General Provisions Establishing the Investment Regime for Specialized Investment Companies of Retirement Fund Societies

DOF: 31/05/2019

GENERAL PROVISIONS establishing the investment regime to which specialized investment companies of retirement fund societies shall be subject.

A seal with the National Coat of Arms appears at the margin, which reads: United Mexican States.- SHCP Secretariat of Finance and Public Credit.- National Commission for the Retirement Savings System.

GENERAL PROVISIONS ESTABLISHING THE INVESTMENT REGIME TO WHICH SPECIALIZED INVESTMENT COMPANIES OF RETIREMENT FUND SOCIETIES SHALL BE SUBJECT.

The Board of Directors of the National Commission for the Retirement Savings System, pursuant to articles 5, fraction II, 8, fraction IV, 43 and 47 of the Law on Retirement Savings Systems, has deemed it appropriate to issue the following:

GENERAL PROVISIONS ESTABLISHING THE INVESTMENT REGIME TO WHICH SPECIALIZED INVESTMENT COMPANIES OF RETIREMENT FUND SOCIETIES SHALL BE SUBJECT.

CHAPTER I
COMMON PROVISIONS

Section I
Generalities

FIRST.- These provisions aim to establish the investment regime to which specialized investment companies of retirement fund societies shall be subject.

SECOND.- For the purposes of these provisions, the following shall be understood:

I.
Administrators, to the administrators of retirement funds, as well as public institutions that operate as Administrators of retirement funds;

II.
Asset Managed by the Mandatary, to the market value of the Investment Assets of the Investment Company that are under the financial management of each Mandatary contracted by said Investment Company;

III.
Asset Managed by the Investment Company, to the market value of the Investment Assets of the Investment Company directly managed in terms of investments by it;

IV.
Total Asset of the Investment Company, to the sum of the Asset Managed by an Investment Company and of the Assets Managed by the Mandatories contracted by said Investment Company;

V.
Investment Assets, to the Instruments, Currencies, Foreign Securities, Equity Components, Neutral Investments, Structures Linked to Underlyings, Commodities and derivatives transactions, repurchase agreements and securities lending;

VI.
Voluntary Savings, to the Supplementary Retirement Contributions, Voluntary Contributions, Voluntary Contributions with Long-Term Investment Perspective and Long-Term Savings Contributions made by Workers;

VII.
Supplementary Retirement Contributions, to the contributions made to the sub-account of supplementary retirement contributions referred to in article 79 of the Law;

VIII.
Long-Term Savings Contributions, to the contributions made by Workers to the sub-account provided for in fraction VII of article 35 of the Regulations of the Law;

IX.
Voluntary Contributions, to the contributions made to the sub-account of voluntary contributions referred to in article 79 of the Law, without considering Voluntary Contributions with Long-Term Investment Perspective;

X.
Voluntary Contributions with Long-Term Investment Perspective, to the Voluntary Contributions referred to in article 151 fraction V of the Income Tax Law;

XI.
Banks, to Credit Institutions, as well as foreign entities that carry out the same operations as Credit Institutions;

XII.
Counterparty Rating, to the one assigned by securities rating agencies authorized by the National Banking and Securities Commission to intermediaries for the conclusion of repurchase agreements, securities lending, Derivatives or bank deposits;

XIII.
Exchange Certificates, to the credit titles provided for in the Securities Market Law, which represent the individual participation of their holders in a collective credit owed by legal entities, or by an estate subject to a trust;

XIV.
Fiduciary Certificates of Investment Projects, to those referred to in article 1, of the general provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission, with their respective modifications and additions;

XV.
Repealed;

XVI.
Participation Certificates, to the Instruments referred to in Chapter V Bis of the General Law of Credit Instruments and Operations;

XVII.
Commission, to the National Commission for the Retirement Savings System;

XVIII.
Risk Analysis Committee, to that provided for in article 45 of the Law;

XIX.
Investment Committee, to that provided for in article 42 of the Law;

XX.
Financial Risk Committee, to that provided for in article 42 bis of the Law;

XXI.
Valuation Committee, to that provided for in article 46 of the Law;

XXII.
Equity Components, to Equity Instruments and Foreign Equity Securities with which exposure to authorized equity assets is obtained through Vehicles that confer rights over them, shares or Derivatives;

XXIII.
Counterparties, to financial institutions with whom Investment Companies may conclude transactions with Derivatives, repurchase agreements and securities lending, in terms of the Provisions of the Bank of Mexico, as well as those in which they make bank deposits of money on demand;

XXIV.
Open Contracts, to transactions concluded with Derivatives with respect to which no transaction of a contrary nature has been concluded with the same Counterparty;

XXV.
Custodian, to the financial intermediary that receives instruments or securities for safekeeping, or to the institutions authorized for the foregoing purposes;

XXVI.
Derivatives, to Future Operations, Option Operations, and Swap Contracts, including Future Operations on Swap Contracts, Option Operations on Future Operations and Option Operations on Swap Contracts (Options on Swaps), as referred to in the Provisions of the Bank of Mexico;

XXVII.
Differential of Conditional Value at Risk, to the difference in the Conditional Value at Risk of the portfolio of an Investment Company and the Conditional Value at Risk of that same portfolio calculated excluding positions in Derivatives in accordance with sections I and III of
Annex L of these provisions;

XXVIII.
Provisions of the Bank of Mexico, to those directed at specialized investment companies of retirement fund societies in matters of financial operations known as derivatives, repurchase agreements and securities lending, issued by the Central Bank;

XXIX.
Currencies, to United States dollars, euros, yen, the currencies of the Eligible Countries for Investments that the Risk Analysis Committee determines, considering the security of investments and the development of markets, as well as other elements that said collegiate body judges it necessary to analyze;

XXX.
Private Companies, to commercial companies of Mexican nationality authorized to issue securities, as well as to Financial Entities;

XXXa.
State Productive Companies, to companies exclusively owned by the Federal Government, with legal personality and own assets that enjoy technical, operational and management autonomy, in accordance with what is provided in the Petróleos Mexicanos Law and the Federal Electricity Commission Law, named Petróleos Mexicanos and Federal Electricity Commission;

XXXI.
National Issuers, to the Federal Government, Bank of Mexico, Private Companies, State Productive Companies, federal entities, municipalities, Government of the Federal District and Para-State Entities, that issue Instruments, as well as Financial Entities, that issue, accept or guarantee said Instruments;

XXXII.
Foreign Issuers, to Governments, Central Banks and Government Agencies of Eligible Countries for Investments, as well as entities that issue securities under the regulation and supervision of these and multilateral organizations other than those indicated in fraction LIV of these provisions;

XXXIII.
Financial Entities, to those authorized in accordance with Mexican financial legislation to act as: general warehouses, Credit Institutions, guarantee institutions, insurance companies and multiple-purpose financial companies;

XXXIII BIS.
Tracking Error, to the deviation of the investment portfolio of Investment Companies with respect to the Investment Trajectory, known in English as Tracking Error, whose methodology is determined by the Risk Analysis Committee;

XXXIV.
Structures Linked to Underlyings, to assets that meet the following characteristics:

a)
Be offered through a public offering mechanism in any Eligible Country for Investments;

b)
Have a payment structure of cash flows to investors integrated by the following two components:

i.
A non-subordinated zero-coupon bond, or in its case a payment with a financial structure similar to it, through which the invested amount is returned to the investor on the maturity date of the title. This component may be denominated in pesos, Investment Units or Currencies and may be issued by National or Foreign Issuers.

ii.
The payment of coupons, the value of which is linked to Currencies, Investment Units, pesos, real or nominal interest rates, the national consumer price index, Commodities, Equity Components, FIBRAS or a combination of the foregoing. The value of the coupons in no case may be negative. Said value may be determined through authorized Derivatives.

c)
In its case, the payment structure of cash flows to the investor may offer a undefined maturity, to one hundred years or to a term greater than this;

d)
Have the credit ratings provided for in these provisions, and e) The instrument may require the investor only the contribution of the initial investment amount and shall not require the investor to manage or contribute guarantees.

XXXV.
FIBRAS, to Generic FIBRAS and FIBRAS-E;

XXXVI.
Generic FIBRAS, to titles or securities issued by trusts dedicated to the acquisition or construction of real estate in national territory that are destined for leasing or to the acquisition of the right to receive income from the leasing of said assets, as well as to provide financing for those purposes, that comply with what is provided in articles 187 and 188 of the Income Tax Law;

XXXVII.
FIBRA-E, to fiduciary certificates for investment in energy and infrastructure referred to in article 1 of the general provisions applicable to issuers of securities and other participants in the securities market, issued by the National Banking and Securities Commission, with their respective modifications and additions;

XXXVIII.
Mutual Funds, to national or foreign entities, that are registered, regulated and supervised by an authority belonging to the Eligible Countries for Investments that comply with the regulation of their country of origin, as well as with the following characteristics:

a)
The net value of their assets must be known daily through the mechanisms that for such purposes are established by the authorities of the Eligible Countries for Investments that regulate the fund in question;

b)
The liquidity and redemption of shares or titles must be daily, or in accordance with the periodicity determined by the Risk Analysis Committee;

c)
Their administrators and/or investment advisors must be registered, regulated and supervised by an authority belonging to the Eligible Countries for Investments;

d)
They must have an investment prospectus in which they make public their investment policy and must periodically publish their financial situation, and e) The instruments in which they invest must be issued through public offering and observe the criteria applicable to Investment Assets determined in these provisions.

Mutual Funds may be National Mutual Funds or Foreign Mutual Funds.

The Risk Analysis Committee will determine the guidelines that these funds must comply with in order to protect the resources of workers invested in Investment Companies.

XXXIX.
Foreign Mutual Funds, to Mutual Funds composed of Foreign Debt Securities, Neutral Investments or Foreign Equity Securities;

XL.
National Mutual Funds, to Mutual Funds composed of Debt Instruments, Neutral Investments or Equity Instruments;

XLI.
Investment Grade, to that obtained by Debt Instruments and Foreign Debt Securities denominated in national currency, Investment Units or Currencies that hold the ratings related in Annexes A, B, C, D, E, F, G, H, I, J and K of these provisions;

XLII.
Financial Groups, to those constituted in terms of the Law to Regulate Financial Groupings;

XLIII.
Equity Indices of Eligible Countries for Investments, to equity indicators that satisfy the requirements established by the Risk Analysis Committee;

XLIV.
Real Estate Indices of Eligible Countries for Investments, to real estate indicators that satisfy the requirements established by the Risk Analysis Committee;

XLV.
Debt Indices of Eligible Countries for Investments, to debt indicators that satisfy the requirements established by the Risk Analysis Committee;

XLVI.
Credit Institutions, to national multiple banking and development banking institutions;

XLVII.
Instruments, to all Instrumentalized Instruments, Debt Instruments, Structured Instruments, FIBRAS and Equity Instruments denominated in national currency, Investment Units or Currencies issued by National Issuers, including the Certificates Bursátiles and Participation Certificates, acquired directly or through Vehicles, the documents or contracts of debt owed by the Federal Government, the deposits at the Bank of Mexico, the bank deposits of money on demand made in Credit Institutions, the Structures Linked to Underlyings, or in its case the components of these, issued by National Issuers, as well as Commodities;

XLVIII.
Instrumentalized Instruments, to titles or securities that represent credit rights, collections or cash flows, that are issued through Vehicles and whose underlying assets are said credit rights, collections or cash flows, that represent a commitment to pay coupons, principal or both for the issuer of the instrument and that have the credit ratings provided for in these provisions.

No other instrument different from the above mentioned, such as those known as Structured Instruments or any other that does not meet the requirements established in the general provisions in financial matters of the Retirement Savings Systems, will be included within this definition.

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, referred to in articles 43 paragraph fourth and 45 of the Law, must be covered.

The instruments referred to in this fraction will be considered as placed by an independent issuer when they comply with what is provided in the General Provisions in financial matters of the Retirement Savings Systems;

XLIX.
Debt Instruments, to the following:

a)
Investment Assets, whose nature corresponds to securities, titles or documents representing a debt owed by a third party, placed in national or foreign markets, issued by National Issuers, as well as to Instrumentalized Instruments and deposits at the Bank of Mexico;

b)
Convertible obligations into shares of Public Limited Companies, distinct from Equity Instruments;

c)
Subordinated non-convertible obligations issued by Credit Institutions referred to in article 64 of the Law of Credit Institutions;

d)
Subordinated non-convertible obligations that meet the following requirements:

i.
That they have as their object to finance infrastructure projects in national territory;

ii.
That in none of the tranches or series in which they are structured are additional contributions established charged to the holders;

iii.
That without prejudice to the order of precedence established between said tranches or series in no case is the issuer released from the obligation to pay the principal, even if said principal may be deferred or amortized in advance, and

iv.
That in the case that they are issued through a Vehicle, this does not confer direct or indirect rights, with respect to Derivatives or implies structures subject to financing.

e)
Subordinated non-convertible obligations into shares.

The series contemplated in the issuance of a financial instrument that in any event other than liquidation or commercial bankruptcy grants differentiated collection precedence rights to the holders of said series, whatever their denomination, are excepted from those included in this clause. In particular, the subordinated or mezzanine series of Instrumentalized Instruments are not included in the present definition.

Likewise, the different obligations and series of shares issued by a public limited company specialized in the investment of financial resources are excluded from this clause.

f)
Hybrid Debt Instruments.

The obligations referred to in clauses b), c), d), e) and f) above, must reach the minimum ratings determined by the Risk Analysis Committee. In any case, the ratings must be granted by at least two securities rating agencies authorized by the National Banking and Securities Commission.

Debt Instruments issued under the Securities Market Law and of the general provisions applicable to securities issuers and other participants in the securities market, issued by the National Banking and Securities Commission, whose resources are destined to the financing of housing projects, whose source of payment comes directly or indirectly from mortgage credits, will be considered as unsecured debt titles or Instrumentalized Instruments.

L.
Hybrid Debt Instruments, to titles or securities that represent a debt owed by a third party, placed in national or foreign markets that according to their issuance prospectus meet the following characteristics:

a)
That the payment precedence is preferential with respect to the payment of dividends or capital distributions;

b)
That the amount of coupon payment may be variable or accumulative, as well as the date of coupon payment may be deferrable;

c)
That the date of principal payment may have the optionality for the issuer to make it advance, deferrable or indefinite;

d)
That they satisfy the credit rating requirements provided for in these provisions;

e)
That they are issued by Private Companies other than Credit Institutions;

f)
That the maturity date be fixed, deferrable or perpetual, and g) That the Issuer has listed shares representing its capital in any securities exchange of Eligible Countries for Investments;

LI.
Structured Instruments, to the following:

a)
Fiduciary titles that are destined to the investment or financing of the activities or projects within national territory, of one or more societies, including those that invest or finance the acquisition of share capital of Mexican societies whose shares are quoted on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law, except those regulated by the Investment Funds Law.

The cash that forms part of the equity of the trust issuer of Structured Instruments, while the selection of the activities or projects in which said resources will be destined is carried out, may be invested temporarily, in societies and investment funds regulated under the Investment Funds Law or in Vehicles listed in the Mexican capital market. The Risk Analysis Committee, will determine the types of financial assets in which said societies, investment funds and Vehicles may invest, and

b)
Fiduciary Certificates of Investment Projects.

Structured Instruments must be issued under the Securities Market Law and of the general provisions applicable to issuers of securities and other participants in the securities market issued by the National Banking and Securities Commission. Additionally, Structured Instruments must meet the requirements that, in their case, are established by the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

Regarding the investment in Structured Instruments carried out by Mandatories, the Risk Analysis Committee will define the criteria that Mandatories must satisfy to be eligible and in its case the Structured Instruments in which they may invest.

LII.
Equity Instruments, to the following:

a)
Shares destined for individual investment or through Equity Indices of Eligible Countries for Investments, of National Issuers listed on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law;

b)
Shares of National Issuers, or the titles that represent them, that are the subject of an initial public offering, total or partial, on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law, or in it together with other stock exchanges, and

c)
Obligations mandatorily convertible into shares of Public Limited Companies of National Issuers.

d)
Optional titles attached to shares representing the share capital of a Private Company that are the subject of an initial public offering, total or partial, that have as underlying shares representing the share capital of the same Private Company.

LIII.
Mandatory Investments of Administrators, to the special reserve and to the portion of its

Paid minimum capital that Administrators must invest in shares of the Investment Societies they manage, in accordance with Articles 27, fraction II, and 28 of the Law;

LIV.

Neutral Investment, that made by Investment Societies in Instruments issued, under the regulation and supervision of authorities belonging to Countries Eligible for Investments, by international multilateral financial organizations of which the United Mexican States is a part, which shall be considered as National Issuers;

LV.

Law, the Law of the Retirement Savings Systems;

LVI.

Mandataries, specialized legal entities in the investment of financial resources supervised and regulated by authorities of Countries Eligible for Investments with which Investment Societies have entered into intermediation contracts in which an investment mandate is granted, the exercise of which is subject to the guidelines determined by the contracting Investment Society;

LVII.

Best Practices, guidelines to control and minimize the operational risk of Investment Societies, arising from operations with Investment Assets, as well as the handling of cash and securities in buy-sell, registration, administration, and custody operations of securities in national and foreign financial markets, which Administrators must adopt and incorporate into their self-regulation programs;

LVIII.

Commodities, physical exposure to gold, silver, or platinum through Vehicles authorized by the Risk Analysis Committee, as well as the underlying items stated in the Bank of Mexico Provisions on derivative operations, which have the character of fungible goods other than shares, price indices on shares, rates, national currency, Foreign Currencies, Investment Units, loans, and credits;

LIX.

Patrimonial Link, that which exists between an Administrator and the Investment Societies that operate with the following natural or legal persons:

Those that participate in its share capital;

In their case, other Financial Entities and brokerage houses that are part of the Financial Group to which the Administrator in question belongs;

In their case, Financial Entities and brokerage houses that have a patrimonial relationship with Financial Entities that are part of the Financial Group to which the Administrator in question belongs, and

In their case, Financial Entities and brokerage houses that, directly or indirectly, have a patrimonial relationship with the Financial Entity or brokerage house that participates in the share capital of the Administrator in question.

LX.

Countries Eligible for Investments, countries whose regulatory and supervisory authorities of financial markets belong to the Committee on the Global Financial System (CGFS) of the Bank for International Settlements (BIS); to the member countries of the Pacific Alliance (AP) with full rights whose stock exchanges belong to the Latin American Integrated Market (MILA); to the European Union; or to the member countries of the Organization for Economic Co-operation and Development (OECD) with which Mexico has valid free trade treaties, and the other countries determined considering the security of investments and the development of markets, each referred to in Annex P of these provisions. The Risk Analysis Committee, considering the security of investments and the development of markets, as well as other elements that this collegiate body deems necessary to analyze, may determine that a country ceases to be considered as a Country Eligible for Investments for the purposes of these provisions;

LXI.

Price Provider, legal entities authorized by the National Banking and Securities Commission in terms of the provisions applicable to Price Providers, as well as legal entities specialized in the valuation of Foreign Securities, authorized for such purposes by the corresponding authorities of Countries Eligible for Investments, contracted by Custodians for operations in international markets;

LXII.

Investment Societies, specialized investment societies of retirement fund vehicles;

LXIII.

Additional Investment Societies, Investment Societies whose purpose is the exclusive investment of Voluntary Contributions, Voluntary Contributions with Long-Term Investment Perspective, Supplementary Retirement Contributions, Long-Term Savings Contributions, or social security funds;

LXIV.

Related Societies Among Themselves, commercial societies that form a set or group, in which, due to their patrimonial or liability links, the financial situation of one or several of them may decisively influence that of the others, or when the administration of said legal entities depends directly or indirectly on the same person;

LXV.

Valuation Society, independent legal entities of Investment Societies, and limited operating societies of investment funds, authorized by the National Banking and Securities Commission to provide the services of valuation of the shares of Investment Societies, as well as Custodians authorized by the corresponding authorities of Countries Eligible for Investments to carry out operations in international markets;

LXVI.

Retirement Insurance Sub-account, provided for in Chapter V bis of Title Second of the Social Security Law in force until July 1, 1997, which is integrated with the corresponding contributions to Retirement Insurance made during the period from the second bimester of 1992 to the third bimester of 1997 and the returns they generate;

LXVII.

Retirement Savings Sub-account, provided for in article 90 BIS-C of the Law of the Institute for Social Security and Services for State Workers in force until March 31, 2007, which is integrated with contributions made under the retirement savings system in effect from the first bimester of 1992, until March 31, 2007, and the returns they generate;

LXVIII.

Solidarity Savings Sub-account, provided for in article 100 of the Law of the Institute for Social Security and Services for State Workers, whose resources are subject to the norms applicable to the RCV ISSSTE Sub-account;

LXIX.

IMSS RCV Sub-account, the retirement, old-age, and disability sub-account referred to in fraction I of article 159 of the Social Security Law;

LXX.

ISSSTE RCV Sub-account, the retirement, old-age, and disability sub-account referred to in article 76 of the Law of the Institute for Social Security and Services for State Workers;

LXXI.

Workers, the workers who are holders of an individual account referred to in articles 74, 74 bis, 74 ter, and 74 quinquies of the Law;

LXXI BIS.

Investment Trajectory, the target allocation of the different Asset Classes corresponding to each age of the Worker, whose objective is the progressive decrease of the investment portfolio risk, known in English as Glidepath;

LXXII.

Investment Units, the units of account whose value is published by the Bank of Mexico in the Official Journal of the Federation, in accordance with articles third of the Decree by which obligations that may be denominated in Investment Units are established and reform and add various provisions of the Federal Tax Code and the Income Tax Law, published in the Official Journal of the Federation on April 1, 1995, and 20 ter of the Federal Tax Code;

LXXIII.

Compensated Value, that which results from subtracting from the market value of Open Contracts, the market value of the guarantees received to ensure the compliance of derivative operations carried out by Investment Societies;

LXXIV.

Value at Risk, the depreciation or loss that the Asset Managed by the Investment Society may have, given a certain level of confidence, in a determined period;

LXXV.

Conditional Value at Risk, the simple average of the depreciation or losses of the Asset Managed by the Investment Society, conditioned to exceed the Value at Risk corresponding to the given confidence level, in a determined period, in accordance with section III, numeral 1 of Annex L of these provisions;

LXXVI.

Foreign Securities, all Foreign Debt Securities and Foreign Equity Securities, Structures Linked to Underlyings, the components thereof referred to in provision Second fraction XXXIV, issued by Foreign Issuers, Real Estate Investment Vehicles, acquired directly or through Vehicles, as well as demand money bank deposits made in foreign financial entities authorized for such purposes and Derivatives whose underlying is Foreign Equity Securities;

LXXVII.

Foreign Debt Securities, Investment Assets, whose nature corresponds to securities, titles, or documents representing a debt owed by a third party, acquired directly or through Vehicles, as well as Bursatilized Instruments, issued by Foreign Issuers;

LXXVIII.

Foreign Equity Securities, Investment Assets listed in some regulated and supervised stock market by an authority of Countries Eligible for Investments whose nature corresponds to capital, issued by Foreign Issuers, acquired directly or through Vehicles;

LXXIX.

Vehicles, investment societies or funds, Mutual Funds, investment trusts, or others analogous to the foregoing that, whatever their denomination, confer rights, directly or indirectly, regarding Investment Assets, and

LXXX.

Real Estate Investment Vehicles, securities, other than FIBRAS, listed in markets of Countries Eligible for Investments, issued by trusts, companies, or mechanisms authorized for such purposes in the corresponding jurisdiction, referred to in some of said jurisdictions as Real Estate Investment Trust or REITs, which are dedicated to the acquisition or construction of real estate properties intended for lease or to the acquisition of the right to receive income from the lease of said properties, as well as to provide financing for those purposes.

THIRD.- Investment Societies may enter into repo and securities lending operations with Counterparties on the Instruments, except Structured Instruments, Commodities, Structures Linked to Underlyings, and on Foreign Securities that integrate their assets, acting the former only as repos or lenders, respectively, in accordance with what is provided in the Law and in the Bank of Mexico Provisions.

Section II

On Credit Quality

FOURTH.- The Debt Instruments denominated in national currency and Investment Units that Investment Societies acquire must reach the minimum ratings established in Annexes A, B, C, D, or E of these provisions. Regarding Debt Instruments denominated in Foreign Currencies, placed in national or foreign markets, they must reach the minimum ratings established in Annexes F, G, H, or I of these provisions. The foregoing is not applicable to Debt Instruments issued or guaranteed by the Federal Government nor to those issued by the Bank of Mexico.

Neutral Investment must reach the ratings established in Annexes A, J, or K of these provisions, as applicable, and Foreign Debt Securities must reach the minimum ratings established in Annex J or K of these provisions, as applicable. Without prejudice to the foregoing, Investment Societies may acquire Debt Instruments that hold the ratings determined by the Risk Analysis Committee.

Regarding Debt Instruments denominated in national currency and Investment Units that have only global scale ratings, they must reach the minimum ratings established in Annexes F, G, or H of these provisions. In the event that the Debt Instrument has the minimum ratings established in Annexes A, B, C, or D and those established in Annexes F, G, or H, the provisions in Annexes A, B, C, or D of these provisions shall be considered.

Regarding Foreign Debt Securities denominated in national currency and Investment Units placed in national markets that have only local scale ratings, they must reach the minimum ratings established in Annexes A, B, or C of these provisions.

In the case of Structures Linked to Underlyings issued in Mexico under the regulation of the National Banking and Securities Commission, the credit quality requirements defined in this provision shall be applicable to the issuer of the instrument in question or, in its case, to the issuer of the zero-coupon bond or payment structure, referred to in provision Second fraction XXXIV subitems b) or c) and to the Counterparty of the investor with the Derivatives associated with the structure.

In the case of Structures Linked to Underlyings issued abroad, the credit quality requirements defined in these provisions shall be applicable to them.

Structures Linked to Underlyings issued by Foreign Issuers, Foreign Issuers, and Foreign Counterparties of the components linked to these referred to in provision Second fraction XXXIV subitems b) and c), must reach the minimum ratings established in Annex J or K of these provisions, as applicable.

National Issuers and National Counterparties of the components of Structures Linked to Underlyings referred to in provision Second fraction XXXIV subitems b) and c), must reach the minimum ratings established in Annexes A, B, C, or D of these provisions. When the aforementioned components of the structures are denominated in Foreign Currencies, placed in national or foreign markets, the National Issuers and National Counterparties referred to in this paragraph must reach the minimum ratings established in Annexes F, G, or H of these provisions.

The aforementioned ratings must be granted by at least two authorized securities rating agencies, and all ratings that a Debt Instrument, Foreign Debt Security, in its case, the issuances of Structures Linked to Underlyings, or the issuers of said structures, have, must be public. When the ratings of the same Debt Instrument or Foreign Debt Security correspond to different Annexes, said Debt Instrument or Foreign Debt Security shall be subject, for the purposes of these provisions, to the lowest rating it has.

Without prejudice to the foregoing, regarding National Issuers that issue Debt Instruments denominated in Foreign Currencies, placed in national or foreign markets, which in turn have ratings established in Annexes A to I, these ratings may be considered for the purposes of computing the lowest rating referred to in the previous paragraph.

The rating requirements provided in this provision shall be applicable to the Counterparties of demand money bank deposits.

FIFTH.- National Counterparties with which Investment Societies enter into repo, securities lending, or Derivative operations, or Credit Institutions in which said Investment Societies make bank deposits, must have the minimum Counterparty Ratings established in Annexes A, B, C, or D, of these provisions. In the case of Foreign Counterparties, they must have the minimum Counterparty Ratings established in Annex J or K of these provisions. The foregoing, without prejudice to complying with the Bank of Mexico Provisions.

The Ratings that a Counterparty has must be public and granted by at least two authorized securities rating agencies. When a Counterparty has Counterparty Ratings that correspond to different grades, said Counterparty shall be subject, for the purposes of these provisions, to the lowest Counterparty Rating it has.

SIXTH.- In the event that authorized securities rating agencies modify the denomination of their ratings or authorized securities rating agencies not provided for in the aforementioned Annexes are authorized by the competent authority, the Risk Analysis Committee must analyze the new rating scales and determine the modifications that must be made to the aforementioned Annexes. Likewise, the Risk Analysis Committee may determine the equivalence of the ratings granted by the different authorized securities rating agencies. The Commission will publish in the Official Journal of the Federation the update of the Annexes determined by the Risk Analysis Committee and inform the Advisory and Surveillance Committee and the Board of Directors of the Commission of the modification at the first session these bodies hold subsequent to the publication.

SEVENTH.- In the event that some of the Debt Instruments or Foreign Debt Securities that integrate the portfolio of an Investment Society, or the Counterparty with which an Investment Society enters into repo, securities lending, or Derivative operations, or in which it makes bank deposits, the Structures Linked to Underlyings, in their case, the issuers and the Counterparties linked to the components of said structures, suffer changes in their rating that cause them to cease complying with what is stated in the previous Fourth and Fifth provisions, the Investment Society must be subject to what is provided in the general provisions on financial matters of the Retirement Savings Systems regarding the recomposition of the portfolios of Investment Societies, issued by the Commission.

EIGHTH.- Investment Societies may only enter into Derivative, repo, and securities lending operations, or invest in Structures Linked to Underlyings in which the value is determined through Derivatives, with Counterparties.

Section III

On Vehicles

NINTH.- The Risk Analysis Committee will determine the criteria to authorize Vehicles, Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments, and Debt Indices of Countries Eligible for Investments that may be the object of investment by Investment Societies, always ensuring the protection of the interests of Workers.

Administrators may provide evidence of compliance with the requirements referred to in the previous paragraph by having the opinion of an independent expert, provided that this expert satisfies the requirements provided in the general provisions on financial matters of the Retirement Savings Systems issued by the Commission. Likewise, Administrators, and in their case, those whom they authorize, must report to the Commission with the frequency established in the general provisions on financial matters of the Retirement Savings Systems and the general rules to which the information that retirement fund administrators, specialized investment societies of retirement fund vehicles, receiving entities, and operating companies of the National SAR Database must submit to the National Commission of the Retirement Savings System, regarding the opinions, indices, and Vehicles referred to in this provision.

The Commission, and in their case, those whom Administrators authorize, may make public the list of indices and Vehicles in accordance with the criteria issued by the Risk Analysis Committee in accordance with what is provided in this provision.

Section IV

Compliance with the Investment Regime and the Prospectus

TENTH.- The Investment Committee of each Investment Society will determine the investment regime with which it will operate in accordance with the limits provided in these provisions, which will be made known in the respective information prospectus.

The Investment Committee of each Investment Society will select the Investment Assets that will be acquired and sold by each Investment Society operated by the Administrator in accordance with the investment regime provided in these provisions and in the information prospectus of each Investment Society, observing the limits and parameters established by its Financial Risk Committee.

The Investment Committee of each Investment Society must define an Investment Trajectory, for each quarter, throughout the entire period of existence of the Investment Societies, in accordance with the age profile of the Workers and the Long-Term Investment Strategy defined by the Investment Committee itself, as well as define the information that will be revealed to the public, in accordance with these provisions and the General Provisions on Financial Matters of the Retirement Savings Systems.

For the definition of the Investment Trajectory, the Investment Committee must specify the Asset Classes, liquidity, rebalancing rules, governance, and policies for the Tracking Error of the investment portfolio with respect to said Trajectory, which must be recorded in the Investment Manual, or in the Manual of Policies and Procedures for the Administration of Financial Risk, as determined by the Administrator, as well as comply with the other obligations established in the general provisions on financial matters of the Retirement Savings Systems issued by the Commission.

The Investment Committee of each Investment Society may update the Investment Trajectory whenever at least one year has passed since its definition. To update said Investment Trajectory with greater frequency, the Investment Committee must inform the Commission, prior to the update, attaching the draft Investment Manual, or in its case, the Manual of Policies and Procedures for the Administration of Financial Risk, as well as the information prospectuses that incorporate the corresponding adjustments.

The investment regime and Investment Trajectory provided for in the information prospectus must be observed daily by the Administrator. Likewise, in the operation of the investment regime and the Investment Trajectory, the Investment Societies must observe Best Practices.

The Investment Societies shall make known in the information prospectus a general description of the investment activities that, in their case, the Mandataries they have hired will carry out on their behalf.

The Investment Societies must define in the contracts they enter into with the Mandataries the investment rules to which the Mandataries will be subject, which must observe the limits, parameters, and criteria established in these provisions and must be determined in accordance with the general provisions in financial matters of the Retirement Savings Systems issued by the Commission. The Investment Societies must provide in the aforementioned contracts that the Mandataries adhere to what is established in the general rules to which the information provided by the retirement fund administrators, the specialized investment societies of retirement funds, the receiving entities, and the operating companies of the National SAR Database must be subject to the National Commission for the Retirement Savings System.

ELEVENTH.- When the Investment Societies fail to comply with the authorized investment regime due to causes attributable to them or, in their case, to the Mandataries they have hired, or due to inflows or outflows of resources, in accordance with the General Provisions in financial matters of the Retirement Savings Systems, and as a consequence thereof, an underwriting or loss is caused in the Total Asset of the Investment Society, in the Asset Managed by the Investment Society, or in the Asset Managed by the Mandatary it has hired and/or in any Investment Asset, the Administrator operating the Investment Society in question must indemnify the underwriting in accordance with the formula provided for in Annex O of these provisions.

Non-compliance with the authorized investment regime attributable to the Investment Societies or, in their case, to the Mandataries they have hired, shall not be considered as those causes provided for in the general provisions in financial matters of the Retirement Savings Systems regarding portfolio reconstruction, issued by the Commission where so stated.

Nor shall non-compliance with the authorized investment regime attributable to the Investment Societies be considered as those originating from investments in Vehicles or replication of Stock Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments, or Debt Indices of Countries Eligible for Investments, which have been audited by the independent expert provided for in the Ninth provision of these provisions and which have a current favorable audit report regarding compliance with the criteria determined by the Risk Analysis Committee to authorize the Vehicles, the Stock Indices of Countries Eligible for Investments, the Real Estate Indices of Countries Eligible for Investments, and the Debt Indices of Countries Eligible for Investments that may be the subject of investment by the Investment Societies.

For the purposes of the last paragraph of Article 44 of the Law, it will be understood that there is underwriting in the Total Asset Managed by the Investment Society when the price of the share of the Investment Society at the close of a day (PS1) is less than the price corresponding to said share on the previous business day (PS0). It will be understood that there is underwriting in the Asset Managed by the Investment Society when the market value of the portfolio directly managed by the Investment Society at the close of a day, adjusted for inflows and outflows of resources, is less than the value corresponding to said valuation on the previous business day.

It will be understood that there is underwriting in the Asset Managed by the Mandatary in question, when the market value of the portfolio directly managed by it at the close of a day, adjusted for inflows and outflows of resources, is less than the value corresponding to said valuation on the previous business day. The Commission will establish through the general provisions in financial matters the criteria applicable to the Investment Societies to verify compliance with these provisions, whether by them or by the Mandataries they hire.

It will be understood that there is underwriting in an Investment Asset when the price of said asset at the close of a day (PA1) is less than the price corresponding to that asset on the previous business day or, in its case, the acquisition price, (PA0). The foregoing shall be applicable to the assets that make up the Vehicles and Real Estate Investment Vehicles in which the Investment Society invests. In the case of Investment Assets managed by Mandataries, the aforementioned periodicity shall be subject to what is established in the general provisions in financial matters issued by the Commission.

To determine which Investment Asset or set of Investment Assets cause the non-compliance of the authorized investment regime, those Investment Assets that have been traded on the day of non-compliance will be taken into account or, in the case of investments made in FIBRAS or Structured Instruments, directly by the Investment Society or through Mandataries, the investments made in the projects that fail to comply with what is provided for in the Sixteenth provision, fraction I, subsection f), and subsection g), respectively, and other provisions applicable to FIBRAS or Structured Instruments, respectively, will be considered.

Regarding the minimum limits applicable referred to in the following Fifteenth provision, the applicable selling price will be used to determine that there is underwriting. In this case, it will be considered that a loss is caused to the Investment Society due to the non-compliance of regulatory limits, when it maintains a deficit with respect to said limits and the closing price of the traded asset is greater than the valuation price of the date corresponding to the periodicity established in the general provisions in financial matters issued by the Commission, or in its case, the selling price.

The acquisition or selling prices referred to in this provision will be determined in accordance with the criteria established by the Valuation Committee and the criteria described in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

The amounts of underwriting caused to the Total Asset of the Investment Society, to the Asset Managed by the Investment Society, or in its case to the Asset Managed by the Mandatary, and the amounts of underwriting of an Investment Asset with which the authorized investment regime is not complied with, will be determined in accordance with the procedure provided for in this provision and in Annex O of these provisions.

The underwriting will be covered by the Administrator operating the Investment Society from the special reserve constituted in the terms provided for in the Law and, in case this proves insufficient, it must do so from its share capital.

TWELFTH.- In order to indemnify the underwriting referred to in the previous provision, the Administrators must cancel from their position the number of variable capital shares that results from dividing the amount of the underwriting, by the valuation price of the share of the Investment Society in question in accordance with what is provided in the general provisions in financial matters of the Retirement Savings Systems regarding the portfolio reconstruction of the Investment Societies, issued by the Commission. This is without prejudice to their obligation to reconstitute the special reserve and, in its case, the share capital in accordance with what is provided by the Law.

CHAPTER II

ON THE INVESTMENT REGIME OF THE INVESTMENT SOCIETIES

Section I

On Basic Investment Societies

THIRTEENTH.- Administrators must jointly invest the resources of the IMSS RCV Subaccount, the ISSSTE RCV Subaccount and, in their case, the Solidarity Savings Subaccount, the Retirement Insurance Subaccount and the Retirement Savings Subaccount, in the corresponding Basic Investment Society according to the following:

The Basic Investment Societies must invest the resources of Workers and pensioners whose date of birth is in accordance with the table in Annex Q;

II.

The Initial Basic Investment Society must invest the resources of Workers whose date of birth corresponds to a year subsequent to those covered by the Investment Societies provided for in Annex Q.

Likewise, with a quinquennial periodicity, starting 5 years after the creation of the Initial Basic Investment Society, the transfer of resources of Workers who are 25 years or older will take place, from the Initial Basic Investment Society to a new Basic Investment Society, named in accordance with the last two digits of the years corresponding to the year of birth of the Workers whose resources are transferred. This is in accordance with the table provided for in Annex R, and

III.

The Pension Basic Investment Society must invest the resources of Workers who are 65 years or older and whose Investment Society is closed.

FOURTEENTH.- Without prejudice to what is provided for in the previous provision, Workers may request at any time the transfer of their resources from one Basic Investment Society to another of their choice other than the one corresponding to their age, in terms of what is provided for in the general provisions in matters of operations of the retirement savings systems.

Workers who have invested the resources of their individual account in accordance with what is provided for in the previous paragraph, may decide that the investment of their resources be made in the Investment Society corresponding to their age. In order for Workers to exercise the rights provided for in this paragraph, they must be subject to what is established in the general provisions in matters of operations of the retirement savings systems.

Section II

Permitted and Prohibited Instruments and Operations

FIFTEENTH.- The Pension Basic Investment Societies will maintain at least 51% of the Total Asset of the Investment Society in Debt Instruments or Foreign Debt Securities that are denominated in Investment Units or national currency, whose interest guarantees a yield equal to or greater than the variation of the Investment Unit or the national consumer price index.

Within the limit referred to in this provision, the market value of Open Contracts with Derivatives entered into by the Investment Societies with underlying in Investment Units or referred to the national consumer price index must be computed.

Exposure to Derivatives whose underlying assets are denominated in Investment Units or whose interest guarantees a yield equal to or greater than the Investment Unit or the national consumer price index will be computed in accordance with the general provisions in financial matters of the Retirement Savings Systems issued by the Commission.

SIXTEENTH.- The Basic Investment Societies referred to in the previous Thirteenth provision may invest in the following:

The Basic Investment Societies provided for in the Thirteenth provision, fractions I to III, of these provisions:

Up to 100% of the Total Asset of the Investment Society in:

Debt Instruments issued or guaranteed by the Federal Government, or in Debt Instruments issued by the Bank of Mexico. The investment referred to in this paragraph does not include Debt Instruments issued, guaranteed, or accepted by development banking institutions, unless in these the guarantee of the Federal Government is expressly stated, and

ii.

Debt Instruments that have Investment Grade in accordance with Annexes A to I of these provisions.

Without prejudice to the foregoing, the Pension Basic Investment Societies may only acquire Debt Instruments denominated in national currency and Investment Units that reach the minimum qualifications established in Annexes A, B, and C of these provisions, as well as Debt Instruments denominated in Foreign Currency, placed in national or foreign markets that reach the minimum qualifications established in Annex F of these provisions.

In demand deposits at Banks;

In the operations authorized to guarantee Derivatives referred to in the Provisions of the Bank of Mexico. In the case of Foreign Counterparties, the Investment Societies that carry out the operations referred to in this subsection must previously demonstrate to the Commission compliance with the requirements established for this purpose in the general provisions in financial matters of the Retirement Savings Systems when such Counterparties hold the qualifications referred to in Annex K of these provisions.

For the purposes of what is established in the previous subsections b) and c), the diversification criteria established in the Twenty-Fourth provision of these provisions and the prudential provisions established in the general provisions in financial matters of the Retirement Savings Systems will apply.

Up to 20% of the Total Asset of the Investment Society, in Foreign Securities and Fiduciary Certificates of Investment Projects that are destined for the investment or financing of activities or projects outside the national territory. Investments in Foreign Debt Securities and Foreign Counterparties must have Investment Grade in accordance with Annexes J or K of these provisions.

For the purposes of what is established in this subsection, the general provisions in financial matters of the Retirement Savings Systems issued by the Commission will apply, and

In Equity Components. The sum of the exposure or in its case market value of investments in Equity Components must be up to the percentage of the Total Asset of the Investment Society established in Annex S, column 4, of these provisions.

For the purposes of what is established in subsection e) of this fraction, Annex N of these provisions will apply.

In FIBRAS and Real Estate Investment Vehicles, in accordance with the percentages of the Total Asset of the Investment Society established in Annex S, column 3, of these provisions.

Independently of the foregoing, the Investment Societies must verify that they comply with the criteria established for this purpose by the Commission through the general provisions in financial matters of the Retirement Savings Systems.

The Basic Investment Societies may only acquire exposure to Real Estate Investment Vehicles when these are part of Instruments whose values correspond to some index provided for in Annex M of these provisions.

As an exception to what is provided for in the previous paragraph, Mandataries may individually acquire Real Estate Investment Vehicles. Investment in said Vehicles through Mandataries may be up to the percentage of the Total Asset of the Investment Society determined by the Risk Analysis Committee, based on the development of the financial markets in question, a percentage that may not exceed the maximum limits provided for in subsection f) of this fraction.

For the purposes of what is established in subsection f) of this fraction, Annex N of these provisions will apply.

In Structured Instruments, observing the diversification criteria provided for in fractions IV and V of the following Twenty-Fourth provision. Investment may only be up to the percentage of the Total Asset of the Investment Society established in Annex S, column 1, of these provisions.

Without prejudice to the foregoing, the Basic Investment Societies may not acquire new Structured Instruments from the row corresponding to ID 132, column 1, of Annex S of these provisions.

Investment Societies may acquire Structured Instruments that invest or finance the acquisition of share capital of Mexican societies whose shares are quoted on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law, provided that the latter had been subject to financing through a Structured Instrument prior to their listing in said capital market or when the societies subject to financing are eligible in accordance with the issuance prospectus of the Structured Instrument, in which case said Structured Instrument may not acquire more than 51% of the total share capital that has been subject to public offer in regulated markets by authorities of Countries Eligible for Investments. Structured Instruments may not be acquired nor maintain exposure through Derivatives.

In Commodities, up to the percentage of the Total Asset of the Investment Society established in Annex S, column 2, of these provisions.

The Risk Analysis Committee will determine the criteria to authorize commodity indices that may be the subject of investment by the Investment Societies, always ensuring the protection of Workers' interests.

Likewise, in the case that there are modifications in the denomination of the authorized commodity indices, or if it is intended to modify or include new commodity indices in the list of commodity indices published on the Commission's website, the Risk Analysis Committee must decide whether to carry out said modifications or additions and determine the changes that must be made in said list.

The Commission must make known the list of commodity indices it authorizes in accordance with the criteria issued by the Risk Analysis Committee in accordance with what is provided for in the previous paragraph and inform of the modifications and additions of the set of commodity indices to the Advisory and Surveillance Committee and to the Board of Directors of the Commission in the first session these bodies hold subsequent to the publication.

In Foreign Debt Securities that meet the minimum qualifications referred to in Annex K.

Investment Societies that invest in the Foreign Debt Securities referred to in this subsection must previously demonstrate to the Commission compliance with the requirements established for this purpose in the general provisions in financial matters of the Retirement Savings Systems or in its case carry out the investment through Mandataries.

Without prejudice to the foregoing, the Pension Basic Investment Societies may only acquire Foreign Debt Securities that reach the minimum qualifications established in Annex J of these provisions.

II.

The Initial Basic Investment Societies must respect at all times the limits established for each of the assets listed in the first row (ID 1) of Annex S.

III.

The Pension Basic Investment Societies must respect at all times the limits established for each of the assets listed in the last row (ID 161) of Annex S.

IV.

The Basic Investment Societies that are created from the Initial Basic Investment Society, at the time of starting operations, will be located in the first row (ID 1) of Annex S of these provisions.

The Basic Investment Societies referred to in the Thirteenth provision, fractions I to III, of these provisions, may acquire the Investment Assets referred to in this provision and the Eighteenth provision, directly, through Vehicles or in their case Derivatives or Mandataries in accordance with the investment regime, unless otherwise specified in the subsections of this provision.

Investment Societies may invest in Investment Assets, in accordance with this chapter, in the aforementioned forms of exposure, once they comply with what is established in these provisions, as well as with the requirements and certifications established in the general provisions in financial matters of the Retirement Savings Systems.

For the purposes of this provision, the Commission, hearing the opinion of the Risk Analysis Committee, may prohibit the acquisition of Investment Assets when, in its judgment, they represent excessive risks for the portfolio of the Investment Societies, in order to protect the interests of Workers.

SEVENTEENTH.- The Basic Investment Societies referred to in the Thirteenth provision, fractions I to III, of these provisions, may acquire Investment Assets through Mandataries.

In the contracts that the Investment Societies enter into with the Mandataries, the following must be provided:

That the Investment Society and the Mandatary must permanently observe all limits, parameters, diversification criteria, and obligations established in these provisions, in the information prospectus of the Investment Society in question, and in the general provisions in financial matters issued by the Commission. For these purposes, the Administrator must establish in the contract it enters into with each Mandatary on behalf of the Investment Societies it operates, the parameters to which the Mandataries in question must be subject in accordance with the investment objectives of the Investment Society;

II.

That investments made on behalf and in the name of the Investment Societies be registered as investments on behalf of third parties, segregated from the assets of the entity contracting;

III.

The obligation of the Mandatary not to carry out the operations subject to the contract with the Investment Society with entities with which either party has any patrimonial link or conflict of interest;

IV.

That the valuation of the Investment Assets and the reporting of investment portfolios be carried out in accordance with the general provisions in financial matters issued by the Commission;

That the Mandataries must report to the Investment Societies and to the Commission with the frequency established in the General Provisions in financial matters issued by the Commission, the prices applicable to determine, if applicable, the write-downs referred to in the Eleventh Provision of these provisions;

VI.

The obligation of the Mandatary to comply, for investments in Investment Assets subject to the contract in question, with the diversification criteria provided for in fraction IV of the Twenty-Fourth Provision;

VII.

That the costs generated by the administration of the mandate will be considered as part of the commission charged by the Mandatary, with the exception of brokerage costs established in the general provisions in financial matters of the Retirement Savings Systems, issued by the Commission, and

VIII.

Comply with the other requirements determined by the Risk Analysis Committee.

The model contracts to be entered into between the Investment Societies and the Mandataries, as well as with investment advisors in Structured Instruments, must be available to the Commission.

EIGHTEENTH.- The Basic Investment Societies referred to in the Thirteenth Provision, fractions I to III, of these provisions may invest up to the percentage of the Total Asset of the Investment Society established in Annex S, column 5, of these provisions in Marketable Instruments that satisfy the requirements established in the general provisions in financial matters of the Retirement Savings Systems; it must observe the diversification criteria provided for in fractions I, III and IV of the following Twenty-Fourth Provision.

NINETEENTH.- Within the limits referred to in the Sixteenth Provision, the sum of the Compensated Values of operations with Derivatives that the Basic Investment Societies carry out in over-the-counter markets in accordance with the Provisions of the Bank of Mexico must be computed, provided that the Investment Society has the status of creditor with respect to said Compensated Values.

TWENTIETH.- The Basic Investment Societies referred to in the tenth third, fraction I to III, of these provisions, may acquire Structures Linked to Underlyings. Pension Basic Investment Societies may not invest in these assets when they are linked to Commodities.

TWENTY-FIRST.- It is prohibited for:

The Basic Investment Societies referred to in the tenth third, fractions I to III, of these provisions, the following:

Acquire Investment Assets issued, accepted or guaranteed by Financial Entities or brokerage houses, which are subject to administrative or managerial intervention that has been declared by the competent supervisory authority of the financial system or equivalent acts ordered, if applicable, by any financial authority belonging to the Countries Eligible for Investments;

Acquire Debt Instruments, Foreign Debt Securities, FIBRAS, Real Estate Investment Vehicles issued, accepted or guaranteed by Financial Entities or brokerage houses with which they have Patrimonial Links, as well as invest in Mutual Funds administered by Financial Entities with which they have Patrimonial Links;

Acquire subordinate Debt Instruments and Foreign Debt Securities. The Basic Investment Societies referred to in the Thirteenth Provision, fractions I and II, of these provisions may acquire the subordinate obligations referred to in fraction XLIX, subsections c), d), e) and f), of the Second Provision above;

Acquire Debt Instruments and Foreign Debt Securities convertible into shares. The Basic Investment Societies referred to in the Thirteenth Provision, fractions I and II of these provisions, may acquire the shares or obligations convertible into shares referred to in fraction XLIX, subsection b) of the Second Provision above;

Acquire Instruments and Foreign Securities that grant their holders rights or returns referred, directly or indirectly, to individual shares, to a set of shares, to variations in the price of commodities, assets, or instruments, which are not authorized within the investment regime of the corresponding Basic Investment Societies;

Make bank deposits and carry out repo operations, securities lending, and Derivatives with Financial Entities or brokerage houses with which they have Patrimonial Links;

Acquire Foreign Equity Securities, other than Equity Components. For this purpose, the assets referred to in the penultimate paragraph of the previous Sixteenth Provision and the Foreign Equity Securities acquired through Mandataries shall not be considered prohibited, and

Acquire FIBRAS, Real Estate Investment Vehicles, Marketable Instruments in which the real estate, real assets or receivable rights that form part of the trust assets have been contributed by Private Companies, financial institutions or brokerage houses, with which they have Patrimonial Links.

Section III

Risk Parameters

TWENTY-SECOND.- The Basic Investment Societies must maintain the following maximum limits:

Tracking Error of 5%, calculated in accordance with the methodology determined by the Risk Analysis Committee and published by the Commission on its Internet website. This is without prejudice to the fact that the Tracking Error may have a modification range determined by the Risk Analysis Committee itself;

II.

Starting from quarter 132, the Basic Investment Societies must maintain a maximum Value at Risk limit in accordance with what is established in Annex T of these provisions;

III.

In the case of Pension Basic Investment Societies, they must maintain a maximum Value at Risk limit of 0.70% of the Assets Managed by said Investment Societies.

For the calculation of Value at Risk, Pension Basic Investment Societies and Basic Investment Societies must adhere to the methodology provided for in sections I and II of Annex L of these provisions. Pension Basic Investment Societies and Basic Investment Societies, in their operation, will determine the Value at Risk limit, for the Assets Managed by the Investment Societies, which will not exceed the maximum limit established in fractions II and III, as applicable, of this provision. To this end, they will use as input the price difference matrix, described in section I of the aforementioned Annex L, which must meet the criteria established for this purpose in the general provisions in financial matters of the Retirement Savings Systems, which will be provided by the Price Provider that each Investment Society has contracted.

TWENTY-THIRD.- Investment Societies must maintain a maximum limit of the Conditional Value at Risk Differential on the Assets Managed by the Investment Society in accordance with what is established in Annex U of these provisions.

The Risk Analysis Committee may determine and update annually, or when market conditions require it, the limits provided for in Annex U of these provisions regarding the Conditional Value at Risk Differential. The Commission will inform the Administrators, as well as the Board of Directors of the Commission in the first session held by this body, regarding any adjustment to the Conditional Value at Risk Differential made by the Risk Analysis Committee.

For the calculation of the Conditional Value at Risk Differential, Investment Societies must adhere to the methodology provided for in sections I and III of Annex L of these provisions.

Investment Societies, in their operation, will determine the limits of the Conditional Value at Risk Differential, for the Assets Managed by the Investment Societies, which will not exceed the maximum limit established in this provision. To this end, Investment Societies will use the parameter of the Conditional Value at Risk Differential, expressed as a percentage with respect to the value of the Assets Managed by the Investment Society, which is provided by the Administrator that operates them, or in their case by the Valuation Society that provides them with services.

To this end, they will use as input the price difference matrix, described in section I of the aforementioned Annex L, which must meet the criteria established for this purpose in the general provisions in financial matters of the Retirement Savings Systems, which will be provided by the Price Provider that each Investment Society has contracted for the computation of Conditional Value at Risk and subsequently calculate the Conditional Value at Risk Differential.

TWENTY-FOURTH.- Basic Investment Societies must observe the following diversification criteria:

Investment in Debt Instruments and Foreign Debt Securities issued, guaranteed or accepted by the same issuer may not exceed 5% of the Total Asset of the Investment Society and must hold the ratings provided for in Annexes A, B, C, D, F, G, H, J or K of these provisions, as applicable with the nationality of the issuer and the Currency in which it is denominated. Investment in Debt Instruments issued, guaranteed or accepted by the same issuer referred to in the Second Provision fraction XXXa may not exceed 10% of the Total Asset of the Investment Society and must hold the ratings provided for in Annexes A, B, C, D, F, G or H of these provisions, as applicable.

Investment in Debt Instruments referred to in subsections c), d) and e) of fraction XLIX of the Second Provision of these provisions, issued, guaranteed or accepted by the same issuer may not exceed 1% of the Total Asset of the Investment Society and must hold at least the ratings provided for in Annexes E or I of these provisions, as applicable.

Investment in Hybrid Debt Instruments issued, guaranteed or accepted by the same issuer may not exceed 2% of the Total Asset of the Investment Society and must hold at least the ratings provided for in Annex D or H of these provisions, as applicable.

Within the investment referred to in this fraction, Linked Structures to Underlyings or, in their case, the issuers thereof or the issuers and the Counterparties of the components of said structures referred to in the Second Provision fraction XXXIV subsections b) and c) will be computed.

Within the investment referred to in this fraction, indirect investment in Equity Components or Commodities carried out by Basic Investment Societies, through notes, Linked Structures to Underlyings or other authorized debt Vehicles that may contain them, will not be considered, in accordance with the investment regime of the Basic Investment Society in question.

Investments of a Basic Investment Society in Debt Instruments and/or Foreign Debt Securities issued by the same issuer may not exceed the percentage of the Total Asset of the Investment Society provided for in this fraction, and it must be considered, if applicable, if they have a recognized guarantee.

Within the limit referred to in this fraction, the Compensated Value of Derivative operations carried out with the same Counterparty, directly or in their case through Linked Structures to Underlyings, must be computed, provided that the Investment Society has the status of creditor with respect to said Compensated Value.

Derivatives whose underlying value is composed of any Debt Instrument or Foreign Debt Security will be considered for the purposes of this limit, and the ratings of the Counterparties must satisfy the requirements provided for in these provisions. Likewise, repo and securities lending operations must be computed within the limit referred to in this fraction, net of the guarantees received for this purpose. The Instruments that constitute the direct object of the repo and securities lending operations carried out by the Basic Investment Society in question will form part of the guarantees referred to in this paragraph.

Bank deposits will also be included within the limit referred to in this fraction.

In the case of Fiduciary Marketable Certificates or Participation Certificates, the limit referred to in this fraction will be calculated considering the settlor as the issuer, and for debt investment Vehicles, it will be calculated considering the issuer of each Debt Instrument or Foreign Debt Security that makes up the Vehicle. In the case where the settlor is a Bank, a Counterparty, a brokerage house, a Financial Entity or a corporation and the assets affected in trust are receivable rights, directly or indirectly, owed by one or more legal entities, the limit referred to in this fraction will be calculated in the same proportion in which they participate in the assets subject to the trust; with the exception of Marketable Instruments.

Without prejudice to the other limits applicable to guaranteed Debt Instruments and Foreign Debt Securities, the limit referred to in this fraction will be calculated for guarantors only for the guaranteed amount. The amount of the guarantee must not be accumulated to the issued amount for the purposes of calculating the Total Asset of the Investment Society. If the guarantee does not satisfy the criteria regarding credit ratings of these provisions, or if the Debt Instrument or Foreign Debt Security has a guarantor or any other credit enhancer not considered in these provisions, only the rating of the settlor or legal entities that apply according to the aforementioned paragraph will be taken into account. Guaranteed issuances will count towards the limit provided for in this fraction in accordance with the credit rating of the issuance.

Likewise, Basic Investment Societies may consider that a Marketable Instrument is placed by an independent issuer, when such instruments meet the requirements established in the general provisions in financial matters of the Retirement Savings Systems. In this case, each Marketable Instrument will be subject to the limit referred to in this fraction. In any case, the sum of all Marketable Instruments that meet the above established will be subject to the limit established in the previous Eighteenth Provision.

For the purposes of computing the value of investments made with each Counterparty or issuer in accordance with this fraction, the general provisions in financial matters of the Retirement Savings Systems issued by the Commission will apply.

II.

Investment in shares of National Issuers listed on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law referred to in subsections a) and b) of fraction LII of the Second Provision above that belong to the national indices provided for in these provisions, may be a percentage of the maximum limits referred to in subsection e) of fraction I of the previous Sixteenth Provision as applicable, which will be equivalent to the sum of the value of the weight assigned to each share in the national market index determined by the Investment Committee of each Investment Society operated by the Administrator, as well as the modification range for marketability effects determined by the Risk Analysis Committee. In the case of shares of National Issuers listed on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law that do not form part of the index determined by the Investment Committee of each Investment Society operated by the Administrator, investment may be up to 4% of the limit referred to in subsection e) of fraction I of the previous Sixteenth Provision as applicable. In the case of FIBRAS and Real Estate Investment Vehicles, this limit may not exceed 2% of the Total Asset Managed by the Investment Society, and in its case, the limit determined by the Risk Analysis Committee.

Investment in shares of Foreign Issuers listed on any regulated and supervised stock market by an authority of the Countries Eligible for Investments may be up to 4% of the maximum limits referred to in subsection e) of fraction I of the previous Sixteenth Provision, provided that the Basic Investment Societies meet the requirements provided for in the general provisions in financial matters of the Retirement Savings Systems issued by the Commission and such investment has been approved by the Board of Directors of the corresponding Administrator.

Without prejudice to the foregoing, the sum of investments in individual shares of both National Issuers and Foreign Issuers may not exceed 30% of the maximum limits referred to in subsection e) of fraction I of the Sixteenth Provision of these provisions.

Investment in Foreign Equity Securities acquired through Mandataries may be up to the percentage of the Total Asset of the Investment Society determined by the Risk Analysis Committee, based on the development of the financial markets in question, a percentage that may not exceed the maximum limits provided for in subsections d) and e) of fraction I of the previous Sixteenth Provision.

Pension Basic Investment Societies may not acquire new shares of National or Foreign Issuers referred to in this fraction.

III.

Investment in Investment Assets issued, guaranteed or accepted by Related Societies may be up to 15% of the Total Asset of the Investment Society.

IV.

Investment in Debt Instruments, Foreign Debt Securities, Marketable Instruments, Linked Structures to Underlyings, and FIBRAS, if applicable, belonging to the same issuance, may be up to 35% of the total value of the respective issuance, together with what is invested by other Investment Societies operated by the Administrator. Administrators must request that Mandataries send them, with the frequency determined by the Commission, the report of the investments in the assets referred to in this paragraph that they have carried out during the immediate previous period; in the event that the sum of the investments made by the Mandataries and those made by all Investment Societies operated by the same Administrator exceeds the limit provided for in this fraction; the Investment Society must adhere to what is provided for in the general provisions in financial matters of the Retirement Savings Systems regarding the recomposition of the portfolio of Investment Societies, issued by the Commission.

Investments made in Vehicles must observe what is provided for in the previous paragraph.

For investment in Structured Instruments, the group of Basic Investment Societies operated by the same Administrator must adhere to the following:

They may acquire directly up to 100% of the same issuance;

They may invest up to 50% of the value of each financed project, when the amount of the issuance of the Structured Instrument is greater than or equal to the threshold established in the general provisions in financial matters of the retirement savings systems, provided that the promoter, the administrator or other qualified investors, including Investment Societies operated by other Administrators, alone or together, invest 50% or more of the value of each financed project;

They may invest up to 80% of the value of each financed project, when the amount of the issuance of the Structured Instrument is less than the threshold established in the general provisions in financial matters of the Retirement Savings Systems, provided that the promoter, the administrator or other qualified investors, including Investment Societies operated by other Administrators, alone or together, invest 20% or more of the value of each financed project.

In any case, the investment of the promoter, the administrator or other qualified investors, may be through the Structured Instrument.

Investment Societies or the Administrator that operates them will adhere to what is provided for in the general provisions in financial matters of the retirement savings systems, when they have patrimonial links with the societies carrying out the promoted projects, their shareholders or co-investors. Without prejudice to the foregoing, in the case of investment in Structured Instruments acquired through Mandataries, the Risk Analysis Committee will determine the maximum investment limits applicable, in no case shall the sum of the investments made by the Mandataries and those made by all Investment Societies operated by the same Administrator exceed the limit provided for in this fraction.

To this end, Administrators must request that Mandataries send them, with the frequency determined by the Commission, the report of the percentage of the issuances they have acquired during the immediate previous period; in the event that the sum of the investments made by

the Mandatories and those carried out by the Investment Society exceed the limit provided for in this subsection; the Investment Society shall be subject to the provisions of the general provisions on financial matters of the Retirement Savings Systems regarding the portfolio recomposition of Investment Societies, issued by the Commission.

In the case of Debt Instruments, Foreign Debt Securities, and Securitized Instruments, Investment Societies may acquire the greater of five hundred million pesos or 35% of the same issuance. The amount referred to in this paragraph shall be updated in accordance with the provisions of the General Provisions on Financial Matters of the Retirement Savings Systems.

This is without prejudice to the authority of the Risk Analysis Committee to establish criteria and guidelines for the selection of permissible credit risks considering market conditions.

It shall be considered that Debt Instruments, Foreign Debt Securities, Securitized Instruments, FIBRAs, and, where applicable, Structured Instruments belong to the same issuance when they have identical characteristics, which must be expressly stated in the independent legal opinion of the issuance in question. This notwithstanding the fact that said Debt Instruments, Foreign Debt Securities, Securitized Instruments, FIBRAs, and Structured Instruments have been issued through different acts and on different dates by the same issuer.

For the purposes of investment limits per issuance, Debt Instruments, Foreign Debt Securities, Securitized Instruments, FIBRAs, and, where applicable, Structured Instruments that are pending placement or have been amortized shall not be considered.

The investment in a single issuance of Structured Instruments shall not exceed 3% of the Total Assets of the Investment Society.

VI.

Investment Societies may only acquire Fiduciary Trust Certificates for Investment Projects that allocate at least 10% of the total maximum authorized amount of the issuance to investment or financing of activities or projects within national territory, by one or more societies.

In the event that the investment within national territory is less than the percentage defined in this subsection, the provisions of the General Provisions on Financial Matters of the Retirement Savings Systems shall apply.

In the case of the Vehicles indicated in the previous Ninth Provision, whose underlying assets are Debt Instruments and Foreign Debt Securities, the limits provided for in this provision shall apply only to the issuers of said Instruments and Values. Such Vehicles shall not be subject to the limits provided for in the previous subsection IV.

The limits provided for in subsections I and IV of this provision shall not apply to Instruments issued or guaranteed by the Federal Government or issued by the Bank of Mexico.

TWENTY-FIFTH.- Investment in Investment Assets denominated in Foreign Currency may sum up to 30% of the Total Assets of the respective Basic Investment Society.

Within the limit referred to in the preceding paragraph, the market value of Open Contracts with Derivatives entered into by Basic Investment Societies whose underlying is Foreign Currency, as well as the market value of Derivatives, repos, and securities loans denominated in Foreign Currency, shall be computed.

For the purpose of verifying compliance with this provision, the provisions of the general provisions on financial matters of the Retirement Savings Systems issued by the Commission shall apply.

The Basic Investment Societies referred to in the tenth provision, subsections I to III, of these provisions, may acquire Foreign Currencies, directly or through Derivatives, that they require to effect the settlement or hedging of operations with Investment Assets.

The Risk Analysis Committee, considering the security and development of the corresponding markets, may establish requirements for the operation of Investment Societies with Foreign Currency.

TWENTY-SIXTH.- Basic Investment Societies shall subject their investment portfolios to the guidelines and limits regarding minimum liquidity parameters established in the general provisions on financial matters of the Retirement Savings Systems.

CHAPTER III

ADDITIONAL INVESTMENT SOCIETIES

TWENTY-SEVENTH.- Additional Investment Societies may invest their resources in Investment Assets and any other documents permitted by the Law.

TWENTY-EIGHTH.- Additional Investment Societies must establish in their information prospectuses the matters related to risk parameters, as well as observe the provisions of the previous Fourth, Fifth, and Eighth Provisions.

CHAPTER IV

OF THE MERGER OR PORTFOLIO ASSIGNMENT OF INVESTMENT SOCIETIES

TWENTY-NINTH.- In the event of the merger or portfolio assignment of Investment Societies, the merging society, or, where applicable, the assignee, may exceed during a period of 360 natural days counted from the date on which the merger or assignment takes effect, the limits provided for in the Twenty-Second, Twenty-Third, and subsection IV of the Twenty-Fourth Provision of these provisions, provided that the excess is a consequence of the merger or portfolio assignment. Investment Societies shall not acquire more Debt Instruments, Foreign Debt Securities, Structures Linked to Underlyings, FIBRAs, and, where applicable, Structured Instruments of the issuance in which they have the excess during the aforementioned period.

TRANSITORY PROVISIONS

FIRST.- These general provisions shall enter into force on the next business day following their publication in the Official Gazette of the Federation, with the exception of:

The provisions of the Second Provision, subsections XV and XLVIII, regarding Real Project-Linked Trust Certificates, shall enter into force until such time as specific requirements are established in the general provisions on financial matters of the Retirement Savings Systems;

II.

The provisions of the Fifteenth Provision, regarding the limit of 51% of the Total Assets of the Pension Basic Investment Society in Debt Instruments or Foreign Debt Securities denominated in Investment Units or national currency whose interest guarantees a yield equal to or greater than the variation of the Investment Unit or the national consumer price index, until such time as Administrators present a recomposition program to the Commission in order to comply with said limit;

III.

The provisions of the Twenty-Fourth Provision, subsection II, second paragraph, regarding investment in individual shares of Foreign Issuers, shall enter into force until such time as specific requirements are established in the general provisions on financial matters of the Retirement Savings Systems, and

IV.

The Tenth, Thirteenth, Fifteenth, Sixteenth, Eighteenth, Twentieth, Twenty-First, Twenty-Second, and Twenty-Third Provisions, which shall enter into force in accordance with the guidelines issued by the Commission for the operation of Basic Investment Societies, the Initial Basic Investment Society, and the Pension Basic Investment Society, from the date on which the transfer referred to in the Third Transitory Provision is carried out and their Investment Trajectory has been presented to the Commission as established in the Fourth Transitory Provision of these provisions.

SECOND.- The "General Provisions Establishing the Investment Regime to Which Specialized Investment Societies of Retirement Savings Funds Shall Be Subject," published in the Official Gazette of the Federation on January 5, 2018, with its modifications, are hereby repealed.

Likewise, with the entry into force of these provisions, any provision issued by the Commission that is contrary to this regulation is hereby repealed.

THIRD.- Administrators shall proceed as follows:

They must change the Pension Basic Investment Societies, 1, 2, 3, and 4 as follows:

The Pension Basic Investment Society must change its corporate purpose to invest the resources of workers who are 65 years of age or older and whose Investment Society is closed;

The Basic Investment Society 1 must change its name and corporate purpose to the Basic Investment Society 55-59;

The Basic Investment Society 2 must change its name and corporate purpose to the Basic Investment Society 60-64;

The Basic Investment Society 3 must change its name and corporate purpose to the Basic Investment Society 75-79, and

The Basic Investment Society 4 must change its name and corporate purpose to the Basic Investment Society 85-89.

II.

They must constitute the Initial Basic Investment Societies, 90-94, 80-84, 70-74, and 65-69.

III.

Subject the Initial Basic Investment Societies, 90-94, 80-84, 70-74, and 65-69 to the authorization process for Basic Investment Societies provided for in the general provisions on financial matters of the Retirement Savings Systems;

IV.

Once the above is done, the Commission shall issue resolutions determining the day on which the Initial Basic Investment Societies, 90-94, 80-84, 70-74, and 65-69 must begin operations;

Administrators must inform the companies operating the National SAR Database of the resources that will be transferred from the Pension Basic Investment Societies, 1, 2, 3, and 4 to the Basic Investment Societies and the Pension Basic Investment Societies corresponding to them according to the Workers' birth date, prior to the execution of said transfer;

VI.

On Friday, December 13, 2019, a resource transfer process will be carried out from the resources administered by each Pension Basic Investment Society, 1, 2, 3, and 4 to those Basic Investment Societies and Pension Basic Investment Societies corresponding to them according to the Workers' birth date, under the free-of-charge title transfer modality. Administrators must present transfer programs for Commission authorization no later than October 31, 2019, with the Commission having a period of thirty natural days to issue a non-objection of said programs.

The Investment Societies, as applicable, shall issue the corresponding instructions to the custodians of the Basic Investment Societies involved in the transfer referred to in the preceding paragraph, so that they, if applicable, instruct the transfer, or receipt of resources, to Indeval, S.D.

From the next business day after the transfer of securities referred to in the first paragraph of this subsection is effected, the Basic Investment Societies must observe the investment regime applicable to them and their information prospectus.

Once the aforementioned transfer is carried out, the provisions of articles 251, 252, 253, 254, and the Eleventh Article of the General Provisions on Financial Matters of the Retirement Savings Systems regarding the annual transfer of resources of Individual Accounts by the age of Workers are rendered ineffective.

VII.

Ninety business days prior to the transfer referred to in the previous subsection VI, Administrators must inform Workers of said transfer, as well as their right to remain in the Investment Society corresponding to them according to the Workers' birth date or request their transfer to another Basic Investment Society.

Workers who, on the date of entry into force of these provisions, had chosen to transfer their resources to a Basic Investment Society other than the one corresponding to them by age, shall remain in the Basic Investment Society that has changed its name and corporate purpose, as applicable, in accordance with the provision indicated in the previous subsection I of this provision and corresponding to the choice they had made, unless they had manifested a different choice in terms of the preceding paragraph.

VIII.

From the date on which the transfer referred to in the previous subsection VI is carried out, Basic Investment Societies must be subject to the limits provided for in Annex S, Annex T, and Annex U of these provisions, taking as an initial reference the quarter indicated in the following table:

Basic Investment Society	Initial Investment Regime	Quarter
Pension Basic Investment Society	Workers born on or before December 31, 1954	161
Basic Investment Society 55-59	Workers born between January 1, 1955, and December 31, 1959.	141
Basic Investment Society 60-64	Workers born between January 1, 1960, and December 31, 1964.	121
Basic Investment Society 65-69	Workers born between January 1, 1965, and December 31, 1969.	101
Basic Investment Society 70-74	Workers born between January 1, 1970, and December 31, 1974.	81
Basic Investment Society 75-79	Workers born between January 1, 1975, and December 31, 1979.	61
Basic Investment Society 80-84	Workers born between January 1, 1980, and December 31, 1984.	41
Basic Investment Society 85-89	Workers born between January 1, 1985, and December 31, 1989.	21
Basic Investment Society 90-94	Workers born between January 1, 1990, and December 31, 1994.	1
Initial Basic Investment Society	Workers born on or after January 1, 1995	1

FOURTH.- In the case of the maximum limits provided for in columns 4 and 5 of Annex S of these provisions, the Risk Analysis Committee shall issue criteria of gradualness for their adoption. From the notification to Administrators of the criteria referred to in the preceding paragraph, Administrators shall have a period of 60 natural days to present to the Commission the Investment Trajectory referred to in the Tenth Provision of these provisions.

Until such time as the gradualness criteria are issued by the Risk Analysis Committee and notified by the Commission, Administrators shall be subject to the limits in force prior to the publication of these provisions in the Official Gazette of the Federation. From the date on which the transfer referred to in subsection VI of the previous Third Transitory Provision is carried out, Administrators shall have a period of 180 natural days to, if applicable, exceed the limits indicated in the Twenty-Second Provision of these provisions, so that this Commission can monitor the behavior of the Basic Investment Societies.

FIFTH.- Until such time as the transfer by birth date of Workers referred to in the Third Transitory Provision of these provisions is carried out, Basic Investment Societies 1 to 4 must obey the following Value at Risk limits and the methodology provided for in sections I and II of Annex L of these provisions:

Up to 0.70% of the Assets Managed by the Investment Society, for Basic Investment Societies 1 and Pension Basic Investment Societies;

Up to 1.10% of the Assets Managed by the Investment Society, for Basic Investment Societies 2;

Up to 1.40% of the Assets Managed by the Investment Society, for Basic Investment Societies 3, and

Up to 2.10% of the Assets Managed by the Investment Society, for Basic Investment Societies 4.

SIXTH.- Basic Investment Societies shall observe the following diversification criteria until such time as the Commission verifies that the methodologies and elements of measurement for additional credit evaluation, beyond that provided by securities rating agencies, have been fully implemented in accordance with the general provisions on financial matters of the Retirement Savings Systems issued by the Commission:

Up to 5% of the Total Assets of the Investment Society in Debt Instruments and Foreign Debt Securities holding the qualifications provided for in Annexes A, F, and J of these provisions;

Up to 3% of the Total Assets of the Investment Society in Debt Instruments holding the qualifications provided for in Annexes B and G of these provisions;

Up to 2% of the Total Assets of the Investment Society in Debt Instruments holding the qualifications provided for in Annex C of these provisions, and

Up to 1% of the Total Assets of the Investment Society in Debt Instruments holding the qualifications provided for in Annex D of these provisions.

For the purpose of computing the value of investments made with each Counterparty or issuer in accordance with this provision, the provisions of these provisions and Annex G of the general provisions on financial matters of the Retirement Savings Systems issued by the Commission shall apply.

The provisions of this article are not applicable to the Debt Instruments referred to in the Second Provision subsection XXXa.

SEVENTH.- Investment Societies that demonstrate to the Commission that, as a result of the entry into force of these general provisions, any investment limit is breached, must present to the Commission a portfolio recomposition program for non-objection, in order to adjust their investment portfolios and comply with the investment limits defined in these provisions.

In the event of any non-compliance with these provisions, it shall not be attributable to the Administrator operating the Investment Society in question, provided that the corresponding adjustment is provided for in the recomposition program presented to the Commission.

EIGHTH.- The presentation of modifications to prospectuses and brochures resulting from the entry into force of these provisions shall be in terms of what is established in the general provisions on financial matters of the Retirement Savings Systems.

NINTH.- The Commission complies with what is established in article 78 of the General Law for Regulatory Improvement, as well as with the Fifth Article of the "Agreement that establishes the guidelines that must be observed by the dependencies and decentralized bodies of the Federal Public Administration, regarding the issuance of general administrative acts to which article 69-H of the Federal Administrative Procedure Law applies," by considering thirty obligations eliminated through the publication of the General Provisions on Financial Matters of the Retirement Savings Systems, published in the Official Gazette of the Federation on November 16, 2018; as well as the modification to the Tenth Provision of these general provisions.

Mexico City, May 28, 2019.- Based on the provisions of articles 9° third paragraph, 11, and 12 subsections VIII, XIII, and XVI of the Law of the Retirement Savings Systems; 2 subsection III, 4 third and fourth paragraphs, and 8 first paragraph of the Internal Regulation of the National Commission of the Retirement Savings System, the President of the National Commission of the Retirement Savings System, Abraham E. Vela Dib. - Rubric.

ANNEX A 1

Qualifications for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Issuances
(With maturity up to one year)

FITCH MEXICO	MOODY'S	VERUM	STANDARD & POOR'S	HR RATINGS DE MEXICO	DBRS RATINGS MEXICO
F1+(mex)	MX-1	1+/M
			mxA-1+	HR+1	R-1.MX(alto)

Medium and Long-Term Issuances
(With maturity greater than one year)

FITCH MEXICO	MOODY'S	VERUM	STANDARD & POOR'S	HR RATINGS DE MEXICO	DBRS RATINGS MEXICO
AAA(mex)	Aaa.mx	AAA/M
			mxAAA	HR AAA	AAA.MX

1 To comply with the provisions of the Fourth Provision of these provisions, Administrators must verify that at least one of the securities rating agencies that issues an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX B ²

Qualifications for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Issuances
(With maturity up to one year)

FITCH MEXICO	MOODY'S	VERUM	STANDARD & POOR'S	HR RATINGS DE MEXICO	DBRS RATINGS MEXICO
F1(mex)	MX-2	1/M
			mxA-1	HR1	R-1.MX(medio)

Medium and Long-Term Issuances
(With maturity greater than one year)

FITCH MEXICO	MOODY'S	VERUM	STANDARD & POOR'S	HR RATINGS DE MEXICO	DBRS RATINGS MEXICO
AA+(mex) / AA(mex) / AA-(mex)	Aa1.mx / Aa2.mx / Aa3.mx	AA+/M / AA/M / AA-/M
			mxAA+ / mxAA / mxAA-	HR AA+ / HR AA / HR AA-	AA.MX(alto) / AA.MX / AA.MX(bajo)

² To comply with the provisions of the Fourth Provision of these provisions, Administrators must verify that at least one of the securities rating agencies that issues an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX C ³

Qualifications for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Issuances
(With maturity up to one year)

FITCH MEXICO	MOODY'S	VERUM	STANDARD & POOR'S	HR RATINGS DE MEXICO	DBRS RATINGS MEXICO
F2(mex)	MX-3	2/M
			mxA-2	HR2	R-1.MX(bajo)

Medium and Long-Term Issuances
(With maturity greater than one year)

FITCH MEXICO	MOODY'S	VERUM
A+(mex)	A1.mx	A+/M
A(mex)	A2.mx	A/M
A-(mex)	A3.mx	A-/M

STANDARD & POOR'S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA+

HR A+

A.MX(alto)

mxA

HR A

A.MX

mxA-

HR A-

A.MX(bajo)

To comply with the provisions of the Fourth Provision of these General Provisions, Administrators must verify that at least one of the securities rating agencies issuing an opinion on the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX D 4

Ratings for Instruments denominated in National Currency and Investment Units, as well as for National Counterparties.

Short-Term Emissions

(Maturity up to one year)

FITCH MEXICO

MOODY'S

VERUM

F3(mex)

Not applicable

3/M

STANDARD & POOR'S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA-3

HR3

R-2.MX(alto)

R-2.MX(medio)

R-2.MX(bajo)

R-3.MX

Medium and Long-Term Emissions

(Maturity greater than one year)

FITCH MEXICO

MOODY'S

VERUM

BBB+(mex)

Baa1.mx

BBB+/M

BBB(mex)

Baa2.mx

BBB/M

STANDARD & POOR'S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxBBB+

HR BBB+

BBB.MX(alto)

mxBBB

HR BBB

BBB.MX

ANNEX E 5

Ratings for Subordinate Obligations denominated

in National Currency and Investment

Units. 6

Short-Term Emissions

(Maturity up to one year)

FITCH MEXICO

MOODY'S

VERUM

F3(mex)

MX-3

3/M

STANDARD & POOR'S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxA-3

HR3

R-2.MX(alto)

R-2.MX(medio)

R-2.MX(bajo)

R-3.MX

Medium and Long-Term Emissions

(Maturity greater than one year)

FITCH MEXICO

MOODY'S

VERUM

BBB-(mex)

Baa3.mx

BBB-/M

BB+(mex)

Ba1.mx

BB+/M

STANDARD & POOR'S

HR RATINGS DE MEXICO

DBRS RATINGS MEXICO

mxBBB-

HR BBB-

BBB.MX(bajo)

mxBB+

HR BB+

BB.MX(alto)

Subordinate obligations as defined in fraction XLIX, subsections c), d) and e) of the Second Provision of these General Provisions.

ANNEX F 7

Ratings for Instruments denominated in Foreign Currency.

Short-Term Emissions

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-1

F1+ / F1

R-1(high) / R-1(middle)

P-2

R-1(low)

STANDARD & POOR'S

HR RATINGS DE MEXICO

A-1+ /A-1

HR + 1(G)/ HR1(G)

A-2

HR2(G)

Medium and Long-Term Emissions

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Aaa

AAA

Aa1/ Aa2 / Aa3

AA+/ AA / AA-

AA(high) / AA / AA(low)

A1/ A2 / A3

A+/ A/ A-

A(high) / A / A(low)

Baa1

BBB+

BBB(high)

STANDARD & POOR'S

HR RATINGS DE MEXICO

AAA

HR AAA(G)

AA+/ AA/ AA-

HR AA+(G)/ HR AA(G)/ HR AA-(G)

A+/ A /A-

HR A+(G)/ HR A(G)/ HR A-(G)

BBB+

HR BBB+(G)

To comply with the provisions of the Fourth Provision of these General Provisions, Administrators must verify that at least one of the credit rating agencies issuing an opinion on this matter regarding the Investment Asset has at least ten years of experience counted from its authorization to organize and operate in the Mexican market or in any of the other Eligible Countries for Investments.

ANNEX G 8

Ratings for Instruments denominated in Foreign Currency.

Short-Term Emissions

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS

MEXICO

P-3

R-2(high)

R-2(middle)

R-2(low)

R-3

STANDARD & POOR'S

HR RATINGS DE MEXICO

A-3

HR3(G)

Medium and Long-Term Emissions

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Baa2/ Baa3

BBB/ BBB-

BBB/BBB(low)

STANDARD & POOR'S

HR RATINGS DE MEXICO

BBB/ BBB-

HR BBB (G)/ HR BBB-(G)

ANNEX H 9

Ratings for Instruments denominated in Foreign Currency.

Medium and Long-Term Emissions

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Ba1/ Ba2

BB+/ BB

BB(high)/BB

STANDARD & POOR'S

HR RATINGS DE MEXICO

BB+/ BB

HR BB+ (G)/ HR BB(G)

ANNEX I 10

Ratings for Subordinate Obligations denominated in Foreign Currency. 11

Short-Term Emissions

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-3

R-2(high)

R-2(middle)

R-2(low)

R-3

STANDARD & POOR'S

HR RATINGS DE MEXICO

A-3

HR3(G)

Medium and Long-Term Emissions

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Ba3/ B1

BB-/ B+

BB(low)/B(high)

STANDARD & POOR'S

HR RATINGS DE MEXICO

BB-/ B+

HR BB-(G)/ HR B+(G)

Subordinate obligations as defined in fraction XLIX, subsections c), d) and e) of the Second Provision of these General Provisions.

ANNEX J 1 ²

Ratings for Foreign Securities and for Foreign Counterparties.

Short-Term Emissions

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-1

F1+/F1

R-1(high) / R-1(middle)

P-2

R-1(low)

STANDARD & POOR'S

HR RATINGS DE MEXICO

A-1+/A-1

HR+1(G)/ HR1(G)

A-2

HR2(G)

Medium and Long-Term Emissions

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Aaa

AAA

Aa1/ Aa2/ Aa3

AA+/ AA/ AA-

AA(high) / AA / AA(low)

A1/ A2 /A3

A+/ A/ A-

A(high) / A / A(low)

STANDARD & POOR'S

HR RATINGS DE MEXICO

AAA

HR AAA(G)

AA+/ AA/ AA-

HR AA+ (G)/ HR AA(G)/ HR AA-(G)

A+/ A/ A-

HR A+(G)/ HR A(G)/ HR A-(G)

1 ²

ANNEX K 1 ³

Ratings for Foreign Securities and for Foreign Counterparties

Short-Term Emissions

(Maturity up to one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

P-3

R-2(high)

R-2(middle)

R-2(low)

R-3

STANDARD & POOR'S

HR RATINGS DE MEXICO

A-3

HR3(G)

Medium and Long-Term Emissions

(Maturity greater than one year)

MOODY'S

FITCH IBCA

DBRS RATINGS MEXICO

Baa1 / Baa2 / Baa3

BBB+ / BBB / BBB-

BBB(high) / BBB /

BBB(low)

STANDARD & POOR'S

HR RATINGS DE MEXICO

BBB+ / BBB / BBB-

HR BBB+(G) / HR BBB(G) / HR BBB-(G)

1 ³

ANNEX L

I. Methodology for calculating the Value at Risk (VaR) for one day using historical data.

To calculate the VaR of each Investment Society considering the Assets Managed by the Investment Society in question, using historical data, the Administrator or, where applicable, the Valuation Society providing services to them, will calculate the VaR based on the information provided by the corresponding Price Provider and the positions of the different Investment Assets that make up the portfolio of the Investment Society itself, in accordance with the general financial provisions issued by the Commission. Bank deposits denominated in pesos and Structured Instruments will not be considered.

Information provided by the Price Provider:

The Instruments, Foreign Securities, Derivatives, repo and securities lending transactions that are feasible to be acquired or operated by the Investment Society will be referred to as the Permitted Assets or Permitted Asset if referring to only one of them.

Each business day prior to the VaR calculation date represents a possible scenario for the value of the factors that determine the price of the Permitted Assets. They will be called Scenarios the 1,000 business days prior to the VaR calculation date. From the information obtained in the Scenarios, an estimate of the price distribution can be obtained.

To calculate the VaR of day h using historical data, the Administrator, or where applicable, the corresponding Valuation Society on behalf of the Administrator, will use the matrix of differences between the price of day h and the price of scenario i (i = 1, 2,...,1000) sent by the Price Provider. Administrators must stipulate in the contracts they enter into with the Price Provider that to calculate this matrix, the Price Provider follows the following steps:

Estimate the daily percentage variations that risk factors, which influence the valuation of Permitted Assets, had over the last 1,000 business days.

By multiplying the percentage variations of a risk factor by the value of the risk factor on day h, a sample of 1,000 possible observations of the value of the risk factor is obtained. For example, for risk factor F 1 we have:

From the observations generated for the risk factors, observations for the prices of the Permitted Assets are obtained using the corresponding valuation formula.

With these prices, a price difference matrix of 1000 x n is constructed, where n is the number of Permitted Assets. The element (i, j) of that matrix will be the following:

The price difference matrix calculated by the Price Provider must meet the criteria established in the general financial provisions of the Retirement Savings Systems.

Calculation of VaR (Performed by the Administrator or, where applicable, by the corresponding Valuation Society)

The Administrator or, where applicable, the corresponding Valuation Society, will multiply the price difference matrix calculated by the Price Provider by the vector containing the number of titles or contracts, as the case may be, per Permitted Asset that make up the portfolio of the Investment Society. In this way, a vector of possible value changes (capital gains or losses) in the amount of said portfolio is obtained. In symbols,

The possible returns thus obtained are ordered from lowest to highest, thereby obtaining an estimate of the return distribution and from it the VaR and the Conditional Value at Risk on the assets determined according to the previous paragraph will be calculated.

The Commission must notify Administrators about additions or modifications to the scenarios that will remain fixed determined by the Risk Analysis Committee, one month in advance of the date of their application.

II.

Methodology to determine the scenario corresponding to the VaR applicable to Basic Investment Societies.

To observe the maximum VaR limit corresponding to each investment society, the number of the scenario corresponding to the VaR of each Investment Society will be the E-th worst observation expressed in positive terms. In the event that this value is originally positive, it will not be considered that it is higher than the limit expressed in the aforementioned provisions. The value of the scenario corresponding to the VaR will be computed according to the following methodology:

A reference portfolio (PR) is defined for each Basic Investment Society.

On date t, the 1000 loss/gain scenarios of the PR are calculated in accordance with the procedure described in this Annex. These scenarios will be used to compute the variables described below.

The PR of each Basic Investment Society is computed assuming that the allowed Equity Income limit is fully exploited and that the rest of the portfolio is invested in a portfolio of fixed-income instruments.

Specifically, the PRs are constructed assuming that the percentage of the portfolio allocated to equity investment is made entirely in the Mexican Stock Exchange Price and Quotation Index. Similarly, it is assumed that the percentage of the portfolio allocated to fixed-income investment is made through a basket of government debt securities with weights for each security defined as the percentage that said security represents with respect to the amount in circulation of government securities.

The Risk Analysis Committee may make adjustments, when market conditions dictate, on the parameters used in the determination of the value of

as well as in the PR to ensure that said portfolio continues to be representative of the investment opportunities of the type of Investment Society in question. The Commission will publish through its worldwide network site the detailed characteristics of the PRs, as well as the current value of the number of the scenario corresponding to the VaR of each Investment Society obtained considering the inputs provided by the Price Providers.

To calculate the VaR, eight decimal places will be used, truncating the last digit, which is equivalent to saying that when the VaR is expressed in percentage terms, six truncated decimals must be used.

III.

Calculation of the Conditional Value at Risk Differential applicable to Investment Societies

To calculate the Conditional Value at Risk Differential for each Investment Society considering only the Assets Managed by the Investment Society, the following will be observed:

The CVaR of each Investment Society is calculated, using the distribution of returns ordered from lowest to highest obtained for the calculation of VaR detailed in section I of this Annex as the simple average of those observations, expressed in positive terms, that are above scenario 26 including this scenario.

The CVaR of each Investment Society is calculated, following the same procedure indicated in the previous numeral, but excluding positions in Derivative instruments for its computation.

The value of the difference of the CVaR determined in the previous numeral 1 minus the CVaR determined in the previous numeral 2 is calculated; for such purposes, the Risk Analysis Committee will determine the scenarios with which the values of the CVaR will be computed, which will remain in effect until the Risk Analysis Committee defines a new set of scenarios. The Risk Analysis Committee will evaluate and, where applicable, define at least every two years the set of scenarios considered in the computations described in this paragraph.

Additionally, the Risk Analysis Committee at any time may determine a set of different scenarios in a period shorter than indicated, considering the security of investments and the development of markets, as well as other elements that said collegiate body judges it is necessary to analyze, in the latter case, the Commission will make known to the Administrators the applicable scenarios in a period no less than five business days prior to their entry into force.

In the estimation of the CVaR and the CVaR Differential, eight decimal places will be used, truncating the last digit, which is equivalent to saying that, when the CVaR is expressed in percentage terms, six truncated decimals must be used.

ANNEX M

Equity Indices and Real Estate Indices of Eligible Countries for Investments.

The Equity Indices of Eligible Countries for Investments, Debt Indices of Eligible Countries for Investments or Real Estate Indices of Eligible Countries for Investments acquired directly, through Vehicles or Derivatives by Investment Societies in eligible capital markets, may only refer to indices ruled on by the independent expert referred to in the Ninth Provision of these General Provisions that have a current approving ruling. For such purposes, the Commission will request from Administrators the information related to the ruling performed by the independent expert on the indices and, where applicable, Vehicles in accordance with what is established in the general financial provisions of the Retirement Savings Systems and the general rules to which the information that administrators of retirement fund societies, specialized investment societies of retirement fund societies, receiving entities and operating companies of the National SAR Database deliver to the National Commission for the Retirement Savings System must be subject.

It will be the responsibility of the Administrators to verify that the assets included in the reference index of the Foreign Equity Value, Foreign Debt Value, Equity Instruments, Debt Instruments, FIBRAs or Real Estate Investment Vehicles, or the Vehicles that represent them, have a current approving ruling issued by the independent expert referred to in the Ninth Provision of these General Provisions.

Investments made in Foreign Equity Securities, Foreign Debt Securities and Real Estate Investment Vehicles acquired through Trustees may only be traded in capital markets of Eligible Countries for Investments.

I. Index replication criteria and others

In the case of the replication of Equity Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments or Debt Indices of Eligible Countries for Investments, the Foreign Equity Securities, Foreign Debt Securities and Real Estate Investment Vehicles acquired directly by Investment Societies in international capital markets, must refer to the shares, Foreign Debt Securities and Real Estate Investment Vehicles that make up the indices and sub-indices, following the official weights of each of the issuers, of the Foreign Debt Securities and/or Real Estate Investment Vehicles that make up the cited indices and sub-indices. In this case, considering the equity, debt or Real Estate Investment Vehicle indices that have a current approving ruling issued by the independent expert referred to in the Ninth Provision of these General Provisions, the official weights may be modified by effects of marketability in a range that does not exceed

of +/-

6.5 percentage points, avoiding that the weight of each issuer, Foreign Debt Security and/or Real Estate Investment Vehicle is negative.

The Risk Analysis Committee may modify the range described in the previous paragraph if, as a result of the correct operation of Foreign Equity Securities, Foreign Debt Securities and/or Real Estate Investment Vehicles, the diversification of the portfolios of Investment Societies is fostered.

Investment Societies, when investing in indices directly, or where applicable, through Derivatives, must observe that said indices are composed of at least 90% of companies supervised by some authority of the Eligible Countries for Investments.

In the event that there are modifications in the denomination of the indices or sub-indices mentioned in this Annex, or if for convenience it is intended to modify or include new indices or sub-indices in the list of indices that have an approving ruling issued by the independent expert referred to in the Ninth Provision of these General Provisions, the latter must re-evaluate the indices or sub-indices if such modifications or additions are made and determine the changes that must be made in said list.

The modifications and additions of the set of indices will be reported to the Advisory and Surveillance Committee and to the Board of Directors of the Commission in the first session that these bodies hold after the update performed by the independent expert referred to in the Ninth Provision of these General Provisions.

For the purposes of compliance with the range referred to in this subsection, direct investment made by Basic Investment Societies in shares of Foreign Issuers referred to in the Twenty-Fourth Provision, subsection II of these General Provisions will not be considered.

ANNEX N

Methodology for calculating the exposure of investments through the Equity Income Component or to FIBRAs and Real Estate Investment Vehicles.

Section I. Calculation of the exposure of investments through Equity Income Components.

The exposure of investments made through acquired or structured Notes, Structures Linked to Underlyings, as well as Equity Components, shall be calculated using the procedure described in this section.

For the purposes of this section, Notes and Structures Linked to Underlyings refer to Debt Instruments or Foreign Debt Securities whose returns are linked to Equity Components.

For the calculation of the exposure referred to in this section, the debt component of the Notes or Structures Linked to Underlyings shall not be considered.

I. Exposure of investments through Notes, Structures Linked to Underlyings, or Equity Component:

To determine the exposure of the Investment Society's portfolio, and in its case, the portfolios of the Mandatories it has hired, when investing in Notes, Structures Linked to Underlyings, or Equity Components, the Deltas ' of Equity Instruments, Foreign Equity Securities, or Derivatives, referred to the Equity Components directly or through the Vehicles containing them, shall be used.

The Delta ' shall be:

In the case of Vehicles that confer rights on the Equity Components, shares that replicate them, futures referred to said underlyings, equal to one.

In the case of option contracts or optional titles referred to in the second provision, fraction LII, subsection d) of these provisions, they shall be calculated by the Price Provider contracted by the Investment Society. Such Delta shall be calculated per unit of contract or title as applicable and assuming a long position.

The amount exposed to each share that forms part of the investment portfolio through Notes, Structures Linked to Underlyings, or Equity Components, shall be calculated as follows:

In the case of Vehicles: the number of titles of the Vehicles containing the i-th share and that make up the j-th Note, j-th Structure Linked to Underlying, or j-th Equity Component shall be used.

In the case of Derivatives: the number of contracts of the j-th Note, j-th Structure Linked to Underlying, or j-th Equity Component containing the i-th share, multiplied by the size of the corresponding contracts, shall be used.

In the case of shares: the number of i-th shares acquired in the j-th Note, j-th Structure Linked to Underlying, or j-th Equity Component shall be used.

In the case of optional titles referred to in the second provision, fraction LII, subsection d) of these provisions: the number of titles shall be used.

For short positions through Derivatives, the number of contracts is expressed with a negative sign.

In the case of Vehicles: it is the Market Value of the Vehicles containing the i-th share and that make up the j-th Note, j-th Structure Linked to Underlying, or j-th Equity Component, multiplied by the weight or relative weight associated with the i-th share within each vehicle.

In the case of shares: it is the Market Value of the i-th share that makes up the j-th Note, j-th Structure Linked to Underlying, or j-th Equity Component.

In the case of Derivatives: it is the closing points of the underlying index of the Derivative, multiplied by the weight or relative weight associated with the i-th share.

In the case of optional titles referred to in the second provision, fraction LII, subsection d) of these provisions: it is the Market Value of the optional title.

II. Equity Exposure in the portfolio of the Investment Society or in its case of each Mandatory it has hired:

The portfolio's equity exposure due to the acquisition of Notes, Structures Linked to Underlyings, or Equity Components, shall be calculated as follows:

The amount exposed (in absolute terms) in the i-th share in the portfolio is calculated by summing over all exposed amounts of the Notes, Structures Linked to Underlyings, or Equity Components referenced to the same i-th share and obtaining the absolute value of said sum. This implies that exposures on the same share are offset, considering independently on the one hand the investments directly managed by the Investment Society and on the other hand the investments managed by each Mandatory.

The total Equity Exposure in the portfolio of the Investment Society, derived from the acquisition of Notes, Structures Linked to Underlyings, and Equity Components of the Investment Societies, as a percentage of the Total Assets of the Investment Society that corresponds, shall be less than or equal to the limits provided for in these provisions.

Section II. Calculation of the exposure of investments through FIBRAs and Real Estate Investment Vehicles

The exposure of investments made through acquired or structured Notes, Structures Linked to Underlyings, as well as Real Estate Investment Vehicles and FIBRAs, shall be calculated using the procedure described in this section.

For the purposes of this section, Notes and Structures Linked to Underlyings refer to Debt Instruments or Foreign Debt Securities whose returns are linked to FIBRAs and Real Estate Investment Vehicles.

For the calculation of the exposure referred to in this section, the debt component of the Notes or Structures Linked to Underlyings shall not be considered.

I. Exposure of investments through Notes, Structures Linked to Underlyings, FIBRAs, or Real Estate Investment Vehicles:

To determine the exposure of the Investment Society's portfolio, and in its case, the portfolios of the Mandatories it has hired, when investing in Notes, Structures Linked to Underlyings, FIBRAs, or Real Estate Investment Vehicles, the Deltas ' of Derivative Instruments, referred to the FIBRAs or Real Estate Investment Vehicles directly or through the Vehicles containing them, shall be used.

The Delta ' shall be:

In the case of Vehicles that confer rights on the FIBRAs or Real Estate Investment Vehicles, futures referred to said underlyings, equal to one.

In the case of option contracts, they shall be calculated by the Price Provider contracted by the Investment Society. Such Delta shall be calculated per unit of contract and assuming a long position.

The amount exposed to each FIBRA or Real Estate Investment Vehicle that forms part of the investment portfolio through Notes, Structures Linked to Underlyings, shall be calculated as follows:

In the case of Vehicles: the number of titles of the Vehicles containing the i-th FIBRA or the i-th Real Estate Investment Vehicle and that make up the j-th Note, j-th Structure Linked to Underlying, j-th FIBRA, or j-th Real Estate Investment Vehicle shall be used.

In the case of Derivatives: the number of contracts of the j-th Note, j-th Structure Linked to Underlying, j-th FIBRA, or j-th Real Estate Investment Vehicle containing the i-th FIBRA or the i-th Real Estate Investment Vehicle, multiplied by the size of the corresponding contracts, shall be used.

In the case of FIBRAs and Real Estate Investment Vehicles: the number of titles of the i-th FIBRA or the i-th Real Estate Investment Vehicle shall be used.

Regarding the minimum limits applicable referred to in the Fifteenth Provision of these provisions, the applicable selling price shall be used to determine that there is a loss. In this case, it shall be considered that the Administrator causes a loss to the Investment Society, caused by the breach of regulatory limits, when it maintains a deficit with respect to said limits and the closing price of the traded asset is greater than the selling price, or in its case, the valuation price of the previous day.

II. The amount of the loss that an Administrator must compensate in case it breaches the Value at Risk (VaR) limit provided for in the Twenty-Second Provision of these provisions due to causes attributable to it, shall be calculated according to the following formula:

Canada

Luxembourg

China

Mexico

South Korea

Netherlands

United States

Singapore

Spain

Sweden

France

Switzerland

Hong Kong

II.

Members of the Pacific Alliance (AP) with full rights whose stock exchanges belong to the Latin American Integrated Market (MILA)

Colombia

Peru

III.

European Union

Germany

Hungary

Austria

Ireland

Belgium

Italy

Bulgaria

Latvia

Cyprus

Lithuania

Croatia

Luxembourg

Denmark

Malta

Slovakia

Netherlands

Slovenia

Poland

Spain

Portugal

Estonia

United Kingdom

Finland

Czech Republic

France

Romania

Greece

Sweden

IV.

Members of the Organization for Economic Co-operation and Development (OECD) with which Mexico has valid free trade treaties

Chile

Israel

Iceland

Norway

Countries determined considering the security of investments and the development of markets

Malaysia

South Africa

New Zealand

Thailand

Taiwan

ANNEX Q

Basic Investment Societies shall invest the resources of Workers and pensioners whose date of birth corresponds to the following table:

Basic Investment Society

Year of birth

Basic Investment Society 55-59

Workers who were born between January 1, 1955, and December 31, 1959

Basic Investment Society 60-64

Workers who were born between January 1, 1960, and December 31, 1964

Basic Investment Society 65-69

Workers who were born between January 1, 1965, and December 31, 1969

Basic Investment Society 70-74

Workers who were born between January 1, 1970, and December 31, 1974

Basic Investment Society 75-79

Workers who were born between January 1, 1975, and December 31, 1979

Basic Investment Society 80-84

Workers who were born between January 1, 1980, and December 31, 1984

Basic Investment Society 85-89

Workers who were born between January 1, 1985, and December 31, 1989

Basic Investment Society 90-94

Workers who were born between January 1, 1990, and December 31, 1994

Annex R

Basic Investment Societies shall invest the resources of Workers and pensioners whose date of birth corresponds to the following table:

Basic Investment Society

Year of birth

Opening Date

Basic Investment Society 95-99

Workers who were born between 1995 and 1999

January 1, 2025

Basic Investment Society 00-04

Workers who were born between 2000 and 2004

January 1, 2030

Basic Investment Society 05-09

Workers who were born between 2005 and 2009

January 1, 2035

Basic Investment Society 10-14

Workers who were born between 2010 and 2014

January 1, 2040

Basic Investment Society 15-19

Workers who were born between 2015 and 2019

January 1, 2045

The creation of Basic Investment Societies for subsequent generations will be announced through guidelines issued by the Commission.

ANNEX S

Investment Regime Limits (expressed as a percentage of the Total Assets of the Investment Society)

Identifier

Column 1

Column 2

Column 3

Column 4

Column 5

ID: Quarter in the life of the Basic Society

Structured Instruments

Commodities

FIBRAs and Real Estate Investment Vehicles

Equity Components

Securitized Instruments

20.00

5.00

10.00

60.00

40.00

20.00

5.00

10.00

59.93

39.94

20.00

5.00

10.00

59.85

39.87

20.00

5.00

10.00

59.77

39.80

20.00

5.00

10.00

59.68

39.73

20.00

5.00

10.00

59.58

39.66

20.00

5.00

10.00

59.48

39.58

20.00

5.00

10.00

59.38

39.51

20.00

5.00

10.00

59.27

39.43

20.00

5.00

10.00

59.16

39.34

20.00

5.00

10.00

59.05

39.26

20.00

5.00

10.00

58.97

39.17

20.00

5.00

10.00

58.90

39.08

20.00

5.00

10.00

58.82

38.99

20.00

5.00

10.00

58.74

38.89

20.00

5.00

10.00

58.66

38.80

20.00

5.00

10.00

58.57

38.70

20.00

5.00

10.00

58.49

38.60

20.00

5.00

10.00

58.40

38.49

20.00

5.00

10.00

58.31

38.39

20.00

5.00

10.00

58.22

38.28

20.00

5.00

10.00

58.12

38.17

20.00

5.00

10.00

58.02

38.06

20.00

5.00

10.00

57.93

37.95

20.00

5.00

10.00

57.83

37.84

20.00

5.00

10.00

57.72

37.72

20.00

5.00

10.00

57.62

37.60

20.00

5.00

10.00

57.51

37.49

20.00

5.00

10.00

57.41

37.37

20.00

5.00

10.00

57.30

37.24

20.00

5.00

10.00

57.18

37.12

20.00

5.00

10.00

57.07

37.00

20.00

5.00

10.00

56.96

36.87

20.00

5.00

10.00

56.84

36.74

20.00

5.00

10.00

56.72

36.61

20.00

5.00

10.00

56.60

36.48

20.00

5.00

10.00

56.48

36.35

20.00

5.00

10.00

56.35

36.22

20.00

5.00

10.00

56.23

36.09

20.00

5.00

10.00

56.10

35.95

20.00

5.00

10.00

55.97

35.82

20.00

5.00

10.00

55.84

35.68

20.00

5.00

10.00

55.71

35.55

20.00

5.00

10.00

55.58

35.41

20.00

5.00

10.00

55.45

35.27

20.00

5.00

10.00

55.31

35.13

20.00

5.00

10.00

55.17

34.99

20.00

5.00

10.00

55.03

34.85

20.00

5.00

10.00

54.89

34.71

20.00

5.00

10.00

54.75

34.57

20.00

5.00

10.00

54.61

34.43

20.00

5.00

10.00

54.46

34.28

20.00

5.00

10.00

54.32

34.14

20.00

5.00

10.00

54.17

34.00

20.00

5.00

10.00

54.02

33.85

20.00

5.00

10.00

53.87

33.71

20.00

5.00

10.00

53.72

33.57

20.00

5.00

10.00

53.57

33.42

20.00

5.00

10.00

53.42

33.28

20.00

5.00

10.00

53.27

33.13

20.00

5.00

10.00

53.11

32.99

20.00

5.00

10.00

52.95

32.84

20.00

5.00

10.00

52.80

32.70

20.00

5.00

10.00

52.64

32.55

20.00

5.00

10.00

52.48

32.41

20.00

5.00

10.00

52.32

32.27

20.00

5.00

10.00

52.15

32.12

20.00

5.00

10.00

51.99

31.98

20.00

5.00

10.00

51.83

31.83

20.00

5.00

10.00

51.66

31.69

20.00

5.00

10.00

51.50

31.55

20.00

5.00

10.00

51.33

31.41

20.00

5.00

10.00

51.16

31.26

20.00

5.00

10.00

50.99

31.12

20.00

5.00

10.00

50.82

30.98

20.00

5.00

10.00

50.64

30.84

20.00

5.00

10.00

50.40

30.70

20.00

5.00

10.00

50.15

30.57

20.00

5.00

10.00

49.90

30.43

20.00

5.00

10.00

49.65

30.29

20.00

5.00

10.00

49.38

30.16

19.86

5.00

9.93

49.12

30.02

19.71

5.00

9.86

48.85

29.87

19.57

5.00

9.79

48.58

29.73

19.43

5.00

9.71

48.30

29.58

19.29

5.00

9.64

48.02

29.43

19.14

5.00

9.57

47.73

29.27

19.00

5.00

9.50

47.44

29.11

18.86

5.00

9.43

47.15

28.95

18.71

5.00

9.36

46.85

28.78

18.57

5.00

9.29

46.55

28.61

18.43

5.00

9.21

46.24

28.44

18.29

5.00

9.14

45.93

28.26

18.14

5.00

9.07

45.62

28.08

18.00

5.00

9.00

45.30

27.88

17.86

5.00

8.93

44.98

27.67

17.71

5.00

8.86

44.66

27.47

17.57

5.00

8.79

44.33

27.27

17.43

5.00

8.71

44.00

27.07

17.29

5.00

8.64

43.67

26.87

17.14

5.00

8.57

43.33

26.66

17.00

5.00

8.50

43.00

26.46

16.86

5.00

8.43

42.64

26.26

16.71

5.00

8.36

42.27

26.06

16.57

5.00

8.29

41.90

25.85

16.43

5.00

8.21

41.52

25.65

16.29

5.00

8.14

41.12

25.45

16.14

5.00

8.07

40.72

25.22

16.00

5.00

8.00

40.30

25.00

15.86

5.00

7.93

39.88

24.76

15.71

5.00

7.86

39.44

24.61

15.57

5.00

7.79

38.98

24.45

15.43

5.00

7.71

38.51

24.30

15.29

5.00

7.64

38.03

24.15

15.14

5.00

7.57

37.53

24.00

15.00

5.00

7.50

37.01

23.85

14.86

5.00

7.43

36.48

23.70

14.71

5.00

7.36

35.93

23.55

14.57

5.00

7.29

35.36

23.41

14.43

5.00

7.21

34.76

23.26

14.29

5.00

7.14

34.15

23.12

14.14

5.00

7.07

33.52

22.98

14.00

5.00

7.00

32.86

22.84

13.86

5.00

6.93

32.18

22.70

13.71

5.00

6.86

31.48

22.56

13.57

5.00

6.79

30.75

22.43

13.43

5.00

6.71

30.00

22.30

13.29

5.00

6.64

29.22

22.17

13.14

5.00

6.57

28.42

22.04

13.00

5.00

6.50

27.61

21.92

12.86

5.00

6.43

26.78

21.80

12.71

5.00

6.36

25.94

21.68

12.57

5.00

6.29

25.10

21.56

12.43

5.00

6.21

24.27

21.44

12.29

5.00

6.14

23.44

21.33

12.14

5.00

6.07

22.62

21.22

12.00

5.00

6.00

21.82

21.12

11.86

5.00

5.93

21.04

21.01

11.71

5.00

5.86

20.29

20.92

11.57

5.00

5.79

19.57

20.82

11.43

5.00

5.71

18.88

20.73

11.29

5.00

5.64

18.23

20.64

11.14

5.00

5.57

17.63

20.55

11.00

5.00

5.50

17.08

20.47

10.86

5.00

5.43

16.58

20.39

10.71

5.00

5.36

16.14

20.31

10.57

5.00

5.29

15.77

20.24

10.43

5.00

5.21

15.46

20.18

10.29

5.00

5.14

15.23

20.11

10.14

5.00

5.07

15.07

20.05

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

10.00

5.00

15.00

20.00

ANNEX T

Value at Risk Limits

(expressed as a percentage of the value of the Assets Managed by the Investment Society)

Identifier

Column 1

ID: Quarter in the life of the Basic Investment Society

Value at Risk

1.10

1.08

1.05

1.03

1.01

0.98

0.96

0.94

0.91

0.89

0.86

0.84

0.82

0.80

0.78

0.76

0.75

0.73

0.72

0.71

0.70

ANNEX U

Conditional Value at Risk Differential Limits

(expressed as a percentage of the value of the Assets Managed by the Investment Society)

Identifier

Column 1

ID: Quarter in the life of the Basic Investment Society

Conditional Value at Risk Differential

1.00

0.99

0.98

0.97

0.96

0.95

0.94

0.93

0.92

0.91

0.90

0.89

0.88

0.87

0.86

0.85

0.84

0.83

0.82

0.81

0.80

0.79

0.78

0.77

0.76

0.75

0.74

0.73

0.72

0.71

0.70

0.69

0.68

0.67

0.66

0.65

0.64

0.63

0.61

0.60

0.59

0.58

0.57

0.56

0.55

0.54

0.53

0.52

0.51

0.50

0.49

0.48

0.47

0.46

0.45

0.44

0.43

0.42

0.41

0.40

0.39

0.38

0.37

0.36

0.35

0.34

0.33

0.32

0.31

0.30

0.29

0.28

0.27

0.26

0.25

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