment Committee must additionally consider the information that, where applicable, is provided to the holders of said instruments in accordance with what is provided in the Securities Market Law and the General Provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission, as well as the information that, where applicable, is provided by the independent appraiser.

The Investment Committee must propose to the Officials or internal or external representatives of the Administrator who must attend the technical committees of the trusts corresponding to the Structured Instruments, ensuring that, when two or more representatives attend the technical committees, at least one of them is independent of the Administrator. The foregoing must be carried out in accordance with the rights and obligations established in each instrument, as well as in accordance with the rules provided in the Securities Market Law and the General Provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission.

Likewise, the Investment Committee must approve the mechanism proposed by the Head of the Investment Area so that the Administrator does not have control of the financed projects, in terms of the Securities Market Law, through the Structured Instrument.

The Investment Committee must define and approve policies regarding the alienation of assets or projects that have been part of the equity of the trusts corresponding to the Structured Instruments and, where applicable, to the FIBRAs, Real Estate Investment Vehicles, or Real Project-Linked Securities, in accordance with best practices for these purposes, ensuring that the interest of affiliates to the Retirement Savings System is protected at all times.

III.

Approve the content of a questionnaire that allows evaluating the policies defined in the different concepts of the Structured Instruments, FIBRAs, and Real Project-Linked Securities in which the corresponding Investment Society intends to invest. To this effect, said questionnaire must correspond to that provided in Annex B, Chapter II, of these Regulations. Without prejudice to the foregoing, the Investment Committee may opt to apply contents different from those provided in the aforementioned Annex B, chapter II. If the Investment Committee decides not to include some of the contents of the Annex cited in this fraction, it must justify this decision, which must be recorded in the corresponding Detailed Minutes. Likewise, the Investment Committee must clearly indicate if there is any additional information that must be added to the questionnaire referred to in this fraction, which must be clearly recorded in the corresponding Detailed Minutes;

IV.

Regarding Structured Instruments, FIBRAs, and Real Project-Linked Securities, they must define policies that the administrator, or the corresponding figure for Real Project-Linked Securities, must observe regarding the evaluation of operational, legal, technical, political, and social risks to which the underlying investments of the assets that will form the equity of the trusts corresponding to said instruments are exposed. The Investment Committee must consider the foregoing for the purposes of the eligibility of the administrators, or the corresponding figure for Real Project-Linked Securities, in which the Investment Societies operated by the Administrator will invest. Such policies and their evaluations may be differentiated for each type of asset that forms the set of the trusts corresponding to the Structured Instruments, FIBRAs, and the Real Project-Linked Securities, which must be clearly recorded in the corresponding Detailed Minutes;

Opine and authorize the amounts to be invested in Structured Instruments, FIBRAs, Real Estate Investment Vehicles, and Real Project-Linked Securities, based on the elements referred to in this article. The Investment Committee may define differentiated policies for each type of asset considered within the Structured Instruments, the FIBRAs, the Real Estate Investment Vehicles, and the Real Project-Linked Securities.

Additionally, for the investment in Structured Instruments, the Investment Committee or, in its

case, the Financial Risk Committee, as determined by the Administrator, must define the maximum percentage of concentration in the same issuance, in the same financed project, as well as in the same administrator. The Investment Committee must record in the Detailed Minutes of the corresponding session that it has the favorable vote of the majority of Independent Directors who are members of the Investment Committee, the maximum concentration percentage determined for each of the elements referred to in this paragraph, as well as the analyses by which they determined said maximum percentages.

For the case of Structured Instruments, the Investment Committee may determine the participation of the Investment Company in voluntary participation schemes provided for in the issuance prospectus of the instrument in question. Such schemes may comprise optional series or non-mandatory capital calls, among others. The aforementioned voluntary participation schemes must be offered to all investors in the Structured Instrument, and the amounts assigned to each must observe policies established in detail in the issuance prospectus of the instrument in question, which may comprise, among other cases, pro-rata rules. The exercise of voluntary participation schemes may be subordinate to the Investment Company's compliance with investment commitments that are not voluntary in the Structured Instrument, or may be substitutes for these, in accordance with the issuance prospectus. The Investment Committee must define maximum investment policies through the voluntary participation schemes that the Investment Company must observe.

The provisions of this subsection must be clearly recorded in the corresponding Detailed Minutes, having the favorable vote of the majority of Independent Directors who are members of the Investment Committee;

VI.

Must approve, if applicable, and in accordance with subsection II of Article 139 of these Provisions, an investment program in Structured Instruments referred to in item a), subsection LI, Second Provision of the General Provisions establishing the investment regime to which Investment Companies must be subject, one in FIBRAS and one in Securities Linked to Real Projects, in substitution of the individual authorizations for these assets. For such purposes, the types of eligible assets for each program must be defined with precision. Likewise, it must provide policies so that the investment area of the Investment Company, when implementing each investment program provided for in this paragraph, reports to the Investment Committee on the compliance of each instrument that is part of each program. Such reporting must be regarding the subsections provided for in this article. These investment programs may be differentiated for each of the types of assets considered in this paragraph;

VII.

Expressly state their opinion on the information collected through the questionnaire provided in Annex B, Chapter II that the investment area provides, or in case the risk area, regarding each Structured Instrument, FIBRA, and Securities Linked to Real Projects in which it is intended to invest. The investment area, or in its case the risk area, will collect the questionnaire information for each Structured Instrument, FIBRA, and Securities Linked to Real Projects in which it is intended to invest based on the information available to the holders of the instrument in accordance with the rights and obligations established in each instrument, as well as in terms of the Securities Market Law and the General Provisions applicable to securities issuers and other market participants, issued by the National Banking and Securities Commission.

For Fiduciary Certificates of Investment Projects, the Investment Committee must consider the additional information that, if applicable, is provided by the co-investor.

The Investment Committee may propose in its respective sessions that the Administrator, through the Investment Companies it operates, carry out activities oriented towards the adoption of best practices for information disclosure for Structured Instruments, FIBRAS, Real Estate Investment Vehicles, and Securities Linked to Real Projects in which said Investment Companies already invest or plan to invest. The foregoing, in the case of Structured Instruments, in accordance with the international standards of the "Institutional Limited Partners Association", ILPA, by its acronym in the English language and known in the Spanish language as the Association of Institutional Investors.

For Structured Instruments, FIBRAS, and Securities Linked to Real Projects, policies must be provided so that the investment area of the Investment Company in question has an analysis of the characteristics and risks inherent to each instrument provided for in this paragraph in which it invests. When subsequent investments are made in any of the instruments referred to in this paragraph that have been previously acquired by the Investment Company, it will not be necessary to perform said analysis for the subsequent investments in that instrument. The provisions of this paragraph must be carried out in accordance with what is established in Article 139 of these Provisions;

VIII.

Regarding Structured Instruments and FIBRAS, the Investment Committee must expressly state its opinion on the valuation criteria for the underlying assets. Likewise, the Investment Committee must express a second opinion regarding said criteria once the Structured Instrument has an appraiser, including its experience and independence;

IX.

Approve the function or policy for charging commissions of the Structured Instrument, FIBRA, Real Estate Investment Vehicle, and Securities Linked to Real Projects, provided for in the placement prospectus, including that applicable during the project search period and on any other concept provided for in the placement prospectus of the instrument in question. Such approval must be carried out prior to the acquisition of Structured Instruments, FIBRAS, Real Estate Investment Vehicles, or Securities Linked to Real Projects, and in the immediate subsequent session after there is any change to the commission charging policy of any of these instruments. For Structured Instruments, the respective trust agreement must establish that the payment of commissions, compensations, fees, distributions, incentives, or similar applicable to the administrator, the settlor, or persons related to them, must be subordinate to the payment of a certain determined or determinable amount to the holders of said instruments, except for those commissions, fees, distributions, or similar that are necessary for the operation of the administrator, settlor, or persons related to them, in relation to the services they provide to the respective trust. Regarding this, the Investment Committee may agree that modifications to the commission structure be proposed, which must be recorded in the Detailed Minutes of the corresponding session, have the favorable vote of the majority of Independent Directors, express the reasons, and have available to the Commission the analyses that gave rise to said proposal;

Regarding Structured Instruments, they must express their opinion regarding pending capital calls as to the amount and term in which they will be required, if applicable. Likewise, the Investment Committee may determine, remaining recorded in the Detailed Minutes of the corresponding session, having the favorable vote of the majority of Independent Directors who are members of the Investment Committee, as well as expressing the reasons for its decision, not to participate in pending capital calls of some Structured Instrument that is part of the investment portfolio of the Investment Companies, for which the Investment Committee must carry out the relevant actions so that the Structured Instruments that are in the present case cease to be part of the investment portfolios of the Investment Companies;

XI.

For the case of Securities Linked to Real Projects for said instruments to be considered as placed by an independent issuer, the Investment Committee must have evidence of compliance with the following:

That the issuance has an irrevocable trust, whose assets are one or more real assets or real projects, or the collection rights on the income they generate, in which case the income generated by the real assets, the real projects, or the collection rights are contributed directly by said sources to the trust;

That they are issued under the Securities Market Law and the General Provisions applicable to securities issuers and other market participants, issued by the National Banking and Securities Commission, and if applicable, the regulation applicable to Countries Eligible for Investments, and

That they have credit ratings granted by at least two authorized securities rating institutions, in which case they must comply with the minimum credit ratings provided for in the General Provisions establishing the investment regime to which Investment Companies must be subject applicable to the issuances of Debt Instruments.

XII.

Follow up on investments made in Structured Instruments and FIBRAS regarding net returns, risks, and investment decisions based exclusively on the public information available and, in the case of Structured Instruments, based on the information provided in technical committees or in assemblies to the holders of the instrument in accordance with the Securities Market Law and the General Provisions applicable to securities issuers and other market participants, issued by the National Banking and Securities Commission, or by the independent appraiser or in case the information provided by the co-investor;

XIII.

For the case of Structured Instruments, retrospectively and in accordance with the information available to investors in terms of the Securities Market Law and the General Provisions applicable to securities issuers and other market participants, issued by the National Banking and Securities Commission, they must know the costs effectively paid and compare them with the costs defined in the placement prospectus of the Structured Instrument, disaggregating the amounts of each concept for which said costs are incurred;

XIV.

Regarding FIBRAS, they must require the investment area of the Investment Company, or in its case the risk area, to follow up on the corporate rights policy, such as equity right distributions, the results of assemblies, and any relevant event that occurs during the period;

XV.

Regarding Structured Instruments referred to in item a), subsection LI, Second Provision of the General Provisions establishing the investment regime to which Investment Companies must be subject, they must observe that it is accredited to the Commission that the Administrator's representative in the technical committee of the Structured Instrument, and in its case in the holders' assembly, abstained from voting in the investment decisions of the referenced instrument when the issuing trust makes investments in assets or projects of any Related Company or with Property Links with the Investment Company that is operated by the Administrator in question;

XVI.

For the case of Fiduciary Certificates of Investment Projects, they must verify that:

The structure of the instrument involves the participation of a parallel vehicle or co-investor, which invests in the same projects as the issuing trust. The minimum percentage of co-investment must comply with what is established in the General Provisions establishing the investment regime to which specialized retirement fund investment companies must be subject;

Investments must be made directly or in its case through investment vehicles of the same nature as Structured Instruments;

The trust agreement of the instrument indicates that when there is judicial opposition by holders with the right to do so, it obliges the administrator of the instrument to suspend the investment, and

The trust agreement of the instrument establishes that the administrator of the instrument, regardless of whether it is a financial entity or a different one, will look after the interests of investors first and foremost at all times.

In case that investment within national territory is less than the percentage defined in the twenty-fourth provision, subsection VI of the General Provisions establishing the investment regime to which specialized retirement fund investment companies must be subject, Fiduciary Certificates of Investment Projects will be counted within the limit referred to in the sixteenth provision, subsection I, item d) of said provisions.

XVII.

Regarding FIBRA-E, they must define policies to analyze, evaluate, and, if applicable, follow up on:

The criteria for the leverage of Mexican societies that the trust acquires;

The maximum leverage levels of the trust, and

Analyze and evaluate if the administration of the instrument is internal or external.

XVIII.

For the case of Structured Instruments, it must ensure that the maximum amount to be invested in each Structured Instrument is not higher than the equivalent to 2% of the Total Asset corresponding to the set of Basic Investment Companies eligible for investments in Structured Instruments, operated by the same Administrator. The Investment Committee may modify the maximum percentage limit to invest described in this subsection, for which it must have the favorable vote of the Independent Directors and must clearly record it in the Detailed Minutes of the corresponding session;

XIX.

For the case of FIBRA-E and Structured Instruments, it must ensure that the administrator participates with 2% or more of the value of investments made through the FIBRA-E and Structured Instruments, in case the administrator participates as a co-investor of the FIBRA-E or the Structured Instruments in question, said 2% participation will not be additional to the amount of the co-investment. The Investment Committee may modify the minimum percentage limit to invest described in this subsection, for which it may consider additional criteria such as size of the issuance, administrator's experience, or sector of the financed projects, which must be recorded in the Detailed Minutes of the corresponding session, have the favorable vote of the majority of Independent Directors who are members of the Investment Committee, state the approved limit and express the reasons, as well as have available to the Commission the analyses by which the modification to said limit was determined;

XX.

For the case of FIBRAS, it must ensure that the joint investment of the Investment Companies operated by the Administrator, belonging to the same issuance, can be up to 35% of the total value of the issuance, and

XXI.

Investment Companies that fail to comply with the rules provided for in Annex T of these provisions must suspend their participation in other Structured Instruments until they comply with the investment regime, without prejudice to the foregoing, Investment Companies must participate in pending capital calls of Structured Instruments in which they have previously participated in order to avoid any prejudice to the savings of Workers.

XXII.

For the case of Securities Linked to Real Projects, they must verify that:

They are titles or securities that represent collection rights or cash flows issued through Vehicles and whose underlying assets are said collection rights or cash flows, which represent a payment commitment of Coupons, principal, or both for the issuer of the instrument and that have the credit ratings provided for in the General Provisions establishing the investment regime to which specialized retirement fund investment companies must be subject; and

The source of payment of said certificates does not come from credit rights, leases, or accounts receivable.

In the case of Structured Instruments and FIBRAS, the Head of the Investment Area must update the Investment Committees with the information of the Structured Instrument and the FIBRA when it makes investments or divestments of underlying projects and this information becomes known to investors.

The obligations provided for in this article must be evaluated and, if applicable, updated and presented by the Head of the Investment Area every year or before if the Investment Committee requests it based on the public information available in terms of the Securities Market Law, the General Provisions applicable to securities issuers and other market participants, issued by the National Banking and Securities Commission and, if applicable, based on the information provided to the holders of Structured Instruments, FIBRAS, and Securities Linked to Real Projects and that from the independent appraiser. For Fiduciary Certificates of Investment Projects, the information that, if applicable, is provided by the co-investor must be considered additionally. For Real Estate Investment Vehicles, the information disclosed in accordance with the applicable regulations of Countries Eligible for Investments may be considered.

The updated evaluations in terms of what is provided for in the previous paragraph must be presented by the Head of the Investment Area, in the next ordinary session of the Investment Committee in case relevant changes occur in the structure or operability of any Structured Instrument, FIBRA, Real Estate Investment Vehicle, or Securities Linked to Real Projects, when any of these instruments are acquired or alienated, or when the Investment Committee requests it.

To comply with the analyses or application of policies provided for in subsections II, VII, and XIV of this article, the Administrator must designate the Investment Committee or the Financial Risk Committee as responsible. In case the Administrator defines the Investment Committee, it must:

1.1.

Designate the Official of the investment area responsible for complying with the analyses or application of policies provided for in this subsection, and

1.2.

Verify that the designation and the activities to be carried out are included in the Investment Manual.

Article 31.- The Investment Committees must approve and follow up on the investment in Equity Components, for which they must:

Define and approve the Investment Strategy in Equity Components in accordance with the General Provisions establishing the investment regime to which Investment Companies must be subject, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risk Committee considering different investment horizons authorized by the Investment Committee;

II.

Approve the Equity Components contained in the Authorized Investment Regime and, if applicable, the Structures Linked to Equity Underlyings, in the terms provided for in these Provisions. Additionally, they must approve the Allowed Deviation of Stock Indices provided for in the General Provisions establishing the investment regime to which Investment Companies must be subject, as well as the investment in individual shares;

III.

Have previously an analysis on the characteristics and inherent risks that the Investment Committee defines in Equity Components to be acquired in accordance with what is provided for by the Prudential Rules in the matter of risk administration issued by the Commission and in these Provisions. In the case of investments in initial public offerings and individual shares, said analysis must include the fundamentals of the company that is being financed in accordance with what is established in Annex C of these Provisions.

In the case of the replication of a national stock or real estate index and it presents deviations in a range that does not exceed +/- 1.5 percentage points of the official weights avoiding that said weights be negative, the analysis on the characteristics and inherent risks will be required, but not the analysis of the company fundamentals referred to in the previous paragraph. Notwithstanding the foregoing, the fundamental analysis will be required when an issuer is not part of the index object of replication;

The analysis on the characteristics and inherent risks must also include the analysis of the compliance of issuers with environmental, social, and corporate governance principles (ESG by its acronym in the English language), considering:

In the case of investment in individual shares, the rating or position of the issuers in a ranking elaborated in accordance with ESG principles, which is generated by experts of recognized international prestige, or the weighting of said shares in Indices that adhere to ESG principles.

In case of investment through Stock Indices of Countries Eligible for Investments,

Investments, may consider the selection policies and the weighting of their components based on the rating prepared in accordance with ESG principles, which is generated by experts of recognized international prestige.

The historical performance of the indices referred to in the two previous subsections.

Additional elements that the Investment Committee considers relevant;

IV.

Analyze the liquidity of the Equity Components in the secondary market;

Periodically monitor the observed and expected performance of investments made in Equity Components. For this purpose, the performance and risk measures approved and indicated by the Investment Committee in the Investment Manual must be considered. The measures provided for in this paragraph will not replace the measures defined by the Financial Risk Committee that must be used to evaluate compliance with Prudential Limits, and

VI.

Periodically monitor compliance with the criteria defined by the Risk Analysis Committee, applicable to Vehicles whose purpose is to replicate Equity Components. Likewise, these policies must include the administrator's experience as a manager of Vehicles, including Mutual Funds and, where applicable, equity, debt, or real estate Vehicles, and the minimum amount of assets under management required.

VII.

In the event that the Administrator, through the Investment Societies it operates, intends to participate in the initial public offering of shares representing the share capital of a Private Company that have attached option titles referred to in subsection d) of fraction LII of the Second Provision of the General Provisions establishing the investment regime to which investment societies must be subject, they must previously:

Have the valuation of the aforementioned shares and option titles in terms of what is provided for in article 16, fraction X of these provisions;

ii.

Conduct an analysis containing what is provided for in the previous fraction III, as well as what is established in Chapter I, fraction I, subsections a) to d) and Chapter II, fraction I, subsections a) to g), i) and k), of Annex B of these Provisions.

Investment Societies that intend to carry out operations in the secondary market with the option titles referred to in subsection d) of fraction LII of the Second Provision of the General Provisions establishing the investment regime to which investment societies must be subject, must previously have the non-objection of the Commission for the Operation of Options whose underlying assets are Equity Components, and

VIII.

Define, from the list of Stock Indices of Countries Eligible for Investments provided for in Annex V of these provisions, the index that they will use as a reference to determine the maximum investment limits in individual shares of National Issuers listed on a stock exchange authorized to organize and operate in terms of the Securities Market Law, to which fraction II of the Twenty-Fourth Provision of the General Provisions establishing the investment regime to which specialized retirement fund investment societies must be subject refers.

The Head of the Investment Area must present to the Investment Committee the updated information referred to in this article with the frequency indicated below, or earlier if said Committee so determines:

1.1.

The information of fraction I: annually, and

1.2.

The information of fractions III to VI: every four months.

The Head of the Investment Area must present the referred information to the Investment Committee in the session immediately following the date on which the aforementioned frequency is met.

Article 32.- Investment Committees must define, approve, and monitor the Foreign Exchange Investment Strategy, in accordance with what is provided for in Annex D of these provisions. For the purposes of what is provided for in this article, Pure Foreign Exchange Positions, as well as the aggregated, direct, and indirect exposure of the investment portfolio in Foreign Exchange, must be considered.

To comply with the foregoing, Investment Committees must:

Define and approve the Foreign Exchange Investment Strategy, in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject, quantified in accordance with these Provisions, the limits defined by the Financial Risk Committee, and considering different investment horizons, as well as the criteria defined by the Risk Analysis Committee;

II.

Have, prior to investment, an analysis on the characteristics and inherent risks that the Investment Committee defines for the investment in Foreign Exchange to be acquired, in accordance with these Provisions, and

III.

Analyze the liquidity of Foreign Exchange investments whose exposure is planned in the Investment Strategy.

1.1.

The information of fraction I: annually, and

1.2.

The information of fractions II and III: every four months.

The Head of the Investment Area must present the referred information to the Investment Committee in the session immediately following the date on which the aforementioned frequency is met.

Article 33.- Investment Committees must define, approve, and monitor the Investment Strategy of the Asset Managed by the Investment Society in Debt Instruments and Foreign Debt Securities, including Securitized Instruments and excluding government securities, for which purpose, Investment Committees must:

Define, approve, and monitor the Investment Strategy in Debt Instruments and Foreign Debt Securities issued, guaranteed, or accepted by the same issuer, in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject, quantified in accordance with these Provisions, the limits defined by the Financial Risk Committee, as well as the criteria defined by the Risk Analysis Committee. For such purposes, the Investment Committee must define the investment horizon, the credit rating, the amounts, and the percentages of the Total Asset of the Investment Society in question;

II.

Create and update matrices containing the issuance and the required interest rate margin with respect to the corresponding government or sovereign reference for the different Debt Instruments or Foreign Debt Securities, which must be determined based on the variables and Risk Factors determined by the same Investment Committee, including the liquidity of the instrument, the payment seniority, the maturity term or duration, as well as the credit rating.

All Debt Instruments and Foreign Debt Securities referred to in this article must be included in one of the matrices provided for in this fraction;

III.

Define and monitor policies regarding the analysis of Financial Risks applicable to Debt Instruments and Foreign Debt Securities that are acquired;

IV.

Monitor the internal credit evaluation criteria defined by the Financial Risk Committee;

Define policies to classify issuances by sector, region, or other classification that the Investment Committee considers necessary. Monitor this classification to detect any deviation in the Investment Strategy or excessive concentration in any specific classification. Likewise, the Investment Committee must be informed of the Early Warnings monitoring carried out by the Financial Risk Committee for each defined classification;

VI.

In the case of Hybrid Debt Instruments, verify that a part of the issuance is carried out in international markets;

VII.

In the case of Hybrid Debt Instruments, analyze the liquidity in the secondary market and the Risk Factors that affect the price of these instruments, and

VIII.

In the case of Hybrid Debt Instruments, verify that the issuer has distributed dividends or profits to its investors previously and that it has bonds issued in recognized markets.

1.1.

The information of fractions I and IV: annually;

1.2.

The information of fractions II, VI, VII, and VIII: in accordance with what is established by the Investment Committee, and

1.3.

The information of fractions III and V: semi-annually.

The Head of the Investment Area must present the referred information to the Investment Committee in the session immediately following the date on which the aforementioned frequency is met.

The Investment Committee must define and approve the policies that the subcommittees provided for in article 46 of these provisions or those designated by the Investment Committee must observe to update the information that will be presented in the sessions of said Committee for the following situations:

2.1.

Breach of obligations;

2.2.

Changes in credit ratings;

2.3.

Changes in credit enhancers or guarantees;

2.4.

Application of specific rules of holder rights known in practice and in the English language as " covenants ", and

2.5.

Other situations defined by the Investment Committee.

Without prejudice to the foregoing, the subcommittees or those designated by the Investment Committee must monitor the information referred to in the previous subsections.

Article 34.- When the Administrator has the non-objection of the Commission to carry out operations with Derivatives, the Investment Committee must define, approve, and monitor the policy that will apply in the use of Derivatives, for which:

It will define the underlyings to which it will acquire exposure, the terms, and the types of operations with Derivatives, within the set of operations for which it has the non-objection of the Commission;

II.

It will define the markets, trading platforms, and Counterparties with whom it can carry out operations with Derivatives;

III.

It will define the type and determine the amount of guarantees, this latter with respect to the value of the operations carried out, which it may give and receive during the validity of the operations;

IV.

It must monitor the maximum leverage limit defined by the Financial Risk Committee, for operations with Derivatives to which the Assets Managed by the Investment Society will be exposed, and where applicable, the Assets Managed by the Mandatories, which will be monitored by the UAIR and reported in each session of this Committee. These limits must consider the total leverage for the investment portfolio of the Asset Managed by the Investment Society and, where applicable, must define similar policies for the investment portfolio of the Assets Managed by each Mandatory;

It must monitor the exposure and the market value of the operations that are considered for the computation of Annexes E, F, G, H, and I of these provisions, as well as Annex N of the General Provisions establishing the investment regime to which Investment Societies must be subject. These calculations will be made with the investment portfolio of the Asset Managed by the Investment Society, and where applicable, with the investment portfolio of the Assets Managed by each Mandatory;

VI.

It will define the criteria for the operation of purchase, sale, and confirmation in Derivatives markets;

VII.

It must monitor the credit ratings of the clearing houses and Counterparties with which Investment Societies operate, and, where applicable, define a policy that Mandatories must observe in this regard;

VIII.

Define and monitor the use of credit lines of each Counterparty;

IX.

It must have a periodic analysis that identifies the positions of operations with Derivatives that it considers may have an effect that is exacerbated by the cycle of Risk Factors, known in practice as " pro-cyclical effects ", and the methodology to monitor them, as well as to know the results of the risk metrics defined by the Commission applied to the investment portfolio of the Investment Society in question, and, where applicable, adjust the Investment Strategies with Derivative Instruments;

It must define the hedging policy for Investment Assets denominated in Foreign Currencies belonging to Groups II and III of Annex D of these provisions, which must include at least the following:

The percentages of coverage level of said Investment Assets; the coverage can be total or partial, and

ii.

The monitoring policies and corrective actions in the event that Investment Societies exceed the maximum deviation margin referred to in article 3, fraction XXI of these provisions.

Indirect Foreign Exchange hedges, known in the English language as " proxy hedge ", are prohibited.

1.1.

The information of fractions I, II, III, IV, VI, VII, VIII, and X: annually, and

1.2.

The information of fractions V and IX: every four months.

The Head of the Investment Area must present the referred information to the Investment Committee in the session immediately following the date on which the aforementioned frequency is met.

Article 35.- Investment Committees of Investment Societies, in case they approve the intermediation contracts in which they grant investment mandates to Mandatories, must:

Approve internal guidelines for the operation of the mandate and compliance with the investment regime, within the operational criteria defined for this purpose by the Commission and the Risk Analysis Committee that have been notified to the Administrators. Likewise, Administrators may define additional internal guidelines to those established by the Commission for the operation of the mandate;

II.

Define the content of the proposal request known in practice as " Request for Proposal ", RFP, by its acronym in the English language, to select the Mandatories with whom it will celebrate the intermediation contract in accordance with the guidelines approved by the Risk Analysis Committee in this matter, likewise they must ensure the application of the approved proposal requests;

III.

Define the content of the intermediation contracts in which they grant investment mandates to Mandatories in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject issued by the Commission, and the criteria defined by the Risk Analysis Committee;

IV.

Define the percentage of assets managed that will be granted through intermediation contracts to Mandatories;

Determine the type of investment according to the region, asset, and investment horizon for which they are authorized, which the Investment Society will grant to the Mandatories that it has hired, where applicable;

VI.

Define a reference portfolio with which the performance of each Mandatory will be evaluated, which will be in accordance with the type of investment that the Investment Society has outsourced, and, where applicable, a maximum deviation margin on the weights or another criterion of deviation relative to said portfolio. It will be the responsibility of the UAIR to monitor these measures;

VII.

Have a log in which modifications to the contract with each Mandatory, as well as deviations from it, are recorded and updated, and

VIII.

Determine the frequency of the calculation, as well as its horizon for the attribution of risk and performance of the investment portfolio of the Asset Managed by the Mandatory applying a methodology approved by the Financial Risk Committee.

1.1.

The information of fractions I to V and VII: annually, and

1.2.

The information of fraction VI: every four months.

The Head of the Investment Area must present the referred information to the Investment Committee in the session immediately following the date on which the aforementioned frequency is met.

For the purposes of analyzing the returns and risks provided to the Investment Committee, it must be indicated whether these measures adhere to international standards such as those issued by " Global Investment Performance Standards ", GIPS, by its acronym in the English language and translated into the Spanish language as International Standards on Investment Performance Presentation, or any other standard that complies with international best practices.

Article 36.- Investment Committees must define an Investment Trajectory applicable to the investment portfolio of the Total Asset of the Investment Society with which the Administrator will evaluate the performance and risk of each Investment Society it operates, describing the long-term investment objectives.

Such Investment Trajectory must comply with what is established in the General Provisions establishing the investment regime to which Investment Societies must be subject and the following guidelines:

The design of the Investment Trajectory must consider:

The investment horizon of the Investment Trajectory and the target replacement rate defined based on the projection of the distribution of expected replacement rates;

The composition of the Investment Trajectory, detailing for each year, throughout the existence period of the Investment Societies, the authorized investment percentages for at least each of the following concepts:

Asset Classes indicated in fraction VII, of article 2 of these Provisions.

The Investment Committee may assign a weight equal to zero to one or more of said Asset Classes as part of the Investment Trajectory, as well as consider additional asset classes to those provided for in this subsection;

ii.

Exposure through Derivatives in Foreign Equity Securities, quantified through market value;

iii.

Exposure to Foreign Currencies through futures or forwards quantified through market value. The Investment Committee must establish such exposure with a view to a coverage level objective between 0% and 100% of the exposure planned in the Investment Trajectory to Investment Assets denominated in foreign currencies, and

iv.

The inclusion of Derivatives in the Investment Trajectory is limited to the cases provided for in subsections ii and iii above.

The demographic characteristics of each Investment Society operated by the Administrator using annual projections for a 10-year horizon, defining the assumptions and methods of demographic analysis used, as well as other financial and operational variables that could modify liquidity requirements, in such a way that the compliance with long-term investment objectives is identified. Likewise, the relationship of the analyses provided for in this subsection with the determination of the weights of the Investment Trajectory must be explained. The Investment Committee may define a horizon greater than 10 years for the annual projections of the demographic characteristics;

Expected returns over 10 years considering the asset classes that integrate the Investment Trajectory and the volatility associated with them. The aforementioned calculations must be carried out in accordance with the policies previously defined by the Investment Committee with the favorable opinion of the majority of Independent Directors, including the updating of inputs. The investment area or, where applicable, the risk area, must carry out the calculations referred to in this subsection;

The calculation formulas for the level of return and risk of the Investment Trajectory;

The formulas for the attribution of return and risk of the investment portfolio relative to the Investment Trajectory, and

Based on the methodologies referred to in article 3, fractions XXII and XXIII, of these provisions, the allocation of the weights of the Investment Trajectory by Asset Class or Risk Factor will be defined.

II.

The governance of the Investment Trajectory must include:

The policy for the inclusion or exclusion of Investment Assets;

The definition of abnormal market situations and the action plans to be followed in these cases;

The Maximum Deviation of the investment portfolio determined at an aggregated level and by Asset Class or Risk Factor, in addition to the Contribution to Tracking Error, for which the technical support of such deviations must be included.

The rules for the rebalancing of the Investment Trajectory distinguishing those that apply to each Asset Class or Risk Factor included in the Investment Trajectory, as well as at an aggregated level, specifying the frequency with which such rebalancing will be carried out;

The policies to modify the weights of the Investment Trajectory, and

The criteria to make adjustments to the Investment Trajectory in case of not having complete price information of the Investment Assets included in it;

III.

Monitoring of the Investment Trajectory by the Committees:

To comply with the calculations provided for in fraction I, subsection d) above and the

calculation of expected returns provided for in Article 11, fraction III, the

Administrator shall designate as responsible the Investment Committee or the Financial Risk Committee. In the event that the Administrator designates the Investment Committee, it shall:

Designate the Official from the investments area responsible for complying with the

calculations provided for in this fraction, and

ii.

Verify that the designation and the activities to be carried out are included in the

Investment Manual.

The Administrator, through the UAIR, shall prepare the performance and risk attribution analysis of the investment portfolio of the Total Asset of the Investment Society relative to the

Investment Trajectory applicable to the investment portfolio of the Total Asset of the Investment

Society. The Assets Managed by the Mandatories may be excluded for the

analysis referred to in this subsection.

c) The Administrator, through the UAIR, shall analyze the deviations between the

weights defined in the Investment Trajectory by asset class or Risk

Factor and the investment portfolio of the Total Asset of the Investment Society.

d) The Administrator shall disclose the composition of the Investment Trajectory, as well as

the deviation policy between it and the investment portfolio of the Total Asset of the Investment

Society. Such disclosure shall be through the Administrator's Internet page

once approved by the Investment Committee, for which they may observe the contents

of the format provided for in Annex K of these Provisions.

e) The Administrator, through the UAIR, shall analyze the performance of the investment portfolio

with respect to the Investment Trajectory; this, through the difference between the

performance of the investment portfolio and that of the Investment Trajectory divided by the

volatility of the difference in returns, a measure known in English as

Information Ratio. The Investment Committee may define the calculation horizons used

for this analysis.

f) Administrators shall value the Investment Trajectory daily and generate a

profitability index for it, delivering such information daily to the

Commission in accordance with what is established for such purpose in the Rules

general to which the administrators of retirement funds, the specialized investment societies for retirement funds, the receiving entities and the operating companies of the National SAR Database must adhere, deliver to the

National Commission for the Retirement Savings System. For the purposes of the provision in the

present subsection, Administrators must obtain Risk Factors or prices of the

indices they use to represent each Asset Class or Risk Factor that integrates the

Investment Trajectory, for which they must use information provided by the means

of subscription that the Financial Risk Committee defines, or information provided by

Price Providers. The sources of information, as well as the inputs and the

methodology for valuation must be set forth in the Manual of Policies and

Procedures for the Administration of Financial Risk of the corresponding Investment Societies. The Risk Factors or prices used to represent each

Asset Class or Risk Factor that integrates the Investment Trajectory must be available to the Commission at all times and the Administrator must manage the necessary authorizations so that providers of this information allow this

Commission to know such information on a daily basis.

IV.

The definition or modification of the Investment Trajectory requires:

To have the approvals of both the Investment Committee and the Financial Risk

Committee;

To have the approval of the majority of the Independent Directors;

To be recorded in the Detailed Minutes of the sessions of the Committees,

and

d) The modification of the prospectuses and information brochures, for which they must adhere to

what is established in Title XIII of these provisions.

The Head of the Investments Area must present to the Investment Committee the information

updated as referred to in the preceding fractions with the periodicity indicated below, or

before if said Committee so determines:

1.1.

The information from fractions I, subsections a), b) and c), II, subsection c), III, subsection d) and IV,

subsection c): annually;

1.2.

The information from fraction I, subsection d): every four months, and

1.3.

The information from fraction III, subsections b), c) and e): monthly.

The Head of the Investments Area must present to the Investment Committee the information

referred to, in the session immediately following the date on which the periodicity described above is met.

The definition of the Investment Trajectory, the Maximum Authorized Deviation with respect to the Investment Trajectory

and the investment portfolio, as well as the rebalancing rules may be adjusted by the Investment Committee every twelve months and the Administrator must inform the Commission no later than 5 business days

after the approved adjustments.

The Administrator must have available to the Commission evidence that the Regulatory Comptroller

supervised that what relates to the Investment Trajectory corresponds to what was approved by the Investment Committee

and the Financial Risk Committee.

Article 37.- The Investment Committees must be aware of the results on portfolio tests under

stress scenarios approved by the Financial Risk Committee applicable to the investment portfolio of the

Asset Managed by the Investment Society, in terms of what is provided for in Article 63 of these

Provisions, and issue their opinion, which shall be recorded in the Detailed Minutes of the session immediately

following the receipt of the results. Likewise, the Investment Committees must be aware of the evaluations

of the Value at Risk, Conditional Value at Risk and Differential Conditional Value at Risk measures.

Article 38.- The Investment Committees must follow up on compliance with the criteria issued by

the Risk Analysis Committee regarding the Stock Indices of Eligible Countries for Investments,

Real Estate Indices of Eligible Countries for Investments, Debt Indices of Eligible Countries for

Investments, Vehicles, Real Estate Investment Vehicles, Mandatories, Custodians and Merchandise that the

Commission notifies to each Administrator or the Investment Societies that it operates.

Article 39.- The Investment Committees must opine and propose improvements to the mechanisms of

financial operation in contingency situations provided for in Title III, Chapter IV of these

Provisions.

Article 40.- The Investment Committee may opt for a set of variables, requirements, policies,

evaluations, Risk Factors and analyses different from those provided for in Articles 28, fraction III, 29,

fraction IX, 30, fractions IV, V, and XIV, 31, fractions III, V and VI, and 38, as well as the contents provided for in the

Annex C of these Provisions.

The foregoing must be recorded in the Detailed Minutes of the session in which it is approved by the

Investment Committee and must have the approval of the majority of the Independent Directors of the

said Committee.

When any Independent Director of the Investment Committee is incorporated, said Director within a

term not exceeding 60 business days following the session in which they participate for the first time, must

express their opinion regarding the policies approved by the Investment Committee that are in force on the

matters provided for in Articles 28, fraction III, 29, fraction IX, 30, fractions IV, V, and XIV, 31, fractions

III, V, VI and VII, and 38, as well as the contents provided for in Annex C of these Provisions that

remain in force. The list of agreements on which they express their opinion must be recorded in the Detailed

Minutes of the corresponding session.

Article 41.- The Investment Committees must define the policies and periodicity of update, as well

as the improvement of the Integrated Automated System that they apply to their activities.

The Administrator must designate as responsible the Financial Risk Committees, the

Investment Committees or some Official to define the policies and periodicity of update of the

Integrated Automated System that they apply to the confirmation, assignment and settlement of operations, as well

as the accounting record and generation of financial statements of the Investment Society. In the event that the

Administrator designates some Official, this Official must not have a conflict of interest in carrying out the referred

activities.

The Financial Risk Committees or the Investment Committees must verify that the policies,

periodicity, as well as the designations of the responsible persons referred to in this article are

incorporated into the Manual of Policies and Procedures for the Administration of Financial Risk, the

Investment Manual or, in the manual described in Article 62 of these Provisions, as

corresponds, depending on the designation made by the Administrator, in terms of what is

provided for in the preceding paragraph.

Article 42.- The Investment Committees in coordination with the Financial Risk Committees must

define the policies and periodicity of update and improvement of the interconnections between the modules of the

Integrated Automated System that they apply to the activities of both Committees. The interconnections

automated between modules will be required when they interact directly.

Article 43.- The Investment Committee will define the policies for purchase or sale operations of Assets

Investment Object negotiated through stock exchanges, Derivatives Exchanges or electronic brokers

open simultaneously to financial participants.

Article 44.- The Investment Committees must expressly state in the Detailed

Minutes, the current and potential conflicts of interest that may exist between the

Administrator that operates the Investment Societies and the persons with whom they have a Financial Nexus, whether

directly through operations of the Investment Society or indirectly through mandates or analogous, in case of approving the acquisition and conservation of Investment Object Assets, as well as the

investment in Authorized Vehicles that have been placed or structured by persons with whom they have a

Financial Nexus, or when the resource flows derived from the investment can be received by said

persons.

Article 45.- The Investment Committee of each Investment Society must be integrated by at least

five members, among whom there must be an Independent Director, the general director

of the Administrator that operates the Investment Society and the other members or Officials designated by the Governing Body of the Investment Society in question.

The sessions of the Investment Committee must be held in accordance with what is provided for in Article 42 of the

Law.

Among the members designated by the Governing Body, there must be included, in any case, a

non-independent director and the Head of the Investments Area of the Administrator.

Each member shall have the right to one vote. The members of the Investment Committee must establish the

internal procedure for the adoption of agreements in case of a tie in the vote.

The Detailed Minutes of the sessions of the Investment Committee must be available to the

Commission, which may be presented in stenographic version or by means of the recording that has the necessary security means that maintain the integrity of the information and the corresponding

transcription. For such purposes, the secretary of said Committee must ensure to elaborate and integrate the

corresponding Detailed Minutes. The Commission may request more information about the sessions of the

Investment Committee from the secretary of said Committee. The Detailed Minutes must be duly

signed by all the members who attended the session of the said Committee within a maximum term of

forty-five calendar days following the holding of the session.

This Committee must meet at least once a month and its sessions will be valid only if they have

a quorum of 80% of its members who participate with a vote, among whom the attendance

of the general director of the Administrator and an Independent Director will be required. The absence of the Independent

Director or the general director of the Administrator may only be excused on two occasions for each

calendar year, the Committee must designate a responsible person during the absence of the corresponding person and

only for such purposes.

The approval of the agreements will be by majority of votes, without prejudice to the foregoing, the requirements of opinion of the Independent Directors for the matters provided for in these

Provisions must be met. In the case where the Independent Directors must pronounce themselves and these

have divided decisions tied, prior to this condition, this Committee must define who has the casting vote among said directors.

Article 46.- The Investment Committee may create subcommittees whose purpose is to analyze the policies,

strategies, classes and type of Investment Object Assets that are presented to the Investment Committee.

For such purposes, the subcommittees must comply with the following:

That they are constituted in the terms determined by the respective Investment Committees;

II.

That the information relative to the functioning of the subcommittees is documented, indicating as

a minimum the members, guests, powers, policies, strategies and mechanisms of accountability to the Investment Committee, and

III.

The activities carried out by the subcommittees must be endorsed by the Investment Committees,

being recorded in the corresponding Detailed Minutes, as well as disclosed in the

Investment Manual.

Among the activities that the subcommittees carry out, the preparation of the

necessary documentation for the decision-making of the said Investment Committee may be contemplated, which must be available to the Commission.

The creation of subcommittees does not exempt the Investment Committee from having the necessary information for its

decision-making and fully complying with the obligations provided for in the current regulations.

Article 47.- The Regulatory Comptrollers and the responsible persons for the risk area must attend the

sessions of the Investment Committees that the Administrator for which they provide their services operates. In any case, they will participate with voice but without vote.

Likewise, the Regulatory Comptrollers must attend the sessions of the Financial Risk

Committees that the Administrator for which they provide their services operates. In any case, they will participate with voice but without vote.

Article 48.- The members of the Investment Committee with voice and vote cannot be members of the Financial Risk Committee with the exception of the general director of the Administrator that operates the Investment Society in question.

Article 49.- The Independent Directors who are members of an Investment Committee must

accredit the minimum experience of five years referred to in Article 50 fraction I of the Law, in financial matters.

The Independent Directors and the attendees to the sessions of the Investment Committee must manifest

the potential conflicts of interest that they may face regarding the portfolio management topics that are the subject of their evaluation. The Independent Directors must abstain from exercising their right to vote in cases where they have manifested facing a conflict of interest.

CHAPTER II

OF THE HEAD OF THE INVESTMENTS AREA

Article 50.- Each Administrator must have a Head of the Investments Area. The

Head of the Investments Area must be an Official who reports directly to the general director

of the Administrator according to the organizational structure of the Administrator. To be Head

of the Investments Area, the following requirements must be met:

To accredit before the Commission moral solvency, as well as technical and administrative capacity:

A person is considered to have moral solvency when:

They are not disqualified from exercising commerce or from holding a job, position or

commission in public service, or in the Mexican financial system;

ii.

They have not been convicted by final judgment for an intentional crime, and

iii.

They enjoy recognized professional prestige.

To meet the requirement of technical and administrative capacity, they must prove a

professional experience of at least seven years in the management of investment portfolios,

and

II.

To manifest under oath before the Administrator, that they know the code of ethics

elaborated by the Administrator for which they provide their services, to which they must adhere for the

carrying out of personal investments in order to avoid any type of conflict of interest.

Article 51.- The Head of the Investments Area will have in charge, at least, the following

functions:

To be responsible for the execution of the policy and Investment Strategy determined by the

Investment Committee, within the parameters established by the Investment Committees and Risk Committees of the Investment Society, for which they must execute such strategy

based on the resources available for such purposes of the Administrator itself, or in its case,

give the corresponding instructions to other Operators, or to Financial Service Providers,

including the Mandatories. Likewise, they must review the reports issued by the

Mandatories;

II.

To carry out their functions in accordance with external and internal regulations in the performance of their

position and the investments area. Such regulations include the Laws, Regulations, Circulars,

Guidelines and other Provisions of the Retirement Savings System in matters of

investments, and

III.

To enforce the Maximum Deviation policy with respect to the Investment Trajectory

applicable

to the investment portfolio of the Total Asset of the Investment Society once approved by the

Investment Committee.

CHAPTER III

OF THE INVESTMENT MANUAL

Article 52.- Each Administrator must prepare an Investment Manual, which must be approved

by the Investment Committees and by the Governing Body of the Administrator itself, having the vote

favorable of the majority of the Independent Directors.

The Administrator must have available to the Commission evidence of the following:

1.1.

The Investment Manual was reviewed at least by the Head of the Investments Area,

and

1.2.

The Regulatory Comptroller supervised that the content of the Investment Manual corresponds

to what was approved by both the Investment Committee and the Governing Body of the

Administrator itself.

Administrators must inform the Commission, formally and clearly, about each of the

modifications made to the Investment Manual, this within a term not exceeding 10 business days of making

such modifications. Likewise, they must keep available to the Commission, evidence that such

modifications were approved by the Investment Committees and by the Governing Body of the Administrator itself.

The Investment Manual must remain available to the Commission at all times and comply with the

quality and characteristics required in this Chapter, as well as what is provided for in Articles 36, 41, 46,

fraction III and 128 of these Provisions, as applicable, in terms of what is established in each

of said articles.

The Commission may request at any time that the Administrator present it with the Investment

Manual and that the Administrator make the adjustments that are necessary to said Manual.

The Investment Manual must specify the following elements:

The policies and procedures for the acquisition of Investment Object Assets, which the Committee

of Investment has authorized to invest the resources of the Investment Society. Likewise,

it must indicate both in the Investment Manual and in the information prospectus those

Investment Object Assets provided for in the investment regime in force in which the Committee of

Investment has not authorized investing the resources of the Investment Society within the

Authorized Investment Regime. Such investment policies and procedures may be determined by general guidelines authorized by the Investment Committee;

II.

The obligation on the part of the members of the Investment Committee, the Head of the Area of

Investments and the Operators, to recognize the responsibility inherent to their position and to

prioritize, above all, the interest of the Workers over any other;

III.

The procedures for the structuring and settlement of Structures Linked to

Underlyings;

IV.

The minimum standards of information disclosure determined by the Investment Committee,

of the issuers of Investment Object Assets eligible to be acquired by the Investment Societies

that the Administrator operates, in compliance with what is provided by the applicable regulations;

The methodology that must be followed in order to carry out the analysis of the investment portfolios

referred to in Article 63 of these Provisions;

VI.

The methodology that must be followed in order to carry out the analyses of the Instruments

Structured, FIBRAS and Certificates Linked to Real Projects referred to in

Article 139 of these Provisions;

VII.

The minimum requirements that the common representatives of the issuances

must meet so that the Investment Societies can acquire them;

VIII.

That the responsible persons for the confirmation, settlement, accounting record and generation of financial statements, as well as for the assignment of operations act with independence from the

Head of the Investments Area and the Operators;

IX.

The policies regarding price positions in firm to operate with Derivatives;

The establishment of internal policies for the selection of Counterparties, of Custodians, and of

Financial Service Providers including Mutual Funds, Mandatories, in their case

Merchandise Operators and Mandatories of Structured Instruments known in

practice as fund of funds as well as for the selection of Vehicles, Real Estate Investment

Vehicles and mechanisms with exposure to permitted underlyings in the Provisions of

general character that establish the investment regime to which they must adhere the

Investment Societies. Policies for the selection of Counterparties must include an analysis containing the evaluation of credit, reputational, and liquidity risk of the Counterparty, as well as an analysis of the legal structure for the execution of guarantees. In the case of contracts established in the modality known in practice as "delivery against payment," it will not be necessary to prepare the credit risk evaluation of the Counterparty. Likewise, the criteria taken into account to define the policy for the selection of Counterparties must be indicated;

XI.

The necessary mechanisms to access the best interest rates or prevailing prices in the market at the time of concluding operations on Investment Assets, subject to the following and, in their absence, to the best international market practices observed:

The definition of mechanisms to conclude operations at the best available price or rate, including the Brokerage Costs derived from operations with Investment Assets;

The electronic and communication means through which quotes are allowed to be obtained;

The definition of execution policies considering the amounts to be negotiated, as well as the depth and liquidity of the markets;

The definition of policies for the execution of Package Execution Orders and Blind Execution Orders, as well as other similar mechanisms employed by the Investment Society, for which it must comply with the following requirements:

The Administrator must have the technological capabilities and procedures, in accordance with what is established in the Investment Manual and in the Manual of Policies and Procedures for the Administration of Financial Risk. Likewise, the Administrator must have the necessary technological capabilities to carry out the risk control policies established by the Financial Risks Committee and to evaluate whether such operations are executed at the best price;

ii.

Have evidence showing that the Package Execution Order operation was executed at the best available price, which must be available to the Commission and the Regulatory Comptroller, and

iii.

These operations must be carried out exclusively through markets listed in the Countries Eligible for Investments.

The minimum number of quotes before concluding an operation;

The time period allowed for quoting;

The time period allowed to carry out the distribution of investments among the Investment Societies;

Evidence in magnetic, electronic, documentary, and other analogous media, that support adherence to the policies adopted to ensure that the operations carried out are conducted in accordance with best execution policies;

The sanctions applicable to employees of the Administrator who violate the internal and external regulations applicable to them;

The policies approved by the Investment Committee for the hiring of Mandatories, and

The exception mechanisms to the criteria provided for in the preceding subsections of this fraction, determined by the Investment Committee.

In the event that operations are carried out through Financial Service Providers, including Mandatories and Mandatories of Structured Instruments, the Administrator must agree in the contracts celebrated with them the mechanisms so that the operations are carried out at the best interest rates or prevailing prices in the market at the time of concluding them. Such mechanisms must be contained in the Investment Manual;

XII.

Repealed;

XIII.

In the event that the administration of investments is carried out through a third party, in addition to having a Head of the Investment Area, the Administrator must determine the way in which it will ensure that:

The confidential information of each entity is not used for purposes other than those for which it was disclosed;

There is no undue benefit on the part of the third party or its related entities from the information provided by the Administrator, and

In the relationships of the third party with the groups and financial entities with which it has Patrimonial Links, what is provided for in articles 64 and 69 of the Law, what is provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject, issued by the Commission, in the Prudential Rules on risk administration, and in these Provisions will be observed.

XIV.

It must contain policies for the administration of the liquidity of the investment portfolio, for which it must consider at least the following:

Characteristics regarding the liquidity of the Investment Assets that make up the investment portfolio in accordance with the policies defined by the Investment Committee, which must consider the following:

Term of the instrument;

ii.

In its case, credit rating of the issuance and issuer;

iii.

Markets in which it is traded and estimates on the price differentials of purchase and sale;

iv.

Estimates regarding the depth and liquidity of the markets, conjuncturally and structurally;

Available trading platforms for said securities;

vi.

Securities lending and repurchase operations with said securities, and

vii.

In its case, estimates on Coupons, dividends, and distributions.

The Investment Assets must be classified in accordance with the aforementioned policies.

Monthly estimates of the net liquidity flows of the Investment Society coming from, among others: transfers, partial and total withdrawals, results of financial operations, particularly from operations with Derivatives, capital calls coming from Structured Instruments, periodic contributions to individual accounts, assignments and reassignments of individual accounts, flow from payment of Coupons, dividends, and distributions, asset maturities, early amortizations, and transfers due to the age of the Workers. The analyses referred to in this paragraph must be carried out with demographic, statistical, financial, and actuarial elements. The review and update of the demographic and actuarial elements must be carried out at least annually;

Provide that the Administrators have projections with the net liquidity flows generated by the investment portfolio of the Investment Society in question for each of the following 90 natural days subsequent to the date of analysis, as well as a projection of the net liquidity flows at 180 days, 1, 2, 3, 4, and 5 years, and

Provide a policy for the acquisition and management of Investment Assets, consistent with the information and analysis derived from carrying out the processes described in this article. In the event that the Investment Society does not invest in any Investment Asset, the policy in question shall not be determined;

XV.

Define credit line policies for Counterparties, particularly for operations with Derivatives;

XVI.

Have the description of the Integrated Automated System for the activities of acquisition, disposal, and online registration of Investment Assets and the database structure generated for the monitoring of each of these activities;

XVII.

The definition of the Investment Trajectory of each Investment Society and the Authorized Maximum Deviation;

XVIII.

Designation and activities of the Head of the Investment Area to comply with specific activities regarding Structured Instruments, and

XIX.

The policies referred to in article 34, fraction X of these provisions.

The Investment Manual must be subject to what is provided for in these Provisions and must be updated with the necessary frequency to achieve this objective. The Investment Manual must form part of the Self-Regulation Program approved by the Governing Body of the Administrator in terms of article 29, fraction I of the Law. The Officials of the Administrator and of the Investment Societies must observe the compliance with said Investment Manual.

CHAPTER IV

OF THE INVESTMENT PROCESS

Article 53.- Administrators must have for the operations they conclude directly through their Operators an Integrated Automated System for the activities of acquisition, disposal, and online registration of Investment Assets that meets at least what is indicated in Annex L of these Provisions. The Integrated Automated System referred to in this article must use inputs with a lag of one day or less if the Investment Committee so defines.

Article 54.- Administrators during the implementation of the Integrated Automated System must simultaneously use the system they have to comply with what is established in these Provisions. During the substitution of the Integrated Automated System, the Administrator will be responsible for any non-compliance caused to these Provisions, to the General Provisions establishing the investment regime to which Investment Societies must be subject, to the General Provisions on the registration of accounting, preparation, and presentation of financial statements to which Investment Societies must be subject, to the General Provisions establishing the patrimonial regime to which Administrators, Pensionissste, and Investment Societies and the special reserve will be subject, to the General Provisions establishing the procedure for the construction of net performance indicators of Investment Societies, to the General Rules that the Commission establishes for the delivery of information, and to what is provided for in the Prudential Rules on risk administration.

Article 55.- Administrators must establish contingency policies in the event of technical failures in the Integrated Automated System or any module of said system, as well as backup and continuity policies for the investment operation with which the Investment Society must have. Such contingency policies must contemplate the functioning of the critical activities defined by the Investment Committee, considering what is provided for in article 56 of these Provisions.

Article 56.- In the event that it is necessary to recover the continuity of operations, it must be carried out at an alternate site that will not be predictably affected by the same circumstances as the Administrator's site. The alternate site of the Administrator must fully satisfy these Provisions, regarding the minimum functioning that Investment Societies must observe, as well as the additional activities determined by the Administrator itself. In the event that the Administrator determines the performance of additional functions to the minimum functioning at the alternate site, the Administrator will be responsible for guaranteeing the full compliance with these Provisions.

The minimum functioning of Investment Societies is understood to be the following activities:

To be able to cross the price of the Investment Society on the platform defined by a Stock Exchange authorized to organize and operate in terms of the Securities Market Law;

II.

Send to the Commission the financial information referred to in the General Rules that the Commission establishes for the delivery of information;

III.

Comply with all settlement obligations of Investment Assets that make up the investment portfolio of the Investment Society, and

IV.

Carry out the necessary operations to comply with previously contracted obligations.

Article 57.- Administrators may not transfer Investment Assets between Investment Societies unless a norm or authorization issued by the Commission allows it.

Article 58.- Investment Societies may acquire or dispose of Investment Assets only in the Countries Eligible for Investments.

Article 59.- Investment Societies operated by Administrators must ensure that the purchase or sale activities they carry out adhere to the sound uses and market practices.

Purchase or sale operations of an Investment Asset negotiated through stock exchanges, Derivatives Exchanges, or open electronic markets simultaneously with financial participants, will be considered market operations.

It is an obligation of the Administrator to maintain evidence in magnetic, electronic, documentary, or analogous media, that support adherence to the policies adopted to ensure that the operations carried out will be conducted in accordance with best execution policies.

Article 60.- The Head of the Investment Area, or the Official whom he designates in writing, must notify the Investment Committee at each ordinary session about the excesses in the use of credit lines by Counterparty in operations with Derivatives that occurred during the last period between sessions.

Article 61.- Administrators may provide that contracts with Custodians include liquidity facilities in the purchase or sale operations of Investment Assets, which must be settled at the end of the day. Such facilities will not generate any cost for the Administrators or for the Investment Societies that operate regarding the facilitated amount, provided they are settled at the end of the day.

Article 62.- The confirmation, settlement, assignment, accounting registration, and financial statement generation areas of Investment Societies must have a manual that indicates the policies and procedures governing their operation, as well as the description of the Integrated Automated System they apply to their activities and the database structure generated for the monitoring of each of these activities.

Such manual must be approved by the Investment Committee, the Financial Risks Committee, or the Official whom the general manager designates as responsible, with the approver noted in the manual itself. Likewise, in said manual, the Committee or Official responsible for defining the policies and periodicity of update and improvement of the Integrated Automated System in terms of article 4, second paragraph of these Provisions must be noted.

The aforementioned manual must be kept available to the Commission at all times.

CHAPTER V

OF THE BEHAVIORAL TESTS OF INVESTMENT PORTFOLIOS

Article 63.- The Head of the Investment Area, or whom he designates, must consider for their investment decisions in FIBRAS, Real Estate Investment Vehicles, Commodities, Currencies, Debt Instruments, Foreign Debt Securities, Equity Securities, and Foreign Equity Securities that are part of the Asset Managed by the Investment Society, the results of the tests prepared by the UAIR referred to in Title II, Chapter II of these Provisions. The aforementioned tests must be carried out with a monthly frequency.

In the case of FIBRAS, Real Estate Investment Vehicles, and Certificates Linked to Real Projects, Investment Societies may use Generic Instruments to carry out the tests referred to in this article. In the case of Structured Instruments, portfolio tests must also be prepared, which will only be enforceable from the moment the Structured Instrument has investments and will be satisfied with the risk reports that for such purposes the administrator or the independent appraiser of the Vehicle in question provides. The Head of the Investment Area, or whom he designates, must know and, if applicable, request modifications through the technical committees of the Structured Instruments, regarding the contents of the tests provided for in this paragraph. The results of these tests must be made known to the Financial Risks Committee.

The Head of the Risk Area must present the results of the tests referred to in this provision monthly to the Investment Committee so that it considers them in its investment decisions for the Investment Society in the session following its preparation and keep them available to the Commission.

TITLE IV

OF SOUND PRACTICES

CHAPTER I

OF CORPORATE RIGHTS

Article 64.- Investment Societies operated by the Administrator, in the exercise of the rights conferred upon them by their share participation in a company that is part of the investment portfolio of the Asset Managed by the Investment Society, must be subject to the following:

Define a policy for the designation of independent directors of the company financed by the Investment Society, in the boards of directors that look after the interests of workers as well as the economic value and viability of investments in respect of environmental, social, and corporate governance principles (ESG, by its acronym in English).

Among the characteristics of independent directors are the following:

Professional experience in activities such as directors;

Adhere to the code of ethics established by the Investment Committee, which will comprise among others:

Abstain from voting in which the independent director has a conflict of interest in their person;

ii.

Provide for policies in which the independent director as a representative of the Investment Society has a conflict of interest with the company;

iii.

Knowledge of the provisions of the Securities Market Law, particularly regarding access to information that is not public for decision-making, and

iv.

The duty to request the information required for the full compliance of their mandate.

Adhere to the rules and guidelines applicable to directors defined by the regulatory authorities of securities markets and, if applicable, guild associations.

II.

Define a policy that, if applicable, will be applicable to situations in which the Investment Society decides not to appoint an independent director.

CHAPTER II

OF GOOD PRACTICES

Article 65.- The Governing Body of the Administrator must elaborate and approve a code of good practices whose objective is to eliminate potential conflicts of interest in activities and decision-making regarding investments and risk administration. Likewise, the Governing Body of the Administrator must elaborate and approve a code of ethics whose objective is to establish the principles with which Officials of the investment area, the risk area, the regulatory comptroller who carry out observation activities in financial matters of Investment Societies, of the areas or activities of confirmation, settlement, assignment, accounting registration, and financial statement generation of investment operations, including members of the Investment and Financial Risks Committees, as well as all involved in the operation and decision-making of Investment Societies, in the fulfillment of their functions, must conduct themselves.

The code of good practices must include the following:

Responsibilities and obligations determined by the Governing Body of the Administrator, for each council member of said Body;

A policy that allows members of the Governing Body of the Administrator to know the reports of independent experts, if applicable;

A policy to detect and avoid real and potential conflicts of interest in investment and risk administration activities that are presented to the Governing Body of the Administrator;

The criteria on which the remuneration policies of investment and risk personnel of Investment Societies, as well as those responsible for the areas of confirmation, assignment, settlement, accounting registration, and regulatory comptroller, could be based. The Administrator will have the obligation to provide the inputs so that they exercise, in time and form, the necessary tools for the exercise of the faculties of Independent Directors. Likewise, they will inform them regarding the matters in which their opinion will be requested, and

Internal sanctions, by type of non-compliance, in case of faults or omissions to what is provided for in said code, including in an enumerative but not limiting manner, private reprimands, public reprimands, and dismissals from office.

The content of the code of good practices must be reviewed annually or before if so defined by the Governing Body of the Administrator.

II.

The code of ethics must provide for the following:

The principles to which Officials linked to the celebration of operations must be subject;

The mandatory compliance with the code and its publication on the Internet page of the Administrator;

The policies applicable to members of the Investment Committee, the Financial Risks Committee, as well as Officials of the investment and risk areas, regarding the personal investments of said participants with the object of avoiding any type of conflict of interest.

The content of the code of ethics must be reviewed annually or before if so defined by the Governing Body of the Administrator.

Officials of the investment area, the risk area, the regulatory comptroller who carry out observation activities in financial matters of Investment Societies, of the areas or activities of confirmation, settlement, assignment, accounting registration, and financial statement generation of investment operations, including members of the Investment and Financial Risks Committees, as well as all involved in the operation and decision-making of Investment Societies, in the fulfillment of their functions, must comply at all times with what is provided for in the code of ethics and code of good practices referred to in this article.

Article 66.- The Governing Body of the Administrator may create a subcommittee that has the object:

Regarding the code of good practices, the following:

Analyze potential conflicts of interest in investment and risk management activities presented to the Governing Body of the Administrator;

Analyze the content of the code of good practices, and

Propose to the Governing Body of the Administrator the sanctions that should be imposed on Officials who infringe the code of good practices.

II.

Regarding the code of ethics, the following:

Analyze potential conflicts of interest regarding the personal investments of members of the Investment Committee, the Financial Risk Committee, as well as Officials in the investment and risk areas,

Analyze matters related to the preparation and approval of the code of ethics, and

Analyze the content of the code of ethics.

If the Governing Body of the Administrator does not create the subcommittee provided for in this article, said Governing Body must authorize the contents of fractions I and II of this article.

CHAPTER III

PRACTICES TO AVOID CONFLICTS OF INTEREST

Article 67.- Investment Societies are prohibited from making the following investments with the Total Assets of the Investment Society:

Directly or indirectly acquire Investment Assets issued, accepted, or guaranteed by Financial Intermediaries with which the Administrator operating the Investment Society has Patrimonial Links;

II.

Conduct transactions with Investment Assets with Financial Intermediaries with which the Administrator operating the Investment Society has Patrimonial Links, and

III.

Conduct transactions with Vehicles or Real Estate Investment Vehicles of which the underlying Assets of the Vehicle are unknown, in accordance with the daily periodicity, except in the cases provided for in these Provisions.

Investment Societies may acquire Vehicles and Real Estate Investment Vehicles that are sponsored or administered by Financial Intermediaries, Mandatories, or Service Providers with which the Administrator operating the Investment Society has Patrimonial Links, provided that such Vehicles or Real Estate Investment Vehicles are included in the list published by the Commission on its website, or have a favorable opinion from an independent expert, in accordance with what is provided in the General Provisions establishing the investment regime to which Investment Societies must be subject and the criteria defined by the Risk Analysis Committee. Vehicles and Real Estate Investment Vehicles must comply at all times with the provisions applicable to them.

Investment Societies, whose investment regime authorizes it, may acquire Vehicles through primary placements and in the secondary market when the issuer is a trust constituted in a Credit Institution that is part of the same financial group as the Administrator, or whose shareholders are part of, that operates the Investment Society, it being stated in the trust contract to be executed that the trustee will act on behalf of third parties, assuming no payment responsibility nor granting any type of guarantee to holders.

Likewise, Investment Societies may acquire the Structured Instruments referred to in the previous paragraph, in the secondary market, using the services of the Credit Institution or the brokerage house of the financial group of which the Administrator operating them is part or has a Patrimonial Link, so that on behalf and order, they conduct transactions with securities, other than those prohibited by article 69 of the Law.

Article 68.- Investment Societies must adjust their practices with Service Providers and, where applicable, with Mandatories, to what is provided in this Chapter, always avoiding operations that imply a possible conflict of interest. To this effect, it must be expressly agreed:

That Service Providers, and where applicable, Mandatories, cannot conduct any transaction for the contracting Investment Society when acting with Investment Assets that are part of the assets of the Service Providers or Mandatories;

II.

That Service Providers, and where applicable, Mandatories, cannot conduct any transaction for the contracting Investment Society with Financial Intermediaries with which the Service Providers or Mandatories have Patrimonial Links, and

III.

That Service Providers, and where applicable, Mandatories, cannot conduct any transaction for the contracting Investment Society with Financial Intermediaries with which the Administrator operating that Investment Society has Patrimonial Links.

Article 69.- The Regulatory Comptroller of the Administrator operating the Investment Society will be responsible for observing the strict compliance with what is provided in this Chapter. Regarding the Assets Managed by the Investment Society, the Regulatory Comptroller must define in their Function Plan a process to observe deviations from what is established in this Chapter.

CHAPTER IV

OF THE CERTIFICATION OF OFFICIALS

Article 70.- Officials in charge of activities of Investment Societies must be certified in accordance with this article and Annex J of these Provisions. In particular, Officials in the investment area, the risk area, the regulatory compliance area that exercise their duties in financial matters of Investment Societies, of the areas or activities of confirmation, settlement, allocation, accounting registration, and generation of financial statements of investment operations, must be certified by one of the independent third parties of recognized prestige in the provision of financial education that the Commission designates to accredit their general knowledge in investment matters to exercise the functions they perform. The certification will have a validity in accordance with Annex J of these Provisions.

Officials may only conduct purchase, sale, repo, securities lending, confirmation, settlement, allocation, or accounting registration and generation of financial statements operations for Investment Assets for which they are certified.

In the event that operational errors caused by Officials who failed to comply with the certification referred to in this article resulted in write-downs, costs, or losses to Investment Societies, the Administrator operating the corresponding Investment Society must reimburse the aforementioned expenditures, for which the complete period in which the event occurred will be considered.

No person involved in the activities of Investment Societies who fails to comply with what is provided in these Provisions regarding the certifications provided for in this article may exercise functions for Investment Societies that require execution by a certified Official for a period greater than 60 business days.

Officials may not accumulate more than 60 business days without certification in one Administrator or different Administrators, counting the days from when they joined the areas referred to in different Administrators or in the same Administrator.

Without prejudice to the general financial certification referred to in this article, Officials in charge of activities regarding Investment Societies that conduct transactions with Derivatives and Structured Instruments must additionally hold the specific certifications established in these Provisions, especially regarding the content of Annex J.

CHAPTER V

OF INDEPENDENT DIRECTORS

Article 71.- Independent Directors, once a year, within the four months following the closing of the fiscal year, must submit an annual report to the Governing Body of the Administrator, which must contain their opinion on the areas of opportunity they identify in the Administrator in financial matters, as well as the most relevant activities of their management and the activities within the Committees to which they attended during the reference period. This report must be available to the Commission at all times.

Article 72.- Independent Directors must be informed of Officials who cease to work or provide their services in the Administrator with positions equivalent to or higher than those responsible for each of the areas of the Administrator, among others, the Head of the Investment Area, the Head of Financial Risks, the Head of Operational Risks of the Investment Society, the Head of Administration and Finance, Legal, and the Internal Control Body.

Article 73.- At least once a year through their representation in the Governing Body of the Administrator, Independent Directors must propose and comment on improvements identified in the current corporate governance model of the Administrator.

Article 74.- The Administrator must provide the human and material resources necessary for Independent Directors to perform their functions.

Article 75.- Independent Directors, upon leaving their position with the Administrator, within the four months following their departure, must submit a report to the Governing Body of the Administrator, which must contain their opinion regarding the situation of the Administrator in financial matters, the most relevant activities of their management, and the activities within the Committees to which they attended during the period they remained with the Administrator, as well as matters pending or in progress under their charge and other information they consider relevant. This report must be available to the Commission at all times.

TITLE V

OF THE PROVISION OF PRICES AND VALUATION OF INVESTMENT ASSETS

Article 76.- Administrators must value the Investment Assets owned by Investment Societies themselves or through a Valuation Society they hire. In any case, they must use the prices provided by the Price Provider, which may be different entities when applied to the Assets Managed by the Investment Society and the Assets Managed by each of the Mandatories. Regarding the Assets Managed by Mandatories, Administrators may hire a different Valuation Society.

Regarding the Total Assets of the Investment Society, Valuation Societies must value the shares representing the paid-up capital of Investment Societies.

For the Assets Managed by the Investment Society, Valuation Societies, or where applicable, Administrators, must perform, in addition to the valuation of the Investment Assets referred to, the following:

Calculate the fair value of the repo operations conducted by Investment Societies, and

II.

Calculate for all Investment Societies the Value at Risk, the Conditional Value at Risk Differential, and the risk measures defined by the Commission, as well as the risk measures that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Society.

For the purpose of valuing Assets Managed by Mandatories, Valuation Societies hired by Administrators must:

Value the Assets Managed by Mandatories;

Calculate the fair value of the repo operations conducted by Mandatories, and

Calculate the risk measures defined by the Commission or, where applicable, those regulatorily proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Society, applicable to the Assets Managed by Mandatories.

Article 77.- Administrators, before acquiring any Investment Asset, whether through Investment Societies or through Mandatories, must ensure they have the Updated Prices for Valuation of the corresponding Investment Assets, in accordance with these Provisions on the Valuation Day on which said Investment Asset enters the investment portfolio of the Investment Society.

The Updated Prices for Valuation used to value the Investment Assets that make up the Assets Managed by Investment Societies and, where applicable, the interest, must correspond to the Valuation Day of the Investment Society's share. The Assets Managed by Mandatories must be valued on the Valuation Day using prices that may be lagged in their determination date in accordance with the timeframes described in the General Provisions on the registration of accounting, preparation, and presentation of financial statements to which Investment Societies must be subject issued by the Commission.

Article 78.- Administrators who have objections to the prices determined by the Price Provider or the Valuation Society in accordance with their activities must formulate them in writing to said entities and to the competent authority or in accordance with international practices established in the Eligible Country for Investments in question, so that they are resolved in accordance with the regulation applicable to them, and must notify the Commission of the aforementioned disagreement on the next business day following the date of publication of the objected price, indicating the resolution adopted by the Price Provider.

Administrators must retain for a period of 5 years the evidence provided by the Price Provider or the Valuation Society that supports the modifications, if any, made to the Updated Prices for Valuation or, where applicable, to the inputs used to determine compliance with the limits applicable to the risk measures determined by the Commission in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject.

Article 79.- Bank deposits of money made with the Assets Managed by the Investment Society must be valued exclusively by the Administrators, taking the closing balance of the day prior to the Valuation Day. Regarding the valuation in national currency of deposits in Foreign Currency, Administrators must use the Exchange Rate, or the Cross Exchange Rate for Valuation, in effect for the Valuation Day. Bank deposits made with the Assets Managed by Mandatories must be valued by an eligible third party in accordance with these Provisions determined by the Administrator among which may be International Custodians or this same entity.

Article 80.- Administrators or, where applicable, Valuation Societies they hire for this purpose, must value daily in national currency the Investment Assets that form part of the Total Assets of the Investment Society in accordance with the Authorized Investment Regime, using the following:

Updated Prices for Valuation applied to the Investment Assets that form part of the Assets Managed by the Investment Society;

II.

Prices obtained by Administrators according to the methodology they develop in the Manual of Policies and Procedures for the Administration of Financial Risk, applied to the Investment Assets for which these Provisions provide this valuation process, which form part of the Assets Managed by the Investment Society;

III.

Fair value of repo operations and value of bank deposits, applied to the Investment Assets that form part of the Assets Managed by the Investment Society;

IV.

Risk Factors corresponding to the valuation date, applied to the Investment Assets that form part of the Assets Managed by the Investment Society, and

Valuation of the Investment Assets of the Assets Managed by Mandatories.

Regarding Investment Assets denominated in Foreign Currency, except those provided for in article 79 of these Provisions, Administrators or, where applicable, Valuation Societies they hire for this purpose, must value them in national currency using the Exchange Rate and, where applicable, the Cross Exchange Rate for Valuation.

Likewise, the Investment Assets that form part of the Assets Managed by Mandatories, except those provided for in article 79 of these Provisions, must be valued by the Administrator or, where applicable, by the Valuation Society they hire for such purposes, in national currency, applying, where applicable, Cross Exchange Rates for Valuation provided by the corresponding Price Provider.

Article 81.- Administrators or, where applicable, Valuation Societies they hire for this purpose, must calculate the fair value of the repo operations conducted by Investment Societies and, where applicable, Mandatories, using the Updated Prices for Valuation and the accrued premium will be updated according to the term of the Valuation Day. Likewise, Administrators or, where applicable, Valuation Societies they hire for this purpose, must value the guarantees of the repo operations, in accordance with articles 83 and 84 of these Provisions.

For the purpose of what is established in this article, the fair value of repo operations must be equal to the present value of the sum of the value of the cash, plus the repo premium. The present value, in turn, will be calculated using the discount rate provided by the Price Provider, corresponding to the maturity term of the repo and the credit rating of the Counterparty with whom such operation is conducted.

Article 82.- Administrators or, where applicable, Valuation Societies they hire for this purpose, must calculate the Value at Risk, the Conditional Value at Risk Differential or, where applicable, the risk measure that in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject is defined, or that risk measure that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Societies or that defined by the Risk Analysis Committee applicable to the Investment Assets that form part of the Assets Managed by Investment Societies.

Likewise, Valuation Societies hired by Administrators must calculate the risk measure that in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject is defined, that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Societies or that defined by the Risk Analysis Committee, applicable to the Investment Assets that form part of the Assets Managed by Mandatories.

CHAPTER I

PRICE PROVISION FOR THE VALUATION OF INVESTMENT ASSETS

Section I

Of the Price Provision for the Valuation of Assets Managed by the Investment Society

Article 83.- Regarding the Investment Assets that form part of the Assets Managed by the Investment Society, Administrators must hire the services of a Price Provider, in order to receive from it the following services:

Updated Prices for Valuation of Instruments of all Investment Assets that make up the Assets Managed by the Investment Society, except for:

The fair value of repo operations;

The value of bank deposits;

The value of Structured Instruments, which have the valuation of an independent valuer of the settlor of the assets of the Structured Instrument, of the promoted entities, the promoter, and the administrator of the fund, and

The Investment Assets provided for in articles 84 and 85 of these Provisions.

II.

Risk Factors of all Investment Assets that make up the Assets Managed by the Investment Society, excluding those provided for in articles 84 and 85 of these Provisions.

Article 84.- Regarding the Investment Assets that operate in international markets and that form part of the Assets Managed by the Investment Society, Administrators may:

Obtain the Updated Prices for Valuation from the Custodian they have hired for the safekeeping of securities and transactions conducted in international markets, and

II.

Obtain the Risk Factors from the Custodian hired for the safekeeping of securities and transactions conducted in international markets.

The Custodian referred to in this article must be authorized to perform valuation activities by the competent authority of the Eligible Country for Investments where it is domiciled and may be a different entity from the Custodian hired for securities safekeeping activities in the national market.

Article 85.- Regarding the Assets Managed by the Investment Society, the Administrator may obtain the value of transactions with Derivatives that Investment Societies managed by it conduct in over-the-counter markets, using the valuation methodology approved by the respective Financial Risk Committees contained in the Manual of Policies and Procedures for the Administration of Financial Risk.

Section II

Of the Price Provision for the Valuation of Assets Managed by Mandatories

Article 86.- Regarding the Investment Assets that form part of the Assets Managed by Mandatories, the Administrator must obtain the Updated Prices for Valuation and the Risk Factors applicable to the assets referred to in these Provisions from a Price Provider or well

of the Custodians authorized to carry out such activities in the Countries Eligible for Investments, which may be entities other than those referred to in the previous Section.

Section III

Of the Provision of Prices for the Valuation of Investment Assets

Article 87.- The Updated Prices for Valuation corresponding to the Investment Assets that make up the investment portfolio of the Investment Companies and, where applicable, the interest, must correspond to the Valuation Day of the share of the Investment Company in question.

For the above purposes, the Valuation Committee, referred to in Article 46 of the Law, may determine the criteria regarding the information that will be considered for the purpose of calculating the Updated Prices for Valuation.

Likewise, through the General Rules established by the Commission for the delivery of information, policies must be delivered to the Commission to define the operations and assets that will make up the positions that must be valued on each valuation date.

Section IV

Of the Hiring of the Price Provider

Article 88.- Each Price Provider or Custodian that the Administrator hires for the purpose of obtaining Updated Prices for Valuation must provide a single price for the Investment Assets it values.

For the case of Price Providers that the Administrator hires to value the investment portfolios managed by the Mandatories and, where applicable, the investment portfolios managed by the Administrator itself in international markets, the following shall apply:

In the event that the Price Provider in turn requires the services of valuation experts, the Administrator that hired it must know which assets will correspond to be valued by each expert, and

II.

For the case of the investment portfolios managed by the Investment Company itself, a single Price Provider must be used to value said Investment Assets. Notwithstanding the foregoing, the Administrator may hire a Price Provider different from the one referred to in this paragraph to value the investment portfolio of the Assets Managed by the Investment Company that it operates in international markets.

The Administrator must inform the Commission of the policy it will follow to value the investment portfolios of the Investment Companies it operates in international markets. Such policy must be made known and approved by the Financial Risk Committee and reported to the Commission no later than 20 business days following approval by said Committee.

Article 89.- For the Investment Assets that are part of the Asset Managed by the Investment Company, the Administrators, in the contract they enter into with the Price Provider, must establish that the latter will provide the services referred to in Article 83 of these Provisions.

In the event that the Administrator decides to hire the services of a Custodian for valuation purposes, it must provide at least the Updated Prices for Valuation of the Investment Assets operated in international markets, as well as the Risk Factors of said securities and of the Derivatives transactions carried out in foreign over-the-counter markets.

Article 90.- The Administrators must establish in the contract they enter into with the Price Provider or the Custodian, that the latter must have the necessary information exchange systems to deliver daily to the Commission, on behalf of the Administrator operating each Investment Company, the Updated Prices for Valuation and the Risk Factors that, where applicable, correspond, to value and determine the Value at Risk, the Conditional Value at Risk Differential or the risk measures defined by the Commission or those that, in accordance with what is provided in these Provisions, must be proposed by the Financial Risk Committee and approved by the Governing Body of the Investment Company, of the Investment Assets for which the Price Provider or the Custodian has been hired, with the characteristics established in the General Rules that the Commission establishes for the delivery of information and under the terms of Articles 83, 86 and 89 of these Provisions.

Article 91.- The Administrators must inform the Commission regarding the Price Provider and the services contracted for the Assets Managed by the Investment Company, as well as regarding the Custodians and the Price Provider that it hires for the Assets Managed by Mandatories, within 10 business days following the celebration of the contract, and with 20 business days' advance notice before the start of the validity of the respective contract in the event of a change of Price Provider or of any Custodian.

For the above purposes, the Administrators must keep available to the Commission a copy of the contract entered into between the Administrator and its Price Provider or its Custodian, for the investment portfolio managed directly by the Investment Company and, where applicable, between the Administrator and the Price Provider or the Custodians for the case of the Assets Managed by Mandatories. Likewise, within 10 business days following the ratification of the contract by the Governing Body of the Administrator, the Administrators must keep available to the Commission a copy of the corresponding agreement, certified by the secretary of said Body, in which the approval of the hiring of the Price Provider or the Custodian in question is recorded.

Likewise, all requirements that apply to the Assets Managed by the Mandatories must be indicated, as part of an annex, in the contract that the Administrator and the Price Provider or the Custodian enter into.

The contract that the Administrator enters into with the Price Provider may not have a validity of less than one year and must be ratified by the Governing Body of the Administrator, at the first session following the celebration of said contract. Likewise, the contract that the Administrator enters into with the Custodian for the purpose of obtaining Updated Prices for Valuation must establish an annual validity, unless the termination of the contract had been agreed upon prior to said period of validity when the contract with the Mandatories had been cancelled before said period and the services of the Custodian had become redundant.

CHAPTER II

OF THE VALUATION OF THE INVESTMENT ASSETS

Article 92.- The Administrators, in the event that the Updated Prices for Valuation of the Investment Assets of the Total Asset of the Investment Company are not provided by the entity they have hired for such effect, must notify this fact to the Commission no later than 18:00 hours of Mexico City, on the business day prior to the Valuation Day.

In this case, the Administrators must inform whether the omission in the provision of the Updated Prices for Valuation of the Investment Assets that are part of the Total Asset of the Investment Company was total or partial. In the event that the omission has been partial, the Administrators must indicate which of the Investment Assets were omitted.

Section I

Of the Contingent Valuation Procedures for Investment Assets that are part of the Asset Managed by the Investment Company

Article 93.- In the event that the Price Provider does not provide the Updated Prices for Valuation of the Instruments, Foreign Equity Securities and Derivatives transactions carried out in standardized markets, the Administrators, or the Valuation Companies in their case, must value said financial assets under the following terms:

Using the Last Known Updated Prices for Valuation, which will be updated according to the term of the Valuation Day.

In the case of Investment Assets that, due to being newly issued, have not been included in the Last Known Updated Prices for Valuation, they must be valued taking the acquisition cost as a basis. In the case of Investment Assets denominated in Investment Units or its equivalent, or in Foreign Currencies, they will be updated with the value of the Investment Unit or its equivalent, or with the Exchange Rate or with the Cross Valuation Exchange Rate in effect for the Valuation Day, respectively;

II.

For titles that pay interest, the price without considering interest from the Last Known Updated Prices for Valuation will be taken and the interest accrued for the days elapsed until the Valuation Day will be calculated.

In the case of Instruments denominated in Foreign Currencies, Investment Units or its equivalent, as well as Foreign Equity Securities denominated in Foreign Currencies, both the price and the interest will be updated with the value of the Investment Unit or its equivalent or with the Exchange Rate or with the Cross Valuation Exchange Rate in effect for the Valuation Day, as the case may be;

III.

For Derivatives transactions carried out in standardized markets, the Last Known Updated Prices for Valuation will be taken, and

IV.

For Foreign Equity Securities, the Last Known Updated Prices for Valuation will be taken.

Article 94.- In the event that the Price Provider or Custodian, as applicable, do not provide the Updated Prices for Valuation of the Foreign Debt Securities, the Administrators must value said financial assets under the following terms:

Using the Last Known Updated Prices for Valuation that will be updated according to the term of the Valuation Day.

In the case of Foreign Debt Securities that, due to being newly issued, have not been included in the Last Known Updated Prices for Valuation, they must be valued taking the acquisition cost as a basis.

In the case of Foreign Debt Securities denominated in Investment Units or its equivalent, or in Foreign Currencies, they will be updated with the value of the Investment Unit or its equivalent, or with the Exchange Rate or with the Cross Valuation Exchange Rate in effect for the Valuation Day, respectively, and

II.

For Titles that pay interest, the price without considering interest from the Last Known Updated Prices for Valuation will be taken and the interest for the days elapsed until the Valuation Day will be calculated.

In the case of Foreign Debt Securities denominated in Investment Units or its equivalent, or in Foreign Currencies, both the price and the interest will be updated with the value of the Investment Unit or its equivalent, or with the Exchange Rate or with the Cross Valuation Exchange Rate in effect for the Valuation Day, respectively.

Article 95.- The Administrators, in the event that they hire a Valuation Company for the calculation of the fair value of repo transactions and it does not provide the corresponding value, must perform the calculation of the fair value of said transactions using the Updated Prices for Valuation and the accrued premium will be updated according to the term of the Valuation Day. Likewise, the Administrators must value the guarantees of the repo transactions under the terms of Article 81 of these Provisions or, in the event that the Price Provider does not provide the Updated Prices for Valuation of an Instrument, they must value the guarantees of the repo transactions under the terms of fractions I and II of Article 93 of these Provisions.

In the event that they do not have the Updated Prices for Valuation for the calculation of the fair value of the repo transactions, the Administrators must use the Last Known Updated Prices for Valuation.

For the purposes of what is established in this article, the fair value of the repo will be equal to the present value of the sum of the value of the cash plus the repo premium. The present value, in turn, will be calculated using the discount rate of the Updated Prices for Valuation or, where applicable, the discount rate of the Last Known Updated Prices for Valuation, corresponding to the term to maturity of the repo and in accordance with the credit quality of the Counterparty.

Article 96.- The Administrators, in the event that the Price Provider or Custodian, as applicable, do not provide the Risk Factors to calculate the Value at Risk, the Conditional Value at Risk Differential or the risk measures defined by the Commission or those that must be proposed by the Financial Risk Committee and approved by the Governing Body of the Investment Companies, of one or more Investment Assets of the Investment Companies, must use the Risk Factors of the day prior to that on which the Price Provider or Custodian does not provide said factors, which correspond to the Investment Asset whose Risk Factor was not provided. In this last case, if the Risk Factors were not available for any Investment Asset, the Administrator must use the methodologies authorized for these purposes by the Financial Risk Committee, which must be documented and formalized. The Administrator must inform this Commission about said procedures no later than 10 business days following their approval.

Section II

Of the Contingent Valuation Procedures for Investment Assets that are part of the Asset Managed by the Mandatory

Article 97.- The Financial Risk Committee of the Investment Company must approve the contingent procedures defined by the Price Providers and the Valuation Companies that it hires to calculate the Updated Prices for Valuation and the Risk Factors of the Investment Assets that are part of the Assets Managed by the Mandatory. Such approval must have the approval of the majority of the Independent Advisors of the Financial Risk Committee.

Likewise, the aforementioned procedures must adhere to the best international practices observed in the market.

The Administrator must inform this Commission about said procedures no later than 10 business days following their approval.

Section III

Of the Hiring of the Valuation Companies

Article 98.- The Administrators that hire a Valuation Company must establish in the contract that the Valuation Company must have the necessary information exchange systems to deliver daily to the Commission, on behalf of the Administrator operating each Investment Company, the information for which it has been hired by the Administrators, in accordance with the characteristics established in the General Rules that the Commission establishes for the delivery of information.

The contract that the Administrator enters into with the Valuation Company must be ratified by the Governing Body of the Administrator, at the first session following the celebration of said contract.

Article 99.- When the Administrators hire a Valuation Company, they must inform the Commission of this fact, as well as of the services contracted, within 10 business days following the celebration of the contract, and with 20 business days' advance notice before the start of the validity of the respective contract in the event of a change of Valuation Company.

For the above purposes, the Administrators must keep available to the Commission a copy of the contract entered into between the Administrator and the Valuation Companies that provide services applicable to the Assets Managed by the Investment Company or to the Assets Managed by the Mandatories. Likewise, within 10 business days following the ratification of the contract by the Governing Body of the Administrator, the Administrators must deliver to the Commission a copy of the corresponding agreement, certified by the secretary of said Body, in which the approval of the hiring of the Valuation Company is recorded.

For the purpose of carrying out the valuation activities of the investment portfolio of the Asset Managed by Mandatories, the Valuation Companies may provide administrative services for funds known in practice and in the English language as "fund services" for which they are authorized by the authorities that regulate and supervise them. The requirements that apply to the Assets Managed by the Mandatories must be indicated, as part of an annex, in the contract that the Administrator and the Valuation Company enter into.

Section IV

Of the Valuation of the shares representing the paid-up capital of the Investment Companies

Article 100.- The Valuation Committee, referred to in Article 46 of the Law, may define criteria on the inputs that will be used to value the positions in the Countries Eligible for Investments that are maintained with the Total Asset of the Investment Company.

Article 101.- The Administrators, or in their case the Valuation Companies that they hire for such effect, must value in national currency the shares representing the paid-up capital of the Investment Companies.

The value of the shares representing the paid-up capital of the Investment Companies must be determined by dividing the book capital by the number of shares in circulation.

Article 102.- The Administrators must be responsible for verifying that the value of the share on the stock exchange, rounded to the millionth, is correctly and daily registered, through an independent third party or any other alternative mechanism provided for in the Securities Market Law, said value being the current valuation price for that day.

Article 103.- The sale or acquisition that the Investment Companies carry out regarding the shares representing their social capital, will be made at the current valuation price of the day on which the operation in question is carried out.

TITLE VI

OF ACCESS TO INTERNATIONAL MARKETS

CHAPTER I

OF THE MECHANISMS OF ACCESS TO INTERNATIONAL MARKETS

Article 104.- Regarding international markets, the Total Asset of the Investment Companies must only be operated with Financial Intermediaries, or in their case through Real Estate Investment Vehicles, Vehicles, including Mutual Funds among others, or through Financial Service Providers, including the Mandatories.

Article 105.- Investment Companies may only enter into contracts with Financial Service Providers and in their case Mandatories that enjoy moral solvency and recognized prestige in the financial markets.

When Investment Companies operate in international markets through Financial Service Providers and in their case Mandatories, they must previously subscribe with them the contract or contracts required for the Financial Service Providers and in their case Mandatories to act on behalf and order of the Investment Company in question.

In the contracts that Investment Companies enter into with Financial Service Providers and in their case Mandatories to carry out operations in international markets, it must be agreed that the Financial Service Providers and in their case Mandatories will keep in separate accounts the investments they make on behalf of the Investment Company, from the investments they make on their own behalf or on behalf of any other third party.

Likewise, in the contracts referred to in this Title, the prohibitions established in Title IV, Chapter III of these Provisions must be included and in the case of Mandatories, it must be provided that they also adhere to the guidelines approved by the Governing Bodies of the Commission, including the criteria defined by the Risk Analysis Committee, and indicate in the same that in the event of non-observance, the contract will be considered terminated.

Article 106.- The contracts that are entered into with Financial Service Providers, including the Mandatories, to carry out operations in international markets must, at a minimum, meet the following requirements:

Be approved in session by the Investment Committee, with the favorable vote of the majority of the Independent Advisors participating in it, and

II.

Be previously audited by a lawyer of recognized prestige in financial matters who has professional experience of at least five years in said matter, in whose audit it must be expressly mentioned that the referred contract complies with what is provided in the regulations of the Retirement Savings Systems.

Article 107.- For the celebration of contracts with Mandatories, the Administrator must provide evidence to the Commission that the following requirements are met:

Have a Process of Observation of the Regulatory Controller, in terms of the General Provisions applicable to the Regulatory Controllers;

II.

Have the audit of a lawyer of recognized prestige in financial matters referred to in Article 106, fraction II above, in which it is recorded that the Mandatory does not have pending investigations for fraud in the jurisdiction where the contract is signed;

III.

Inform the Governing Body of the Administrator;

IV.

Be the result of a selection process known as a Request for Proposal, RFPs, by its acronym in the English language, previously approved by the Investment Committee, with the favorable vote of the majority of the Independent Advisors;

The cost of the investment mandate;

VI.

The maximum percentage of the investment portfolio of the Investment Company that will be managed by the Mandatory;

VII.

The Classes of asset in which the Asset Managed by the Mandatory will be invested;

VIII.

A reference portfolio to evaluate the Mandatory, as well as limits and risk measures of the investment portfolio of the Asset Managed by the Mandatory relative to said portfolio;

IX.

That the contract provides for the obligation to calculate the attribution to risk and performance of the investment portfolio of the Asset Managed by the Mandatory, applying some methodology approved by the Financial Risk Committee. The periodicity of the calculation as well as the horizon must be defined by the Investment Committee;

The investment strategy that the Mandatory will follow, including, without being limiting, the investment horizon, the geographic region and the Classes of Assets that it will invest in;

XI.

That the contract provides for the obligation to have a list of Selected Counterparties based on eligibility criteria for their selection determined by the Investment Committee of the Investment Company, and

XII.

The Mandator's statement regarding their knowledge of the prohibitions established in Title IV, Chapter III of these Provisions.

The brokerage contract must also comply with the criteria approved by the Risk Analysis Committee and the General Provisions that establish the investment regime to which Investment Companies must be subject.

Article 108.- The contracts entered into by Investment Companies with Financial Service Providers and, where applicable, with Mandatories, as well as the opinions referred to in the previous article, must be available to the Commission at all times. In the event that the contract is written in a language other than Spanish, a translation into Spanish must be provided, performed by a translator expert authorized by the Federal Judiciary Council.

Likewise, Investment Companies must stipulate in the contracts they enter into with Financial Service Providers and, where applicable, with Mandatories, clauses that provide for the breach of the regulations of the Retirement Savings Systems as a cause for termination of said contracts.

Administrators may hire temporary administrators, known in practice and in the English language as "transition managers", to initiate or settle contracts with Mandatories. In the event of contract termination, operations already agreed upon but pending execution will continue to be operated until their conclusion.

Article 109.- Investment Companies and, where applicable, Mandatories may operate with Foreign Instruments and Securities permitted by the Authorized Investment Regime, and in compliance with the General Provisions that establish the investment regime to which Investment Companies must be subject, these Provisions, and what has been approved by the Risk Analysis Committee. For this purpose, when acquiring a Vehicle or Real Estate Investment Vehicle, they must ensure that the rights it confers on other types of financial assets are permitted by the investment regime.

To comply with the foregoing, Investment Companies must adhere to General Rules established by the Commission for the delivery of information.

The Administrator may not hire Financial Service Providers or Mandatories to make bank deposits on behalf of the Administrator.

Mandator contracts may provide for the hiring or execution of the investment mandate with parent or subsidiary companies of the Mandator, provided that the share capital of said parent or subsidiary companies belongs entirely to the Mandator or its controlling company, the latter known in practice and in the English language as "holding".

The Mandatories hired by the Administrator on behalf of the Investment Company must inform the Commission, through the Custodian hired by the Administrator for the safekeeping of the Assets Managed by the Mandatories, the composition of the underlying assets subject to the contract between the Mandator and the Investment Company, in accordance with what is provided by the General Rules established by the Commission for the delivery of information.

In the event that Investment Companies acquire Vehicles or Real Estate Investment Vehicles that, in terms of the corresponding placement prospectus, expressly establish that they replicate underlying assets permitted by the Authorized Investment Regime, the obligation to inform the Commission about the composition of the underlying assets of the Vehicle or Real Estate Investment Vehicle will not be applicable, provided that the Investment Companies in question inform the Commission of the source of information in which the aforementioned requirement is recorded. Likewise, in this case, Investment Companies must keep the placement prospectus of the Vehicle or Real Estate Investment Vehicle in question available to the Commission.

Article 110.- Administrators must cover the costs that, as a result of advice, administration, management, handling, maintenance, or any other analogous service, regardless of the name given to it, are charged by Financial Service Providers or Independent Service Providers, or that derive from the acquisition of Vehicles, Real Estate Investment Vehicles, or the acquisition or structuring of Structures Linked to Underlyings by Investment Companies, other than Brokerage Costs. Brokerage Costs must be absorbed by Investment Companies.

The costs charged by Financial Service Providers or Independent Service Providers, as well as the costs of Vehicles, Real Estate Investment Vehicles, or Structures Linked to Underlyings, must be known and agreed upon prior to the provision of the service, the acquisition of the Vehicle, the Real Estate Investment Vehicle, the Structure Linked to Underlyings, or when they are deducted directly from said Instruments.

Regarding Advisory Costs, such costs must be reimbursed by the Administrator to the Investment Company that incurred them.

For the case of Mandatories, Vehicles, and Real Estate Investment Vehicles, Administrators must cover the excess of costs over the maximums approved by the Risk Analysis Committee.

Article 111.- The Administrator, regarding the commissions it charges, must daily compensate the corresponding amount to the account receivable for this concept, against the Advisory Costs incurred by the Investment Company.

For the purposes of this article, the Administrator or the Investment Company, on the first business day of each month, must settle the difference that arises as a result of the daily compensation between the account receivable for commissions on balance and the account payable for Advisory Costs of the previous month.

CHAPTER II

OF THE VEHICLES

Article 112.- The cost of Vehicles or Real Estate Investment Vehicles that confer, directly or indirectly, rights on the Investment Object Assets, as a result of advice, management, investment handling, maintenance, or any other analogous service, regardless of the name given to it, must be covered by the Administrators. The aforementioned costs must be known and agreed upon prior to the acquisition of said Vehicles, and, when deducted directly from said Vehicles, must be reimbursed in full on a daily basis by the Administrator to the Investment Company that acquired them.

Regarding Vehicles or Real Estate Investment Vehicles that are the subject of public offering, listed and traded intraday on stock exchanges of Countries Eligible for Investments, Mutual Funds, as well as brokerage contracts entered into with Mandatories, the costs will be assimilated to the Investment Company that has invested in them. The investment mechanisms provided for in this paragraph must comply with the criteria determined by the Risk Analysis Committee.

TITLE VII

OF THE CUSTODIAN

CHAPTER I

OF THE HIRING OF THE CUSTODIAN

Article 113.- Administrators, as well as Investment Companies, must have only one Custodian for their operations carried out in international markets with Assets Managed by the Investment Company, which may be the same or different from the one they have contracted for their operations in national territory. For this purpose, compliance with the contents of the General Rules established by the Commission for the delivery of information must be verified.

Administrators must have one or more Custodians for operations carried out in international markets, which will focus on the Assets Managed by the Mandatories, and may be different from those referred to in the previous paragraph. For the purposes of what is established in this paragraph, compliance with the contents of the General Rules established by the Commission for the delivery of information must be verified.

For the case of operations with Mutual Funds carried out through trading platforms or directly with the administrator or sponsor, Administrators will not require having a Custodian, provided that the platform, administrator, or sponsor keeps a daily electronic record, in separate accounts, of the operations carried out by each Investment Company operated by the Administrator.

Article 114.- Administrators may only enter into contracts with National Custodians and International Custodians. Such Custodians must comply with the following:

Carry out and monitor the transfer and settlement of Foreign Instruments and Securities, the payment of amortizations, Coupons, principal, and other accessories of the Foreign Instruments and Securities that form part of the investment portfolio of the Investment Companies operated by the Administrator and, where applicable, of the Mandatories;

II.

Carry out the compensation of Foreign Instruments and Securities when the debit and credit accounts are operated by the same Custodian;

III.

Have an absolute separation between their assets and the resources of each of the Investment Companies operated by the Administrator and, where applicable, the resources of the Investment Companies managed by each of the Mandatories. For the purposes of the foregoing, regarding resources managed directly by Investment Companies, securities depository institutions must maintain records that allow corroborating what is provided in this subsection. In the case of resources managed by Mandatories, securities depository institutions must maintain records that allow corroborating the absolute separation between the Custodian's assets and the resources it safeguards; and the Custodian must maintain records that allow corroborating the separation between its assets and the resources of each of the Investment Companies managed by each Mandator;

IV.

Meet the requirements established by the Risk Analysis Committee for the selection of Custodians;

Keep a record for each Investment Company operated by the Administrator in question and, where applicable, one for each Investment Company on whose behalf each Mandator operates;

VI.

Be supervised and regulated by authorities belonging to Countries Eligible for Investments, and

VII.

Carry out operations with Currencies in Countries Eligible for Investments and with Counterparties in accordance with the regulation of each country. For such purposes, they must prove that the operations are carried out at market prices and in compliance with the instructions issued by the Administrator or, where applicable, the Mandator.

For Administrators to operate as Custodians, they must request the non-objection of the Commission; to obtain the non-objection, they must prove compliance with what is provided in this article. The non-objection will be for a period of three years and may be renewed for an equal period, provided that the Administrator proves that it maintains satisfaction of what is provided in this article and requests renewal six months before its validity expires.

Without prejudice to the foregoing, when any national or international Custodian, acting as a Credit Institution or foreign financial entity authorized for this purpose, receives demand bank deposits of any Investment Company, it acquires the status of Counterparty in said operations.

Article 115.- Administrators must pay Custodians directly for the services they provide. In no case may they be paid directly or indirectly by Investment Companies.

Article 116.- Administrators must verify and prove, with respect to the Investment Companies they operate, that as a result of the purchase and sale operations carried out during the day with the shares representing the share capital of the Investment Companies, as well as those carried out with titles and securities forming part of the investment portfolio of said Investment Companies, when settlement is materialized, said values, titles, and shares are deposited on the same day in a securities depository institution, in accordance with what is established by the Regulation. Likewise, the Administrator must ensure that, where applicable, Mandatories carry out a verification if the values they operate have been effectively deposited in a securities depository institution authorized by the applicable regulations, considering the operations carried out with Assets Managed by the Mandatories.

What is provided in this article will not be applicable in the case of purchase and sale operations of Mutual Fund shares through trading platforms, directly with the administrator or sponsor, provided that the platform, administrator, or sponsor, as applicable, records the operation and it does not involve delivery of the corresponding value.

CHAPTER II

OF THE CONTRACT REQUIREMENTS

Article 117.- In the contracts entered into by Administrators on behalf of Investment Companies with National Custodians and International Custodians, the following must be agreed:

That the payment for custody services is made directly by the Administrator;

II.

That the settlement of operations is carried out under the modality known in practice as "delivery versus payment", in financial markets where such modality exists;

III.

That Administrators must receive from the Custodian hired to safeguard the investment portfolio of the Assets Managed by the Mandatories information on the operations that said Custodian carries out, as well as their position at closing.

The information that Administrators receive in terms of this subsection must comply with the General Rules established by the Commission for the delivery of information;

IV.

The express authorization of the Administrator and the express obligation of the Custodian for the latter to send to the Commission, according to the periodicity defined by the latter, the information they receive in terms of subsections III and VII of this article;

The procedure that Administrators will use to instruct the Custodian, as well as for the latter to confirm the receipt of the instructions issued by the Administrator;

VI.

That the custody services for safeguarding the investment portfolio of the Assets Managed by the Mandatories hired by the Administrator must be provided in all countries where Mandatories make investments. Likewise, international custody services for safeguarding the investment portfolio of the Assets Managed by the Investment Company must be provided in all countries where the Investment Companies operated by the contracting Administrator make investments. Without prejudice to the foregoing, Custodians may use sub-custodians that comply with the applicable regulations for Custodians provided in these Provisions;

VII.

The services that the Custodian will provide directly and the services that are provided through third parties.

In the event that the Custodian uses the service of third parties, the full assumption of responsibility by the latter for what is executed by third parties;

VIII.

Where applicable, that the Custodian will provide prices for the valuation of the Assets Managed by the Investment Company in international markets and the corresponding Risk Factors for said values. Likewise, the Custodian that the Administrator has hired for the safeguarding of the investment portfolio of the Assets Managed by the Mandatories, where applicable, will provide prices for the valuation of said assets, as well as the corresponding Risk Factors;

IX.

All requirements that apply to the Assets Managed by the Mandatories must be indicated, as part of an annex, in the contract that the Administrator and the Custodian enter into, and

The means and manner in which the information required by the Commission will be delivered by the Custodian. It must be indicated that the Administrator will be responsible regarding the delivery of information to the Commission.

The Administrator will be responsible for verifying that the Custodian complies with what is provided in this article.

Article 118.- Contracts entered into with National and International Custodians must:

Be approved by the Investment Committee of each of the Investment Companies to which services will be provided, with the favorable vote of the majority of Independent Councilors participating in it, and

II.

Be previously opinioned by a lawyer of recognized prestige in financial matters with professional experience of at least five years in said matter, in whose opinion it must expressly mention that the referred contract complies with what is provided in the regulations of the Retirement Savings Systems.

Administrators may only hire Custodians that comply with what is established in subsection IV of the previous article 114.

Article 119.- Contracts entered into with Custodians, as well as the opinions referred to in the previous article, must be kept available to the Commission at all times. In the event that the contract is written in a language other than Spanish, a translation into Spanish must be provided, performed by a translator expert authorized by the Federal Judiciary Council.

Investment Companies may not carry out operations in the national or international market with any Custodian that fails to comply with what is provided in the General Provisions that establish the investment regime to which Investment Companies must be subject issued by the Commission, in the Prudential Rules on risk management administration, these Provisions, the criteria defined by the Risk Analysis Committee, and the regulations issued for such purposes by the National Banking and Securities Commission, or has any pending violation or investigation with the corresponding supervisory authority.

For the purposes of what is established in this article, Administrators on behalf of Investment Companies must stipulate in the contracts they enter into with Financial Service Providers or with Mandatories, clauses that provide for the breach of the regulations of the Retirement Savings Systems as a cause for termination of said contracts.

In the event of contract termination, operations already agreed upon but pending execution will continue to be operated until their conclusion.

Article 120.- Administrators must notify the Commission, within three business days following the signing of the contract with the Custodian:

Its denomination or corporate name;

II.

Address, telephone, and email;

III.

Contract start date, and

IV.

Technical responsible of the Custodian who will send the information.

Article 121.- Investment Companies may not carry out operations in national or international markets until the Commission notifies the Administrator operating them that their International Custodian or the securities depository institutions are connected to the Commission's systems so that it receives daily information from them, and the corresponding tests have been made.

Likewise, Investment Companies may not carry out Mutual Fund operations through trading platforms, directly with the administrator or sponsor, without the intermediation of a Custodian, until the Commission notifies the corresponding Administrator that the trading platform, administrator, or sponsor are connected to the Commission's systems so that it receives daily information from them, and the corresponding tests have been made.

TITLE VIII

OF DERIVATIVES OPERATIONS

Article 122.- Administrators that intend for their Investment Companies, either directly or through Mandatories, to initiate operations with Derivatives authorized by the Bank of Mexico in terms of article 48 subsection IX of the Law, or with the Derivatives and underlyings referred to in Annex M of these Provisions, must previously comply with the following requirements:

Not have obtained from the Commission any unresolved observations regarding the instrumentality of their comprehensive risk management administration project in terms of the Prudential Rules on risk management administration issued by the Commission, to which Administrators must be subject with respect to the Investment Companies they operate;

II.

At least one Operator and the Head of the Investments Area, as well as one Executive and the Head of the Risks Area, must be certified by one of the independent third parties designated by the Commission for the operation with Derivatives.

For each of the areas of, regulatory compliance, confirmation, settlement, accounting registration, and generation of financial statements of the Investment Companies, there must be at least one Executive certified by one of the independent third parties designated by the Commission for the operation with Derivatives. The certifications referred to in this subsection will have the validity established in Annex J of these Provisions, and

III.

Have an Automated Integrated System that allows them to measure and evaluate daily the risks arising from Derivatives operations, their margin accounts and guarantees, as well as to account for these operations and inform the Operator in the event that the risk level reaches the limits provided for in the investment regime or the Prudential Limits defined by the Financial Risk Committee. These systems must allow access to their information by the UAIR at all times, as well as present the consolidated position of values and Derivatives operations.

Investment Companies may only carry out Derivatives operations directly for which the Administrator operating them has the non-objection of the Commission, or through Mandatories for which the latter have authorization from the corresponding authorities in Countries Eligible for Investments.

Article 123.- In the event that the Administrator operating an Investment Society does not hold the certifications referred to in fraction II of the preceding Article 122, the celebration of operations with Derivatives must be suspended, and the Administrator must present to the Commission for no objection a program for the administration and monitoring of the investment portfolio no later than the next business day following the occurrence of this event, in which the designation of a new certified Operator or Official or of a certified person in charge of the control and recording of operations with Derivatives is provided for.

In the event that the portfolio administration and monitoring program is approved by the Commission, operations with Derivatives may be resumed under the terms set forth in said program.

Article 124.- Investment Societies and, where applicable, Mandatories may enter into operations with Derivatives with the following persons:

I.
Financial Intermediaries authorized in the Derivatives Exchanges referred to in Article 126 of these Provisions, or

II.
Financial Intermediaries from Countries Eligible for Investments, that conduct operations outside a Derivatives Exchange, that hold the credit ratings determined for this purpose by the Commission in the General Provisions establishing the investment regime to which Investment Societies must be subject.

Article 125.- Investment Societies may not carry out Derivatives operations on individual Commodities. Without prejudice to the foregoing, Investment Societies may acquire exposure with Derivatives on Commodity indices using authorized mechanisms. Administrators, through Mandatories, may carry out Derivatives operations on individual Commodities or on authorized Commodity indices. The operations provided for in this Article must be subject to the leverage criteria with Derivatives through Mandatories defined by the Risk Analysis Committee.

Article 126.- Operations with Derivatives may only be carried out in Derivatives Exchanges supervised and regulated by authorities of Countries Eligible for Investments.

Article 127.- Operations with Derivatives that are not carried out in the Derivatives Exchanges mentioned in the preceding Article must be formalized using master agreements approved by the "International Swaps and Derivatives Association, Inc.", ISDA, by its acronym in the English language and translated into the Spanish language as the International Association of Swap Agents, the "International Securities Market Association", ISMA, by its acronym in the English language and translated into the Spanish language as the International Association of Securities Markets, or by other national or international organizations of recognized prestige in the matter that the Commission makes known through its Internet page. Likewise, said master agreements must include a section or supplement regarding the officials authorized to carry out the aforementioned operations and keep them updated or inform the Counterparties about the officials authorized to enter into operations with Derivatives through the policy that the Investment Committee has defined for such purposes. Administrators must request that Counterparties keep the section or supplement of officials authorized for the aforementioned operations updated.

Article 128.- Operations with Derivatives carried out both in over-the-counter markets and in Derivatives Exchanges must be documented, and means of confirmation must be available, applied no later than the close of business, for each operation, either individually or by aggregating the operations contracted during the day by Counterparty. Such means and confirmation policies must be defined by the Investment Committee, must be described in the Investment Manual, and be kept available to the Commission at all times.

Article 129.- For Derivatives operations carried out both in over-the-counter markets and in Derivatives Exchanges, the confirmation area must receive the Counterparty's confirmation, review it against the Administrator's records, and in the event of a match, the authorized persons must ratify it to the Counterparty. In the event of a mismatch, in order to maintain the independence of the process, the operation will be reviewed with the Counterparty's confirmation area and against the magnetic and electronic record of the operation.

It must be guaranteed that all contracted operations are captured and reflected in the accounting of the Investment Society.

Article 130.- The Derivatives operations referred to in these Provisions may not have as an underlying asset any asset not provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject or another Derivative, except for those assets or Derivatives authorized by the Bank of Mexico for such purposes.

Article 131.- Administrators operating Investment Societies that intend to carry out the Derivatives operations provided for in Circular 6/2013 containing the "Rules to which Specialized Investment Societies for Retirement Funds must be subject in the carrying out of derivative operations" issued by the Bank of Mexico in terms of Article 48, fraction IX of the Law, must previously demonstrate to the Commission compliance with the requirements provided for in these Provisions.

The Commission, after carrying out the evaluation for this purpose and once compliance has been demonstrated, will state its no objection for the Derivatives operations provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject to be carried out.

The no objection to carry out Derivatives operations issued by the Commission will remain valid for a period of three years, and as long as the Administrator continues to comply, during the validity of the certification, with the requirements and procedures established in Article 122, fraction III of these Provisions and regarding the logistics for operating with Derivatives provided for in Article 16, fraction XIV of these Provisions. For the purposes of renewing the no objection provided for in this Article, Administrators must send the Commission the renewal request six months before the validity period of the no objection concludes.

In the event that the Commission detects in the exercise of its supervisory powers that the Administrator has ceased to comply with any of the aforementioned requirements and procedures, it must notify it, so that the Administrator in question and, where applicable, the Mandatories suspend all Derivatives operations of their Investment Societies.

In the event that the suspension referred to in the preceding paragraph is determined, the Investment Society and, where applicable, the Mandatories may not enter into new Derivatives operations, except for operations necessary to rebalance the portfolio and with respect to operations previously entered into, must be subject to what is established in these Provisions regarding portfolio rebalancing for failing to comply with the limits established in the Regime of Investment Authorized by acquisition or sale of Investment Object Assets, and for the violation of investment limits established for Investment Object Assets due to causes attributable to the Administrator, without the suspension of Derivatives operations being understood as a violation of the Investment Regime.

Mandatories may operate with authorized Derivatives and authorized underlyings as long as the Administrator hiring them has the no objection of the Commission for the Investment Societies they administer to carry out operations with said Derivatives. For the evaluation carried out by the Commission for the purposes provided for in this paragraph, it must consider the reduction in the Administrator's operational risks when employing an eligible Mandatory.

TITLE IX

ON THE OPERATION WITH STRUCTURES LINKED TO UNDERLYING ASSETS

Article 132.- Investment Societies may acquire, as well as create Structures Linked to Underlying Assets referred to authorized underlying variables.

Only Administrators that have the no objection of the Commission for the Investment Societies they administer and operate to carry out Derivatives operations may create and operate with Structures Linked to Underlying Assets in which the exposure to the underlying is acquired through a Derivative.

Article 133.- For the purposes of documenting Structures Linked to Underlying Assets, Administrators must be subject to the General Rules established by the Commission for the delivery of information for this purpose.

Article 134.- Investment Societies must adjust the weightings of Foreign Variable Income Securities of Structures Linked to Underlying Assets with Foreign Variable Income Securities acquired directly, when as a consequence of the Exercise of Property Rights associated with the shares that make up Foreign Variable Income Securities, a deviation within the initial weighting of the same that exceeds the Permitted Deviation occurs.

For this purpose, Investment Societies may sell or buy the necessary shares to adjust to the current weighting of the shares that make up the index or Basket of Indices that replicate Foreign Variable Income Securities.

Article 135.- Investment Societies, in the event that they proceed to adjust the weightings of Foreign Variable Income Securities of Structures Linked to Underlying Assets that make up the investment portfolio or of Foreign Variable Income Securities acquired directly, must agree on such act within the next business day following that in which the weighting of the index or Basket of Indices is modified as a consequence of the Exercise of Property Rights, or in its case, the next business day following that in which the Exercise of Property Rights is publicly announced and as a consequence, a deviation within the initial weighting of the Foreign Variable Income Securities occurs.

For this purpose, Investment Societies must order the purchase or sale of the necessary shares so that the weightings that make up the Foreign Variable Income Securities do not exceed the Permitted Deviation, within a maximum period of four business days counted from the date on which the weighting of the index or Basket of Indices is modified as a consequence of the Exercise of Property Rights.

Article 136.- Investment Societies, in the event that they proceed to adjust the weightings of Foreign Variable Income Securities that make up a Structure Linked to an Underlying, must adhere to what is stated in the preceding Article 67.

Article 137.- Investment Societies and, where applicable, Mandatories are prohibited directly or indirectly or through Financial Service Providers from the following:

I.
Acquiring Investment Object Assets, Vehicles or Real Estate Investment Vehicles issued by Financial Entities with which the Administrator operating the Investment Societies have Ownership Ties, and

II.
Acquiring Investment Object Assets, Vehicles or Real Estate Investment Vehicles from Financial Intermediaries with which the Administrator operating the Investment Societies have Ownership Ties.

The prohibitions to which the Investment Society must be subject, described in the preceding fractions, will be applicable even when the investment is made through Mandatories.

Article 138.- Investment Societies and, where applicable, Mandatories may acquire directly or through Financial Service Providers Investment Object Assets, issued by Financial Entities with which the Administrator operating the Investment Societies have Ownership Ties, solely for the purpose of replicating the indices or Basket of Indices formed by Investment Object Assets provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject.

TITLE X

ON THE OPERATION WITH STRUCTURED INSTRUMENTS,

FIBRAS AND STOCK CERTIFICATES LINKED TO REAL PROJECTS

Article 139.- Investment Societies must submit to the approval of their Investment Committee the acquisition of Structured Instruments, FIBRAS and Stock Certificates Linked to Real Projects, according to the following:

I.
When they do not belong to an investment program referred to in Article 30, fraction VI, of these Provisions:

A.
For FIBRAS and Stock Certificates Linked to Real Projects, the investments area or, where applicable, the risks area must previously carry out an analysis on the characteristics and risks inherent to each instrument intended to be acquired. The Head of the Investments Area must submit to the Investment Committee the aforementioned analysis considering the following:

i.
The additional information provided for in these Provisions, regarding relevant events provided for in the Securities Market Law that have been made public by the issuer of the instrument, as well as any other information that is disseminated in the market regarding the instrument;

ii.
The content of the questionnaire referred to in Annex B, Chapter II that allows evaluating the policies defined in the different concepts of FIBRAS or Stock Certificates Linked to Real Projects, the analysis must refer to the investment plan and experience of the asset manager of the instrument;

iii.
For monitoring purposes, report on the results of the behavior tests referred to in Article 63 of these Provisions that are carried out on FIBRAS or Stock Certificates Linked to Real Projects using methodologies that consider the information available at the date of the tests or, where applicable, Investment Societies may use Generic Instruments to carry out the tests referred to in this fraction;

iv.
The known costs and commissions in favor of the structure administrator, the structurer and other participants in the operation. The analysis must include the return corresponding to the administrator or that which performs analogous functions of the FIBRA or Stock Certificate Linked to Real Project;

v.
The source of resources destined for the payment of the instrument holders and the payment priority that corresponds to each class of holders;

vi.
The valuation of the FIBRA or Stock Certificate Linked to Real Project and its sensitivity to identified risks in accordance with what is provided for in this Article, and

vii.
The information of the quantitative methodology, parameters and bases on which the analysis has been carried out.

The Head of the Investments Area must present to the Investment Committee a general opinion on the convenience of the investment in the FIBRAS or Stock Certificates Linked to Real Projects provided for in section A of this fraction, prior to the approval of the Investment Committee, as well as express their opinion on the information provided in items ii. and iv. of section A of this fraction.

In the event that market prices or Risk Factors are not available to carry out the analysis requested in items iii. and vi. of this section, Generic Instruments may be used.

The approvals granted by the Investment Committee, for Investment Societies to invest in FIBRAS or Stock Certificates Linked to Real Projects, individually, must be agreed upon expressly, must have the favorable vote of the majority of the Independent Councilors who are members of said Committee and be recorded in the Detailed Minutes of the corresponding Investment Committee session in which the analysis described in section A of this fraction was presented.

Investment Societies may only acquire FIBRAS or Stock Certificates Linked to Real Projects that satisfy the criteria established in the general investment policies for these instruments, approved by the Investment Committee of the Investment Societies. Such policies must cover the aspects referred to in items i. to vii. of section A of this fraction and be approved complying with the formalities referred to in the preceding paragraph.

B.
For Structured Instruments, the Head of the Investments Area must submit to the consideration of the Investment Committee the investment proposal in the Structured Instrument in which it intends to invest considering the following:

i.
The additional information to that required in these Provisions that has been made known to investors by the administrator, as well as the independent valuer of the Structured Instrument;

ii.
The content of the questionnaire referred to in Annex B, Chapter II that allows evaluating the policies defined in the different concepts of Structured Instruments;

iii.
The compliance with the policies defined in Article 30, fraction II, item a) based on the information collected in Annex B, Chapter I of these Provisions applicable to this type of Structured Instruments;

iv.
Each of the assets that in its case make up the Structured Instrument, in accordance with the investments revealed by the administrator, and regarding the investment plan of the instrument in question;

v.
For monitoring purposes, report on Risk Factors, sensitivities and scenarios provided periodically by the administrator or the independent valuer of the instrument in question;

vi.
The known costs and commissions in favor of the structure administrator and other participants in the operation. Where applicable, the subordination of the payment of commissions applicable to the administrator to the distribution of the return among investors in accordance with what is provided for in Article 30, fraction IX of these provisions.

Within the analysis, the return corresponding to the administrator of the Structured Instrument must be verified;

vii.
Where applicable, if there are capital calls, for monitoring purposes report on the risk factors associated with the capital call mechanism, in an illustrative but not exhaustive manner, the impact generated on returns, on the business plan or on the investment calendar due to the non-compliance of the instrument investors with said calls;

viii.
The management of the instrument's liquidity, in an illustrative but not exhaustive manner, the types of financial assets in which the cash that forms part of the trust's equity can be maintained in accordance with the criteria approved by the Risk Analysis Committee, as well as the destination or the administration systems of the cash coming from capital calls, and

ix.
The source of resources destined for the payment to the holders of the Structured Instrument and the payment priority that corresponds to each class of holders.

The Head of the Investments Area must present to the Investment Committee a general opinion on the convenience of the investment in Structured Instruments, prior to the approval of the Investment Committee as well as express their opinion on the information collected to satisfy the contents of Article 30, fraction II, item a), numerals i., i bis., ii., iii. and iv. of these Provisions.

The approvals granted by the Investment Committee, for Investment Societies to invest in Structured Instruments, individually, must be agreed upon expressly, must have the favorable vote of the majority of the Independent Councilors who are members of said committee and be recorded in the Detailed Minutes in which the session of the corresponding Investment Committee presented the analysis described in section B of this fraction.

Investment Societies may only acquire Structured Instruments that satisfy the criteria established in general investment policies for these instruments approved by the Investment Committee. Such policies must cover the aspects referred to in items i. to ix. of section B of this fraction and be approved complying with the formalities referred to in the preceding paragraph.

To comply with the analyses, studies or investment proposals provided for in this fraction, the Administrator must designate the Investment Committee or the Financial Risk Committee as responsible. In the event that the Administrator defines the Investment Committee, it must:

1.1.
Designate the Official of the investments area responsible for complying with the analyses, studies or investment proposals provided for in this fraction, and

1.2.
Verify that the designation and the activities to be carried out are included in the Investment Manual.

II.
The Structured Instruments referred to in item a) of the Second Provision, fraction LI of the General Provisions establishing the investment regime to which Investment Societies must be subject, the FIBRAS and the Stock Certificates Linked to Real Projects may be acquired in accordance with what is provided for in Article 30, fraction VI of these Provisions, through investment programs that must be previously approved by the Investment Committee and that additionally satisfy:

A.
That the program is approved expressly and has the favorable vote of the majority of the Independent Councilors who are members of said Committee and be recorded in the Detailed Minutes of the corresponding session;

B.
The programs must cover the aspects referred to in section A of the preceding fraction I, when they include FIBRAS and Stock Certificates Linked to Real Projects or section B of the preceding fraction I, when they include the Structured Instruments referred to in item a) of the Second Provision, fraction LI of the General Provisions establishing the investment regime to which Investment Societies must be subject. The aforementioned analyses must be available to the Commission, and

C.
The investments in Structured Instruments referred to in this fraction, FIBRAS and Stock Certificates Linked to Real Projects carried out through

investment programs will not be required to present themselves to the Investment Committees prior to their acquisition. The results of the analyses provided for in sections A and B of the preceding fraction I must be presented to the Investment Committee in the session immediately following the date of acquisition of the Structured Instrument, FIBRA, or Stock Certificate Linked to Real Projects.

III.

For subsequent investments in the same Structured Instrument, FIBRA, or Stock Certificate Linked to Real Projects, fractions I and II of this article shall not apply, and

IV.

In accordance with Article 30, penultimate paragraph of these Provisions, the Head of the Investment Area, or whom he designates, must follow up on the Structured Instrument, FIBRA, or Stock Certificate Linked to Real Projects and the assets that comprise it, as well as deliver to the Investment Committee the results of the analysis provided for in section A of fraction I of this article, when it concerns FIBRAs and Stock Certificates Linked to Real Projects, or what is provided for in section B of fraction I of this article, when it concerns Structured Instruments. Such analyses must be available to the Commission.

Article 140.- The Operators of the Investment Societies in charge of the purchase and sale of Structured Instruments, as well as one Official of the Financial Intelligence Unit (UAIR) and one of the normative comptroller, must be certified by one of the independent third parties designated for this purpose by the Commission. The certifications referred to in this article will have the validity referred to in Annex J of these Provisions.

TITLE XI

ON THE BREACH OF THE INVESTMENT REGIME AND THESE PROVISIONS

Article 141.- To determine compliance with the limits of the investment regime, Investment Societies must use the prices, the Conditional Value at Risk Differential, or in its case, the Value at Risk provided to them by the Price Provider, the Custodian, or the Valuation Society they have contracted, as appropriate to the type of Investment Asset in question, or, in its case, those determined by the Administrator itself.

For the purposes of computing positions in Currencies that the investment portfolio comprising the Total Asset of the Investment Society may hold, it shall be subject to the criteria defined in Annex E of these Provisions.

For the purposes of computing positions in Foreign Securities that the investment portfolio comprising the Total Asset of the Investment Society may hold, it shall be subject to the criteria defined in Annex F of these Provisions.

For the purposes of computing limits applicable to Counterparties that the Asset Managed by the Investment Society, or in its case, the Asset Managed by the Mandatary, must observe, it shall be subject to the criteria defined in Annex G of these Provisions.

For the purposes of computing positions in Derivatives transactions on UDIS or in its case on variables that provide inflationary protection for the investment portfolio comprising the Total Asset of the Investment Society, it shall be subject to the criteria defined in Annex H of these Provisions.

For the purposes of computing positions in Commodities of the investment portfolio comprising the Total Asset of the Investment Society, it shall be subject to the criteria defined in Annex I of these Provisions.

For the purposes of computing limits applicable to the Asset Managed by the Investment Society regarding the parameter known as Conditional Value at Risk Differential or in its case, the Value at Risk, it shall be subject to the criteria defined in Annex L of the General Provisions that establish the investment regime to which Investment Societies must be subject.

For the purposes of computing limits applicable to the Total Asset of the Investment Society regarding the maximum limits authorized in investments in Equity Components, FIBRAs, and Real Estate Investment Vehicles, it shall be subject to the criteria defined in Annex N of the General Provisions that establish the investment regime to which Investment Societies must be subject.

For the purposes of computing limits applicable to the investment portfolio of the Asset Managed by the Investment Society regarding the Liquidity Coefficient, it shall be subject to the criteria defined in Annex N of these Provisions.

TITLE XII

ON THE PORTFOLIO RECOMPOSITION OF SPECIALIZED INVESTMENT SOCIETIES OF FUNDS FOR RETIREMENT

Article 142.- When Investment Societies do not cover, or exceed, the limits provided for in the Authorized Investment Regime, or acquire assets not permitted by said regime with the Total Asset of the Investment Society, they must recompose their portfolio. Investment Societies must carry out such recomposition and, in its case, instruct the Mandataries to do so, within a period not exceeding six months.

These Provisions shall be applicable in any of the following events:

When one or more Investment Assets that make up the investment portfolio of the Total Asset of the Investment Society and, in its case, of the Mandataries, suffer changes in their credit rating and thereby violate the limit by issuer, by Category, or if the new credit rating is lower than that required by the Authorized Investment Regime;

II.

When with the Total Asset of the Investment Society, Investment Assets have been acquired or sold observing the percentages provided for in the Authorized Investment Regime, but due to variations in the price of the Investment Assets that integrate its asset, they do not cover or exceed such percentages;

III.

When due to the change in the composition of the indices or Index Basket used as reference to acquire a Foreign Equity Security, the Permitted Deviation in the weighting of the shares of said index or Index Basket provided for in the Authorized Investment Regime is exceeded, or when it is not possible to acquire or liquidate the Foreign Equity Security within the timeframes established in these Provisions for the operation with Foreign Equity Securities, for causes not attributable to the Investment Society directly or through Mandataries. In the event that the Investment Society, which replicates the Indices provided for in the Authorized Investment Regime, decides to carry out any purchase or sale of shares that make up the replication basket, it will be assumed that the Investment Society has initiated portfolio recomposition and it will have four business days to comply with the Permitted Deviations in the weighting of the shares of said index;

IV.

When due to the change in the composition of the index referred to in fraction II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Societies must be subject for shares of National Issuers, the permitted weighting of the shares referred to in said fraction is exceeded, or when it is not possible to acquire or liquidate the share of National Issuers within the timeframes established in these Provisions for the operation with said instruments, for causes not attributable to the Investment Society. In the event that the Investment Society decides to carry out purchases or sales of these issuers, it will be assumed that it has initiated portfolio recomposition and must comply with the permitted weightings on the same day it carried out the purchases or sales;

When as a consequence of the Exercise of Patrimonial Rights associated with the shares that make up the Foreign Equity Security, an excess in the Permitted Deviation occurs or compliance with the Authorized Investment Regime is breached. In the event that the Investment Society, which replicates the Indices provided for in the Authorized Investment Regime, decides to carry out any purchase or sale of shares that make up the replication basket, it will be assumed that the Investment Society has initiated portfolio recomposition and it will have four business days to comply with the permitted deviations in the weighting of the shares of said index;

VI.

When as a consequence of the Exercise of Patrimonial Rights associated with the shares of National Issuers, an excess in the Permitted Deviation occurs or compliance with the Authorized Investment Regime is breached. In the event that the Investment Society decides to carry out purchases or sales of these issuers, it will be assumed that it has initiated portfolio recomposition and must comply with the Permitted Deviation on the same day it carried out the purchases or sales;

VII.

When with the Total Asset of the Investment Society, Investment Assets are acquired or sold, violating the limits permitted by the Authorized Investment Regime, or acquires Investment Assets not permitted by the same, or when it is not possible to acquire or liquidate Foreign Equity Securities within the timeframes established by the Commission for causes attributable to the Investment Society and, in its case, to the Mandatary. In this case, the Administrator operating the Investment Society in question must cover the daily losses that have occurred from the day the event that gave rise to the breach occurred and until the investment regime is complied with. For such purposes, the Mandatary may apply portfolio recomposition rules in accordance with the regulation applicable in its country of origin that seek to minimize the magnitude of the loss;

VIII.

When the Tracking Error, the Conditional Value at Risk Differential, or in its case, the Value at Risk of the investment portfolio of the Asset Managed by the Investment Society, exceeds the maximum provided for in the Authorized Investment Regime and, in its case, when the Mandatary exceeds the limit applicable to the risk measure relative to the authorized reference portfolio in the corresponding investment mandate contract;

IX.

When the Liquidity Coefficient of the investment portfolio of the Asset Managed by the Investment Society exceeds the maximum provided for by the Risk Analysis Committee;

When due to regulatory changes, conditions or criteria more restrictive than those previously existing are defined, and

XI.

When as a consequence of capital calls not covered by other investors in the Structured Instrument that integrates the investment portfolio of the Total Asset of the Investment Society, an excess in the limits for Structured Instruments provided for in these provisions and in the General Provisions that establish the investment regime to which Investment Societies must be subject occurs.

Article 143.- The Administrator must provide in the contracts it enters into with Financial Service Providers and Mandataries that breach of the Authorized Investment Regime will be a cause for termination.

Breaches of the investment regime attributable to the Administrator will be those where the Operator of the asset with which the investment regime is breached does not satisfy the requirements regarding the certification of Officials provided for in these Provisions, as well as violations of the Authorized Investment Regime caused by failures in the Integrated Automated System or the different computer system they have to comply with what is provided for in these Provisions.

Without prejudice to the foregoing, Administrators will be responsible for the sanctions that may apply when the Authorized Investment Regime is breached as a consequence of the operations carried out by the Mandataries they have hired, or of the operations carried out by the Administrator itself.

CHAPTER I

ON THE PROCEDURE FOR PORTFOLIO RECOMPOSITION

Section

On Credit Rating Downgrade

Article 144.- The Investment Society that has in its investment portfolio Investment Assets subject to credit rating, whose rating or the Counterparty Rating in the case of Derivatives, bank deposits, securities lending, or repos, degrades subsequent to its acquisition and thereby breaches the Authorized Investment Regime, must proceed as follows:

In the event that the respective limits by issuer are violated, it must abstain from acquiring Investment Assets subject to credit rating of the same issuance, make bank deposits in said institution, or enter into new operations with Derivatives, repos, or securities lending with that Counterparty in the event that such operations net of guarantees imply an increase in the Investment Society's exposure to that Counterparty or Issuer;

II.

When Investment Assets subject to credit rating or the Counterparty of the Derivative, repo, or securities lending forms part of another Category as a consequence of the degradation, exceeding the percentages established in the Authorized Investment Regime, it must abstain from acquiring such additional Investment Assets of the Category to which the degraded asset belongs in its credit rating, or enter into new operations with Derivatives, bank deposits, repos, or securities lending with Counterparties of said Category unless, such operations, at all times, must be fully guaranteed, and

III.

When the credit rating of Investment Assets subject to credit rating or of the Counterparties of the Derivatives, bank deposits, repos, or securities lending corresponding to a Category degrades below the minimum permitted in the Authorized Investment Regime, it must be computed in the minimum Category permitted in said Investment Regime and no more of these operations may be carried out with said Counterparty. Bank deposits in Credit Institutions whose credit rating is lower than the minimum authorized in the General Provisions that establish the investment regime to which Investment Societies must be subject cannot be maintained.

For the case of Mandataries, Investment Societies must establish in the intermediation contracts in which a mandate is granted to a third party for the acquisition of Investment Assets how Mandataries must proceed in the event that the events described in this article occur, providing that the investments of the Total Asset of the Investment Society adhere to these Provisions and to the General Provisions that establish the investment regime to which Investment Societies must be subject.

Article 145.- The Head of the Risk Area must notify the Financial Risk Committee and the Investment Committee, when any of the Investment Assets subject to credit rating, including bank deposits, acquired by the Investment Society, or any Counterparty with which operations with Derivatives, repos, or securities lending are held, is in any of the circumstances established in the previous article, on the next business day after that on which the Investment Asset subject to credit rating or Counterparty in question has been subject to a downgrade in its credit rating. The Administrator must provide in the contract it enters into with each Mandatary that this informs it promptly when any event described in this article occurs under the management of the Assets Managed by the Mandatary.

Likewise, it must notify the Commission each time any Investment Asset subject to credit rating or Counterparty changes its applicable credit rating limit and breaches regulatory limits, as a consequence of a downgrade, or when any Investment Asset having a credit rating lower than the minimum permitted is downgraded to default level, on the next business day after that on which the Investment Asset subject to credit rating or Counterparty in question has been subject to a downgrade in its Rating.

Article 146.- The Financial Risk Committee must present in session to the Investment Committee a study that must contain the following:

The description of the Investment Asset subject to credit rating or Counterparty, as well as the analysis of the situation that originated the credit rating downgrade in question;

II.

Opinion on the credit quality of the issuer of the Investment Asset subject to credit rating, including bank deposits, or Counterparty of the Derivative, repo, or securities lending whose credit rating was downgraded;

III.

The impact on the investment portfolio as a consequence of the downgrade of the issuer or Counterparty of the Derivative, bank deposits, repo, or securities lending, and

IV.

The analyses described in this article must be presented in the session immediately following the date of the downgrade event, unless this occurs with 3 business days or less in advance to said session, in which case it must be presented in the immediately subsequent session.

The Financial Risk Committee must include the study referred to in this article in the Detailed Minutes that are drawn up from its corresponding session.

Investment Societies must stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that the Mandatary must carry out an analysis of the same nature when what is described in this article occurs and be informed to the Administrator within the timeframe determined in the contract.

Article 147.- The Investment Committee, considering the information contained in the study presented to it by the Financial Risk Committee, may opt for:

To conserve the Investment Asset subject to credit rating, unless it concerns bank deposits, or

II.

To carry out the recomposition of the portfolio.

The Investment Committee must include the study referred to in this article in the Detailed Minutes that are drawn up from its corresponding session.

Investment Societies must stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that the Mandataries may opt for the options described in this article. For the purpose of executing what is provided for in this paragraph, the contract may provide that the Mandatary acts with opportunity and adherence to the regulation applicable to the Mandatary in its country of origin in order to mitigate the harm to the assets managed by them.

Article 148.- For the Asset Managed by the Investment Society, in the event that the Investment Committee opts for the conservation of the Investment Assets subject to credit rating referred to in fraction I of the previous article, the following must be proceeded as follows:

The Investment Society, through its Investment Committee, must notify the Commission of the strategy it adopts, within a period not exceeding 20 business days counted from the date on which the credit rating downgrade in question occurs;

II.

The Financial Risk Committee must update the opinion on the credit quality of the issuer or Counterparty of the Derivative referred to in fraction II of Article 146 of these Provisions, on a quarterly basis, which it must present to the Investment Committee with the same periodicity, and

III.

The Investment Committee must follow up on the behavior of the Investment Assets subject to credit rating or of the Counterparty of the Derivative, repo, or securities lending whose rating has been downgraded and, having the opinion of the Financial Risk Committee, may decide to modify the adopted strategy.

In the event that it is decided to modify the strategy adopted by the Investment Society, its Investment Committee must, in its case, present a portfolio recomposition program in the terms referred to in the following article. The portfolio recomposition program must be presented within a period not exceeding 20 business days counted from the date on which the change of strategy is agreed.

The actions provided for in fractions II and III of this article will be executed until the possession in the investment portfolio of the Asset Managed by the Investment Society or the Counterparty whose credit rating has been downgraded is maintained, or until its credit rating is reviewed and returns to being within the limits permitted in the Authorized Investment Regime.

For the case of the Asset Managed by the Mandatary, the Administrator must provide that the Mandatary informs it regarding the policies that said Mandatary applies to the issuers as well as to the Counterparties, within the criteria established in the investment mandate contract, which must provide a retrospective report of the policies applied.

Article 149.- For the Asset Managed by the Investment Society, in the event that the option of recomposing the portfolio referred to in Article 147 fraction II of these Provisions is taken, the Investment Committee must record the portfolio recomposition program in the Detailed Minutes that are drawn up from its corresponding session and establish:

The Investment Assets that must be alienated, and

II.

The timeframe for the recomposition of the portfolio.

Such program must be notified to the Commission within a period not exceeding 20 business days counted from the date on which the downgrade of the credit rating that gives rise to it occurs.

For the purpose of executing what is provided for in this article, Investment Societies may provide that in the intermediation contracts in which they grant a mandate to a third party that the Mandatary acts with opportunity and adherence to the regulation applicable to the Mandatary in its country of origin in order to mitigate the harm to the assets managed by them. Likewise, the investment mandate contract must provide a retrospective report of the policies applied by the Mandatary.

Article 150.- Compliance with the portfolio recomposition program defined in accordance with what is provided for in Articles 148 second paragraph and 149 above will be mandatory for the Investment Society in question.

Investment Companies must stipulate in intermediation contracts where they grant a mandate to a third party for the acquisition of Investment Assets that Mandatees will comply with the portfolio reconstruction program in accordance with what is stipulated in the contracts, prior to reporting to the Administrator that hired them.

Section II

Regarding variations in the prices of the Investment Assets that make up the Asset Managed by the Investment Company and regarding the violation of investment limits in the Equity Component and other Investment Assets for causes not attributable to the Investment Company

Article 151.- The Investment Company shall proceed in accordance with what is provided in this Section when any of the following events occur:

When the Investment Company does not cover or exceeds in one or several days the limits provided for in the Authorized Investment Regime due to variations in the price of the Investment Assets;

II.

When, in order to acquire the Equity Component, FIBRA, or Real Estate Investment Vehicles, the shares, Vehicles, Real Estate Investment Vehicles, or Derivatives that make up, if applicable, indices or Basket of Indices are purchased, and due to the valuation of said values, the Permitted Deviation or the permitted weighting of the shares is exceeded in accordance with the General Provisions that establish the investment regime to which Investment Companies must be subject;

III.

When, in order to acquire an Equity Component, FIBRA, Real Estate Investment Vehicle, or Merchandise, shares, Vehicles, Real Estate Investment Vehicles, or Derivatives that make up, if applicable, indices or Basket of Indices are purchased, and the Permitted Deviation or the permitted weighting of the shares is exceeded in accordance with the General Provisions that establish the investment regime to which Investment Companies must be subject, due to the change in the composition of said index or Basket of Indices;

IV.

When, in order to integrate the Equity Component through the direct acquisition of shares, the Permitted Deviation or the permitted weighting of the shares is exceeded in accordance with fraction II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Companies must be subject, and

When, as a consequence of the Exercise of Patrimonial Rights associated with the shares, Vehicles, or Real Estate Investment Vehicles that make up an Equity Component, said component exceeds the Permitted Deviation or the permitted weighting of the shares in accordance with fraction II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Companies must be subject.

With respect to what is established in fractions II, III, and V above, an event shall be considered not attributable to the Investment Company when:

1.1

It orders the negotiation of purchase or sale of shares, Vehicles, or Real Estate Investment Vehicles within a maximum period of four business days, counted from the date on which the Permitted Deviation was exceeded, or

1.2

The Investment Company complies with the obligations derived from the settlement of the purchase or sale orders of shares, Vehicles, or Real Estate Investment Vehicles within a maximum period of four business days counted from the date on which the operation was negotiated and the Counterparty(ies) fail(s) to deliver the shares, Vehicles, or Real Estate Investment Vehicles.

With respect to what is established in fraction IV above, an event shall be considered not attributable to the Investment Company when:

2.1

It orders the negotiation of purchase or sale of shares, Vehicles, or Real Estate Investment Vehicles in accordance with the General Provisions that establish the investment regime to which Investment Companies must be subject, as well as the criteria defined by the Risk Analysis Committee for the operation with Foreign Equity Securities, and the Permitted Deviation is exceeded because the Counterparty(ies) fail(s) to deliver some of the shares necessary to integrate the Foreign Equity Security, or

2.2

Between the date of negotiation of the purchase or sale of shares, Vehicles, or Real Estate Investment Vehicles and the date of settlement of the referred assets, a variation in their valuation occurs.

Non-compliance with the contracts that Administrators enter into with Mandatees shall not be a cause attributable to the Investment Company when such non-compliance does not contravene the investment regime provided for in the applicable regulations or in the information prospectus.

Non-compliance with the limits for Structured Instruments provided for in these provisions in Annexes T and U, as well as in the General Provisions that establish the investment regime to which Investment Companies must be subject, shall not be a cause attributable to the Investment Company when, as a consequence of capital calls, investors in the Structured Instrument that integrates the investment portfolio of the Total Asset of the Investment Company do not contribute the requested amount and are subject to punitive dilution.

In the event that the administrator of the Structured Instruments, with the public information available and its own, does not sufficiently diversify the base of investors referred to in Annex U and causes Investment Companies to fail to comply with the limits provided for in the aforementioned Annex U of these provisions and in the General Provisions that establish the investment regime of Investment Companies, it shall not be a cause attributable to the Investment Company.

Non-compliance with the regulations on investments in Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments, or Debt Indices of Countries Eligible for Investments, as well as the Vehicles that replicate them, which are audited by independent experts, shall not be a cause attributable to the Investment Company. Such audit and the evidence of compliance with the requirements established in the General Provisions that establish the investment regime to which Investment Companies must be subject and the criteria defined by the Risk Analysis Committee must be available to the Commission at all times.

The preceding paragraph applies only to Vehicles that replicate Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments, or Debt Indices of Countries Eligible for Investments, known in practice as "Exchange Traded Funds" and Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments, or Debt Indices of Countries Eligible for Investments that are audited by independent experts.

The independent expert referred to in the preceding paragraphs must comply with the requirements provided for in Annex S of these Provisions and shall be responsible for auditing compliance with the requirements established in the General Provisions that establish the investment regime to which Investment Companies must be subject and the criteria defined by the Risk Analysis Committee of the Vehicles, as well as the Equity Indices of Countries Eligible for Investments, the Real Estate Indices of Countries Eligible for Investments, and the Debt Indices of Countries Eligible for Investments.

Article 152.- The Head of the Risk Area must notify the Commission in writing, to the Financial Risk Committee and to the Investment Committee, the events referred to in the scenarios of the previous Article 151, on the next business day after any of the established events occur.

Article 153.- For the Asset Managed by the Investment Company, the Financial Risk Committee must present to the Investment Committee a study that must contain:

The description of the Investment Assets by virtue of which the defect or excess in the limits provided for in the Authorized Investment Regime occurred;

II.

The description of the shares in which the Permitted Deviation was exceeded in the weighting of the index or Basket of Indices of reference established in the Authorized Investment Regime to acquire the Equity Component, in the case that a change in the composition of the index or Basket of Indices occurs, the new weightings and the deviations of the percentages of each share to the same;

III.

The circumstances or causes that originated the deviation with respect to the limits provided for in the Authorized Investment Regime and the Permitted Deviations, and

IV.

The elements that allow supporting decision-making on the convenience of maintaining or not the defect or excess in the Investment Assets due to variations in prices.

The Financial Risk Committee must include the study referred to in this article in the Detailed Minutes drawn up from its corresponding session.

Article 154.- The Investment Committee, considering the study presented by the Financial Risk Committee, may opt to:

Maintain the defect or excess in the Investment Assets, or

II.

Carry out the portfolio reconstruction.

The Investment Committee, in all cases, must draw up Detailed Minutes of the session in which the corresponding decision is taken.

In the event that any of the events established in fractions IV or V of the previous Article 151 occur, the Investment Company must proceed to reconstruct its portfolio in accordance with this Section, as well as present the corresponding portfolio reconstruction program.

Likewise, in the event that the violation is due to the Counterparty(ies) failing to deliver the shares, Vehicles, or Real Estate Investment Vehicles, the Investment Committee must decide whether to continue operating with the Counterparty that failed.

For the purpose of executing what is provided for in this article, Investment Companies may provide that in intermediation contracts where they grant a mandate to a third party, the Mandatee acts with timeliness and adherence to the regulation applicable to the Mandatee in its country of origin in order to mitigate damages to the assets managed by them. Likewise, the investment mandate contract must provide for a retrospective report of the policies applied by the Mandatee.

Article 155.- For the Asset Managed by the Investment Company, in the event that it opts to temporarily maintain the defect or excess in the Investment Assets, in accordance with what is established in fraction I of the previous article, it must request authorization from the Commission through its Investment Committee to temporarily maintain the defect or excess in said assets, within a period not greater than 20 business days counted from the day on which any of the events contemplated in Article 151 of these Provisions occurs.

The Commission, on the condition that no new acquisitions or sales of the Investment Assets causing the defect or excess are carried out, will grant non-objection to temporarily maintain the defect or excess in said assets until the applicable limits are restored.

In all cases, the period in which the defect or excess in the Investment Assets that make up the Asset Managed by the Investment Company, which gave rise to the non-compliance due to any of the events contemplated in the previous Article 151, can be maintained, may not exceed six months counted from the occurrence of said event.

Article 156.- In the event that portfolio reconstruction is opted for in accordance with what is provided in Article 154 of these Provisions, the Investment Committee must state in the Detailed Minutes drawn up from its corresponding session the portfolio reconstruction program, as well as establish at least the following:

The Investment Assets that must be sold or purchased;

II.

If applicable, the investment of new resources, and

III.

The period for the portfolio reconstruction.

The Investment Company, through its Investment Committee, must notify the portfolio reconstruction program to the Commission, within a period not greater than 20 business days counted from the date on which the deviation with respect to the limits provided for in the investment regime occurs.

Article 157.- Compliance with the portfolio reconstruction program defined in accordance with the provisions of the previous article is mandatory for the Investment Company in question.

Article 158.- The Administrator that operates the Investment Company in question, in the event that the notification referred to in Article 152 is not presented within the periods provided for such effect, the request referred to in Article 155, or the portfolio reconstruction program referred to in Article 156, must cover the daily losses that have occurred between the day on which any of the events contemplated in Article 151 that gave rise to the non-compliance occurred and the day on which the notification, request, or portfolio reconstruction program is presented, as the case may be, charged to the special reserve constituted in terms of what is provided by Article 28 of the Law and, in the event that this proves insufficient, it must do so charged to its social capital or equity.

In those cases where the Investment Company does not cover or exceeds in one or several days the limits provided for in the Authorized Investment Regime due to variations in prices; and that once the applicable limits are restored, whether it has opted to maintain the defect or excess in the Investment Assets or has carried out the portfolio reconstruction, it may carry out new acquisitions or sales of the Investment Assets in question without the Commission's approval, provided that the Investment Company has adhered to the procedure provided for in these Provisions and the respective documentary evidence remains available to the Commission.

Likewise, in the event that the Permitted Deviation is exceeded for causes attributable to the Investment Company, it must reconstruct its portfolio in accordance with what is established in the following Section.

Section III

Regarding portfolio reconstruction for failing to comply with the limits established in the Authorized Investment Regime by acquisition or sale of Investment Assets and for the violation of investment limits that make up the Total Asset of the Investment Company in the Equity Component for causes attributable to the Investment Company

Article 159.- The Investment Company must reconstruct the portfolio that makes up the Total Asset of the Investment Company in accordance with what is provided in this Section when any of the following events occur:

When the Investment Company directly or through Financial Service Providers, including Mandatees, has acquired or sold Investment Assets, failing to comply with the limits provided for in the Authorized Investment Regime;

II.

When the Investment Company directly or through Financial Service Providers, including Mandatees, has acquired Investment Assets not contemplated in the Authorized Investment Regime, and

III.

For the case of the Asset Managed by the Investment Company, when the period of four business days established by the Commission to form or settle the Foreign Equity Security is exceeded, failing to comply with the Authorized Investment Regime, with the excess being attributable to the Administrator that operates the Investment Company.

An event is considered attributable to the Investment Company, unless proven otherwise, when:

The Investment Company does not negotiate the purchase and sale of shares, Vehicles, or Real Estate Investment Vehicles necessary to form a Foreign Equity Security within the four business days following the date on which the Foreign Equity Security should have been formed, or

The Investment Company, having negotiated the purchase and sale of shares, Vehicles, or Real Estate Investment Vehicles, due to causes attributable to the Administrator, the agreed settlement of the said assets is not carried out within the four business days following the date on which the operation was negotiated.

Article 160.- The Head of the Risk Area must notify the Commission in writing, to the Financial Risk Committee and to the Investment Committee, when by any of the causes established in the previous article, the Authorized Investment Regime has been violated, on the next business day after the non-compliance with said Regime originates or in the case of Assets Managed by a Mandatee, on the next business day after having knowledge of the non-compliance.

Article 161.- The Financial Risk Committee must present to the Investment Committee a study that must contain at least the following:

Description of the Investment Assets that make up the Asset Managed by the Investment Company by virtue of which the Authorized Investment Regime was violated in accordance with what is provided in the previous article, and

II.

Proposal for a portfolio reconstruction program that makes up the Asset Managed by the Investment Company that allows restoring, within a maximum period of six months counted from the occurrence of the non-compliance, the limit provided for in the General Provisions that establish the investment regime to which Investment Companies must be subject.

The Financial Risk Committee must include the study referred to in this article in the Detailed Minutes drawn up from its corresponding session.

For the case of the Asset Managed by the Mandatee, the Administrator must provide in the intermediation contracts that the Mandatee informs it regarding the study referred to in this article and that said study is informed to the Administrator.

Article 162.- The Investment Committee, considering the study presented by the Financial Risk Committee, will decide the strategy that the Investment Company must follow to reconstruct its portfolio and for such purpose will define at least the following information:

The Investment Assets that must be sold or purchased;

II.

If applicable, the net flows, the new collection that enters or exits the Investment Company subsequently, and

III.

Its proposal for the period for the portfolio reconstruction.

The Investment Committee must state the portfolio reconstruction program in the Detailed Minutes drawn up in the corresponding session.

The Investment Company, through its Investment Committee, must send the portfolio reconstruction program to the Commission within a period not greater than five business days counted from the day on which the non-compliance originates.

The Commission, once it receives the portfolio reconstruction program referred to in the previous paragraph, may set the period in which the Investment Company must reconstruct its portfolio, which may not be greater than six months counted from the occurrence of the non-compliance, prior to the opinion of the Risk Analysis Committee.

Article 163.- Compliance with the portfolio reconstruction program is mandatory for the Investment Company in question, when the Commission sets a period for the portfolio reconstruction.

Article 164.- When the Investment Company in question violates the Authorized Investment Regime directly or through Financial Service Providers due to any of the events contemplated in Article 159 of these Provisions and the notification referred to in Article 160 of these Provisions is not presented within the period provided for such effect, the Administrator that operates it will cover the daily losses that have occurred between the day of the non-compliance and the day on which said notification is presented.

Likewise, in the event that the Investment Company does not send the portfolio reconstruction program to the Commission in accordance with what is provided in Article 162 of these Provisions within the period provided for such effect, the Administrator that operates it will cover the daily losses that have occurred between the day of the non-compliance and the day on which said portfolio reconstruction program is presented.

In all cases, the Administrator that operates the Investment Company in question must cover the losses that occur on the day of the non-compliance, even if the aforementioned notification or portfolio reconstruction program is presented.

The losses referred to in this article will be covered charged to the special reserve constituted in terms of what is provided by Article 28 of the Law and, in the event that this proves insufficient, they must be covered charged to its social capital or equity.

Section IV

Regarding portfolio reconstruction for exceeding the limit of Tracking Error, Conditional Value at Risk Differential, Liquidity Coefficient, or Value at Risk

Article 165.- Investment Companies that exceed the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or in its case the Value at Risk provided for in the Authorized Investment Regime, thereby contravening the respective Provisions, must reconstruct their portfolio in accordance with what is provided in this Section.

Article 166.- The Head of the Risk Area must notify in writing to the Commission and to the Financial Risk and Investment Committees, when the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or in its case the Value at Risk of the Investment Company

exceeds the maximum provided for in the Authorized Investment Regime, on the next business day after the limit has been exceeded.

Article 167.- The Financial Risk Committee must propose to the Investment Committee a portfolio recomposition program that recommends various strategies to restore the limits of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk of the Investment Company, in accordance with the General Provisions establishing the investment regime to which Investment Companies must be subject.

For the purposes of the foregoing, the Financial Risk Committee must analyze the following information:

If the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk was exceeded due to volatility events, or due to the Investment Strategy;

II.

The worst scenarios corresponding to the confidence level of the Conditional Value at Risk Differential or, as applicable, the Value at Risk, of the day on which the excess in the limit of the Conditional Value at Risk Differential or, as applicable, the Value at Risk occurred, and

III.

The Conditional Value at Risk Differential or, as applicable, the individual Value at Risk of the Investment Assets of the investment portfolio and their marginal contribution to it.

Article 168.- The Financial Risk and Investment Committees must jointly decide the strategy that the Investment Company must adopt to recompose its portfolio.

The portfolio recomposition program must contain at least the following information:

The Investment Assets that must be sold or purchased;

II.

The investment of new resources, and

III.

Its proposal for the timeframe for the portfolio recomposition.

Article 169.- In the event of extreme market volatility, where, to protect the interests of Workers, it is advisable to maintain the Investment Strategy determined by the Investment Committee, Investment Companies may present a special portfolio recomposition program to the Commission, in order to be allowed to exceed the limits of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk.

The special portfolio recomposition programs referred to in this article will have a maximum duration of six months counted from the date of no objection, may be extendable, and must comply with the criteria established by the Commission.

These programs must be strictly applied by Investment Companies.

The extension referred to in this article may be granted for the same term, as many times as necessary, as long as the portfolio recomposition programs must be maintained.

The excess in the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk occurring under the protection of an authorized and valid special portfolio recomposition program will not count towards the impact on the special reserve referred to in the last paragraph of Article 44 of the Law.

Article 170.- The Investment and Financial Risk Committees must record the portfolio recomposition program in the Detailed Minutes drawn up at their respective meetings.

The Investment Company, with the prior approval of the Financial Risk Committee, must send the portfolio recomposition program to the Commission through its Investment Committee, within a period not exceeding 20 business days counted from the date the non-compliance originated.

The Commission, upon receiving the portfolio recomposition program, may set the timeframe in which the Investment Company must recompose its portfolio, which may not exceed six months counted from the date the non-compliance originated, prior to the opinion of the Risk Analysis Committee, except as provided in the previous article.

Article 171.- Compliance with the portfolio recomposition program will be mandatory for the Investment Company in question, when the Commission sets a timeframe for the portfolio recomposition.

Article 172.- When the Investment Company in question fails to meet the limits provided for in the Authorized Investment Regime by exceeding the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk, and the notification referred to in the previous Article 166 is not submitted within the timeframe provided for such purpose, the Administrator operating it will cover the daily losses that have occurred between the day of non-compliance and the day the notification is submitted.

Likewise, in the event that the Investment Company does not send the portfolio recomposition program to the Commission as provided in the previous Article 170, within the timeframe provided for such purpose, the Administrator operating it will cover the daily losses that have occurred between the day of non-compliance and the day the aforementioned portfolio recomposition program is submitted.

The losses referred to in this article will be covered from the special reserve constituted in accordance with the provisions of Article 28 of the Law, and, in the event that this proves insufficient, it must be covered from its share capital or equity.

Article 173.- In the event that an Investment Company fails to meet the limits provided for in the Authorized Investment Regime by exceeding the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk due to causes attributable to it, the daily losses that occur must be covered until it submits the corresponding portfolio recomposition program. In this case, the Investment Company will not be entitled to any timeframe for the submission of said program.

The losses referred to in the previous paragraph must be covered from the special reserve constituted by the Administrator operating the Investment Company in question, in accordance with the provisions of Article 28 of the Law, and, in the event that this proves insufficient, they must be covered from the share capital or equity of said Administrator.

It will be understood that an Investment Company fails to meet the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk due to causes attributable to it, when, by using the investment portfolio that constitutes the Investment Company on the day of the first violation and the scenarios used to calculate the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk of the previous business day, the aforementioned limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk is exceeded.

In the event of repeated and consecutive violations, it will be assumed that an Investment Company fails to meet the limit of Conditional Value at Risk Differential, Liquidity Coefficient, Tracking Error, or, as applicable, Value at Risk due to causes attributable to it on a specific day when the following conditions occur:

A violation of the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk occurred on the previous day, and

II.

By using the investment portfolio that constitutes the Investment Company on the specific day of the violation and the scenarios used to calculate the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk of the previous business day, the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient, the Tracking Error, or, as applicable, the Value at Risk observed on the previous business day is exceeded.

For the purposes of the above calculations, the Risk Analysis Committee will determine the criteria that must be observed in the event that the Investment Company's portfolio contains assets not contemplated in the scenarios.

Article 174.- In the event that the corresponding portfolio recomposition program is not submitted to the Commission, repetition will be understood for the purposes of the sanction, for each day that passes without submitting said program, with the consequent aggravation of the sanction in terms of the Law.

In the event that the Mandatories fail to comply with the investment regime, the Administrator will be responsible for the attributable losses generated due to the non-compliance of the Mandatories.

TITLE XIII

ON INFORMATION PROSPECTUSES, EXPLANATORY BOOKLETS AND THEIR UPDATE

Article 175.- The information prospectuses prepared by Investment Companies must reveal information regarding their purpose, general investment policies, financial operations to be followed, and Financial Risks of the investment portfolios. It must include, as applicable, the objectives set by the Administrator when hiring Mandatories. Within the general investment policies, a general description of the Investment Trajectory applicable to the Total Asset portfolio of the Investment Company must be included. Explanatory booklets will be those that address the basic points of the information prospectuses and in which their content is exposed in simple language; an explanatory booklet must be prepared for each Investment Company.

The explanatory booklets, as well as modifications or addenda thereto, must be approved by the Governing Body of the Administrator and reviewed by at least the Head of the Risk Area and the Head of the Investment Area. Likewise, the Administrator must keep available to the Commission evidence that the Regulatory Comptroller reviewed the content of the explanatory booklets, and that it corresponds to what was approved by the Governing Body of the said Administrator.

The information prospectuses, as applicable, the modifications or addenda thereto that must be submitted to the Commission for authorization, must attach the requirements provided for in Article 177 of these Provisions.

Likewise, the explanatory booklets and, as applicable, the modifications or addenda thereto, must be available to the Commission at all times.

Article 176.- The information prospectuses and explanatory booklets must comply with the content provided for in Annexes P and Q. Likewise, subject to the General Provisions establishing the investment regime to which Investment Companies must be subject, issued by the Commission.

The Commission, when authorizing the information prospectuses of Investment Companies whose exclusive purpose is the investment of social pension funds, may order that provisions regarding investment policies, liquidity, asset selection and diversification, information disclosure, credit quality, market risk, marketability, and potential conflicts of interest that may materialize to the detriment of the plan beneficiaries be incorporated.

Article 177.- The draft information prospectus, as well as the modifications or addenda thereto that must be submitted to the Commission for authorization in terms of this Title, must attach the following:

A document indicating the modifications made and in electronic version, in which each of the changes or additions made in the draft submitted for authorization is identified with respect to the corresponding current version;

II.

The approval of the adjustments to said documents, carried out by the Governing Body of the Administrator, through the Detailed Minutes of the Governing Body session or a certificate issued by the secretary of said body, which must comply with the provisions of Article 29 of the Law. Such Detailed Minutes must have the favorable vote of the Independent Directors and must be sent to the Commission no later than 20 business days after the holding of the Governing Body session of the Administrator.

In the event of not having the approval referred to in this subsection, Investment Companies must comply with the provisions of Article 179, subsection I of these Provisions;

III.

Evidence indicating that the modifications were reviewed by at least the Head of the Investment Area and the Head of the Risk Area, regarding their content and consistency, and

IV.

Evidence indicating that the Regulatory Comptroller supervised the content and that it corresponds to what was approved by the Governing Body of the said Administrator.

Article 178.- Investment Companies must modify the information prospectus and explanatory booklet, or as applicable, the addenda thereto, and submit them to the Commission, within 65 business days following the entry into force of:

The General Provisions establishing the investment regime to which Investment Companies must be subject;

II.

The commissions authorized for the Investment Company, except when the information prospectus and explanatory booklet are expressly authorized by the Governing Board, solely with respect to the update of the commission authorized by the Governing Board, sending a copy thereof prior to the entry into force of the authorized commission, and

III.

Any other general provision issued by the Commission that implies modifications to what is established in the information prospectus and explanatory booklet of said Investment Company.

For the modification of the information prospectus and explanatory booklet, or as applicable, the addenda thereto, in accordance with the provisions of subsections I to III of the previous article of this article, the following must apply:

When the General Provisions establishing the investment regime to which Investment Companies must be subject or another general provision issued by the Commission that implies modifications to what is established in the information prospectus and explanatory booklet of said Investment Company, or the authorized commissions, or the concentration limits defined by the Financial Risk Committee, establish restrictions greater than those previously in force, the Investment Company must observe them even if such restrictions are not provided for in its information prospectus;

When the General Provisions establishing the investment regime to which Investment Companies must be subject establish a new methodology to quantify financial characteristics of investment portfolios, the Investment Company must observe it. In the event that the methodology provided for in the information prospectus is compatible with the new methodology, both must be observed, and

When the General Provisions establishing the investment regime to which Investment Companies must be subject or another general provision issued by the Commission that implies modifications to what is established in the information prospectus and explanatory booklet of said Investment Company, or the authorized commissions, or the concentration limits defined by the Financial Risk Committee establish restrictions lesser than those previously in force, the Investment Company may not adopt them until they are provided for in its authorized information prospectus.

Article 179.- For the authorization of the information prospectus, as well as the modifications or addenda thereto, Administrators must comply with the following procedure:

Administrators may submit for authorization with a resolutive condition by the Commission, the information prospectus, or as applicable, the modifications or addenda thereto from the entry into force of what is provided for in the previous article of these Provisions, stating that in the next session held by the Governing Body of the Administrator, they will be submitted for approval by said Body, in accordance with the provisions of Article 29 subsection III of the Law and the previous Article 175 of these Provisions. Once the approval of the Governing Body of the Administrator is obtained and the favorable vote of the Independent Directors is present, the Detailed Minutes or the certificate issued by the secretary of said Body must be sent to the Commission within 20 business days following the holding of the session;

In the event that the Commission does not have the Detailed Minutes of the corresponding session or the certificate issued by the secretary of said Body in terms of the previous paragraph, the authorization with resolutive condition will become void, so the Administrator must comply with the provisions regarding the last information prospectuses authorized by the Commission without resolutive condition. In this case, the Investment Company operated by the Administrator will be subject to the portfolio recomposition rules provided for in these Provisions;

II.

The Commission will have a period of 40 business days from the receipt of the request for authorization of the information prospectus, or as applicable, the modifications or addenda thereto, to authorize it. If this period elapses and the Commission does not issue authorization nor makes any observation, the documents referred to in this paragraph will be deemed authorized, and

III.

The information prospectus, or as applicable, the modifications or addenda thereto, will not be authorized when the information delivered to the Commission does not meet the quality and characteristics required in this Title and in Annex P of these Provisions.

The Commission's authorizations will be granted solely on the modifications or additions identified in accordance with the provisions of Article 177, subsection I of these Provisions, so any modification or addition not identified will be deemed unauthorized.

In the event that the Investment Company submits a request for clarification to the Commission through which it makes additional modifications or clarifications to the previously sent request, the Commission will have the period provided for in the previous subsection II, counting from the date of delivery of the clarification.

Article 180.- The Administrator must not deliver to the investing public any information prospectus that is not authorized by the Commission.

Article 181.- The authorized information prospectuses, as well as the updated explanatory booklets, must be available to the investing public at all times, in the offices and branches of the Administrator operating the Investment Company in question or on the Internet page of the Administrator, and must comply with the formats provided for in Annexes P and Q, as applicable, of these Provisions. For the purposes of this article, it will be sufficient for the Administrator to provide the documents in electronic version.

The information prospectuses of Investment Companies whose exclusive purpose is the investment of social pension funds must comply with the requirements established in Article 47 bis of the Law, except for what is established by subsection VIII of said article. For these Investment Companies, Administrators may observe the contents of the format provided for in Annex P of these Provisions. In the event that they decide not to adhere, the content of the format must be defined by the Investment Committee and described in the corresponding Detailed Minutes; this information must be available to the Commission.

TITLE XIV

ON THE CHOICE OF INVESTMENT OF RESOURCES FROM THE RETIREMENT INSURANCE SUB-ACCOUNT, RETIREMENT SAVINGS SUB-ACCOUNT AND VOLUNTARY SAVINGS

Article 182.- Workers, whose pension resources are managed by Investment Companies, may choose to have the resources invested in a Basic Investment Company other than the one in which the resources must be invested, in accordance with the provisions of the General Provisions establishing the investment regime to which Investment Companies must be subject.

Regarding Voluntary Savings, Workers may choose that each sub-account or type of contribution that makes up Voluntary Savings be invested in any of the Basic Investment Companies or Additional Investment Companies operated by the Administrator. In this case, the decision taken by Workers regarding the investment of each Sub-account or type of contribution will be independent and in no case will it imply that other resources must be invested in the same manner. The resources that make up Voluntary Savings will not be subject to the rules issued by the Commission regarding the transfer of resources from one Investment Company to another, nor to those provided for in the general provisions on operations of retirement savings systems.

In the event that Workers do not choose the manner in which the resources are invested, such resources must be invested in the Investment Company determined by the Administrator, in accordance with what is established in the information prospectuses of each Investment Company operated.

TITLE XV

FINAL PROVISIONS

Article 183.- Investment Companies for the sending and receiving of digital documents must comply with the procedure for the sending of digital documents and notifications by email of Participants in the Retirement Savings Systems established in the General Provisions on operations of the Retirement Savings Systems.

Article 184.- Administrators must emphasize control and information regarding investments in securities by the Regulatory Comptroller and by Officials who, by reason of their position or role, have access to information regarding the investment of resources in individual accounts; the foregoing, in accordance with the provisions of Article 67 of the Law; likewise, they must prohibit the aforementioned persons from directly or indirectly using the reserved information to obtain for themselves or for others, advantages through the purchase or sale of securities.

Article 185.- In the event that the Administrator, through the Investment Companies it operates,

pretend to carry out securities lending operations with shares representing the share capital of

Credit Institutions, it must previously have the non-objection of the Commission. The non-objection will be

for a period of three years and may be renewed for an equal period, provided that the Administrator requests the

renewal six months before its validity expires.

TRANSITORY PROVISIONS

ARTICLE FIRST. These General Provisions shall enter into force on the next business

day following their publication in the Official Journal of the Federation, with the exception of the following:

The Investment Committees must define the Investment Trajectory in accordance with article 36 of the

present provisions within the period established in the Fourth Transitory Provision of the General Provisions

that establish the investment regime to which Investment Societies must be subject. Likewise, the Investment Manuals and Manuals of Policies and Procedures for the Administration of

Financial Risk, must incorporate the corresponding adjustments. Administrators must send to the

Commission the information corresponding to the inputs used for the formation of the Investment

Trajectory through the means and in accordance with the guidelines that the Commission notifies to the

Administrators for this purpose.

II.

For the modifications provided in Annex P of these provisions, for a single

occasion, Investment Societies must modify their information prospectuses, and the

Administrators must request authorization from the Commission no later than 105 calendar days

after receiving the notification on the Gradual Adoption Criteria for the

maximum limits provided in column 4 of Annex S of the General Provisions

that establish the Investment Regime to which Specialized Retirement Fund Investment Societies must be subject

determined by the Risk Analysis Committee.

III.

For the modifications provided in Annex Q of these provisions, for a single

occasion, Investment Societies must modify their explanatory booklets, and must

keep them available to the Commission duly updated no later than 105 calendar days

after receiving the notification of the Gradual Adoption Criteria for the

maximum limits provided in column 4 of Annex S of the General Provisions

that establish the Investment Regime to which Specialized Retirement Fund Investment Societies must be subject

determined by the Risk Analysis Committee.

IV.

With respect to environmental, social, and corporate governance principles (ESG, by its

acronym in the English language), what is provided in articles 3 fractions XIII and XXIV, 20 fraction VII, 31

fraction III, Annex P fraction II subsection j), and Annex Q fraction I numeral ii, shall enter into force from

the first business day of 2022.

ARTICLE SECOND. The "General Provisions on Financial Matters of the

Retirement Savings Systems", with its modifications and additions published in the Official Journal of the

Federation on November 16, 2018, are repealed.

Likewise, with the publication of these Provisions, any provision issued by the

Commission that is contrary to this regulation is repealed.

ARTICLE THIRD. For purposes of compliance with what is provided regarding special

reserves of Investment Societies in the Second Transitory Provision of the General Provisions

that establish the patrimonial regime to which Administrators, the Pension System, and Investment Societies and the special reserve will be subject, Administrators:

Must demonstrate compliance with what is provided in the first paragraph of this article;

II.

Must not have pending observations to be resolved in financial matters made by the

Commission for the purpose of verifying compliance with the contents provided in the previous paragraph

for fractions II and III of the Second Transitory Provision of the General Provisions

that establish the investment regime to which Investment Societies must be subject, and

III.

Must demonstrate compliance with what is provided in Title II, Chapter II, article 14, and Title

III, Chapter IV of these Provisions.

The Commission, in the exercise of its supervisory powers, will determine the terms in which the

special reserve must be reconstituted when any of the conditions provided in this

article are not met.

ARTICLE FOURTH. Investment Societies will observe the following diversification criteria

until the Commission verifies that the methodologies and elements of measurement for

additional credit evaluation provided by securities rating institutions to

which article 3, fractions XIII and XIV of these provisions refer, have been fully implemented:

Up to 5% of the Total Asset of the Investment Society in Debt Instruments and Foreign

Debt Securities that hold the qualifications provided in Annexes A, F, and J of the

General Provisions that establish the investment regime to which they must be subject

specialized retirement fund investment societies;

Up to 3% of the Total Asset of the Investment Society in Debt Instruments and Foreign

Debt Securities that hold the qualifications provided in Annexes B, G, or K of the

present General Provisions that establish the investment regime to which they must be subject

specialized retirement fund investment societies, and

Up to 2% of the Total Asset of the Investment Society in Debt Instruments that hold

the qualifications provided in Annexes C and H of the present General Provisions

that establish the investment regime to which they must be subject

specialized retirement fund investment societies.

Up to 1% of the Total Asset of the Investment Society in Debt Instruments that hold

the qualifications provided in Annex I for medium and long-term issuances, as well as D

or E of the present General Provisions that establish the investment regime to which they must be subject

specialized retirement fund investment societies.

For purposes of computing the value of investments made with each Counterparty or issuer in accordance

with this provision, the General Provisions that

establish the investment regime to which specialized investment societies must be subject and annex G of these provisions will apply.

Mexico City, September 9, 2019.- The President of the National Commission of the

Retirement Savings System, Abraham E. Vela Dib.- Signature.

ANNEX A

Fixed Scenarios that Count in the Conditional Value at Risk Differential

The scenarios of the following 5 disjoint dates that will remain fixed within the 1000 scenarios

used in the computation of the Conditional Value at Risk Differential:

Scenarios

October 22, 2008

February 20, 2009

October 23, 2008

February 23, 2009

October 24, 2008

The Commission will keep updated the list of fixed scenarios that must be considered in the computation

of the Conditional Value at Risk Differential, through publication on its Internet page. It will be

the responsibility of Administrators to comply with the criteria approved by the Risk Analysis

Committee, as well as to follow up on any update and publication that occurs regarding the

list of fixed scenarios that must be considered in the computation of the Conditional Value at Risk Differential.

ANNEX B

On Structured Instruments, FIBRAS, and Certificates Linked to Real Projects

Chapter I

Elements that must be foreseen in the policies defined by Investment Committees to carry out

investments in Structured Instruments, FIBRAS, and Certificates Linked to Real Projects

On the eligibility of the Structured Instrument administrator:

Independence. Determine policies related to the independence of the team of

administration of the Structured Instrument with respect to the settlors, contributors,

originators or operators, of the assets that make up the underlying investment;

Capabilities. Define parameters to evaluate the capabilities of the administration team

of the Structured Instrument based on the status of financial resource management businesses

focused on the operation of funds and fund of funds, completed and

in progress, including those whose object is the financing of real projects, among

which are private equity funds, seed funds, project financing funds,

infrastructure and real estate. These parameters must consider

countries, regions, and economic sectors in which investments are planned to be managed.

Likewise, it must determine how many years of experience and amount of resources

managed the administration team of the Structured Instrument must have in the

elements described in this subsection;

When key officials exist, determine the experience they must have given

the tasks assigned to each person, and

Team probity. Know and define policies in case the administration team

of the Structured Instrument, or some of its members, has pending

investigations before any of the regulators of the Eligible Countries for Investments

for reasons related to non-compliance with the financial regulations of the countries in which they

operate, frauds by their officials or ex-officials, or non-compliance with their

fiduciary responsibility.

II.

On the eligibility of the FIBRAS administrator:

Independence. Determine policies related to the independence of the administration team

of the instrument referred to in this fraction with respect to the

settlors, contributors, originators, and operators of the assets that make up the

underlying investment;

Capabilities. Define parameters to evaluate the capabilities of the administration team

of the instrument referred to in this fraction based on the status of the businesses of

financial resource management focused on the operation of vehicles whose object

is the financing of real assets or projects, among which are

project financing vehicles for infrastructure and real estate. These parameters must consider countries, regions, and economic sectors in which

investments are planned to be managed. Likewise, it must determine how many years of

experience and amount of resources managed the administration team of the

instrument referred to in this fraction must have in the elements described in this

subsection;

When key officials exist, determine the experience they must have given

the tasks assigned to each person, and

Team probity. Know and define policies in case the administration team

of the instrument referred to in this fraction has pending investigations before

any of the regulators of the Eligible Countries for Investments for reasons

related to non-compliance with the financial regulations of the countries in which they operate or

frauds by their officials or ex-officials, or non-compliance with their

fiduciary responsibility.

III.

On the eligibility of the settlor, operator, or in its case, the contributor of real assets or

real projects or of rights to collect income generated by them, of the

Certificates Linked to Real Projects:

Independence. Determine policies related to the independence between the

settlor or contributor of the underlying real assets or projects, the operator, and in

its case, appraiser;

Capabilities. Define parameters to evaluate the capabilities of the operator, and in its case

administrator, of the underlying real assets or projects, including experience in

the operation and administration of real assets and projects, as well as the sector, region, or

economic sector in which investments are planned to be managed, and

Team probity. Know and define policies in case the settlor or

contributor, as well as the operator or administrator of the underlying real assets or projects

or executives of the aforementioned entities, have pending investigations

before any of the regulators of the Eligible Countries for Investments for reasons

related to non-compliance with the financial regulations of the countries in which

they operate or frauds by their officials or ex-officials, or non-compliance with their

fiduciary responsibility.

IV.

On the eligibility of the co-investor of the Fiduciary Certificates of Investment Projects:

For purposes of computing investment in the projects financed by the Certificates

Bursátiles Fiduciarios de Proyectos de Inversión referred to in Annex U of the present

Provisions, eligible co-investors, distinct from Investment Societies, will be considered

those defined by the Investment Committee in accordance with article 30, fraction II,

numeral i bis of these provisions and that are provided in the investment prospectus;

In case the co-investor is the one who defines the investment thesis, the Investment

Committee must demonstrate:

That it is a private equity fund administrator, pension fund, sovereign

fund, operating partner, or state productive companies, and

ii.

That it demonstrates that it has experience in investments or project development in

which the Structured Instrument, of which it is a co-investor, approves investing.

In case the co-investor is a private equity fund administrator or is

an administrator of an instrument provided in subsection a) of provision Second, fraction LI

of the General Provisions that establish the investment regime to which they must be subject

Investment Societies, it must comply with what is provided in fraction I of chapter

I and fraction I of chapter II of this annex.

To demonstrate the experience of the co-investor and the eligibility criteria provided in the

present annex, subsidiary, affiliate, or controlling entity (known in English as "holding") companies of the

co-investor may be considered, provided that, in the case of subsidiaries or

affiliates of the co-investor, the share capital belongs entirely to the co-investor and

when demonstrated through the controlling entity, it must be shown that at all

times the co-investor observes corporate governance rules, ethics, information disclosure,

as well as investment analysis procedures and uses sources of

information for these purposes, approved by the controlling entity.

Chapter II

Elements that must be contained in the selection questionnaires for Structured Instruments, FIBRAS

and Certificates Linked to Real Projects

The Investment Committee or the Financial Risk Committee must include in the questionnaire as

a minimum the following elements:

The questionnaire must contain the necessary questions to be able to evaluate the satisfaction of the

policies provided in the previous chapter of this Annex. In particular, it must contain questions

that allow verifying that the administrator, or in the case of the Certificate Linked to Real Projects

the

corresponding figure, has an evaluation on the legal, technical, political, and social risks to

which the underlying investments of the assets that will make up the Structured Instruments, FIBRAS, and Certificates Linked to Real Projects are exposed.

For Structured Instruments and FIBRAS, the following must be known about the

administrator of the instrument:

General information about the administration team of the instruments referred to in the

present fraction: main clients; main investors in previous investment instruments;

independence of the administrator with respect to possible

contracting Administrators;

Executive team: Biographies of the members of the executive team of the administrator

including education, professional experience, and current position in the company; brief

description of the competitive advantages of the executive team; description of the compensation scheme of the executive team of the instrument; experience of the administrative team

working together; measures of adherence to the defined and approved investment and risk criteria

by the respective governing bodies; identification of officials,

executives, and first-level officers and their remuneration policy; mechanisms for

disclosure of changes in appointments of officials up to the second level of the

administrator; criteria of transparency, integrity, and confidentiality applied by the

administration team; description of the mechanisms to disclose changes in the

appointments of first-level officials of the administration team, and in its

case, the advisor; criteria for replacement and conditions for termination of the team of

administration, and in its case, the advisor.

Governing bodies: Structure, composition, and functions of the governing bodies of the

administration team and in its case, the advisor; mechanisms for the formation of

committees for the management of the instruments referred to in this fraction;

composition and selection criteria of the members of the governing bodies

independent and control group; biographies of the members of the governing bodies;

powers, description of the strategic decision-making process and veto rights;

Compliance officer in the company: Name and contact data; description of any actual or potential conflict of interest; information on the

existence of any legal proceeding in process against the company or any

member of the executive team; policies for resolving and mitigating conflicts of interest;

indicate if any member of the executive team is involved with any company with which

there could be a conflict of interest; and the policies for operation with related parties;

External advice: Information on the use of professional consultants related to

audit, taxes, finance, and law; description of the functions of professional consultants;

auditor contact information; information on the existence of any

relationship/affiliation of the auditor to any of the instrument's businesses; policies regarding

external audits on the situation of resource management and resolution of

potential conflicts of interest; information on subcontracting of third parties for risk

management;

Information on the Investment Instrument available to investors in terms of the

Securities Market Law and the General Provisions applicable to

securities issuers and other participants in the securities market, issued by the

National Banking and Securities Commission: Policy to acquire or assume credits;

loans or financing charged to the trust; leverage limits, policy on

use of derivative instruments and; in the case of Structured Instruments, policies on liquidity management must be considered

until the resources from capital calls or prefunding are channeled to the underlying investments object of the

Structured Instrument;

Administration, operation, and monitoring of the instrument: Description of the process of

selection of an investment; description of the supervision process of the investments of the

investment portfolio; type of reports sent to investors; frequency of reporting

instrument information to investors; periodicity of sending detailed information on

investments made; description of the administrator's policy regarding

meetings between fund officials and possible institutional investors;

indicate the diversification policies of investments, by settlor or contributor, by

operator of the projects, by economic sector, by geographic regions, by stage of

project development, among others; infrastructure in systems and models with which the

administration team has to carry out the processing of operations, valuation, and

risk control; asset valuation policies that make up the trust's equity, including the experience and independence of the independent appraiser,

regarding experience, inputs used, and rotation policies of the independent

expert, specific audit policies for the Structured Instrument or

FIBRAS;

For Structured Instruments, evaluation of adherence to international standards

issued by the "Institutional Limited Partner Association", ILPA, by its acronym in the English language

and known in the Spanish language as the Association of Institutional

Investors, or other analogous references regarding:

Information disclosure;

ii.

Valuation practices, and

iii.

Analysis of underlying investments and the fund;

Costs and expenses: Estimated issuance expenses; administration commissions; maintenance commission; incentive commission;

preferential commission; sales commission; other instrument commissions; additional expenses in which the instrument could incur;

indicate if they have any shared compensation system with another company, and

The disclosure, mitigation, and resolution policies for conflicts of interest of the administrator itself, as well as those applicable to conflicts of interest of other participants in the

Structured Instrument or FIBRA of which the Administrator has knowledge. In the case

of Structured Instruments, the Administrator must request the code of ethics of the

administrator of the instrument.

Policies for the selection of investments that consider natural disaster risks.

II.

For Certificates Linked to Real Projects, the following will be observed:

General information about the settlor, operator, or in its case, the contributor of real

assets and real projects or of rights to collect income generated by them,

such as the operation of other real assets or projects, main competitors,

independence of the administrator with respect to possible contracting Administrators,

among others;

Governance bodies: Structure, composition, and functions of the governance bodies of the entities involved in the operation of the underlying assets;

Information on the Real Project-Linked Exchange-Trusted Certificate: Characteristics of the real assets or real projects or, where applicable, the rights to collect income generated by them; Risk Factors, including natural disasters; description of the expected performance (ranges) of the instrument; policy on credits, loans, or financing charged to the trust; leverage limits, policy on the use of derivative instruments;

Description of any actual or potential conflict of interest; information on the existence of any legal proceedings in process against the company or any member of the management team; policies for resolving and mitigating conflicts of interest; indicate if there are potential conflicts of interest; policies for operations with related parties, and

Costs and expenses: Estimated issuance expenses and other additional expenses that the Real Project-Linked Exchange-Trusted Certificate might incur.

III.

For Investment Project Trust Certificates, in addition to what is provided in fraction I of this chapter, which shall apply only to the administrator of the instrument, information about the co-investor must be known when the latter defines the investment thesis:

General information on the co-investor of the Investment Project Trust Certificates;

Executive team of the co-investor and, where applicable, analysis of the parent or subsidiary company of the co-investor responsible for approving investment projects;

Description of any actual or potential conflict of interest of the co-investor, its operating subsidiaries or affiliates with respect to the investments of the instrument in question;

Policies of the co-investor regarding the administration, operation, and monitoring of the instrument:

Description of the co-investor's policies regarding:

Information disclosure;

ii.

Valuation practices, and

iii.

Analysis of the underlying investments and the fund.

Code of ethics of the co-investor.

In the case where the co-investor is a private equity fund administrator, it must comply with what is provided in fraction I of this chapter, and what is provided in items a) to f) of this chapter shall not apply.

ANNEX C

Minimum elements to be included in the analysis of companies

The Investment Committee must define and approve an Investment Strategy in individual stocks, which considers among other elements the objectives, the investment horizon, deviation policies, leverage, and liquidity.

II.

Have an analysis of fundamental variables that comprises at least the following elements:

General description of the issuing company;

Characteristics of the series in which the Investment Company invests:

Rights and restrictions of holders;

ii.

Liquidity, and

iii.

Markets in which it trades.

Financial ratios to consider:

Solvency;

ii.

Liquidity;

iii.

Leverage, and

iv.

Profitability.

Current and prospective view of the company considering:

The general performance of the economy;

ii.

The sector to which it belongs;

iii.

The company's comparative advantages;

iv.

Business strategy;

Growth potential, and

vi.

Risks facing the company that may have an impact on valuation and performance.

vii.

Action plans in case of emergencies or natural disasters.

Valuation:

Description of the fair valuation methodology employed by the Administrator;

ii.

Assumptions used in said methodology and information inputs, and

iii.

Deviations between market valuation and fair valuation.

In the event that the investment is made through Derivatives, the following must also be included:

Market and Counterparty;

ii.

Valuation Methodology, and

iii.

Financial characteristics of the Derivative.

In the event that the Investment Committee, with the approval of the majority of the Independent Directors, determines that any of the elements provided for in this Annex are unnecessary, it must record this in the Detailed Minutes of the session where such policy is approved, for which it must explicitly state the reasons why they consider the elements in question to be unnecessary.

ANNEX D

Currency Classification

Investment Companies may operate with any Currency authorized in this annex, whose quotation markets are regulated and supervised by an authority belonging to an Eligible Country for Investments, considering the common name used in financial markets; likewise, they may only carry out the authorized operations of the Currencies of the Eligible Countries for Investments in accordance with the following three groups:

Group I: Composed of those Currencies authorized to settle permitted instruments, hedge exposure to the Currency, and take Pure Positions in Currencies. This group is composed of the following currencies:

Group II: Composed of those Currencies authorized only to settle permitted instruments or hedge the exposure to the Currency of the underlying, which are listed below.

The elements of this group of Currencies may be evaluated, individually, by the Risk Analysis Committee for the purpose of being considered in the future within Group I or, where applicable, within Group III.

Group III: Composed of the Currencies authorized only to settle permitted instruments or hedge the exposure to the Currency, which are listed below.

Country

Currency

Country

Currency

Brazil

Brazilian Real (BRL)

Thailand

Thai Baht (THB)

Colombia

Colombian Peso (COP)

Czech Republic

Czech Koruna (CZK)

Israel

Israeli Shekel (ISL)

Hungary

Hungarian Forint (HUF)

Chile

Chilean Peso (CLP)

Romania

Romanian Leu (RON)

India

Rupee (UNR)

Bulgaria

Bulgarian Lev (BGN)

China

Chinese Renminbi (CNY)

Iceland

Icelandic Króna (ISK)

Peru

Peruvian Nuevo Sol (PEN)

South Africa

South African Rand (ZAR)

Poland

Polish Zloty (PLN)

Malaysia

Ringgit (MYR)

Taiwan

New Taiwan Dollar (TWD)

In the future, some of these Currencies could be transferred to Group II, if market development conditions allow, prior to the opinion and approval of the Risk Analysis Committee.

In the event that there are different nomenclatures for the same Currency and one of them can be classified in a Currency Group different from those provided for in this Annex, it will be classified within the most conservative Group.

The modifications and additions that the Risk Analysis Committee determines for the present will be published on the Commission's website. It is the responsibility of the Administrators to comply with the criteria approved by the Risk Analysis Committee and to follow up on any updates and publications regarding the aforementioned modifications and additions.

ANNEX E

Methodology for calculating the Market Value of Currency positions

For the purpose of verifying compliance with the limit applicable to Currency positions established in the General Provisions issued by the Commission, the following shall be considered:

Total Currency Exposure.

The Currency exposure of the Total Asset of the Investment Company, derived from the investment in the Investment Objects, both by the Investment Company and its Mandatories, shall be calculated considering the following criteria and formulas:

Independent positions are considered those of the Asset Managed by the Investment Company and those of the Asset Managed by each of the Mandatories. This implies that the positions of the Asset Managed by the Investment Company are not netted with those of the Asset Managed by any Mandatory, nor are the positions of the Assets Managed between Mandatories netted;

For Currency positions of the Asset Managed by the Investment Company:

Long and short positions in the same Currency are netted;

ii.

Long and short positions between different Currencies are not netted, and

iii.

The net Currency position of the Asset Managed by the Investment Company is obtained by summing the net positions in each Currency.

The same mechanism as in the previous item b) applies to the Currency positions of the Asset Managed by each Mandatory individually, and

The net Currency position of the Asset Managed by the Investment Company and those of the Assets Managed by each of the Mandatories, obtained in accordance with the previous items a), b) and c), are summed to determine the Currency exposure of the Total Asset of the Investment Company.

The above is achieved by summing the absolute value of the Currency exposure of the Asset Managed by the Investment Company and the absolute values of the Currency exposures of the Asset Managed by each Mandatory. Finally, the result of these sums is divided by the Total Asset of the Investment Company. The following formula shows algebraically the previous mechanism:

ANNEX G

Methodology for calculating the market value of operations that must be considered within the limits of Issuers or Counterparties

Total Exposure to an Authorized Issuer or Counterparty.

The exposure to an Authorized Issuer or Counterparty of the Total Asset of the Investment Company, derived from the investment in the Investment Objects, both by the Investment Company and its Mandatories, shall be calculated considering the following criteria and formulas.

The exposure to an Authorized Issuer or Counterparty of the Total Asset of the Investment Company as a percentage of the Total Asset of the Investment Company must be less than or equal to the limits provided for in the General Provisions that establish the investment regime to which Investment Companies must be subject.

For such purposes, the level of concentration at each Counterparty and Issuer observed in the Total Asset of the Investment Company shall be computed, for which the weighted average of the concentration observed in the operations carried out with the Assets Managed by the Investment Company and the Assets Managed by each Mandatory shall be used. Said average shall be calculated using the Assets Managed by the Investment Company and those corresponding to each Mandatory.

II. Consumption of Issuer or Counterparty limit through the Asset Managed by the Investment Company.

To calculate the market value of the concentration maintained by the Asset Managed by the Investment Company, in securities and operations of the same issuer or Counterparty, the following must be adhered to:

For the purpose of verifying the concentration limits applicable to Counterparties or Issuers established in the General Provisions issued by the Commission, the compensated market values of operations with Derivatives carried out in over-the-counter markets with each Counterparty, the market values of repo and Securities Lending operations, carried out with each Counterparty, net of the guarantees received for this purpose, the value of cash deposits made with each Counterparty, as well as the instruments issued by said Counterparty or issuer, must be considered, according to the following formula:

Note that for the calculations described in this Annex, the market value of the corresponding operations will be considered.

The formula will be used to determine compliance with the concentration limits provided for in the General Provisions that establish the investment regime to which Investment Companies must be subject. Therefore, only the Investment Objects and the Counterparties corresponding to the credit rating limits to be evaluated will be considered.

In the case of operations with local Counterparties that settle in currencies other than the national currency or the UDI, the credit rating level provided for in the General Provisions that establish the investment regime to which Investment Companies must be subject for Foreign Securities and Foreign Counterparties will apply.

To determine compliance with concentration limits by Counterparty when it involves more than one credit rating, after applying the formula to each rating level, the totals of each level will be added to verify compliance with the consolidated limits provided for in the regulations.

The concentration limits at each Counterparty or Issuer will be expressed as a percentage of the Asset Managed by the Investment Company. This factor will be one of the terms that make up the weighted average, mentioned in the previous fraction, with which compliance with the concentration limits provided for in the General Provisions that establish the investment regime to which Investment Companies must be subject will be verified.

III. Consumption of Issuer or Counterparty limit through the Asset Managed by the Mandatories

To calculate the market value of the concentration maintained by the Asset Managed by each Mandatory, in securities and operations of the same issuer or Counterparty, the following must be adhered to:

The formula will be applied to the operations carried out with the Asset Managed by each Mandatory that Investment Companies may contract.

The percentages derived from the computation provided for in the previous paragraph must observe the limits provided for in the General Provisions that establish the investment regime to which Investment Companies must be subject.

IV. Consumption of Issuer or Counterparty limit through the Total Asset of the Investment Company

The amount of concentration at each Counterparty or issuer obtained from operations with Assets Managed by each Mandatory will be expressed as a percentage of the Asset Managed corresponding to each Mandatory. Each of these percentages will make up the elements to define the weighted average, mentioned in the previous fraction, with which compliance with the concentration limits provided for in the General Provisions that establish the investment regime to which Investment Companies must be subject will be verified.

ANNEX H

Methodology for calculating the Investment Company's exposure to Investment Objects denominated in Investment Units (UDI) or whose interests guarantee a yield equal to or greater than the UDI or the National Consumer Price Index

The following criteria will apply for the purpose of verifying compliance with the limits referred to the positions that Investment Companies must maintain in Investment Objects that are denominated in Investment Units (UDI) or in those whose interests guarantee a yield equal to or greater than the UDI or the National Consumer Price Index.

The sum of the positions maintained by the Asset Managed by the Investment Company plus the positions maintained by the Asset Managed by each of the Mandatories will be considered.

The aforementioned positions will be considered independently, that is, without making offsets between the positions maintained with the Asset Managed by each Mandatory nor with the positions of the Asset Managed by the Investment Company. The computation will be carried out as follows:

For Derivative instruments known in practice as call, future, and forward, whose underlying is denominated in UDIs or whose interests guarantee a yield equal to or greater than the UDI or the National Consumer Price Index, their market value will be added when the position in the aforementioned Derivative Instruments is long, and subtracted when it is short;

For the Derivative instrument known as put whose underlying is denominated in UDIs or whose interests guarantee a yield equal to or greater than the UDI or the National Consumer Price Index, the market value will be added when the position is short and subtracted when the position is long;

For Derivative instruments known as swaps that have at least one underlying that is denominated in UDIs or whose interests guarantee a yield equal to or greater than the UDI or the National Consumer Price Index, they will be computed as follows:

If in the operation one is in a long position with respect to a rate linked to a notional amount denominated in Investment Units, with respect to instruments referenced to Investment Units, or with respect to instruments referenced to the National Consumer Price Index, their market value will be added, and

ii.

If in the operation one is in a short position with respect to a rate linked to a notional amount denominated in Investment Units, with respect to instruments referenced to Investment Units, or with respect to instruments referenced to the National Consumer Price Index, their market value will be subtracted.

ANNEX I

Methodology for calculating exposure to Commodities

Exposure to Commodities must be calculated through the following authorized investment instruments: Structures Linked to Underlyings, Vehicles, Debt Instruments backed by Commodities, as well as Derivatives, through the procedure described in this Annex. Structured Instruments linked to Commodities will not count for the purposes of this Annex.

For the purposes of this Annex, Structures Linked to Underlyings refer to Debt Instruments or Foreign Debt Securities whose returns are linked to Commodities. For the computation of the exposure referred to in this Annex, the debt component of the Structures Linked to Underlyings whose underlyings are Commodities will not be considered.

Exposure to Commodities through authorized investment mechanisms:

To determine the exposure to Commodities of the Asset Managed by the Investment Company, and where applicable, of the Asset Managed by the Mandatories it has contracted, the Deltas ' of all authorized investment mechanisms referred to Commodities directly or through Vehicles containing them will be used.

The Delta ' will be:

In the case of Vehicles that confer rights on Commodities, Debt Instruments and Foreign Securities, as well as futures, forwards, and swaps referred to said underlyings, equal to one, and

In the case of options contracts, they will be calculated by the Price Provider contracted by the Investment Company. Said Delta will be calculated per contract unit and assuming a long position.

The amount exposed to each Commodity " i " that is part of the investment portfolio through the authorized investment mechanisms j, will be calculated as follows:

In the case of any investment mechanism other than Derivatives: the number of titles of the authorized investment mechanism j that contain the i-th Commodity will be used.

For short positions through Derivatives, the number of contracts is expressed with a negative sign.

In the case of Derivatives: these are the closing points of the underlying or underlying index of the Derivative, multiplied by the weighter or relative weight associated with the i-th Commodity, and

In the case of any investment mechanism other than Derivatives: it is the Market Value of the authorized investment mechanism " j " that contains the i-th Commodity multiplied by the weighter or relative weight associated with the i-th Commodity within each mechanism.

In the event that the exposure amount is denominated in Currencies, it must be converted into national currency using the exchange rate for valuing operations with Currencies.

The description in this fraction applies to the Assets Managed by the Investment Company and the corresponding Assets Managed by each Mandatory that the Investment Company may have contracted.

II. Exposure to a Commodity of the Asset Managed by the Investment Company or where applicable, of the Asset Managed by each Mandatory that it has contracted:

The portfolio's exposure to Commodities due to the authorized investment mechanisms will be calculated as follows:

a) The amount exposed in absolute terms in the i-th Commodity in the portfolio is calculated by summing over all exposed amounts of the authorized investment mechanisms that are referenced to the same i-th Commodity and obtaining the absolute value of said sum. This implies that offsets are made between exposures on the same Commodity to which the Asset Managed by the Investment Company is exposed. Similarly, the exposure corresponding to the Asset Managed by each Mandatory is calculated. The positions of the Asset Managed by the Investment Company and the positions of the Asset Managed by each Mandatory are not offset.

Where:

Is the amount exposed, in absolute value, to the i-th Commodity of the Asset Managed by the Investment Company or where applicable, of the Asset Managed by the Mandatory in question. Formula (I2) shows that exposures to the same commodity are netted in the Asset Managed by the Investment Company or where applicable, the Asset Managed by the Mandatory in question.

Is the amount exposed in the i-th Commodity due to the authorized investment mechanism " j " that makes up the Asset Managed by the Investment Company or where applicable, that make up the Asset Managed by the Mandatory in question.

ANNEX J

On the certification of Officials with activities in the management of resources of Investment Companies

The validity of the certifications referred to in these Provisions must comply with what is established in the following scheme:

General certification in financial matters.

Certification / Area

Investments

Risks

Comptroller

Regulatory

Confirmation,

Liquidation,

Allocation, and

Accounting

Validity: 2 years

Generic certification in

investment matters

(Published on the

Commission's website)

Validity: 4 years

Chartered Financial Analyst

(CFA)

Level 1

Financial Risk Manager

(FRM-GARP) Level 1

Professional Risk Manager

(PRM-PRMIA) 2 Exams

Associate of the Society of

Actuaries (ASA) 3 Exams

Validity: 4 years

Chartered Financial Analyst

(CFA) Level 2

Professional Risk Manager

(PRM-PRMIA) 3 Exams

Associate of the Society of

Actuaries

Actuaries (ASA)

Vigencia: Permanente de las certificaciones concluidas

Chartered Financial Analyst

(CFA)

Financial Risk Manager

(FRM-GARP)

n.a.

Professional Risk Manager

(PRM-PRMIA)

n.a.

Fellow of the Society of

Actuaries (FSA):

Especialización en

Quantitative Finance and

Investment (QFI)

n.a.

Claritas Investment Certificate

(aplicado por CFA Institute)

n.a.

Certification for Derivatives Operations

Certification / Area

Investments

Risks

Comptroller

Regulatory

Confirmation,

Liquidation,

Allocation, and

Accounting

Record

Vigencia: 3 years

Derivatives Certification (Published

on the Commission's Internet page)

Vigencia: 4 years

Chartered Financial Analyst (CFA)

Level 1

Financial Risk Manager

(FRM-GARP) Level 1

Professional Risk Manager

(PRM-PRMIA) 2 Exams

Associate of the Society of Actuaries

(ASA)

3 Exams

Vigencia: 4 years

Chartered Financial Analyst (CFA) Level

Professional Risk Manager

(PRM-PRMIA) 3 Exams

Associate of the Society of Actuaries

(ASA)

Vigencia: Permanente de las certificaciones concluidas

Chartered Financial Analyst (CFA)

Financial Risk Manager

(FRM-GARP)

n.a.

Fellow of the Society of Actuaries (FSA) : Specialization in Quantitative

Finance and Investment (QFI)

n.a.

Certification of Officials for Structured Instruments

Certification / Area

Investments

Risks

Comptroller

Regulatory

Confirmation,

Liquidation,

Allocation, and

Accounting

Record

Vigencia: 3 years

Structured Instruments Certification

(Published on the Internet page

of the Commission)

Not required

Vigencia: 4 years

Chartered Financial Analyst (CFA)

Level 1

Not required

Chartered Alternative Investment

Analyst (CAIA) Level 1

Not required

Vigencia: 4 years

Chartered Financial Analyst (CFA) Level

Not required

Vigencia: Permanente de las certificaciones concluidas

Chartered Financial Analyst (CFA)

Not required

Chartered Alternative Investment

Analyst (CAIA)

n.a

Not required

In all the above cases, the validity of the certifications will count from the date on which the

Official obtains the certification, until the end of the period contemplated in the scheme contained in the

present Annex. This is regardless of the Administrator to which the Official is assigned.

The exams and certifications referred to in the tables above count simultaneously for the

activities provided for in said tables; in case the official has two or more valid certifications, the

validity of that which contemplates the greater term will be taken into account.

ANNEX K

Disclosure of Investment Trajectory and the deviation policy with the investment portfolio

For the purposes of revealing the general characteristics of the Investment Trajectory applicable to the portfolio

of the Investment Society of the Total Asset of the Investment Society, the Administrators must publish on their

Internet page at least the following elements:

a) Graph of the Investment Trajectory of the Basic Investment Societies operated by the

Administrator, with the allocations for Equity Instruments, Foreign Equity Securities,

Debt Instruments, Foreign Debt Securities, Structured Instruments, FIBRAs and Others;

in said allocations, exposure through Derivatives referred to in article 36

fraction I subsection b) numerals ii and iii of these Provisions, at market value, must be included.

b) Comparison of weights of the different Asset Classes included in the Investment Trajectory

with respect to the Investment Society. The following table must be presented for each of the

Basic Investment Societies.

Comparison of the weights of the Investment Trajectory with respect to the

investment portfolio of the Investment Society

Composition by Asset Class

Investment Trajectory

Investment Society

Equity Instruments

Foreign Equity Securities*

Debt Instruments

Foreign Debt Securities

Structured Instruments

FIBRAS

Others

*Exposure to Derivatives may be considered

The Assets Managed by the Mandataries may be excluded for what is provided for in this annex.

ANNEX L

Requirements that the Automated Integrated System for the acquisition, alienation,

online registration of Investment Assets of the Automated Integrated System must meet

The Automated Integrated System referred to in this Annex must allow the Administrator to comply with the following procedures, among others:

Keep the historical record of the acquisition, alienation, repo and loan operations of

securities of each Investment Society, by number of titles, series, value, settlement term,

identifier, folio number, negotiation prices, negotiation rates, means of

negotiation, Counterparties, nominal values, underlying assets, market types, date, time and

operator of the transaction and other criteria determined by the Investment Committee;

II.

Keep the historical record of the position of each Investment Society, by number of titles,

series, value, identifier, folio number, issuers, nominal values, market values, Equivalent Delta Value for positions in Derivatives, underlying assets and other criteria determined by the

Investment Committee;

III.

Keep a record of exposure by Asset Class and by instrument as a percentage of the Total Asset

of the Investment Society;

IV.

Establish security mechanisms and passwords at different levels for the joint authorization of:

The allocation of operations, and

Operations that trigger any excess in Prudential Limits;

Have Early Warning Alarms parametrized online to anticipate possible excesses in regulatory

limits and Prudential Limits. These alarms may come from the Automated Integrated

System in the risk management activity;

VI.

Identify pending operations to be assigned and operations that underwent changes in the

negotiated terms, identifying the reason for said changes;

VII.

Generate the following daily and historical reports:

Report of the acquisition, alienation, repo and loan operations of securities of each

Investment Society, which may include the concepts related in the previous fraction I,

at the beginning or at the end of the day of operation, but observing consistency in the generation of

said information;

Report of the position in each of the Investment Assets, which may include the

concepts related in the previous fraction II, at the beginning or at the end of the day of operation,

but observing consistency in the generation of said information;

Report of available cash at the beginning or at the end of the day of operation, but observing

consistency in the generation of said information. This report must include all expected flows,

specifying which of these are known flows and which are estimated,

disaggregated by type of Currency;

Compliance report for each of the regulatory limits and Prudential Limits

detailing the level of consumption relative to the reference that the Risk Committee itself

defines, such as Net Asset, regulatory limit, and Prudential Limit;

Total exposure report in Equity Instruments and Foreign Equity Securities in accordance with the exposure measure provided for in Annex N of the

General Provisions that establish the investment regime to which

Investment Societies must be subject. These reports must be able to be disaggregated by stock index, type of instrument or Vehicle, Eligible Country for Investments and Currency;

Report of positions in Derivatives expressed in notionals, market values and exposure

in Derivatives positions in equity and Commodities, the latter in accordance with the

present Provisions and the General Provisions that establish the investment regime to which Investment Societies must be subject and the Equivalent Delta Value for

the rest of the positions in Derivatives, identifying the main characteristics, such as

Asset Class of the underlying, Counterparty, market type;

Report of guarantees, at market value and applying the discount, known in practice and in

the English language as 'haircut', received and delivered disaggregated by Counterparty including clearing houses, by type of operation that gave rise to them, such as repo,

loan of securities, and Derivatives;

Report of exposure by issuer or Counterparty that includes the different types of Asset Classes, credit ratings provided by securities rating agencies, as well

as additional credit evaluation;

Report of non-compliance with regulatory limits and Prudential Limits;

Report of assigned and pending operations to be assigned, and

Report for the general director of the Administrator with a summary of the most important aspects of daily operation. The daily report may contain only the aspects that

the general director determines, among those provided for in this Annex, for which the Investment Committee must take knowledge and this definition of the general director must be recorded in the Detailed Minutes of the Investment Committee of the corresponding Investment Society.

VIII.

Have the capacity to restrict access by users and profiles. Security policies in

access must be documented and subject to audit;

ANNEX M

Of Operations with Derivatives on Derivatives

In accordance with articles 2, fractions XXX, XXXI and XXXII, and 122 of these Provisions,

as well as the General Provisions that establish the investment regime to which

Investment Societies must be subject, and Circular 6/2013, The Rules to which specialized investment societies of retirement funds must be subject in carrying out derivative operations,

the latter issued by the Bank of Mexico, it is established that Investment Societies may carry out the

following permitted operations:

Permitted derivative operations and underlyings:

Futures Operations on Interest Rate Swap Contracts in different

Currencies. The Currencies will be only from Group 1 defined by the Risk Analysis Committee and

in accordance with Annex D of these Provisions;

II.

Option Operations on Futures Operations on Stock Indices, on interest rates in

different Currencies. The Currencies will be only from Group 1 defined by the Risk Analysis Committee and

in accordance with Annex D of these Provisions, and

III.

Option Operations on Interest Rate Swap Contracts in different

Currencies. The Currencies will be only from Group 1 defined by the Risk Analysis Committee and

in accordance with Annex D of these Provisions.

Administrators may carry out the operations listed above provided they meet at least the

requirements described below:

Have the non-objection of the Commission to carry out operations with the Derivatives and underlyings

described in this Annex;

II.

Have policies and procedures authorized by their Committees to carry out these operations,

including reports for the members of their Committees;

III.

Have the capacity to value this type of operation through its own Automated Integrated

System and independently of the Price Provider;

IV.

Have Prudential Limits regarding this type of operation;

Analyze through its own Automated Integrated System the effect of incorporating these

operations, and

VI.

The Derivatives Operator must be certified by one of the independent third parties designated for this purpose by the Commission.

ANNEX N

Methodology to calculate the Liquidity Coefficient

Investment Societies must comply daily with the following level of Liquidity Coefficient

The numerator of the liquidity coefficient "PID" corresponds to the value of the Provision for exposure in

Derivative Instruments and the denominator "AAC" corresponds to the value of High-Quality Assets.

In particular, the numerator of the CL coefficient is defined as follows and all summands must

be in the same Currency:

The discount, known in practice and in the English language as "haircut", with respect to the valuation at

market, to all those national government securities both real and nominal rate as well as

Government Securities of the governments of Eligible Countries for Investments, both real and

nominal rate, which have a credit rating of at least AA+ or its equivalent, defined in accordance with

the following table, is included in the weights of the previous formula:

Maturity to maturity

Discount or

haircut

Less than or equal to 1 year

No discount

Issued by the federal government and with

maturity greater than 1 year

10%

Issued by governments of eligible countries

and with maturity greater than 1 year

15%

Understanding High-Quality Assets (AAC) as the following:

Debt Instruments issued or guaranteed by the Federal Government and those issued by the Bank of

Mexico;

II.

Foreign Debt Securities issued by governments of Eligible Countries for Investments that

have a credit rating of at least equivalent to AA+ on a global scale according to

Standard & Poor's Ratings, or in its case, to the equivalent scales of the other securities rating agencies recognized in the General Provisions that establish the

investment regime to which Investment Societies must be subject;

III.

Cash deposits in banks, custodians or operating partners in the currency in question;

IV.

Amounts of repo operations with a term of one day (currently only counts for the

liquidity requirement in national currency, according to what is provided in the Law on this type

of operations);

Excess Minimum Initial Contributions (known by the acronym AIMS), and

VI.

Assets that are already in collateral are not allowed, for example cash deposits with clearing partners or Debt Instruments or Foreign Debt Securities that are committed (explicitly or implicitly) as collateral or credit enhancement in any transaction.

Administrators may demonstrate that they have liquidity policies not provided for in this

Annex for which the relevance of considering them within the calculation of the Liquidity Coefficient will be evaluated.

ANNEX O

Valuation criteria to be used to determine the amount of the write-down of assets with which

the Investment Regime is breached

Based on the valuation policies adopted by Price Providers, to determine the

amount of the write-down of assets with which the investment regime is breached, the following

valuation prices will be used:

For the case of the maximum investment limits provided for in these Provisions, the

negotiation prices of the operations carried out with the asset or assets with which the regime is breached and the closing prices of said assets on the date of non-compliance will be used. In this

case, the write-down of each asset will be calculated as the difference, when it is positive, between the

negotiation price of the asset in question minus the price of said asset at the close of the day on which

the investment regime is breached.

For the case of minimum limits, the write-down will be calculated based on the difference, when

it is positive, of the closing price minus the acquisition price, or in its case the price of

valuation of the previous day.

II.

The exchange rates of the currency operations carried out by the Investment Society, which in

their case are associated with the transaction of the asset that breaches the Investment Regime and the

Exchange Rate determined on the date the Investment Regime is breached. When there is no

exchange rates of the currency operations carried out that are associated with the

transaction of the asset that breaches the Investment Regime, the Exchange Rate will be used

corresponding to the date of calculation of the write-down.

The clean prices of the negotiated instruments, with which the investment regime is breached,

or in its case to determine the write-down of the fund, of the assets that make up the portfolio of the

Investment Society.

The Administrator must compensate for the write-downs attributable to it, which affect the Total Asset

of the Investment Societies it operates, for non-compliance with the investment regime through

the Asset Managed by the Investment Societies, the Asset Managed by Mandataries or

a combination of the above.

In case of write-downs attributable to violations of the investment regime through the management of the

Asset Managed by some Mandatary, the Commission will determine the amount to be reimbursed based on

the information of the Price Provider contracted to value said investment portfolio.

The Administrator must contractually provide that the Price Provider facilitates the information

necessary to the Commission to determine the amount to be reimbursed for write-downs attributable to the

Administrator, which may consist of information with periodicity and detail different from those that

the Commission has established in the General Rules established for this purpose by the Commission for the

delivery of information.

ANNEX P

Model of Information Prospectus

INFORMATION PROSPECTUS INVESTMENT SOCIETIES, S.A. de C.V.

Specialized Investment Societies of Retirement Funds

PENSION BASIC INVESTMENT SOCIETY

BASIC INVESTMENT SOCIETY 55-59

BASIC INVESTMENT SOCIETY 60-64

BASIC INVESTMENT SOCIETY 65-69

BASIC INVESTMENT SOCIETY 70-74

BASIC INVESTMENT SOCIETY 75-79

BASIC INVESTMENT SOCIETY 80-84

BASIC INVESTMENT SOCIETY 85-89

BASIC INVESTMENT SOCIETY 90-94

INITIAL BASIC INVESTMENT SOCIETY

ADDITIONAL INVESTMENT SOCIETY

I. General Data

The general information of the Administrator and the corresponding Investment Societies will be indicated according to the

following table.

Corporate Name Administrator

Corporate Name of each Investment Society

Types of Investment Societies

Types of Workers who can invest

in the Investment Societies

Dates and Authorization Numbers

___ of ___________ of ______ through letter number

______________ of the National Commission for the Retirement Savings System.

Patrimonial Links and Related Societies Among Themselves of the Administrator.

The Patrimonial Links and Related Societies Among Themselves of the Administrator operating the Investment Societies must be identified in accordance with the General Provisions that establish the investment regime to which specialized investment societies of retirement funds must be subject, issued by the Commission.

words):

Asset Classes authorized in the regime

of investment

Assets in which the

SIEFORE invests

PENSION BASIC

Assets in which the

SIEFORE invests

BASIC 55-59

Assets in which the

SIEFORE invests

BASIC 60-64

Assets in which the

SIEFORE invests

BASIC 65-69

Assets in which the

SIEFORE invests

BASIC 70-74

...

Demand deposits

Debt Instruments

Governmental

Private

Hybrid debt instruments

Securitized Instruments

Foreign Debt Securities

Governmental

Private

Equity

National

Foreign Equity Securities

Structured Instruments

CKDs

CERPIS

Fibers

Generic

Fiber-E

Real estate investment vehicles

Currencies

Commodities

Type of operations

Repo

Loan of securities

Derivatives

Mandates

ETFs

Mutual Funds

III. Investment Trajectory

For the case of Basic Investment Societies, the general information of the Investment Trajectory that

the corresponding Investment Societies will follow will be indicated in accordance with Annex K of these provisions.

SIEFORE

Maximum years

for Retirement

PENSION BASIC SIEFORE

BASIC SIEFORE 55-59

BASIC SIEFORE 60-64

BASIC SIEFORE 65-69

BASIC SIEFORE 70-74

...

IV. Integral Risk Management

The integral risk management policy must be described, including the different types of risks to which

the investment portfolios are exposed, as well as the policies of the Investment Societies to mitigate them.

(Maximum 500 words)

The maximum limit of some of the risk control parameters to which the

Investment Societies must be subject and which adjust to the General Provisions that establish the investment regime to which

Specialized Investment Societies of Retirement Funds must be subject must be indicated, either the Value at Risk or the

Conditional Value at Risk Differential as appropriate.

For the case of Basic Investment Societies, the deviation policy between the Investment

Trajectory and the investment portfolio of the Basic Investment Societies must be indicated, as well as the formula to perform said calculation.

PENSION BASIC SIEFORE

BASIC SIEFORE

55-

BASIC SIEFORE

60-

BASIC SIEFORE

65-

BASIC SIEFORE

70-74

...

Tracking Error Limit

V. Investment Limits

Investment limits by Asset Class or Risk Factor, defined by the Risk Committee

Financials.

VI. Operation Policies

a) Types of resources that can be invested in the Investment Society:

The sub-accounts whose resources can be invested in the Investment Societies will be mentioned.

b) Commission regime:

The current commission regime applicable to the Investment Societies, authorized to the Administrator, will be described, with a

brief explanation of the calculation method and percentage to be applied by the Investment Societies, in the following format:

PENSION BASIC SIEFORE

BASIC SIEFORE

55-59

BASIC SIEFORE

60-64

BASIC SIEFORE

65-69

BASIC SIEFORE

70-74

...

COMMISSION (%)

The following legend must be added: "Lower commission, higher savings."

Likewise, the following must be indicated:

"Commissions, as well as discounts, will be applied uniformly for all registered workers, without discrimination among them.

Commissions on balances will only be charged when resources are effectively invested in the Investment Societies and the necessary daily provisions have been registered in the accounting of the Investment Societies.

Special service commissions will be paid directly by the worker who requested the service and under no circumstances can they be charged to the worker's individual account.

Without prejudice to the foregoing, complete and visible information regarding the commission structure and, where applicable, the discount scheme, will be permanently maintained on the website defined by the Administrator.

As a consequence of the change in the commission regime, the worker may transfer their individual account to another Administrator.

c) Price and settlement term of the shares of the Investment Societies:

The following must be indicated:

" The purchase and sale operations of shares representing the social capital of the Investment Societies will be settled on the same day they are ordered, in accordance with the General Provisions regarding the registration of accounting, preparation and presentation of financial statements to which retirement fund administrators and specialized retirement fund investment societies must adhere, as well as the General Financial Provisions for the Retirement Savings Systems, issued by the Commission, provided that the instruction is issued within the operating hours (____ to ____ hours, Mexico City time). Operations requested outside the aforementioned schedule will be carried out on the next business day and settled at the prevailing price of the society's shares on the day the sale of the shares is made. "

d) Fund permanence policy:

The following must be indicated:

" The resources of the worker's individual account will remain invested in shares of the Investment Societies for at least one year, except in the following cases: a) That the worker requests the transfer of their individual account to another Administrator, given compliance with the regulations in this matter, or their resources are transferred to another Investment Society operated by the same Administrator that operates their individual account, as a consequence of the change in the commission regime or the investment policies contained in this information prospectus, or when the Commission has assigned them an Administrator under the terms of Article 76 of the Law; b) When the worker requests that the accumulated resources be invested in an Investment Society different from the one corresponding to their date of birth, so that in the Investment Society corresponding to their date of birth only new cash flows of contributions and deposits are received; c) When the Administrator enters a state of dissolution or merges with another Administrator having the status of merged entity, and d) When all resources of the individual account are withdrawn due to the contracting of a life annuity or, where applicable, the resources are exhausted due to scheduled withdrawals or the worker has the right to withdraw their resources partially or fully in a single lump sum.

Likewise, the terms and timeframes in which withdrawals can be made must be indicated, complying at least with the timeframes established by the Law.

The worker may make withdrawals from their voluntary contributions sub-account every _______ months following the first contribution or the last withdrawal. "

Investment Societies whose object is the investment of resources referred to in Articles 74 bis, 74 ter and 74 quinquies of the Law, will indicate in the information prospectus, the circumstances in which said resources may be withdrawn or transferred, as well as the rights and obligations of their holders.

e) Valuation mechanics.

The following must be indicated:

" Investment Assets that make up the securities portfolio of the Investment Societies must be valued daily by a Price Provider in accordance with the General Financial Provisions for the Retirement Savings Systems.

The accounting registration procedure for valuation will be subject to what is established in the General Provisions regarding the registration of accounting, preparation and presentation of financial statements to which retirement fund administrators and specialized retirement fund investment societies must adhere, issued by the Commission, which state that accounting records will be analytical and allow for the identification and sequence of operations, with accounting movements registered on the same day the operation is carried out. "

f) Repurchase regime.

The circumstances in which the worker will have the right to have the corresponding Investment Society, through the Administrator operating it, repurchase up to 100% of their shareholding will be indicated, in accordance with the legal provisions applicable to the Investment Society in question.

VII.- Fiscal Regime

The Administrator will inform the worker that the Investment Society in which their resources are invested must comply with the fiscal provisions applicable to it; for this purpose, the fiscal provisions to which they will be subject will be included concisely.

VIII.- General Warnings to Workers

a) Investment Risks

The following must be indicated:

Investment Societies seek to offer workers adequate returns in accordance with market conditions, strictly adhering to the Authorized Investment Regime, without this implying a guaranteed return. Likewise, the prices of the Investment Assets in which Investment Societies invest fluctuate daily, so the value of the investment could be reduced depending on market conditions.

The credit ratings granted to Debt Instruments and Foreign Debt Securities by specialized agencies do not represent a guarantee of payment of initial investments, but only an opinion on the issuer's ability to fulfill the obligations of said securities.

Registration in the National Securities Registry applicable to certain Instruments does not imply certification regarding the guarantee of returns of the Instrument or the solvency of each issuer.

b) Write-downs.

The following must be indicated:

" The prices of Investment Assets, as well as the shares representing the paid-up capital of the Investment Societies, may present write-downs derived from fluctuations in financial markets. In the event that there is any non-compliance with the Authorized Investment Regime, these write-downs will be attributable to the Administrators and must be compensated from the Administrator's special reserve, and in case this is insufficient, they will be covered from social capital, in addition to establishing a portfolio reconstruction program for the Investment Societies. This in accordance with what is provided in the General Financial Provisions for the Retirement Savings Systems and the General Provisions establishing the investment regime to which Specialized Retirement Fund Investment Societies must adhere.

On the other hand, when write-downs arise from extraordinary situations in financial markets, and having complied with what is provided in the General Financial Provisions for the Retirement Savings Systems and the General Provisions establishing the investment regime to which Specialized Retirement Fund Investment Societies must adhere, neither the Administrator nor the Commission has the obligation to compensate for such write-downs, understanding that these are part of an inherent risk of investments in financial markets.

It will be understood that there is a write-down in the Investment Society's portfolio when the price of the share of said Society at the close of a day is lower than said price on the previous business day.

c) Inspection and surveillance by the Commission

The following must be indicated:

" CONSAR is the competent authority to regulate, inspect and supervise the functioning of the Investment Societies, as well as the Administrator that operates them. "

d) Acceptance of the information prospectus by the worker

The following must be indicated:

" In order to comply with what is provided in Article 47 bis, penultimate paragraph, of the Law, the Administrator operating the Investment Societies will have this information prospectus available in its offices and branches or through the Administrator's Internet page, for registered workers. "

e) Custody of titles

The Financial Intermediaries to whom the Administrator has contracted to deposit the Investment Assets, as well as the shares of the Investment Societies for safekeeping, will be indicated.

f) Rating of Investment Societies

The Administrator may disclose on its Internet page and in the information board of its offices and branches the current credit rating granted to the Investment Societies by a securities rating institution, as well as its meaning. Where applicable, these credit ratings must be modified within a maximum of 10 business days following the date on which they suffer any modification.

g) Inquiries, complaints and claims

The following must be indicated:

" The National Commission for the Protection and Defense of Financial Services Users (CONDUSEF) has enabled a public attention service via telephone, free of charge from anywhere in the country, to receive inquiries, complaints and claims regarding irregularities in the operation and provision of services by Administrators, at the phone number (include CONDUSEF phone number). "

Finally, the General Director, the Head of the Investments Area and the Head of the Risks Area of the Administrator of the corresponding Investment Societies must sign this prospectus, which must be modified within 30 calendar days following the appointment of a new General Director, Head of Investments Area and Head of Risks Area.

" Corporate Name of the Administrator "

" Name and signature of the General Director "

" Name and signature of the Head of the Investments Area "

" Name and signature of the Head of the Risks Area "

ANNEX Q

Model of Explanatory Brochure

EXPLANATORY BROCHURE Corporate Name (Administrator and Investment Society)

Type of Investment Society

Note: An explanatory brochure must be prepared for each Investment Society.

I. WHERE WILL THE RESOURCES OF YOUR INDIVIDUAL ACCOUNT BE INVESTED?

Include a brief explanation of the objectives and investment policy (Maximum 200 words).

Classes of authorized assets in the investment regime

Assets in which the
Investment Society invests

Basic ...

Demand Deposits

Debt Instruments

A. Governmental

B. Private

C. Hybrid debt instruments

D. Securitized Instruments

Foreign Debt Securities

A. Governmental

B. Private

Equity

A. National

B. Foreign Equity Securities

Structured Instruments

A. CKDs

B. CERPIS

FIBRAS

A. Generic

B. Fibra-E

Real Estate Investment Vehicles

Currencies

Commodities

Type of operations

Repo

Securities Lending

Derivatives

Mandates

ETFs

Mutual Funds

The table shown on the left side must be included, in which the Classes of Assets in which, in accordance with regulation, the Investment Society is permitted to invest, as well as in which of them it has investments, must be indicated.

ii.

It must be indicated how environmental, social and corporate governance (ESG) principles are incorporated into investments and risk management, as well as briefly explain what the objective of applying said principles is (Maximum 200 words).

iii.

Through the pie chart shown below, the composition of the investment portfolio as of the close of the previous fiscal year must be represented.

iv.

The table shown below must be included, in which a comparison is shown between the investments made by the Investment Societies with respect to the Total Asset of the Investment Society and the Investment Trajectory that the Investment Society will follow, as well as a graphical representation of the corresponding Investment Trajectory in accordance with Annex K of these provisions, as shown in the figure below.

In the case of Additional Investment Societies, the investments made by the Investment Societies must be shown.

For the case of Basic Investment Societies, the table shown below must be included, in which the Maximum Deviation Limit that the investment portfolio may have with respect to the Investment Trajectory must be indicated.

A brief description of the portfolio composition must be given (maximum 200 words). Likewise, a footnote must be included with the classes of assets included in each category, for this the breakdown of the table of authorized asset classes in the investment regime above will be taken as reference.

Comparison of Weightings Investment Trajectory vs Basic Investment Society

Composition by Class of Asset

Investment
Trajectory

Investment
Society

...

Equity Instruments

Foreign Equity Securities*

Debt Instruments

Foreign Debt Securities

Structured
Instruments

FIBRAS

Others

*May consider exposure to Derivatives

Investment
Society ..
.

IRN (%)

It must add the legend: " A higher Net Performance Indicator represents the possibility of obtaining a higher pension upon retirement. "

Include a graph showing the annualized gross return of the investment portfolio comparing it with the Investment Trajectory defined by the Administrator, this for the last 1, 3 and 5 years, or those available in accordance with the Investment Society's history. For the case of Additional Investment Societies, it will not be necessary to present the comparison with respect to the Investment Trajectory; however, some other reference portfolio defined by the Investment Committee may be used. It must briefly explain the observed behavior in the Investment Society's returns (Maximum 100 words).

The legend must be added: " Past returns do not guarantee future returns. These statistics are provided solely for informational purposes "

As an example, the following graph is shown.

V. INQUIRIES, COMPLAINTS AND CLAIMS

The following legend must be included:

" CONSAR is the competent authority to regulate, inspect and supervise the functioning of the AFORE. "

The Administrator's phone number for public attention is: (include Administrator's public attention phone number), and the toll-free phone number available by CONSAR for public attention is SARTEL: 13-28-5000.

The National Commission for the Protection and Defense of Financial Services Users (CONDUSEF) has enabled a public attention service via telephone, free of charge from anywhere in the country, to receive inquiries, complaints and claims regarding irregularities in the operation and provision of services by Administrators, at the phone number (include CONDUSEF phone number). "

More information can be obtained at the offices and branches of the AFORE or through the Administrator's Internet page. "

" Corporate Name of the Administrator "

" Name and signature of the General Director "

" Name and signature of the Head of the Investments Area "

" Name and signature of the Head of the Risks Area "

Corporate Address (Administrator and Investment Society) as a footer of the Explanatory Brochure.

ANNEX R

Criteria that Securitized Instruments must meet to be considered as issued by an independent issuer

General criteria that Securitized Instruments held by Investment Societies must meet to be considered as issued by an independent issuer:

The prospectus must clearly indicate the eligibility criteria of the portfolio subject to securitization;

There must be a transfer of the collection rights of the portfolio subject to securitization to an irrevocable trust;

Clear rules must exist to, in case, substitute the administrator of the portfolio subject to securitization. Among other reasons, for the substitution, possible conflicts of interest of the latter with the holders, the common representative or with entities related to the payment of the obligations of the collection rights or with the originator, the lack of experience in the administration and collection of rights on the assets subject to securitization, or a breach of its mandate as administrator must be disclosed;

The authorized securities rating institution must consider and value all cash flows of the Securitized Instrument (both principal and interest) for the purpose of issuing a rating;

Minimum standards must be respected to reveal information about the Securitized Instrument in compliance with the regulations issued for such purposes by the National Banking and Securities Commission;

The valuation of the Securitized Instrument must be carried out by a price provider, using a public methodology;

There must be no repurchase mechanisms for the portfolio subject to securitization, by the settlor or the originator, except when the portfolio in question is mortgage or of another nature specified by the Risk Analysis Committee, in which cases they will be subject to the specific norms established. Nor shall there be mechanisms for substituting part or all of the assets affected in the irrevocable trust, except to comply with the eligibility criteria referred to in the previous letter a), and

Have the enhancers defined by the Commission. Mortgage Securitized Instruments will meet this requirement when they satisfy what is provided in the second fraction of this Annex.

II.

Additional criteria that Securitized Instruments held by Investment Societies must meet to be considered as issued by an independent issuer when the underlying portfolio is mortgage:

The settlor or, where applicable, the originator may repurchase the portfolio subject to securitization from the trust when its value is equal to or less than 10% of what it would have had at the beginning of the issuance.

In the case of reopenings of issuances, the same rule will be followed considering the total amount issued in the different reopenings carried out with the same issuance. It will be considered that two Securitized Instruments correspond to the same reopened issuance when the above is supported by the legal opinion of an independent expert of the issuer;

The Securitized Instruments must reach a rating equivalent to any of those provided in Annex A of the General Provisions establishing the investment regime to which Specialized Retirement Fund Investment Societies must adhere. For these purposes, the Securitized Instruments must have a combination of security mechanisms among which are the following:

Determination of a maximum level applicable to the average value of the relationship between the value of the credits and the value of the mortgage guarantees of the portfolio subject to securitization;

ii.

Issuance of a subordinated series;

iii.

Guarantee granted by a recognized international insurance company, and

iv.

Minimum level of retention or capital retained by the settlor, understood by this variable as the percentage of the portfolio that is entrusted in excess of the value of the Securitized Instrument at the time of issuance;

At the time of issuance of the Securitized Instrument, the total value of the sum of the amounts of the subordinated series, the guarantee and the retention or capital retained by the settlor, as a percentage of the issued amount, must be equal to or higher than the values shown in the following table:

Retention Requirement or capital retained by the originator, subordinated series and financial guarantee (percentage of the original issuance)

Value of credit / Value of guarantee

SCV*

95%

90%

85%

80%

75%

70%

60%

50%

22.36%

18.34%

11.90%

9.66%

7.86%

5.96%

2.70%

0.24%

*SCV: Home credit insurance

At the time of issuance of the Securitized Instrument, the originator must retain a level of retention or capital of the Securitized Instrument, as a percentage of the issued amount, equal to or higher than the values shown in the following table. The value of the Retention or capital retained by the originator indicated in this section also counts towards the total required in the previous section:

Value of credit / Value of guarantee

SCV*

95%

90%

85%

80%

75%

70%

60%

50%

7.22%

5.75%

3.43%

2.71%

2.16%

1.67%

0.74%

0.06%

*SCV: Home credit insurance.

ANNEX S

Guidelines applicable to independent experts dedicated to evaluating and certifying Debt Vehicles, Equity Components, Real Estate Investment Vehicles and FIBRAS,

Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments and Debt Indices of Eligible Countries for Investments

I. Of the eligibility of the independent expert

In case the expert is a company:

Experience

It must be constituted in accordance with the regulation of an Eligible Country for Investments.

It must enjoy recognized international prestige and have proven experience, of at least five years for the company and three years for the officials, in activities that include the evaluation or issuance of opinions on compliance with regulatory standards for indices or Investment Vehicles, such as: Mutual Funds, pension funds, Vehicles known as ETFs (Exchange Traded Funds), among others.

Conflicts of Interest

a)
The independent expert must have policies to detect, avoid, and resolve actual and potential conflicts of interest in which it may incur when providing services to Investment Companies.

b)
The independent expert must not have Financial Nexus or be a Related Company with any Administrator.

c)
The expert must have a code of ethics to which the officials involved in the evaluation and issuance of opinions on indices and Investment Vehicles must adhere.

d)
The independent expert must demonstrate that its evaluation and opinion processes:

i.
Are independent with respect to index providers, sponsors, administrators, and investment advisors of Investment Vehicles, Mutual Funds, and any entity dedicated to resource management whose Vehicles are opined upon by said company, and

ii.
Are auditable.

e)
In the event that the independent expert has financial nexuses or is a related company of the index provider or the sponsor, administrator, and investment advisor of the Index or Investment Vehicle to be opined upon, the following must be demonstrated:

i.
That there is operational separation between activities related to the study, analysis, opinion, evaluation, and opinion of the index or Investment Vehicle, from other business or commercial areas, such as: areas for promotion and sale of Vehicles to be opined upon, in which a conflict of interest might arise.

ii.
That it has policies and procedures that include reporting lines, supervision, and remuneration structures among the various areas of the company, which must be designed to eliminate possible conflicts of interest.

Corporate Governance of the Company

a)
Having clear and robust policies regarding the opinion and evaluation process of indices and Investment Vehicles. Such policies must be available to the Administrators to which it provides service. The Commission may request said policies from the Administrators at any time.

b)
The independent expert must maintain confidentiality at all times of the information that the Administrators or the Commission provide to it with that character.

In the event that the expert is an association:

Experience

a)
It must be constituted in accordance with the regulation of an Eligible Country for Investments.

b)
It must enjoy recognized prestige and have proven experience, of at least three years for the association and three years for the officials, in activities that include the evaluation or issuance of opinions on compliance with regulatory standards for indices or Investment Vehicles, such as: Mutual Funds, pension funds, Vehicles known as ETFs (Exchange Traded Funds), among others.

c)
It must have the advisory services of an internationally recognized company with at least five years of experience in providing evaluation or issuance of opinions on compliance with regulatory standards for indices or Investment Vehicles, in order to provide recommendations regarding the evaluation process of said indices and investment vehicles.

d)
It must be audited annually by an external auditor of recognized prestige on the evaluation and opinion issuance procedure in compliance with the Criteria for the selection of equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES, Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds), and Criteria applicable to Mutual Funds issued and approved by the Risk Analysis Committee. The company responsible for carrying out the external audit must be a company of recognized national or international prestige.

e)
It must have a Technical Committee in charge of approving opinions on exclusion, compliance, inclusion, and rejection of indices and Investment Vehicles.

Conflicts of Interest

a)
The independent expert must have policies to detect, avoid, and resolve actual and potential conflicts of interest in which it may incur when providing services to Investment Companies.

b)
The expert must have a code of ethics to which the officials involved in the evaluation and issuance of opinions on indices and Investment Vehicles must adhere, including the independent members of the Technical Committee.

c)
The independent expert must demonstrate that its evaluation and opinion processes:

d)
In the event that the independent expert has financial nexuses or is a related company of the index provider or the sponsor, administrator, and investment advisor of the Index or Investment Vehicle to be opined upon, the following must be demonstrated:

Corporate Governance of the Company

b)
The independent expert must maintain confidentiality at all times of the information that the Administrators or the Commission provide to it with that character.

II. Of the functions that the independent expert must perform

1.
Evaluate and periodically follow up on the compliance of the Criteria for the selection of equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES, Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds), and Criteria applicable to Mutual Funds issued and approved by the Risk Analysis Committee, based on publicly available information, as well as that provided by index providers and sponsors of Investment Vehicles, for which it must:

a)
Cross-check, at least in the initial review, public documents, such as prospectuses, brochures, and periodic reports required by the applicable regulatory entity, with the information provided by index providers and sponsors of Investment Vehicles.

b)
Have policies and procedures to carry out the functions for which it was hired. As part of said policies, the independent expert must establish contingency plans in case of technical failures in its information systems, as well as backup and service continuity policies. Said policies and procedures must be transparent to the Administrators to which it provides service.

c)
In the event that the Risk Analysis Committee modifies the Criteria for the selection of equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES, Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds), and Criteria applicable to Mutual Funds, policies and procedures must be in place to re-evaluate and follow up on authorized indices and Investment Vehicles. In its case, the Commission will inform said modifications in advance of the entry into force of said changes.

d)
In the event that the index methodology, or the prospectus, brochure, or any other legal document of the Investment Vehicle, presents any change, the compliance with the Criteria for the selection of equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES, Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds), and Criteria applicable to Mutual Funds must be re-evaluated. The independent expert may evaluate only what concerns the modifications made.

2.
The independent expert must not issue an opinion, judgment of value, or investment recommendation on the evaluated indices or Investment Vehicles.

III. Of the information and opinion issuance of Vehicles and indices

1.
The Administrators, and in their case the person whom they authorize, must send to the Commission, on behalf of the Administrator operating each Investment Company, the list of indices and Investment Vehicles that have obtained an approving opinion from the independent expert, as well as the breakdown of said indices and Investment Vehicles in accordance with the characteristics established in the General Rules that the Commission establishes for the delivery of information. Without prejudice to the foregoing, the Administrators, and in their case the person whom they authorize, must allow the Commission to have access to the list of indices and Investment Vehicles in question, which will have a binding character for supervision purposes.

2.
The Administrators, and in their case the person whom they authorize, are responsible for the safeguarding of documentary evidence supporting the evaluation of indices and Investment Vehicles, both for those that received an approving opinion and those that had a negative opinion, both by the independent expert. The documentary evidence must be available to the Commission at all times.

3.
Likewise, the Administrators, and in their case the person whom they authorize, must inform the Commission in writing of any change or deviation observed in the evaluation and follow-up of indices and Investment Vehicles by the independent expert.

IV. Procedure for selecting the independent expert

In the event that the expert is a company:

1.
The Administrators are responsible for verifying compliance with the contents provided in this Annex of the independent experts they hire to evaluate and opine on the indices and Investment Vehicles referred to in this Annex.

2.
The Administrators, or whom they define, will make available to the Commission the documentation that the latter requires, with which the Administrators support compliance with these guidelines, as well as the selection process of the independent expert.

3.
The contract with the independent expert must be signed under the jurisdiction of one of the Eligible Countries for Investments and must be available to the Commission.

4.
In the event that the contract is not signed directly by the Administrator, the Administrators must be part of the contract as witnesses. Likewise, the Administrator must deliver in writing to the Commission the designations of the person responsible for signing the contract with the independent expert and the person who accepted the obligation to follow up on said contract, both on behalf of the Administrator, and the Administrator's acceptance to submit to the evaluation and opinion issuance that is carried out by the independent expert on Debt Vehicles, Equity Income Components, Real Estate Investment Vehicles, FIBRAS, Equity Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments, and Debt Indices of Eligible Countries for Investments.

5.
The Administrators must deliver in writing to the Commission the designation of the person whom they authorize, in their case, to carry out the functions described in the previous section III of this annex.

In the event that the expert is an association:

3.
The Administrators must have the written consent of the independent expert to evaluate and opine on Debt Vehicles, Equity Income Components, Real Estate Investment Vehicles, FIBRAS, Equity Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments, and Debt Indices of Eligible Countries for Investments.

4.
The Administrators must deliver in writing to the Commission the designation of the person whom they authorize, in their case, to carry out the functions described in the previous section III of this annex with the corresponding acceptance of the independent third party.

The classification of indices as equity or real estate will be determined by the Commission, hearing the opinion of the Administrators, and in their case the person whom they authorize.

Therefore, the Vehicles will not be disaggregated for the purpose of supervising the applicable concentration limits, in accordance with what is provided in Annex N of the General Provisions that establish the investment regime to which Investment Companies must be subject; the exposure of investments in said Vehicles and indices will be computed considering the Equivalent Delta Value of the Acquired or Structured Note, Structure Linked to Underlying, Equity Income Component, Financial Derivative Instrument, or any other permitted Vehicle that replicates the behavior of the index favorably opined upon by the independent experts.

ANNEX T

Methodology for verifying compliance with limits regarding Structured Instruments.

For the purposes of the limits regarding positions in Structured Instruments established in the General Provisions that establish the Investment Regime to which Investment Companies must be subject, the following criterion must be observed:

I.
The sum of (i) the market value of Structured Instruments issued without the capital call mechanism, (ii) the market value of capital calls already made on Structured Instruments issued under the capital call mechanism, and (iii) the peso equivalent of the minimum between 35% of the notional value of the issuance or the notional value of pending capital calls on the Structured Instrument issued under the capital call mechanism, with respect to the Total Asset of the Investment Company, will be considered. That is, for each Investment Company, to compute investments in Structured Instruments, the sum of i) the market value of the total amount invested by said investment company and, ii) 35% of the amount initially committed by the investment company is calculated. The sum of the above factors will not exceed 100% of the amount initially committed by the investment company; therefore, the computation must be carried out as follows:

For the purposes of computing the capital calls provided in this annex, pending capital calls will not be considered when the Investment Committee has determined, notified the Commission, and initiated the relevant procedures for the Structured Instruments that fall under the present scenario to cease being part of the investment portfolios of Investment Companies, prior to the call, not participating in the capital calls of any previously acquired Structured Instrument.

Likewise, when the Investment Committee has determined to participate in voluntary participation schemes referred to in Article 30, section V, it will be computed within the limit of Structured Instruments until the capital call has been made.

ANNEX U

Methodology for calculating maximum investment limits for the set of Investment Companies operated by the same Administrator, in Structured Instruments.

The maximum amount to be invested by the set of Eligible Investment Companies for investments in Structured Instruments must obey the following criteria:

a)
Basic Investment Companies 1 may only invest in Structured Instruments that meet the following:

i.
Are invested in, at least 80% of the maximum amount of the Structured Instrument issuance, and committed in at least 90% of the maximum amount of the Structured Instrument issuance,

ii.
Are transferred through the transfer of resources from Individual Accounts for Workers' Retirement in accordance with the General Provisions on operations of Retirement Savings Systems.

b)
Administrators must ensure that the amount invested by the set of Investment Companies they operate, at no time exceeds 50% of the value of a project financed through Structured Instruments intended to finance the same project, regardless of the administrator. The foregoing does not apply to investment in a project financed through a single Structured Instrument, whose issuance value is below the Threshold defined in this annex.

c)
When the co-investor and the Administrator have a joint Financial Nexus, they may not exceed 35% of the value of each financed project.

d)
The Threshold referred to in the Twenty-Fourth Provision, section IV of the General Provisions that establish the investment regime to which specialized retirement fund investment companies must be subject is equivalent to 4,350 million pesos, and will be updated once every calendar year in the same proportion as the increase in the value of investment units (UDIs). The aforementioned value corresponds to December 31, 2017.

The Commission will periodically inform Administrators of the value of the Threshold, as well as the value of the Total Asset.

In the case of primary offerings of Structured Instruments and for the purpose of complying with the limits provided in this annex and in the General Provisions that establish the investment regime of specialized retirement fund investment companies, Administrators must request in writing from the administrator of said instruments and leave evidence thereof, that they commit to diversifying the investor base so that Investment Companies do not fail to comply with the limits referred to in this paragraph.

Administrators must inform the administrator of the absolute amount and the range to be invested, the latter as a percentage of the total notional value of the Structured Instrument in question, which must be recorded in the Detailed Minutes of the corresponding session. For these purposes, the policy must provide for adjustments that the administrator may apply for the purposes of: i) compliance with the limits provided in these Provisions and ii) defining the allocation of amounts of Structured Instruments that may vary with respect to the bids of Administrators, provided they are based on policies provided in the issuance prospectus, within which there may be pro-rata adjustments.

For the purposes of this Annex, it will be understood that the administrators of Structured Instruments are different when:

i.
They are distinct legal entities;

ii.
They have distinct administration teams, that is, when the strategy, execution of investments, and administration of each Structured Instrument depend on teams composed of distinct natural persons, with areas of knowledge and experience specifically directed to the administration of the projects financed by the corresponding Structured Instrument, and

iii.
They have distinct investment theses developed for each Structured Instrument, which are oriented towards distinct economic areas or activities.

ANNEX V

List of Equity Indices of Eligible Countries for Investments approved to determine maximum investment limits in shares of National Issuers listed.

The indices that Administrators may use as a reference to determine maximum investment limits in individual shares of National Issuers listed on a Stock Exchange authorized to organize and operate under terms of the Securities Market Law, to which section II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which specialized retirement fund investment companies must be subject refers, are the following:

Developer
Index
S&P/BMV
IPC Composite
S&P/BMV
IPC
S&P/BMV
Large Cap
S&P/BMV
Mid Cap
MSCI
Mexico Investable Market
MSCI
Mexico
FTSE
Mexico All Cap
FTSE
Mexico
FTSE
BIVA

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