General Provisions on Financial Matters for Retirement Savings Systems

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DOF: 16/11/2018

GENERAL PROVISIONS on financial matters of the Retirement Savings Systems

At the margin, a seal with the National Coat of Arms, which says: United Mexican States.- Ministry of Finance and Public Credit.- National Commission for the Retirement Savings System.

The President of the National Commission for the Retirement Savings System, based on articles 1, 2, 5 fractions I, II, III, VI, VI bis, VII, XIII bis, and XVI; 12 fractions I, VI, VIII and XVI; 18, 25, 29, 30, 36, 39, 42, 42 bis, 43, 44, 44 bis, 45, 46, 47, 47 bis, 48, 64, 64 bis, 67, 68, 69, 70, 89, 90 fractions II, IV, V, VI, VII, IX, XII and XIII, 100 bis, 100 ter and 100 quater of the Law of the Retirement Savings Systems; 106 of the Law of the Institute for Social Security and Services for State Workers; 1, 2 fraction III, and 8 first paragraph of the Internal Regulations of the National Commission for the Retirement Savings System, and

CONSIDERING

That all operations carried out by Administrators for the investment of workers' resources are carried out exclusively in the interest of the latter, the "General Provisions on financial matters of the Retirement Savings Systems" are modified, which have as their object to establish the minimum standards for the comprehensive management of investment portfolios of Investment Societies;

That it is necessary for Administrators to adjust their reference portfolios, in order that they adhere to international best practices.

That in the last year this Commission has promoted the implementation of policies that promote economic and social well-being, so in this alignment it is a priority to grant Administrators the authority to integrate environmental, social and corporate governance factors in the analysis of debt instruments and in the design of investment strategies;

That it is of particular interest to this Commission to avoid carrying out operations that imply a conflict of interest, so it is indispensable that in the code of ethics of each Administrator there are specific policies for the disclosure of information in case a conflict of interest arises, applicable to the members of the Investment and Financial Risk Committees;

That it is necessary for Administrators, in their work of developing practices that translate into better returns and therefore better pensions for Workers, to allow Workers to choose that each sub-account or type of contribution that makes up Voluntary Savings is invested in any of the Basic Investment Societies or Additional Investment Societies, thereby promoting their Voluntary Savings;

That in order to make the investment processes of Administrators more efficient, it is opportune to relax the criteria that the independent expert dedicated to evaluating and issuing opinions on Debt Vehicles, Equity Components, Real Estate Investment Vehicles and FIBRAS, Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments and Debt Indices of Eligible Countries for Investments must satisfy; and

That the Ministry of Finance and Public Credit through this Commission, complies with what is established in article 78 of the General Law of Regulatory Improvement, as well as in Article Fifth of the "Agreement that establishes the guidelines that must be observed by the dependencies and decentralized organisms of the Federal Public Administration, regarding the issuance of general administrative acts to which article 69-H of the Federal Administrative Procedure Law applies", according to what is detailed in these provisions, which eliminate thirty-seven obligations that generate benefits and savings, has seen fit to issue the following:

GENERAL PROVISIONS ON FINANCIAL MATTERS OF THE RETIREMENT SAVINGS SYSTEMS

INDEX

TITLE I. GENERAL PROVISIONS

Sole Chapter. Definitions

TITLE II. OF THE FINANCIAL RISK MANAGEMENT OF THE INVESTMENT SOCIETY

Chapter I. Of the Financial Risk Committee

Chapter II. Of the Comprehensive Risk Management Unit

Chapter III. Of the Manual of Policies and Procedures for Financial Risk Management

TITLE III. PROVISIONS ON INVESTMENTS

Chapter I. Of the Investment Committees

Chapter II. Of the Head of the Investment Area

Chapter III. Of the Investment Manual

Chapter IV. Of the Investment Process

Chapter V. Of the Portfolio Behavior Tests

TITLE IV. OF SOUND PRACTICES

Chapter I. Of Corporate Rights

Chapter II. Of Good Practices

Chapter III. Of Practices to Avoid Conflicts of Interest

Chapter IV. Of the Certification of Officials

Chapter V. Of Independent Advisors

TITLE V. OF PRICE SUPPLY AND VALUATION OF INVESTMENT ASSETS

Chapter I. Of Price Supply for the Valuation of Investment Assets

Section I. Of Price Supply for the Valuation of Assets Managed by the Investment Society

Section II. Of Price Supply for the Valuation of Assets Managed by Mandatories

Section III. Of Price Supply for the Valuation of Investment Assets

Section IV. Of the Hiring of the Price Provider

Chapter II. Of the Valuation of Investment Assets

Section I. Of Contingent Valuation Procedures for Investment Assets that are part of the Asset Managed by the Investment Society

Section II. Of Contingent Valuation Procedures for Investment Assets that are part of the Asset Managed by the Mandatory

Section III. Of the Hiring of Valuation Societies

Section IV. Of the Valuation of Shares Representing the Paid Capital of Investment Societies

TITLE VI. OF ACCESS TO INTERNATIONAL MARKETS

Chapter I. Of the Mechanisms for Access to International Markets

Chapter II. Of the Vehicles

TITLE VII. OF THE CUSTODIAN

Chapter I. Of the Hiring of the Custodian

Chapter II. Of the Contract Requirements

TITLE VIII. OF DERIVATIVES OPERATIONS

TITLE IX. OF OPERATIONS WITH STRUCTURES LINKED TO UNDERLYING ASSETS

TITLE X. OF OPERATIONS WITH STRUCTURED INSTRUMENTS, FIBRAS AND BURSÁTILES CERTIFICATES LINKED TO REAL PROJECTS

TITLE XI. OF NON-COMPLIANCE WITH THE INVESTMENT REGIME AND THESE PROVISIONS

TITLE XII. OF PORTFOLIO RECOMPOSITION OF SPECIALIZED INVESTMENT SOCIETIES FOR RETIREMENT FUNDS

Chapter I. Of the Portfolio Recomposition Procedure

Section I. Of Rating Downgrades

Section II. Of Variations in the Prices of Investment Assets that make up the Asset Managed by the Investment Society and of the violation of investment limits in Equity Components for causes not attributable to the Investment Society

Section III. Of Portfolio Recomposition for failing to meet the limits established in the Investment Regime by acquisition or sale of Investment Assets and for violation of investment limits that make up the Total Asset of the Investment Society in Equity Components for causes attributable to the Investment Society

Section IV. Of Portfolio Recomposition for exceeding the limit of the Conditional Value at Risk Differential, Liquidity Coefficient or Value at Risk

TITLE XIII. OF INFORMATION PROSPECTUSES, EXPLANATORY BOOKLETS AND THEIR UPDATE

TITLE XIV. OF THE CHOICE OF INVESTMENT OF THE RESOURCES OF THE RETIREMENT INSURANCE SUB-ACCOUNT, RETIREMENT SAVINGS SUB-ACCOUNT AND VOLUNTARY SAVINGS

TITLE XV. FINAL PROVISIONS

ANNEX "A". Fixed scenarios that count in the Conditional Value at Risk Differential

ANNEX "B". Of Structured Instruments, FIBRAS and Bursátil Certificates Linked to Real Projects

Chapter I Elements that must be foreseen in the policies defined by the Investment Committees to make investments in Structured Instruments, FIBRAS and Bursátil Certificates Linked to Real Projects

Chapter II Elements that must contain the selection questionnaires for Structured Instruments, FIBRAS and Bursátil Certificates Linked to Real Projects

ANNEX "C". Minimum elements that must be included in the analysis of companies

ANNEX "D". Currency Classification

ANNEX "E". Methodology to calculate the Market Value of Currency Positions

ANNEX "F". Methodology to verify compliance with limits regarding Foreign Securities

ANNEX "G". Methodology to calculate the market value of operations that must be considered within the limits of Issuers or Counterparties

ANNEX "H". Methodology to calculate the exposure of the Investment Society to Investment Assets denominated in Investment Units (UDI) or whose interests guarantee a return equal to or greater than the UDI or the National Consumer Price Index

ANNEX "I". Methodology to calculate exposure to Commodities

ANNEX "J". Of the certification of Officials with activities in the management of resources of Investment Societies

ANNEX "K". Disclosure of reference portfolios and the deviation policy with the investment portfolio

ANNEX "L". Requirements that the Automated Integrated System for the acquisition, alienation, and online registration of Investment Assets of the Automated Integrated System must meet

ANNEX "M". Of Operations with Derivatives on Derivatives

ANNEX "N". Methodology to calculate the Liquidity Coefficient

ANNEX "O". Valuation criteria that will be used to determine the amount of the write-down of assets that fail to meet the Investment Regime

ANNEX "P". Model of Information Prospectus

ANNEX "Q". Model of Explanatory Booklet

ANNEX "R". Criteria that Securitization Instruments must meet to be considered as placed by an independent issuer

ANNEX "S". Guidelines applicable to independent experts dedicated to evaluating and issuing opinions on Debt Vehicles, Equity Components, Real Estate Investment Vehicles and FIBRAS, Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments and Debt Indices of Eligible Countries for Investments

ANNEX "T". Methodology to verify compliance with limits regarding Structured Instruments

ANNEX "U". Methodology to calculate the maximum investment limits for the set of Investment Societies operated by the same Administrator, in Structured Instruments

GENERAL PROVISIONS ON FINANCIAL MATTERS OF THE RETIREMENT SAVINGS SYSTEMS

TITLE I GENERAL PROVISIONS

SOLE CHAPTER DEFINITIONS

Article 1.- These Provisions have as their object to regulate the aspects of comprehensive management of the investment portfolios of Investment Societies, to which Administrators and the Investment Societies they operate must be subject.

Article 2.- For the purposes of these General Provisions, in addition to the definitions indicated by the Law of the Retirement Savings Systems, its Regulations, as well as the General Provisions that establish the investment regime to which Investment Societies must be subject, the General Provisions that establish the patrimonial regime to which Administrators of Retirement Funds, Pensionissste and Investment Societies and the Special Reserve will be subject, the General Provisions that establish the procedure for the construction of the net performance indicators of Investment Societies, the General Provisions on the registration of accounting, preparation and presentation of financial statements to which Investment Societies must be subject, and the Prudential Rules on risk management issued by the Commission, the following shall be understood:

I. Detailed Minutes, the minutes of the sessions of the collegiate bodies that are accompanied by the supporting documentation of the session, which contains the comments made in each of the sessions referred to the agreements taken, the explicit agreements for each topic submitted for consideration and the sense of the votes of each of the members, as well as, the attendance list signed by all and each of the members and guests present in the corresponding session;

II. Financial Risk Management, the set of methodologies, models, objectives, policies, procedures and actions that are implemented to identify, measure, monitor, limit, control, inform and reveal the different types of Financial Risks to which Investment Societies are exposed;

III. Early Warning, the measure oriented to give prior notice that the limits established in the regulation or the Prudential Limits of Investment Societies are exceeded;

IV. Derivatives Exchange, the legal entities whose object is to provide the facilities and other services so that Derivatives are quoted and negotiated, supervised by authorities belonging to the Eligible Countries for Investments;

V. Basket of Indices, the set of stock indices, or sub-indices derived from them, of Eligible Countries for Investments, elaborated based on one or more of the stock indices provided in the General Provisions that establish the investment regime to which Investment Societies must be subject;

VI. Category, each of the investment limits linked to the credit rating issued by a securities rating agency applicable to Debt Instruments, Foreign Debt Securities or Counterparties, determined in the General Provisions that establish the investment regime to which Investment Societies must be subject;

VII. Asset Class, Debt Instruments, Foreign Debt Securities, Equity Instruments, Foreign Equity Securities, Commodities, Structured Instruments, FIBRAS, Real Estate Investment Vehicles, and Pure Currency Positions, authorized in accordance with what is provided in the General Provisions that establish the investment regime to which Investment Societies must be subject, which may attend to the disaggregation defined by the Investment Committee based on the classification provided in this fraction;

VIII. Liquidity Coefficient, the value of the provision for exposure to Derivatives with respect to high-quality assets, provided in these Provisions to mitigate the liquidity requirements caused by positions in Derivatives. Annex N contains the methodology and the definitions of the variables used to calculate the Liquidity Coefficient;

IX. Independent Advisor, those referred to in article 29 of the Law;

X. Board of Directors, provided for in articles 20, fraction III and 29 of the Law;

XI. Regulatory Comptroller, the Official provided for in article 30 of the Law with which Administrators and public institutions that perform similar functions must be equipped;

XII. Brokerage Costs, the income other than Advisory Costs received by: a) Financial Intermediaries, as well as clearing houses and Counterparties, directly as a consequence of their intermediation labor in the securities market or in Derivatives Exchanges, and b) Providers of the trading platforms for Investment Assets used by Investment Societies, which are linked to each operation contracted;

XIII. Advisory Costs, the charges, commissions or any other type of expenditure that is generated by reason of the advice, administration, management, handling, maintenance or any other analogous, whatever the denomination assigned to it, that are charged directly or indirectly by Financial Service Providers or Independent Service Providers. Also included within these costs are the charges, commissions or any types of expenditures that derive from the acquisition by Investment Societies of Investment Assets, Vehicles, Real Estate Investment Vehicles, as well as the acquisition or structuring of Structures Linked to Underlyings, which are not backed by contracted operations and are distinct from Brokerage Costs;

XIV. Coupon, the accessory credit title that is attached to a Debt Instrument or Foreign Debt Security;

XV. Permitted Deviation, the difference observed between the weight assigned to a stock that integrates an index or Basket of Indices and the weight assigned to that same stock in an Equity Component, which in accordance with the General Provisions that establish the investment regime to which Investment Societies must be subject replicates said index or Basket of Indices;

XVI. Valuation Day, the date on which the price of the Investment Society's stock will be in effect;

XVII. Exercise of Patrimonial Rights, the payment of dividends in cash or in shares, subscriptions, exchanges or others analogous to the foregoing to which investors holders of the titles linked to the corresponding Equity Instrument or Foreign Equity Security have the right;

XVIII. Investment Strategy, the policies defined by the Investment Committee of each Investment Society operated by the Administrator, regarding the purchase or sale of Investment Assets and the aggregate composition of the investment portfolio, in accordance with the prudential framework on risk management defined and approved by the Financial Risk Committee of the Investment Society, in accordance with these Provisions, the General Provisions that establish the investment regime to which Investment Societies must be subject and the Prudential Rules on risk management. The definition of the Investment Strategy must be consistent with the definition of the reference portfolio of the Investment Society and must contemplate the maximum deviation that is allowed between the investment portfolio and the reference portfolio;

XIX. Risk Factors, interest rates, Currencies, volatilities and other variables that are used in the determination of the prices of Investment Assets;

XX. Official, any natural person who holds a job, position or commission in Administrators, in Investment Societies or both, excepting Independent Advisors and other external members who participate in their committees and subcommittees;

XXI. Monthly Report, the report that the Regulatory Comptroller of the Administrators must present to the Commission, in accordance with what is provided in article 30, fraction IV of the Law;

XXII. Financial Intermediaries, Credit Institutions, Financial Entities and other legal entities authorized to issue or operate Investment Assets, as well as to act as Counterparties, that are subject to the regulation and supervision of government agencies of the Eligible Countries for Investments;

XXIII. Securitization Instruments, a) Titles or securities that represent credit rights, receivables or cash flows issued through Vehicles and whose underlying assets are said credit rights, receivables or cash flows, which represent a payment commitment of Coupons, principal or both for the issuer of the instrument and that have the credit ratings provided in the General Provisions that establish the investment regime to which Investment Societies must be subject. For the case of Securitization Instruments of mortgage credits, the coverage levels, retained capital, subordinated series and financial guarantee determined by the Risk Analysis Committee, referred to in articles 43 fourth paragraph and 45 of the Law, must be met. The instruments referred to in this fraction will be considered as placed by an independent issuer when they comply with what is provided in Annex R of these Provisions. Structured Instruments are not included within this definition; b) Bursátil Certificates Linked to Real Projects, titles whose source of payment comes from the use or benefit of real assets;

XXIV. Generic Instrument, the market reference that in accordance with its characteristics can be used to approximate, the valuation, the return, the volatility or some Risk Factor, of an Investment Asset;

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

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

XXVII. Manual of Policies and Procedures for Financial Risk Management, the document with the rules that each Administrator elaborates to document the Financial Risk Management;

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

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

XXX.

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

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

XXXI.

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

XXXII.

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

XXXIII.

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

XXXIV.

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

XXXV.

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

XXXVI.

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

XXXVII.

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

XXXVIII.

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

XXXIX.

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

XL.

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

XLI.

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

XLII.

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

XLIII.

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

XLIV.

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

XLV.

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

XLVI.

Regulations, to the Regulations of the Law;

XLVII.

Head of the Investment Area, to the Official of the Administrators designated by the Investment Committee, who has in charge the area in charge of the execution of the Investment Strategy of the Investment Societies;

XLVII bis. Head of the Risk Area, to the Official of the Administrators designated by the Financial Risk Committee, who reports directly to the General Director of the Administrator and assists the Risk Committee;

XLVIII.

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

a)

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

b)

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

c)

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

XLIX.

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

a)

Acquisition and alienation of Investment Assets;

b)

Online registration of Investment Assets;

c)

Risk management;

d)

Confirmation of operations;

e)

Assignment of operations;

f)

Settlement of operations;

g)

Accounting registration of the Investment Society;

h)

Generation of financial statements of the Investment Society, and

i)

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

Likewise, the Automated Integrated System must:

i.

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

ii.

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

iii.

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

iv.

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

L.

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

LI.

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

LII.

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

LIII.

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

LIV.

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

LV.

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

LVI.

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

TITLE II

ON THE FINANCIAL RISK MANAGEMENT OF THE INVESTMENT SOCIETY

CHAPTER I

ON THE FINANCIAL RISK COMMITTEE

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

I.

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

II.

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

III.

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

IV.

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

V.

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

a)

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

i.

Derivatives;

ii.

Securities lending, and

iii.

Repo;

b)

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

c)

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

VI.

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

a)

Commodities;

b)

Currencies;

c)

Debt instruments and interest rates;

d)

Foreign Debt Securities;

e)

Equity Components;

f)

FIBRAS, and

g)

Real Estate Investment Vehicles;

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

VII.

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

VIII.

Methodologies to follow up on the deviation policy with respect to the reference portfolio, including the maximum deviation margin, defined by the Investment Committee. Define policies to present the previous results in the corresponding reports with the disaggregation by Class of Asset, Risk Factor or underlying that the Financial Risk Committee defines;

IX.

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

X.

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

XI.

Early Alarms for the Liquidity Coefficient, as well as other minimum liquidity parameters for positions in Derivatives;

XII.

Prudential Limits for Value at Risk, Conditional Value at Risk and the Differential of Conditional Value at Risk;

XIII.

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

XIV.

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

a)

The concentration limits and the periodicity with which they will review said limits;

b)

The periodicity with which the methodology and the measurement elements referred to in the previous fraction XIII will be reviewed;

c)

The periodicity with which the inputs used by the referred methodology and the measurement elements will be updated;

d)

The grouping by additional credit evaluation for each concentration limit. Likewise, the Head of the Risk Area must present a comparison of the credit ratings granted to the issuances and the Counterparties by the securities rating institutions and the additional credit evaluation prepared by the UAIR;

e)

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

f)

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

The periodicity of paragraphs a), b), d) and e) must be annual or with a lower periodicity.

For the case of paragraph c), the periodicity must be semi-annual or with a lower frequency.

XV.

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

XVI.

Maximum limits for individual stock investments that each mandate may exercise, subject to the limits and criteria established and notified by the Risk Analysis Committee;

XVII.

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

XVIII.

Methodologies and measurement elements, whether internal or external, for the evaluation of liquidity risk of the investment portfolio of the Total Assets of the Investment Company;

XIX.

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

XX.

Prudential Limits and Early Warnings applicable to the investments of the Total Assets of the Investment Company in Structured Instruments, considering the total of pending capital calls, and

XXI.

Methodology for measuring the coverage level of Investment Assets denominated in Currencies belonging to Groups II and III of Annex D of these provisions, as well as the maximum deviations with respect to the defined coverage level.

To comply with the analyses or studies provided for in articles 11, fraction III, 30, fractions II, VII, and XIV, 36, fraction III, and 139, fraction I of these Provisions, the Administrator must designate the Financial Risk Committee or the Investment Committee as responsible. In the event that the Administrator designates the Financial Risk Committee, it must:

1.1.

Designate the Risk Area Official responsible for carrying out the aforementioned analyses or studies, and

1.2.

Verify that the designation and activities to be performed are included in the Manual of Policies and Procedures for Financial Risk Management.

The policies provided for in this article only apply to Investment Assets in which Investment Companies invest. Likewise, these policies may consider environmental, social, and corporate governance factors (ESG).

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

Article 4.- The Financial Risk Committees must define the policies and frequency for updating and improving the Integrated Automated System that applies to risk management under article 3 of these Provisions.

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

In the event that the Administrator designates an Official, this Official must not have a conflict of interest when carrying out the aforementioned activities.

The Financial Risk Committees or the Investment Committees must verify that the policies, frequency, and designations of the responsible parties referred to in this article are incorporated into the Manual of Policies and Procedures for Financial Risk Management, the Investment Manual, or the manual described in article 62 of these Provisions, as applicable, depending on the designation made by the Administrator, in accordance with the provisions of the preceding paragraph.

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

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

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

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

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

I.

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

II.

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

III.

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

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

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

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

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

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

CHAPTER II

OF THE INTEGRATED RISK MANAGEMENT UNIT

Article 8.- The UAIR, in matters of Financial Risks, has the objective of identifying, measuring, monitoring, and reporting on the Financial Risks faced by Investment Companies to the Financial Risk Committee, the Investment Committee, the General Director of the Administrator, and the Regulatory Comptroller.

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

The Administrator must have a Head of the Risk Area.

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

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

I.

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

II.

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

III.

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

IV.

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

V.

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

VI.

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

VII.

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

Article 11.- The UAIR, in matters of Financial Risk, must inform monthly or more frequently when necessary, to the Financial Risk Committees and Investment Committees, the General Director of the Administrator, and the Regulatory Comptroller, on the following matters applicable to the investment portfolio of the Total Assets of the Investment Company, except when otherwise stated:

I.

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

a)

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

b)

Stress test scenarios for the portfolio, which must be presented for the investment portfolio of the Assets Managed by the Investment Company, as well as by Risk Factors and Asset Class.

II.

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

III.

The observed return, risk-adjusted return, and expected return of the investment portfolio of the Assets Managed by the Investment Company and in aggregate for each of the following types of investments or underlyings:

a)

Commodities;

b)

Currencies;

c)

Debt Instruments and interest rates;

d)

Foreign Debt Securities;

e)

Equity Components;

f)

FIBRAS, and

g)

Real Estate Investment Vehicles.

The return must be calculated for the different time horizons defined by the Financial Risk Committee and must be quantified against the applicable reference portfolio for the investment portfolio of the Total Assets of the Investment Company. Assets Managed by Mandatories may be excluded for the calculations referred to in this fraction. The investment area or, if applicable, the risk area, must carry out the calculations of the expected returns referred to in this fraction;

IV.

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

V.

The exposure of the investment portfolio of the Assets Managed by the Investment Company by type of risk, including the Delta Equivalent Value of Derivative positions, for all underlyings;

VI.

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

VII.

The percentage of use of concentration limits and the available capacities in these limits for the Assets Managed by the Investment Company, as well as carrying out the additional credit evaluation, referred to in fraction XIV of article 3;

VIII.

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

IX.

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

X.

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

XI.

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

XII.

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

XII BIS.

The result of the additional credit evaluation by issuer and Counterparty, referred to in fraction XIV of article 3, which must be accompanied by the credit rating provided by securities rating agencies, an opinion from the Head of the Risk Area regarding the viability of the issuer and Counterparty, as well as maximum investment limits for each issuer and Counterparty. The opinion of the Head of the Risk Area must be supported by credit models, information obtained through systems and subscription means authorized by the Investment Committees, qualitative and quantitative elements that the Financial Risk Committee defines. In the event that the qualitative elements of the additional credit evaluation are integrated into the Integrated Automated System, the provision in this fraction will not be necessary. The quantitative elements of the additional credit evaluation must be integrated into the Integrated Automated System;

The review, update, and presentation of the report referred to in this fraction must be carried out at least annually or, when there are relevant events that impact the additional credit evaluation, when Investment Companies acquire a new issuance of Debt Instruments or Foreign Debt Securities or operate with a new Counterparty, as well as when the Financial Risk Committee determines. For the purposes of what is provided for in this fraction, the Administrator may determine that the Head of the Investment Area is the one who presents the aforementioned opinion;

XIII.

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

Likewise, for the investment portfolio of the Total Assets of the Investment Company, a classification of the assets that make up the investment portfolios of the Investment Companies must be carried out according to their liquidity characteristics. For operations with Derivatives, the available capacity and the percentage of use of credit lines with Counterparties must be followed up. For the purposes of what is provided for in this paragraph, Administrators may define policies applicable to the Assets Managed by Mandatories;

XIV.

Exposure of the investment portfolio of the Assets Managed by the Investment Company considering the different types of underlyings identified by the UAIR, operations, and sectors or economic activities;

XV.

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

XVI.

Prudential leverage measures defined by the Financial Risk Committee that differ from those provided in the previous fraction XV;

XVII.

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

XVIII.

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

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

XIX.

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

XX.

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

XXI.

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

XXII.

The exposure of the investment portfolio of the Asset Managed by the Investment Society by type of underlying for securities lending and repo operations. The return on these operations, a report on changes in the levels of collateral, credit rating of the Counterparties, percentage of use of concentration limits, liquidity, default on any policy determined by the Financial Risk Committee.

The aforementioned Committee may define additional elements to those provided in this fraction;

XXIII.

Deviation of the investment portfolio of the Total Asset Managed by the Investment Society with respect to the reference portfolio and the maximum deviation margin defined by the Investment Committee. The Assets Managed by the Mandatories may be excluded for the calculations referred to in this fraction;

XXIV.

The activities described in Article 14 of these Provisions, and

XXV.

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

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

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

I.

Have models and methodologies for risk management;

II.

Carry out risk management in the Automated Integrated System;

III.

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

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

IV.

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

V.

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

VI.

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

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

VII.

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

VIII.

Carry out the additional tests that derive from the activities provided in Article 14 of these Provisions.

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

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

I.

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

II.

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

a)

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

b)

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

III.

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

IV.

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

V.

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

VI.

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

VII.

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

VIII.

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

IX.

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

X.

Document the parametrization of each Investment Asset;

XI.

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

XII.

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

XIII.

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

XIV.

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

XV.

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

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

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

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

CHAPTER III

OF THE MANUAL OF POLICIES AND PROCEDURES FOR THE MANAGEMENT OF FINANCIAL RISK

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

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

I.

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

II.

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

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

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

Article 16.- The Manual of Policies and Procedures for the Management of Financial Risk must contain the following:

I.

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

II.

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

III.

The policies and procedures for the use of Generic Instruments;

IV.

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

V.

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

VI.

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

VII.

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

VIII.

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

IX.

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

X.

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

XI.

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

a)

Commodities;

b)

Currencies;

c)

FIBRAS;

d)

Real Estate Investment Vehicles;

e)

Debt Instruments and interest rates;

f)

Foreign Debt Securities, and

g)

Equity Components.

XII.

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

XIII.

The portfolio stress tests applicable to the investment portfolios of the Asset Managed by the Investment Societies, to which Chapter II of this Title refers, including portfolio stress tests applicable to Value at Risk, Conditional Value at Risk and the Differential of Conditional Value at Risk;

XIV.

In case it is intended to carry out operations with Derivatives, the logistics to operate them and a description of the best execution practices, as well as policies and maximum leverage limits, approved by the Financial Risk Committee, that the Investment Society must observe when using these instruments;

XV.

In case it is intended to carry out operations with Derivatives in over-the-counter markets, the policy or, where applicable, the methodology to which the Investment Society will be subject for the valuation of said operations;

XVI.

In case it is intended to carry out operations with Foreign Securities, Commodities, Currencies, Vehicles, Real Estate Investment Vehicles, as well as to invest through Mutual Funds or Mandatories, the procedure to operate these and a description of the best execution practices or, where applicable, of the contracting of Mandatories;

XVII.

The methodology used for the valuation of the Investment Assets owned by the Investment Societies, as well as of the shares representing the paid social capital of the Investment Societies;

XVIII.

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

XIX.

The powers and responsibilities based on the position or job held by the Officials;

XX.

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

XXI.

Action plans in case of contingencies in alternate headquarters. The alternate headquarters of the Administrator must fully satisfy these Provisions, regarding the minimum functioning defined by the Commission that the Investment Societies must observe, as well as the additional activities determined by the Administrator itself. In case it is necessary to recover the continuity of operations, it must be carried out in

an alternate branch that has not been foreseeably affected by the same circumstances as

the branch of the Administrator.

The minimum functioning of Investment Societies for the risk area shall be understood as meeting fraction III of article 56 of these Provisions;

XXII.

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

XXIII.

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

XXIV.

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

XXV.

The methodology to calculate Value at Risk, Conditional Value at Risk, and the Differential of Conditional Value at Risk applying the dates set forth in Annex A of these Provisions;

XXVI.

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

XXVII.

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

XXVIII.

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

XXIX.

The methodology to calculate the maximum deviation that the investment portfolio of the Investment Society must observe with respect to the reference portfolio, detailing with precision the formula for its computation, and

XXX.

The methodology for measuring the level of coverage and the maximum deviations referred to in article 3, fraction XXI of these provisions, in the event that it is intended to perform hedging of the Investment Assets denominated in the Currencies belonging to the Groups II and III of Annex D of these provisions.

Article 17.- Repealed.

Article 18.- The Commission may require, at any time, that the Administrator present to it the Manual of Policies and Procedures for Financial Risk Management, and that the Administrator make the necessary adjustments to said Manual so that it complies with the provisions of these Provisions.

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

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

TITLE III

PROVISIONS ON INVESTMENTS

CHAPTER I

ON INVESTMENT COMMITTEES

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

The Investment Strategy must provide for the following policies applicable in an aggregated manner to the investment portfolio of each Investment Society:

I.

Liquidity characteristics, if applicable;

II.

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

III.

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

IV.

The Vehicles, Real Estate Investment Vehicles, investment mandates, and other similar investment mechanisms, authorized in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject, referred to the Investment Assets that will make up the investment portfolio of the respective Investment Society;

V.

The Investment Assets that will form part of the Total Assets of the Investment Society, and in particular those relating to Foreign Securities, Neutral Investments, Structured Instruments, FIBRAS, Real Estate Investment Vehicles, Securitized Instruments, Commodities, Currencies, and the use of Derivatives;

VI.

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

VII.

The policies provided for in the preceding fractions may be defined based on the reference portfolio applicable to the investment portfolio of the Total Assets of the Investment Society.

Additionally, for the definition of the Investment Strategy, the Investment Committee may consider environmental, social, and corporate governance factors (ESG).

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

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

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

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

Article 21.- Investment Committees must designate:

I.

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

II.

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

III.

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

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

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

Article 23.- Investment Committees must define and approve:

I.

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

II.

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

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

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

For the purposes of this article, the Head of the Investment Area must demonstrate to the Investment Committee compliance with these adopted coordination policies. For this purpose, the Head of the Investment Area must have evidence by any magnetic, electronic, or documentary means.

Article 25.- Investment Committees may define the horizons in which performance and risk analyses, observed and prospective, must be carried out, either for each Asset Class in which the Investment Society invests, by Risk Factors, or by types of risk to which the investment portfolios of the Investment Society are exposed.

This applies when the Investment Committee considers it appropriate to use timeframes other than 1, 3, 5 years and historical since the start of the investment or at least three alternative horizons defined by the Investment Committee.

The above calculations must be performed in accordance with the policies and horizons defined by the Investment Committee with the favorable opinion of the majority of Independent Directors, including the updating of inputs, and must be recorded in the Detailed Minutes of the corresponding session of the Investment Committee.

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

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

Article 27.- Investment Committees must define the frequency with which the Head of the Investment Area of Investment Societies must present information regarding the monitoring and analysis of the contents and obligations provided for in articles 20 to 26 above. Such frequency may not be greater than one year.

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

I.

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

II.

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

III.

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

a)

The structure and the agents involved in management;

b)

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

c)

The estimated transaction costs;

d)

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

e)

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

f)

In its case, the leverage and the guarantees it receives or delivers, in accordance with the placement prospectus or equivalent document of the Vehicle in question, and

g)

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

Investment Societies may only invest in Commodities through the Vehicles that the Risk Analysis Committee authorizes for such purposes.

IV.

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

V.

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

VI.

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

VII.

Approve the policies regarding operations with Derivative instruments on Commodities carried out by the Investment Society, as well as the Mandatory, and

VIII.

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

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

1.1.

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

1.2.

The information of fraction IV: every four months.

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

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

I.

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

II.

Analyze the structure with which the Mutual Fund and, where applicable, Equity, Debt, and Real Estate Vehicles operate, the entities involved in the investment mechanism, among which are mentioned, but not limited to: the administrator, the valuer, the Custodian, the investment advisor, and the Price Provider;

III.

Provide policies for the investment area of the Investment Society to have, prior to carrying out investments in each Mutual Fund and, where applicable, each Equity, Debt, and Real Estate Vehicle, an analysis of the characteristics and risks inherent thereto, in accordance with what is provided for in these Provisions and what is provided by the Prudential Rules on risk management, the General Provisions establishing the investment regime to which Investment Societies must be subject, and the criteria defined by the Risk Analysis Committee;

IV.

Define and monitor the Asset Classes acquired through Mutual Funds and, where applicable, Equity, Debt, and Real Estate Vehicles, within the authorized limits in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risk Committee, as well as the maximum or minimum percentages in each of them;

V.

Define eligibility policies applicable to the administrators of Mutual Funds and, where applicable, Equity, Debt, and Real Estate Vehicles, in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject, the criteria defined by the Risk Analysis Committee, and these Provisions. Such policies must include the administrator's experience as a manager of Vehicles, including Mutual Funds and, where applicable, Equity, Debt, and Real Estate Vehicles, the minimum amount of assets under management required;

VI.

Define, evaluate, and monitor the structure, liquidity characteristics, and accessibility of the Mutual Fund and, where applicable, the Equity, Debt, and Real Estate Vehicle, as well as the total costs and, where applicable, entry and exit costs, considering the information available to the public in accordance with applicable provisions;

VII.

Evaluate the costs and net returns of the Mutual Funds and, where applicable, Equity, Debt, and Real Estate Vehicles in which the Investment Society invests. Such evaluation must compare with other similar investment alternatives regarding the assets to which exposure is acquired. In the event that the Investment Committee has chosen a Vehicle with higher cost with respect to other authorized Vehicles available in the market and with the same investment objective, it must expose the reasons for the selection of said Vehicle, remaining recorded in the Detailed Minutes of the corresponding session and having the favorable vote of the majority of Independent Directors who are members of the Investment Committee. For the case of Mutual Funds with active strategies, it must evaluate the historical net return provided with respect to the reference index, where applicable, considering the times the administrator has changed the reference index for the same Mutual Fund;

VIII.

Monitor the observed and expected return of investments in Mutual Funds and, where applicable, Equity, Debt, and Real Estate Vehicles. For this purpose, the return and risk measures approved and indicated by the Investment Committee in the Investment Manual must be considered. Without prejudice to the foregoing, the measures provided for in this paragraph may not substitute for the measures defined by the Financial Risk Committee that must be used to evaluate compliance with Prudential Limits;

IX.

Define the policies that the investment area must observe prior to making an investment in Mutual Funds and, where applicable, Equity, Debt, and Real Estate Vehicles, to verify that the administrators of the referred Vehicles do not have antecedents or pending investigations for conflicts of interest, fraud, or negligence in the management of their fiduciary mandate with the corresponding supervisory entities;

X.

For the case of Mutual Funds, analyze the frequency established in the information prospectuses, supplement, or other document approved by the regulatory authority of the Eligible Countries for Investments with which the shares of the Mutual Funds can be redeemed

in accordance with the Investment Strategy, the type of underlying assets, as well as the investment horizon of the Investment Companies. For this purpose, they must evaluate that the costs of the Mutual Funds reflect the redemption periodicity, as well as evaluate any costs or any other type of sanction imposed by the Mutual Fund administrator that could arise from an early redemption, and

XI.

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

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

1.1. The information from subsections I, II, III, IV, V, VI, IX and X: annually, and

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

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

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

I.

Define and approve the Investment Strategy in Structured Instruments, FIBRAS, Real Estate Investment Vehicles and Real Project-Linked Securities, within the authorized limits in accordance with the General Provisions that establish the investment regime to which Investment Companies must be subject, the criteria defined by the Risk Analysis Committee and the limits defined by the Financial Risk Committee. For such purposes, the Investment Committee must define the following:

a)

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

b)

The amounts;

c)

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

d)

The validity with respect to the Investment Strategy;

e)

The periodicity to review the Investment Strategy, and

f)

The flexibility allowed in the implementation of the authorized Investment Strategy by the investment area for each of the variables described in the preceding subsections. In the case of Structured Instruments, the Investment Committee must define which types of these will be invested in.

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

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

II.

Anticipate eligibility policies that the investment area of the Investment Company must apply, or in its case the risk area, prior to carrying out investments in Structured Instruments, FIBRAS, Real Estate Investment Vehicles and Real Project-Linked Securities. Such eligibility policies will comprise the following:

a)

For Structured Instruments and FIBRAS, which may be acquired individually, the following must be included:

i.

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

i bis.

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

ii.

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

iii.

The commission policies charged to investors;

iv.

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

v.

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

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

b)

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

i.

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

ii.

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

iii.

The commission policies charged to investors, and

iv.

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

c)

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

i.

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

ii.

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

The Investment Committee must anticipate eligibility policies on the concepts provided in Annex B, Chapter I of these Provisions. In case the Investment Committee decides not to anticipate eligibility policies for any of the concepts in the aforementioned Annex, it must justify such decision and record it in the corresponding Detailed Minutes.

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

For the evaluation of Fiduciary Certificates of Investment Projects, the Investment Committee must additionally consider the information that, in its case, is provided by the co-investor.

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

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

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

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

III.

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

IV.

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

V.

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

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

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

What is provided in this subsection must be clearly recorded in the corresponding Detailed Minutes, with the favorable vote of the majority of the Independent Directors who are members of the Investment Committee;

VI.

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

VII.

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

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

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

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

VIII.

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

IX.

Approve the commission charging function or policy of the Structured Instrument, FIBRA, Real Estate Investment Vehicle and Real Project-Linked Security, provided in the placement prospectus, including that applicable during the project search period and on any other concept provided in the placement prospectus of the instrument in question. Such approval must be carried out prior to the acquisition of the Structured Instruments, FIBRAS, Real Estate Investment Vehicles or Real Project-Linked Securities, and in the session immediately following any change to the commission charging policy of any of these instruments. For Structured Instruments, the respective trust contract must establish that the payment of commissions, compensations, fees, distributions, incentives or similar applicable to the administrator, the settlor or the persons related to them, must be subordinate to the payment of a certain determined or determinable amount to the holders of said instruments, except for those commissions, fees, distributions or similar that are necessary for the operation of the administrator, settlor or persons related to them,

same, in relation to the services they provide to the respective trust. Regarding this, the Investment Committee may agree that modifications to the commission structure be proposed, which must be recorded in the Detailed Minutes of the corresponding session, have the favorable vote of the majority of Independent Directors, express the reasons, and have available to the Commission the analyses that gave rise to such proposal;

X.

Regarding Structured Instruments, they must express their opinion regarding pending capital calls as to the amount and timeframe in which they will be required, if applicable. Likewise, the Investment Committee may determine, being recorded in the Detailed Minutes of the corresponding session, with the favorable vote of the majority of Independent Directors who are members of the Investment Committee, as well as express the reasons for its decision, not to participate in pending capital calls of any Structured Instrument that is part of the investment portfolio of the Investment Societies, for which the Investment Committee must carry out the appropriate measures so that the Structured Instruments that find themselves in the present case cease to be part of the investment portfolios of the Investment Societies;

XI.

For the case of Real Project-Linked Bursatile Certificates, for such instruments to be considered as placed by an independent issuer, the Investment Committee must have evidence of compliance with the following:

a)

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

b)

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

c)

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

XII.

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

XIII.

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

XIV.

Regarding FIBRAs, they must request the investment area of the Investment Society, or, where applicable, the risk area, to follow up on the corporate rights policy, such as distribution of equity rights, the result of assemblies, and any relevant event that occurs during the period;

XV.

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

XVI.

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

a)

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

b)

Investments must be made directly or, where applicable, through investment vehicles of the same nature as Structured Instruments;

c)

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

d)

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

e)

In the event that investment within national territory is less than the percentage defined in provision twenty-fourth, fraction VI of the General Provisions establishing the investment regime to which specialized societies of funds for retirement must adhere, Fiduciary Bursatile Certificates of Investment Projects will be counted within the limit referred to in provision sixteenth, fraction I, subsection d) of said provisions.

XVII.

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

a)

The criteria for the leverage of Mexican societies acquired by the trust;

b)

The maximum leverage levels of the trust, and

c)

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

XVIII.

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

XIX.

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

XX.

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

XXI.

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

XXII.

For the case of Real Project-Linked Bursatile Certificates, they must verify that:

a)

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

b)

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

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

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

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

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

1.1.

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

1.2.

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

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

I.

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

II.

Approve the Equity Components contained in the Authorized Investment Regime and, where applicable, the Structures Linked to Equity Underlyings, in the terms provided in these Provisions. Additionally, they must approve the Permitted Deviation of Stock Indices provided in the General Provisions establishing the investment regime to which Investment Societies must adhere, as well as investment in individual shares;

III.

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

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

The analysis on the characteristics and inherent risks may also include, the analysis of the adherence of issuers to environmental, social and corporate governance principles (ESG by its initials in English), considering:

a)

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

b)

In the case of investment through Stock Indices of Eligible Countries for Investments, they may consider the selection policies and the weighting of their components based on the rating elaborated in conformity with ESG principles, which is generated by experts of recognized international prestige.

c)

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

d)

Additional elements that the Investment Committee considers relevant;

IV.

Analyze the liquidity of Equity Components in the secondary market;

V.

Periodically follow up on the observed and expected return of investments made in Equity Components. For this effect, the return and risk measures that the Investment Committee has approved and indicated in the Investment Manual must be considered. The measures provided in this paragraph will not substitute the measures defined by the Financial Risk Committee that must be used to evaluate compliance with Prudential Limits, and

VI.

Periodically follow up on compliance with the criteria defined by the Risk Analysis Committee, applicable to Vehicles whose object is to replicate Equity Components. Likewise, said policies must include the experience of the administrator as manager of Vehicles, including Mutual Funds and, where applicable, stock, debt or real estate Vehicles, and the minimum amount of assets under management required.

VII.

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

i.

Have the valuation of said shares and optional titles in terms of what is provided in article 16 fraction X of these provisions;

ii.

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

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

VIII.

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

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

1.1.

The information of fraction I: annually, and

1.2.

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

The Head of the Investment Area must present before the Investment Committee the referred information, in the immediate subsequent session to the date when the periodicity described above is fulfilled.

Article 32.- Investment Committees must define, approve and follow up on the Investment Strategy in Currencies, attending to what is provided in Annex D of these provisions. For effects of what is provided in this article, Pure Positions in Currencies, as well as the aggregated, direct and indirect exposure of the investment portfolio in Currencies must be considered.

To comply with the foregoing, Investment Committees must:

I.

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

II.

Have beforehand an analysis on the characteristics and inherent risks that defines the Investment Committee to the investment in Currencies to be acquired, in accordance with these Provisions, and

III.

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

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

1.1.

The information of fraction I: annually, and

1.2.

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

The Head of the Investment Area must present before the Investment Committee the referred information, in the immediate subsequent session to the date when the periodicity described above is fulfilled.

Article 33.- Investment Committees must define, approve and follow up on the Investment Strategy of the Asset Managed by the Investment Society in Debt Instruments and Foreign Debt Securities, including Bursatilized Instruments and with the exception of government securities, for which, Investment Committees must:

I.

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

II.

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

All Debt Instruments and Foreign Debt Securities referred to in this article

shall be included in one of the matrices provided for in this subsection;

III.

Define and monitor policies regarding the analysis of Financial Risks applicable to

Debt Instruments and Foreign Debt Securities that are acquired;

IV.

Monitor the internal credit evaluation criteria defined by the

Financial Risk Committee;

V.

Define policies to classify issuances by sector, region, or other classification that the Investment

Committee considers necessary. Monitor this classification to detect any

deviation in the Investment Strategy or excessive concentration in any particular classification. Furthermore, the Investment Committee must be informed of the monitoring of

Early Warnings performed by the Financial Risk Committee for each classification defined;

VI.

In the case of Hybrid Debt Instruments, verify that a portion of the issuance is carried out in

international markets;

VII.

In the case of Hybrid Debt Instruments, analyze liquidity in the

secondary market and the Risk Factors that affect the price of these instruments, and

VIII.

In the case of Hybrid Debt Instruments, verify that the issuer has distributed

dividends or profits to its investors previously and that it has bonds issued in

recognized markets.

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

1.1.

The information from subsections I and IV: annually;

1.2.

The information from subsections II, VI, VII, and VIII: in accordance with what is established by the

Investment Committee, and

1.3.

The information from subsections III and V: semi-annually.

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

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

2.1.

Defaults on obligations;

2.2.

Changes in credit ratings;

2.3.

Changes in credit enhancers or guarantees;

2.4.

Application of specific rules of holder rights known in practice and in

the English language as " covenants ", and

2.5.

Other situations defined by the Investment Committee.

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

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

I.

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

Commission;

II.

It will define the markets, trading platforms, and Counterparties with whom it may carry out

operations with Derivatives;

III.

It will define the type and determine the amount of guarantees, the latter with respect to the value of the

operations contracted, which it may give and receive during the validity of the operations;

IV.

It must monitor the maximum leverage limit defined by the Financial Risk

Committee, for operations with Derivatives to which the Assets Managed by

the Investment Society will be exposed, and, if applicable, the Assets Managed by the Mandatories, which will be monitored by the UAIR and reported in each session of this Committee. Such limits must consider the total leverage for the investment portfolio of the Asset Managed by the Investment Society and, if applicable, must define similar policies for the investment portfolio of the Assets Managed by each Mandatory;

V.

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

VI.

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

Derivatives;

VII.

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

VIII.

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

IX.

It must have a periodic analysis that identifies the positions of operations with

Derivatives that it considers may have an effect that is exacerbated by the cycle of the

Risk Factors, known in practice as " pro-cyclical effects ", and the methodology for monitoring them, as well as to know the results of the risk metrics defined by the

Commission applied to the investment portfolio of the corresponding Investment Society, and, if

necessary, adjust the Investment Strategies with Derivative Instruments, and

X.

It must define the hedging policy for the Investment Target Assets denominated in

Currencies belonging to Groups II and III of Annex D of these provisions, which must include at least the following:

i.

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

ii.

The monitoring policies and corrective actions in case the Investment Societies exceed the maximum deviation margin referred to in Article 3, subsection

XXI of these provisions.

Indirect currency hedges, known in the English language as

" proxy hedge ", are prohibited.

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

1.1.

The information from subsections I, II, III, IV, VI, VII, VIII, and X: annually, and

1.2.

The information from subsections V and IX: every four months.

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

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

I.

Approve internal guidelines for the operation of the mandate and compliance with the investment regime, within the operational criteria to that effect defined by the Commission and the

Risk Analysis Committee that have been notified to the Administrators. Furthermore, the

Administrators may define additional internal guidelines to those established by the

Commission for the operation of the mandate;

II.

Define the content of the proposal request known in practice as " Request for

Proposal ", RFP, by its acronym in the English language, to select the Mandatories with whom it will celebrate the intermediation contract in accordance with the guidelines approved by

the Risk Analysis Committee in this matter, and they must also ensure the application of

the approved proposal requests;

III.

Define the content of the intermediation contracts in which they grant investment mandates to Mandatories in accordance with the General Provisions that

establish the investment regime to which Investment Societies must adhere

issued by the Commission, and the criteria defined by the Risk Analysis Committee;

IV.

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

Mandatories;

V.

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

VI.

Define a reference portfolio with which the performance of each Mandatory will be evaluated, the which will be consistent with the type of investment that the Investment Society has outsourced, and, if

applicable, a maximum deviation margin on the weights or another criterion of deviation relative to said portfolio. It will be the responsibility of the UAIR to monitor these measures;

VII.

Have a log in which modifications to the contract with each

Mandatory, as well as deviations from it, are recorded and updated, and

VIII.

Determine the frequency of calculation, as well as its horizon for the attribution of risk and

performance of the investment portfolio of the Asset Managed by the Mandatory applying a

methodology approved by the Financial Risk Committee.

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

1.1.

The information from subsections I to V and VII: annually, and

1.2.

The information from subsection VI: every four months.

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

For the purpose of analyzing the returns and risks provided to the Investment Committee, it must be indicated whether these measures adhere to international standards such as those issued by " Global Investment

Performance Standards ", GIPS, by its acronym in the English language and translated into the Spanish language as

International Standards on Investment Performance Presentation, or any other standard that meets international best practices.

Article 36.- The Investment Committees must define a reference portfolio applicable to the investment portfolio of the Total Asset of the Investment Society with which the Administrator will evaluate the performance and

risk of each Investment Society that operates, describing the long-term investment objectives.

Such reference portfolio must comply with what is established in the General Provisions that

establish the investment regime to which Investment Societies must adhere and the following

guidelines:

I.

The design of the reference portfolio must consider:

a)

The most appropriate investment horizon to invest the investment portfolio of the Investment

Society;

b)

The composition of the reference portfolio, detailing the authorized investment percentages at least for each of the following concepts:

i.

Asset Classes indicated in subsection VII, of Article 2 of these

Provisions. The Investment Committee may consider asset classes for the

reference portfolios in addition to those provided for in this subsection;

ii.

Investments made directly by Investment Societies and through

Vehicles and Mandatories;

iii.

Exposure through Derivatives, quantified through delta value and subject to the

Conditional Value at Risk Differential. Within these investments, the

aggregated exposure by type of underlying must be indicated, considering Currencies, interest rates, stocks, Commodities, references linked to inflation such as Investment Units, as well as the authorized percentage in listed markets and in

over-the-counter markets, and

iv.

Regarding Debt Instruments, they must specify the authorized percentages

in accordance with the credit rating and the term to maturity or duration.

c)

The demographic characteristics of each Investment Society that operates the

Administrator, defining the assumptions and methods of demographic analysis used, as

well as other financial and operational variables that could modify the requirements of

liquidity, in such a way that the compliance with the long-term investment objectives is identified. Furthermore, the relationship of the analyses provided for in this

subsection with the determination of the weights of the reference portfolio must be explained;

d)

The risks and expected returns at 1, 3, 5, and 10 years. The aforementioned calculations must be performed in accordance with the policies previously defined by the Committee of

Investment with the favorable opinion of the majority of Independent Directors,

including the update of the inputs. The investment area or, if applicable, the risk area, must perform the calculations of the risks and expected returns referred to in this subsection;

e)

The calculation formulas for the level of return and risk of the reference portfolio;

f)

The formulas for the attribution of return and risk of the investment portfolio relative to the reference portfolio;

g)

The methodology used to justify the assignment of the weights of the portfolio

of reference, by Asset Class or Risk Factor, including the analysis of the

results obtained, and

h)

Classification in accordance with the liquidity parameters of the investments,

considering three qualitative scales referring to low, medium, or high liquidity. For these purposes, the Investment Committee must define the criteria to classify the investments in the

three referred scales.

II.

The governance of the reference portfolio must include:

a)

The policy for the inclusion or exclusion of Investment Target Assets;

b)

The maximum investment policy for Investment Target Assets not included in the

reference portfolio but that are part of the investment portfolios of the

Investment Societies;

c)

The definition of abnormal market situations and the action plans to follow in these

cases;

d)

The deviation policy between the reference portfolio and the investment portfolio must

include at least:

i.

The formula for the calculation of said deviation, for which it may consider, among

others, the one known as " tracking error ";

ii.

The maximum deviation determined at the aggregate level and by asset class or Risk

Factor, for which the technical justification of said deviation must be included, and

iii.

Calculation horizon for the level of deviation.

e)

The rules for the rebalancing of the reference portfolio distinguishing those that

apply to each Asset Class or Risk Factor included in the reference portfolio, as

well as at the aggregate level, specifying the frequency with which such

rebalances will be carried out;

f)

The policies to modify the weights of the reference portfolio, and

g)

The criteria to make adjustments to the reference portfolio in case of not having complete

price information of the Investment Target Assets included in said portfolio.

III.

Monitoring of the reference portfolio by the Committees:

a)

To comply with the calculations provided for in subsection I, paragraph d) above and the calculation of expected returns provided for in Article 11, subsection III, the

Administrator must define as responsible the Investment Committee or the Financial Risk

Committee. In case the Administrator defines the Investment Committee, it must:

i.

Designate the Official of the investment area responsible for complying with the

calculations provided for in this subsection, and

ii.

Verify that the designation and the activities to be performed are included in the

Investment Manual.

b)

The Administrator, through the UAIR, will elaborate the analysis of attribution of return and

risk of the investment portfolio of the Total Asset of the Investment Society relative to the

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

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

analysis referred to in this subsection;

c)

The Administrator, through the UAIR, must analyze the deviations between the

weights defined in the reference portfolios by asset class or Risk

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

Managed by the Mandatories may be excluded for what is provided for in this subsection, and

d)

The Administrator must reveal the composition of the reference portfolio, as well as the

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

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

provided for in this subsection. Such revelation will be through the Administrator's Internet page once approved by the Investment Committee, for which they may observe

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

IV.

The definition or modification of the reference portfolio requires:

a)

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

Committee,

b)

To have the approval of the majority of the Independent Directors, and

c)

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

The Head of the Investment Area must present to the Investment Committee the updated information referred to in the preceding subsections with the frequency indicated below, or

earlier if such Committee so determines:

1.1.

The information from subsections I, paragraphs a), b), and c), II, paragraph d), III, paragraph d), and IV,

paragraph c): annually;

1.2.

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

1.3.

The information from subsection III, paragraphs b) and c): monthly.

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

The definition of the reference portfolio, the maximum authorized deviation with respect to the portfolio of

reference and the investment portfolio, as well as the rebalancing rules, may be adjusted by the Committee of

Investment every twelve months and the Administrator must inform the Commission no later than 5 business days

after the approved adjustments.

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

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

and the Financial Risk Committee.

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

stress scenarios that the Financial Risk Committee approves applicable to the investment portfolio of the

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

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

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

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

Article 38.- The Investment Committees must monitor the compliance with the criteria issued by

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

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

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

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

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

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

Provisions.

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

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

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

Annex C of these Provisions.

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

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

referenced Committee.

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

term not greater than 60 business days after the session in which they participate for the first time, must

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

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

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

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

Minutes of the corresponding session.

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

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

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

Investment Committees or an Official to define the policies and frequency of update of the

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

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

that the

Administrator designates an Official, this Official must not have a conflict of interest when performing the aforementioned

activities.

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

frequency, as well as the designations of the responsible parties referred to in this article are

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

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

corresponds, depending on the designation made by the Administrator, in accordance with the provisions of the preceding paragraph.

Article 42.- The Investment Committees, in coordination with the Financial Risk Committees, shall define the policies and frequency for updating and improving the interconnections between the modules of the Automated Integrated System that apply to the activities of both Committees. Automated interconnections between modules shall be required when they interact directly.

Article 43.- The Investment Committee shall define the policies for purchase or sale operations of Investment Assets negotiated through stock exchanges, Derivatives Exchanges, or electronic markets open simultaneously to financial participants.

Article 44.- The Investment Committees shall expressly record in the Detailed Minutes any actual or potential conflicts of interest that may exist between the Administrator operating the Investment Societies and persons with whom they have a Financial Nexus, whether directly through operations of the Investment Society or indirectly through mandates or similar arrangements, in the event of approving the acquisition and holding of Investment Assets, as well as investment in authorized Vehicles that have been placed or structured by persons with whom they have a Financial Nexus, or when the resource flows derived from the investment may be received by said persons.

Article 45.- The Investment Committee of each Investment Society shall be composed of at least five members, among whom there must be an Independent Director, the General Director of the Administrator operating the Investment Society, and other members or Officials designated by the Governing Body of the respective Investment Society.

The sessions of the Investment Committee shall be held in accordance with the provisions of Article 42 of the Law.

Among the members designated by the Governing Body, there must in all cases be a non-independent director and the Head of the Investment Area of the Administrator.

Each member shall have the right to one vote. The members of the Investment Committee shall establish the internal procedure for the adoption of agreements in the event of a tie in voting.

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

This Committee shall meet at least once a month, and its sessions shall be valid only if they have a quorum of 80% of its members who participate with voting rights, among whom the attendance of the General Director of the Administrator and an Independent Director shall be required. The absence of the Independent Director or the General Director of the Administrator may only be excused on two occasions per calendar year, and the Committee must designate a responsible person during the absence of the respective person, and solely for such purposes.

The approval of agreements shall be by majority vote, without prejudice to the foregoing, the requirements for the opinion of Independent Directors for the topics provided for in these Provisions must be met. In the case where Independent Directors must pronounce themselves and their decisions are divided and tied, prior to this condition, this Committee must define who has the casting vote among said directors.

Article 46.- The Investment Committee may create subcommittees whose purpose is to analyze the policies, strategies, classes, and types of Investment Assets presented to the Investment Committee. For these purposes, the subcommittees must comply with the following:

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

II. That the information related to the functioning of the subcommittees is documented, indicating at least the members, guests, powers, policies, strategies, and accountability mechanisms towards the Investment Committee, and

III. The activities carried out by the subcommittees must be endorsed by the Investment Committees, recorded in the corresponding Detailed Minutes, and revealed in the Investment Manual.

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

The creation of subcommittees does not exempt the Investment Committee from having the necessary information for its decision-making and from fully complying with the obligations provided for in the current regulations.

Article 47.- The Regulatory Controllers and the heads of the risk area must attend the sessions of the Investment Committees operated by the Administrator for whom they provide their services. In all cases, they shall participate with voice but without vote.

Likewise, the Regulatory Controllers must attend the sessions of the Financial Risk Committees operated by the Administrator for whom they provide their services. In all cases, they shall participate with voice but without vote.

Article 48.- The members of the Investment Committee with voice and vote cannot be members of the Financial Risk Committee, with the exception of the General Director of the Administrator operating the respective Investment Society.

Article 49.- The Independent Directors who are members of an Investment Committee must demonstrate the minimum experience of five years referred to in Article 50, fraction I of the Law, in financial matters.

The Independent Directors and the attendees at the sessions of the Investment Committee must declare any potential conflicts of interest they may face regarding the portfolio management topics that are subject to their evaluation. The Independent Directors must abstain from exercising their right to vote in cases where they have declared facing a conflict of interest.

CHAPTER II

OF THE HEAD OF THE INVESTMENT AREA

Article 50.- Each Administrator must have a Head of the Investment Area. The Head of the Investment Area must be an Official who reports directly to the General Director of the Administrator according to the organizational structure of the Administrator. To be Head of the Investment Area, the following requirements must be met:

I. Demonstrate to the Commission moral solvency, as well as technical and administrative capacity:

a) A person is considered to have moral solvency when:

i. They are not disqualified from exercising commerce or holding an employment, position, or commission in public service, or in the Mexican financial system;

ii. They have not been convicted by a final judgment for intentional crime, and

iii. They enjoy recognized professional prestige.

b) To meet the requirement of technical and administrative capacity, they must prove professional experience of at least seven years in the management of investment portfolios, and

II. Declare under oath to the Administrator that they know the code of ethics prepared by the Administrator for whom they provide their services, to which they must adhere for the realization of personal investments in order to avoid any type of conflict of interest.

Article 51.- The Head of the Investment Area shall be responsible for, at least, the following functions:

I. Be responsible for the execution of the policy and Investment Strategy determined by the Investment Committee, within the parameters established by the Investment and Financial Risk Committees of the Investment Society, for which they must execute said strategy based on the resources available for such purposes of the Administrator itself, or in its case, issue the corresponding instructions to other Operators, or to Financial Service Providers, including Mandatories. Likewise, they must review the reports issued by the Mandatories;

II. Carry out their functions in accordance with external and internal regulations in the performance of their position and the investment area. Such regulations include the Laws, Regulations, Circulars, Guidelines, and other Provisions of the Savings System for Retirement in matters of investment, and

III. Enforce the deviation policy regarding the reference portfolio applicable to the investment portfolio of the Total Asset of the Investment Society once approved by the Investment Committee.

CHAPTER III

OF THE INVESTMENT MANUAL

Article 52.- Each Administrator must prepare an Investment Manual, which must be approved by the Investment Committees and by the Governing Body of the Administrator itself, with the favorable vote of the majority of the Independent Directors.

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

1.1. The Investment Manual was reviewed at least by the Head of the Investment Area, and

1.2. The Regulatory Controller supervised that the content of the Investment Manual corresponds to what was approved by both the Investment Committee and the Governing Body of the Administrator itself.

Administrators must inform the Commission, formally and clearly, about each of the modifications made to the Investment Manual, within a period not greater than 10 business days after such modifications are made. Likewise, they must keep available to the Commission evidence that such modifications were approved by the Investment Committees and by the Governing Body of the Administrator itself.

The Investment Manual must remain available to the Commission at all times and comply with the quality and characteristics required in this Chapter, as well as what is provided for in articles 36, 41, 46, fraction III, and 128 of these Provisions, as applicable, in terms of what is established in each of said articles.

The Commission may require at any time that the Administrator present the Investment Manual and that the Administrator make the necessary adjustments to said Manual.

The Investment Manual must specify the following elements:

I. The policies and procedures for the acquisition of Investment Assets that the Investment Committee has authorized to invest the resources of the Investment Society. Likewise, it must indicate both in the Investment Manual and in the information prospectus those Investment Assets provided for in the current investment regime in which the Investment Committee has not authorized investing the resources of the Investment Society within the Authorized Investment Regime. Such investment policies and procedures may be determined through general guidelines authorized by the Investment Committee;

II. The obligation on the part of the members of the Investment Committee, the Head of the Investment Area, and the Operators, to recognize the responsibility inherent to their position and to prioritize, above all else, the interest of the Workers over any other;

III. The procedures for the structuring and settlement of Structures Linked to Underlyings;

IV. The minimum standards of information disclosure determined by the Investment Committee, of the issuers of Investment Assets eligible to be acquired by the Investment Societies operated by the Administrator, in compliance with the applicable regulations;

V. The methodology that must be followed to carry out the analysis of the investment portfolios referred to in Article 63 of these Provisions;

VI. The methodology that must be followed to carry out the analysis of Structured Instruments, FIBRAS, and Certificados Bursátiles Linked to Real Projects referred to in Article 139 of these Provisions;

VII. The minimum requirements that the common representatives of the issuances must meet for the Investment Societies to acquire them;

VIII. That the persons responsible for confirmation, settlement, accounting registration, and generation of financial statements, as well as for the allocation of operations, act independently of the Head of the Investment Area and the Operators;

IX. The policies regarding firm price positions to operate with Derivatives;

X. The establishment of internal policies for the selection of Counterparties, Custodians, and Financial Service Providers, including Mutual Funds, Mandatories, in their case, commodity operators, and Mandatories of Structured Instruments known in practice as funds of funds, as well as for the selection of Vehicles, Real Estate Investment Vehicles, and mechanisms with exposure to underlyings allowed in the General Provisions that establish the investment regime to which the Investment Societies must be subject. The policies for the selection of Counterparties must include an analysis containing the evaluation of credit or credit risk, reputational risk, and liquidity risk of the Counterparty, as well as an analysis of the legal structure of the execution of guarantees. In the case of contracts established in the modality known in practice as "delivery against payment," it will not be necessary to prepare the evaluation of the credit risk of the Counterparty. Likewise, the criteria taken into account to define the policy for the selection of Counterparties must be indicated;

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

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

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

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

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

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

ii. Have evidence showing that the Block Order execution was executed at the best available price, which must be available to the Commission and the Regulatory Controller, and

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

e) The minimum number of quotes before concluding an operation;

f) The time period allowed for quoting;

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

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

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

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

k) The exception mechanisms to the criteria provided for in the preceding subparagraphs determined by the Investment Committee.

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

XII. Repealed;

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

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

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

c) In the relationships of the third party with the groups and financial entities with whom it has Financial Nexuses, what is provided for in articles 64 and 69 of the Law, what is provided for in the General Provisions that establish the investment regime to which the Investment Societies must be subject issued by the Commission, in the Prudential Rules in matters of risk administration, and in these Provisions will be observed.

XIV. It must contain policies for the administration of the liquidity of the investment portfolio, for which it must consider at least the following:

a) Characteristics regarding the liquidity of the Investment Assets that make up the investment portfolio in accordance with the policies defined by the Investment Committee, which must consider the following:

i. Term of the instrument;

ii. In its case, credit rating of the issuance and issuer;

iii. Markets in which it is traded and estimates on the price differentials of purchase and sale;

iv. Estimates regarding the depth and liquidity of the markets, conjuncturally and structurally;

v. Trading platforms available for said securities;

vi. Securities lending and repurchase operations with said securities, and

vii. In its case, estimates on Coupons, dividends, and distributions.

The Investment Assets must be classified in accordance with the aforementioned policies.

b) Monthly estimates of the net liquidity flows of the Investment Society coming from, among others: transfers, partial and total withdrawals, results of financial operations, particularly from operations with Derivatives, capital calls coming from Structured Instruments, periodic contributions to individual accounts, assignments and reassignments of individual accounts, flow for payment of Coupons, dividends, and distributions, maturities of assets, early amortizations, and transfers due to the age of the Workers. The analyses referred to in this paragraph must be carried out with demographic, statistical, financial, and actuarial elements. The review and update of the demographic and actuarial elements must be carried out at least annually;

c) Provide that the Administrators have projections with the net liquidity flows generated by the investment portfolio of the respective Investment Society for each of the following 90 calendar days subsequent to the date of analysis, as well as a projection of the net liquidity flows at 180 days, 1, 2, 3, 4, and 5 years, and

d) Provide a policy for the acquisition and management of Investment Assets, consistent with the information and analysis derived from carrying out the processes described in this article. In the event that the Investment Society does not invest in any Investment Asset, the policy in question must not be determined;

XV. Define the credit line policies for Counterparties, particularly for operations with Derivatives;

XVI. Have the description of the Automated Integrated System for the activities of acquisition, disposal, and online registration of Investment Assets and the database structure generated for the monitoring of each of these activities;

XVII. The definition of the reference portfolio of each Investment Society and the maximum authorized deviation;

XVIII. Designation and activities of the Head of the Investment Area to comply with specific activities in matters of Structured Instruments, and

XIX. The policies referred to in Article 34, fraction X of these provisions.

The Investment Manual must be subject to what is provided for in these Provisions and must be updated with the necessary frequency to achieve said objective. The Investment Manual must be part of the Self-Regulation Program approved by the Governing Body of the Administrator in terms of Article 29, fraction I of the Law. The Officials of the Administrator and of the Investment Societies must observe the compliance with said Investment Manual.

CHAPTER IV

OF THE INVESTMENT PROCESS

Article 53.- Administrators must have for the operations they conclude directly through their Operators an Automated Integrated System for the activities of acquisition, disposal, and online registration of Investment Assets that comply at least with what is indicated in Annex L of these Provisions. The Automated Integrated System referred to in this article must use inputs with a lag of one day or less if the Investment Committee so defines.

Article 54.- Administrators during the implementation of the Automated Integrated System must use simultaneously the system they have to comply with what is established in these Provisions. During the substitution of the Automated Integrated System, the Administrator will be

responsible for any non-compliance caused by these General Provisions, by the General Provisions establishing the investment regime to which Investment Societies shall be subject, by the General Provisions on the registration of accounting, preparation and presentation of financial statements to which Investment Societies shall be subject, by the General Provisions establishing the patrimonial regime to which Administrators, the Pension Provider and Investment Societies and the special reserve shall be subject, by the General Provisions establishing the procedure for the construction of net performance indicators of Investment Societies, by the General Rules that the Commission establishes for the delivery of information and by what is provided in the Prudential Rules on risk management.

Article 55.- Administrators must establish contingency policies in case of technical failures in the Automated Integrated System or any module of said system, as well as backup and business continuity policies with which the Investment Society must have. These contingency policies must contemplate the functioning of critical activities defined by the Investment Committee, considering what is provided in Article 56 of these General Provisions.

Article 56.- In the event that it is necessary to recover the continuity of operations, this must be carried out at an alternate site that will not be foreseeably affected by the same circumstances as the Administrator's headquarters. The Administrator's alternate site must fully satisfy these General Provisions, regarding the minimum functioning that Investment Societies must observe, as well as additional activities determined by the Administrator itself. In the event that the Administrator determines the performance of additional functions beyond the minimum functioning at the alternate site, the Administrator will be responsible for guaranteeing full compliance with these General Provisions.

The minimum functioning of Investment Societies is understood to be the following activities:

I. Cross the price of the Investment Society on the platform defined by a Stock Exchange authorized to organize and operate under terms of the Securities Market Law;

II. Send to the Commission the financial information referred to in the General Rules that the Commission establishes for the delivery of information;

III. Comply with all settlement obligations of Investment Assets that make up the investment portfolio of the Investment Society, and

IV. Carry out the necessary operations to comply with previously contracted obligations.

Article 57.- Administrators may not transfer Investment Assets between Investment Societies unless a norm or authorization issued by the Commission permits it.

Article 58.- Investment Societies may acquire or alienate Investment Assets only in Eligible Countries for Investments.

Article 59.- Investment Societies operated by Administrators must ensure that purchase or sale activities they carry out adhere to sound market uses and practices.

Purchase or sale operations of an Investment Asset negotiated through stock exchanges, Derivatives Exchanges or open electronic markets simultaneously to financial participants, will be considered market operations.

It is the obligation of the Administrator to maintain evidence in magnetic, electronic, documentary, or analogous media, that support adherence to the policies adopted to ensure that operations carried out are conducted in accordance with best execution policies.

Article 60.- The Head of the Investments Area, or the Official whom he designates in writing, must notify the Investment Committee at each ordinary session about excesses in the use of credit lines by Counterparties in derivatives operations occurred during the last period between sessions.

Article 61.- Administrators may provide that contracts with Custodians include liquidity facilities in purchase or sale operations of Investment Assets, which must be settled at the close of the day. Such facilities will not generate any cost for Administrators or for the Investment Societies they operate regarding the facilitated amount, provided they are settled at the close of the day.

Article 62.- The confirmation, settlement, allocation, accounting registration and financial statement generation areas of Investment Societies must have a manual that indicates the policies and procedures governing their operation, as well as the description of the Automated Integrated System they apply to their activities and the database structure generated for the tracking of each of these activities.

This manual must be approved by the Investment Committee, the Financial Risks Committee or the Official designated as responsible by the general director, noting who approved it in the manual itself. Likewise, in said manual, the Committee or Official responsible for defining the policies and periodicity of update and improvement of the Automated Integrated System in terms of article 4 second paragraph of these General Provisions must be noted.

The aforementioned manual must be kept available to the Commission at all times.

CHAPTER V OF THE BEHAVIORAL TESTS OF INVESTMENT PORTFOLIOS

Article 63.- The Head of the Investments Area, or whoever he designates, must consider for his investment decisions in FIBRAS, Real Estate Investment Vehicles, Merchandise, Currencies, Debt Instruments, Foreign Debt Securities, Equity Securities and Foreign Equity Securities that form part of the Asset Managed by the Investment Society, the results of the tests prepared by the UAIR referred to in Title II, Chapter II of these General Provisions. The aforementioned tests must be carried out with a monthly frequency.

In the case of FIBRAS, Real Estate Investment Vehicles and Certificates Linked to Real Projects, Investment Societies may use Generic Instruments to perform the tests referred to in this article. For Structured Instruments, portfolio tests must also be prepared, which will only be enforceable once the Structured Instrument has investments and will be satisfied with the risk reports provided for such purposes by the administrator or the independent appraiser of the Vehicle in question. The Head of the Investments Area, or whoever he designates, must know and, if applicable, request modifications through the technical committees of the Structured Instruments, regarding the contents of the tests provided for in this paragraph. The results of these tests must be made known to the Financial Risks Committee.

The Head of the Risks Area must present the results of the tests referred to in this provision monthly to the Investment Committee so that it considers them in its investment decisions for the Investment Society in the session following their preparation and keep them available to the Commission.

TITLE IV OF SOUND PRACTICES

CHAPTER I OF CORPORATE RIGHTS

Article 64.- Investment Societies operated by the Administrator, in the exercise of the rights conferred upon them by their shareholding participation in a company that forms part of the investment portfolio of the Asset Managed by the Investment Society, must be subject to the following:

I. Define a policy for the designation of independent directors of the company financed by the Investment Society, in boards of directors that oversee the economic value and viability of the company or investment and the interests of Workers. Among the characteristics of independent directors are the following:

a) Professional experience in activities such as directors;

b) Adhere to the code of ethics established by the Investment Committee, which will include among others:

i. Abstain from voting in which the independent director has a conflict of interest in his person;

ii. Provide for policies in which the independent director as representative of the Investment Society has a conflict of interest with the company, and

iii. Knowledge of the provisions of the Securities Market Law, particularly regarding access to information that is not public for decision-making.

c) Adhere to the rules and guidelines applicable to directors defined by securities market regulatory authorities and, if applicable, guild associations.

II. Define a policy that, if applicable, will be applicable to situations in which the Investment Society decides not to appoint an independent director.

CHAPTER II OF GOOD PRACTICES

Article 65.- The Governing Body of the Administrator must elaborate and approve a code of good practices whose objective is to eliminate potential conflicts of interest in activities and decision-making regarding investments and risk management. Likewise, the Governing Body of the Administrator must elaborate and approve a code of ethics whose objective is to establish the principles with which Officials of the investments area, the risks area, the regulatory oversight that perform observation duties in financial matters of Investment Societies, of the areas or activities of confirmation, settlement, allocation, accounting registration and financial statement generation of investment operations, including members of the Investment and Financial Risks Committees, as well as all those involved in the operation and decision-making of Investment Societies, in the fulfillment of their functions, must conduct themselves.

I. The code of good practices must include the following:

a) Responsibilities and obligations determined by the Governing Body of the Administrator, for each council member of said Governing Body;

b) A policy that allows members of the Governing Body of the Administrator to know the reports of independent experts, if applicable;

c) A policy to detect and avoid real and potential conflicts of interest in investment and risk management activities that are presented before the Governing Body of the Administrator;

d) The criteria on which remuneration policies for investment and risk personnel of Investment Societies, as well as for heads of confirmation, allocation, settlement and accounting registration areas and regulatory oversight could be based. The Administrator will have the obligation to provide the inputs so that they exercise, in time and form, the necessary tools for the exercise of the powers of Independent Directors. Likewise, it will inform them regarding the matters in which their opinion will be requested, and

e) Internal sanctions, by type of non-compliance, in case of faults or omissions to what is provided for in said code, included in an enumerative but not limiting manner, private reprimands, public reprimands and removal from office.

The content of the code of good practices must be reviewed annually or earlier if so defined by the Governing Body of the Administrator.

II. The code of ethics must provide for the following:

a) The principles to which Officials linked to the celebration of operations must be subject;

b) The mandatory compliance of the code and its publication on the Administrator's Internet page;

c) Internal sanctions, by type of non-compliance, in case of faults or omissions to what is provided for in said code, included in an enumerative but not limiting manner, private reprimands, public reprimands and removal from office, and

d) Applicable policies to members of the Investment Committee, the Financial Risks Committee, as well as Officials of the investments area and the risks area, regarding personal investments of said participants with the object of avoiding any type of conflict of interest.

The content of the code of ethics must be reviewed annually or earlier if so defined by the Governing Body of the Administrator.

Officials of the investments area, the risks area, the regulatory oversight that perform observation duties in financial matters of Investment Societies, of the areas or activities of confirmation, settlement, allocation, accounting registration and financial statement generation of investment operations, including members of the Investment and Financial Risks Committees, as well as all those involved in the operation and decision-making of Investment Societies, in the fulfillment of their functions, must comply at all times with what is provided for in the ethics code and code of good practices referred to in this article.

Article 66.- The Governing Body of the Administrator may create a subcommittee that has as its object:

I. Regarding the code of good practices, the following:

a) Analyze potential conflicts of interest in investment and risk management activities that are presented before the Governing Body of the Administrator;

b) Analyze the content of the code of good practices, and

c) Propose to the Governing Body of the Administrator the sanctions that should be imposed to Officials who infringe the code of good practices.

II. Regarding the code of ethics, the following:

Analyze potential conflicts of interest regarding personal investments of members of the Investment Committee, the Financial Risks Committee, as well as Officials of the investments area and the risks area,

Analyze matters related to the elaboration and approval of the code of ethics, and

Analyze the content of the code of ethics.

In the event that the Governing Body of the Administrator does not create the subcommittee provided for in this article, said Governing Body must authorize the contents of fractions I and II of this article.

CHAPTER III PRACTICES TO AVOID CONFLICTS OF INTEREST

Article 67.- Investment Societies are prohibited from carrying out the following investments with the Total Asset of the Investment Society:

I. Acquire directly or indirectly Investment Assets issued, accepted or guaranteed by Financial Intermediaries with which the Administrator operating the Investment Society has Patrimonial Links;

II. Conclude operations with Investment Assets with Financial Intermediaries with which the Administrator operating the Investment Society has Patrimonial Links, and

III. Conclude operations with Vehicles or Real Estate Investment Vehicles of which the underlying Assets of the Vehicle are not known, in accordance with daily periodicity, except in the cases provided for in these General Provisions.

Investment Societies may acquire Vehicles and Real Estate Investment Vehicles, which are sponsored or administered by Financial Intermediaries, Mandatories or Service Providers with which the Administrator operating the Investment Society has Patrimonial Links, provided that said Vehicles or Real Estate Investment Vehicles are found in the relationship published by the Commission on its Internet page, or have a favorable opinion from the independent expert, in accordance with what is provided for in the General Provisions establishing the investment regime to which Investment Societies shall be subject and the criteria defined by the Risk Analysis Committee. Vehicles and Real Estate Investment Vehicles must comply at all times with the provisions applicable to them.

Investment Societies, whose investment regime authorizes it, may acquire Vehicles through primary placements and in the secondary market when the issuer is a trust constituted in a Credit Institution that is part of the same financial group as the Administrator, or whose shareholders are part of, that operates the Investment Society, it being stated in the trust contract to be celebrated that the trustee will act on behalf of third parties, assuming no payment responsibility nor granting guarantees of any kind to holders.

Likewise, Investment Societies may acquire the Structured Instruments referred to in the previous paragraph, in the secondary market, using the services of the Credit Institution or the brokerage house of the financial group of which the Administrator operating them is part or has a Patrimonial Link, so that on behalf and order, they carry out operations with securities, other than those prohibited by article 69 of the Law.

Article 68.- Investment Societies must adjust their practices with Service Providers, and if applicable, with Mandatories, to what is provided by this Chapter, always avoiding operations that imply a possible conflict of interest, to this effect, it must be expressly agreed:

I. That Service Providers, and if applicable, Mandatories, may not conclude any operation for the contracting Investment Society when acting with Investment Assets that form part of the patrimony of Service Providers or Mandatories;

II. That Service Providers, and if applicable, Mandatories, may not conclude any operation for the contracting Investment Society with Financial Intermediaries with which Service Providers or Mandatories have Patrimonial Links, and

III. That Service Providers, and if applicable, Mandatories, may not conclude any operation for the contracting Investment Society with Financial Intermediaries with which the Administrator operating that Investment Society has Patrimonial Links.

Article 69.- The Regulatory Auditor of the Administrator that operates the Investment Society, will be responsible for observing strict compliance with what is provided for in this Chapter. Regarding the Asset Managed by the Investment Society, the Regulatory Auditor must define in his Functions Plan a process to observe deviations from what is established in this Chapter.

CHAPTER IV OF CERTIFICATION OF OFFICIALS

Article 70.- Officials in charge of activities of Investment Societies must be certified in accordance with this article and Annex J of these General Provisions. In particular, Officials of the investments area, the risks area, the regulatory oversight that perform their duties in financial matters of Investment Societies, of the areas or activities of confirmation, settlement, allocation, accounting registration and financial statement generation of investment operations, must be certified by one of the recognized prestigious independent third parties in the imparting of financial education that the Commission designates for this purpose to accredit their general knowledge in investment matters to exercise the functions they perform. The certification will have a validity in accordance with Annex J of these General Provisions.

Officials may only celebrate purchase, sale, repo, loan of securities, confirmation, settlement, allocation or accounting registration and financial statement generation operations of instruments on Investment Assets for which they are certified.

In case there are operational errors caused by Officials who failed to comply with the certification referred to in this article and therefore shortfalls, costs or losses were generated for Investment Societies, the Administrator operating the corresponding Investment Society must reimburse the aforementioned expenditures, for which the complete period in which the event occurred will be considered.

No person linked to the activities of Investment Societies who fails to comply with what is provided for in these General Provisions regarding the certifications provided for in this article, may exercise functions for Investment Societies that require execution by a Certified Official for a period greater than 60 business days.

Officials may not accumulate more than 60 business days without certification in an Administrator or different Administrators counting days from when they incorporated into the areas referred to in different Administrators or in the same Administrator.

Without prejudice to the general financial certification referred to in this article, Officials in charge of activities regarding Investment Societies that carry out operations with Derivatives and Structured Instruments, additionally must have the specific certifications established in these General Provisions, especially regarding the content of Annex J.

CHAPTER V OF INDEPENDENT DIRECTORS

Article 71.- Independent Directors, once a year, within the four months following the closing of the social exercise, must render an annual report to the Governing Body of the Administrator, which must contain their opinion on the areas of opportunity they identify in the Administrator in financial matters, as well as, the most relevant activities of their management and the activities within the Committees to which they have attended during the reference period. Said report must be available to the Commission at all times.

Article 72.- Independent Directors must be aware of Officials who cease to work or provide their services in the Administrator with positions equivalent or superior to those responsible for each of the areas of the Administrator, among others, the Head of the Investments Area, the head of financial risks, the head of operational risks of the Investment Society, the head of administration and finance, legal and of the internal control body.

Article 73.- At least once a year through their representation in the Governing Body of the Administrator, Independent Directors must propose and opine regarding improvements

identified with the corporate governance model in force at the Administrator.

Article 74.- The Administrator shall provide the human and material resources necessary for Independent Directors to carry out their functions.

Article 75.- Independent Directors, upon leaving their position with the Administrator, within the four months following their departure, must submit a report to the Governing Body of the Administrator, which must contain their opinion regarding the financial situation of the Administrator, the most relevant activities of their management, and the activities within the Committees to which they attended during the period they remained with the Administrator, as well as matters pending or under their charge and any other information they consider relevant. This report must be available to the Commission at all times.

TITLE V

ON THE SUPPLY OF PRICES AND THE VALUATION OF INVESTMENT ASSETS

Article 76.- Administrators must value the Investment Assets owned by Investment Societies themselves or through a Valuation Society they hire. In any case, they must use the prices provided by the Price Provider, which may be different entities when applied to the Asset Managed by the Investment Society and to the Asset Managed by each of the Mandatories. Regarding Assets Managed by Mandatories, Administrators may hire a different Valuation Society.

Regarding the Total Asset of the Investment Society, Valuation Societies must value the shares representing the paid-up capital of the Investment Societies.

For Assets Managed by the Investment Society, Valuation Societies, or in their case, Administrators, must perform, in addition to the valuation of the Investment Assets referred to, the following:

I. Calculate the fair value of the repo operations carried out by Investment Societies, and

II. Calculate for all Investment Societies the Value at Risk, the Conditional Value at Risk Differential, and the risk measures defined by the Commission, as well as the risk measures that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Society.

For the purpose of valuing Assets Managed by Mandatories, the Valuation Societies hired by Administrators must:

a) Value the Assets Managed by Mandatories;

b) Calculate the fair value of the repo operations carried out by Mandatories, and

c) Calculate the risk measures defined by the Commission or, in their case, those that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Society, applicable to the Assets Managed by Mandatories.

Article 77.- Administrators, before acquiring any Investment Asset, whether through Investment Societies or through Mandatories, must ensure they have the Updated Price for Valuation of the corresponding Investment Assets, in accordance with these Provisions as of the Valuation Day on which said Investment Asset enters the investment portfolio of the Investment Society.

The Updated Prices for Valuation used to value the Investment Assets that make up the Asset Managed by Investment Societies and, in their case, the interests, must correspond to the Valuation Day of the Investment Society's share. Assets Managed by Mandatories must be valued on the Valuation Day using prices that may be lagged in their determination date in accordance with the timeframes described in the General Provisions on the registration of accounting, preparation and presentation of financial statements to which Investment Societies must be subject, issued by the Commission.

Article 78.- Administrators who have objections to the prices determined by the Price Provider or the Valuation Society in accordance with their activities, must formulate them in writing before said entities and before the competent authority or in accordance with international practices established in the Eligible Country for Investments in question, in order for them to be resolved in accordance with the regulation applicable to them and must notify the Commission of the aforementioned disagreement on the next business day following the date of publication of the objected price, indicating the resolution adopted by the Price Provider.

Administrators must retain for a period of 5 years, the evidence provided by the Price Provider or the Valuation Society that supports the modifications, if any, made to the Updated Prices for Valuation or, in their case, to the inputs used to determine compliance with the limits applicable to the risk measures determined by the Commission in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject.

Article 79.- Bank deposits of money made with Assets Managed by the Investment Society must be valued exclusively by the Administrators, taking the closing balance of the day prior to the Valuation Day. Regarding the national currency valuation of deposits in Foreign Currencies, Administrators must use the Exchange Rate, or the Cross Exchange Rate for Valuation, in force for the Valuation Day. Bank deposits made with Assets Managed by Mandatories must be valued by an eligible third party in accordance with these Provisions determined by the Administrator among which may be International Custodians or this same entity.

Article 80.- Administrators or, in their case, Valuation Societies they hire for this purpose, must value daily in national currency the Investment Assets that form part of the Total Asset of the Investment Society in accordance with the Authorized Investment Regime, using the following:

I. Updated Prices for Valuation applied to Investment Assets that form part of the Asset Managed by the Investment Society;

II. Prices obtained by Administrators according to the methodology they develop in the Manual of Policies and Procedures for the Administration of Financial Risk, applied to Investment Assets for which these Provisions provide this valuation process, which form part of the Asset Managed by the Investment Society;

III. Fair value of repo operations and value of bank deposits, applied to Investment Assets that form part of the Asset Managed by the Investment Society;

IV. Risk Factors corresponding to the valuation date, applied to Investment Assets that form part of the Asset Managed by the Investment Society, and

V. Valuation of Investment Assets of the Asset Managed by Mandatories.

Regarding Investment Assets denominated in Foreign Currencies, except those provided for in article 79 of these Provisions, Administrators or, in their case, Valuation Societies they hire for this purpose, must value them in national currency using the Exchange Rate and, in their case, the Cross Exchange Rate for Valuation.

Likewise, Investment Assets that form part of the Assets Managed by Mandatories, except those provided for in article 79 of these Provisions, must be valued by the Administrator or, in their case, by the Valuation Society they hire for such purposes, in national currency, applying in their case Cross Exchange Rates for Valuation provided by the corresponding Price Provider.

Article 81.- Administrators or, in their case, Valuation Societies they hire for this purpose, must calculate the fair value of the repo operations carried out by Investment Societies and, in their case, Mandatories, using the Updated Prices for Valuation and the accrued premium will be updated according to the term of the Valuation Day. Likewise, Administrators or, in their case, Valuation Societies they hire for this purpose, must value the guarantees of the repo operations, in accordance with articles 83 and 84 of these Provisions.

For the purpose of what is established in this article, the fair value of repo operations must be equal to the present value of the sum of the value of cash, plus the repo premium. The present value, in turn, will be calculated using the discount rate provided by the Price Provider, corresponding to the maturity term of the repo and to the credit rating of the Counterparty with whom such operation is concluded.

Article 82.- Administrators or, in their case, Valuation Societies they hire for this purpose, must calculate the Value at Risk, the Conditional Value at Risk Differential or, in their case, the risk measure that in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject is defined, or that risk measure that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Societies or that defined by the Risk Analysis Committee applicable to Investment Assets that form part of the Assets Managed by Investment Societies.

Likewise, Valuation Societies hired by Administrators must calculate the risk measure that in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject is defined, that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Societies or that defined by the Risk Analysis Committee, applicable to Investment Assets that form part of the Assets Managed by Mandatories.

CHAPTER I

SUPPLY OF PRICES FOR THE VALUATION OF INVESTMENT ASSETS

Section I

On the Supply of prices for the valuation of Assets Managed by the Investment Society

Article 83.- Regarding Investment Assets that form part of the Assets Managed by the Investment Society, Administrators must hire the services of a Price Provider, in order to receive from it the following services:

I. Updated Prices for Valuation of Instruments of all Investment Assets that make up the Asset Managed by the Investment Society, except for:

a) The fair value of repo operations;

b) The value of bank deposits;

c) The value of Structured Instruments, which have the valuation of an independent valuer of the settlor of the patrimony of the Structured Instrument, of the promoted entities, of the promoter and of the fund administrator, and

d) Investment Assets provided for in articles 84 and 85 of these Provisions.

II. Risk Factors of all Investment Assets that make up the Asset Managed by the Investment Society, excluding those provided for in articles 84 and 85 of these Provisions.

Article 84.- Regarding Investment Assets that operate in international markets and that form part of the Assets Managed by the Investment Society, Administrators may:

I. Obtain the Updated Prices for Valuation from the Custodian they have hired for the safekeeping of securities and operations carried out in international markets, and

II. Obtain the Risk Factors from the Custodian hired for the safekeeping of securities and operations carried out in international markets.

The Custodian referred to in this article must be authorized to carry out valuation activities by the competent authority of the Eligible Country for Investments where it is domiciled and may be a different entity from the Custodian hired for securities safekeeping activities in the national market.

Article 85.- Regarding Assets Managed by the Investment Society, the Administrator may obtain the value of transactions with Derivatives that Investment Societies managed by it carry out in over-the-counter markets, using the valuation methodology approved by the respective Financial Risk Committees contained in the Manual of Policies and Procedures for the Administration of Financial Risk.

Section II

On the Supply of prices for the Valuation of Assets Managed by Mandatories

Article 86.- Regarding Investment Assets that form part of the Assets Managed by Mandatories, the Administrator must obtain the Updated Prices for Valuation and the Risk Factors applicable to the assets referred to in these Provisions from a Price Provider or from Custodians authorized to carry out such activities in the Eligible Countries for Investments, which may be different entities from those referred to in the previous Section.

Section III

On the Supply of Prices for the Valuation of Investment Assets

Article 87.- The Updated Prices for Valuation corresponding to the Investment Assets that make up the investment portfolio of Investment Societies and, in their case, the interests, must correspond to the Valuation Day of the share of the Investment Society in question.

For the purposes of the foregoing, the Valuation Committee, referred to in article 46 of the Law, may determine the criteria regarding the information that will be considered for the purpose of calculating the Updated Prices for Valuation.

Likewise, through the general Rules that the Commission establishes for the delivery of information, policies to define the operations and assets that will make up the positions that must be valued on each valuation date must be delivered to the Commission.

Section IV

On the Hiring of the Price Provider

Article 88.- Each Price Provider or Custodian that the Administrator hires for the purpose of obtaining Updated Prices for Valuation, must provide a single price of the Investment Assets that it values.

For the case of Price Providers that the Administrator hires to value the investment portfolios managed by Mandatories and, in their case, the investment portfolios managed by itself in international markets, the following will apply:

I. In the event that the Price Provider in turn requires the services of valuation experts, the Administrator that hired it must know which assets will correspond to be valued by each expert, and

II. For the case of the investment portfolios managed by the Investment Society itself, it must use a unique Price Provider to value said Investment Assets. Notwithstanding the foregoing, the Administrator may hire a different Price Provider than the one referred to in this paragraph to value the investment portfolio of the Assets Managed by the Investment Society that it operates in international markets.

The Administrator must inform the Commission of the policy it will follow to value the investment portfolios of the Investment Societies it operates in international markets. This policy must be made known and approved by the Financial Risk Committee and informed to the Commission no later than 20 business days following the approval by said Committee.

Article 89.- For Investment Assets that form part of the Asset Managed by the Investment Society, Administrators, in the contract they enter into with the Price Provider, must establish that it will provide the services referred to in article 83 of these Provisions.

In the event that the Administrator decides to hire the services of a Custodian for valuation purposes, it must provide at least the Updated Prices for Valuation of the Investment Assets operated in international markets, as well as the Risk Factors of said securities and of Derivative transactions carried out in foreign over-the-counter markets.

Article 90.- Administrators must establish in the contract they enter into with the Price Provider or the Custodian, that it must have the necessary information exchange systems to deliver daily to the Commission, on behalf of the Administrator operating each Investment Society, the Updated Prices for Valuation and the Risk Factors that, in their case, correspond, to value and determine the Value at Risk, the Conditional Value at Risk Differential or the risk measures defined by the Commission or those that in accordance with what is provided in these Provisions must be proposed by the Financial Risk Committee and approved by the Governing Body of the Investment Society, of the Investment Assets for which the Price Provider or the Custodian has been hired, with the characteristics established in the general Rules that the Commission establishes for the delivery of information and in accordance with articles 83, 86 and 89 of these Provisions.

Article 91.- Administrators must inform the Commission regarding the Price Provider and the services contracted for the Assets Managed by the Investment Society, as well as regarding the Custodians and the Price Provider they hire for the Assets Managed by Mandatories, within 10 business days following the celebration of the contract, and with 20 business days of advance notice before the start of the validity of the respective contract in case of change of Price Provider or of any Custodian.

For the purpose of the foregoing, Administrators must keep available to the Commission, a copy of the contract celebrated between the Administrator and its Price Provider or its Custodian, for the investment portfolio managed directly by the Investment Society and, in their case between the Administrator and the Price Provider or the Custodians for the case of the Assets Managed by Mandatories. Likewise, within 10 business days following the ratification of the contract by the Governing Body of the Administrator, Administrators must keep available to the Commission a copy of the corresponding agreement, certified by the secretary of said Body, in which the approval of the hiring of the Price Provider or the Custodian in question is recorded.

Likewise, all requirements that apply to the Assets Managed by Mandatories must be indicated, as part of an annex, in the contract that the Administrator and the Price Provider or the Custodian celebrate.

The contract that the Administrator celebrates with the Price Provider cannot have a validity of less than one year and must be ratified by the Governing Body of the Administrator, in the first session following the celebration of said contract. Likewise, the contract that the Administrator celebrates with the Custodian for the purpose of obtaining Updated Valuation Prices must establish an annual validity, unless the termination of the contract had been agreed upon prior to said validity period when the contract with the Mandatories had been cancelled before said period and the services of the Custodian became redundant.

CHAPTER II

ON THE VALUATION OF INVESTMENT ASSETS

Article 92.- Administrators, in the event that the Updated Prices for Valuation of the Investment Assets of the Total Asset of the Investment Society are not provided by the entity they have hired for such effect, must notify this fact to the Commission no later than 18:00 hours of Mexico City, on the business day prior to the Valuation Day.

In this case, Administrators must inform whether the omission in the supply of the Updated Prices for Valuation of the Investment Assets that form part of the Total Asset of the Investment Society, was total or partial. In the event that the omission has been partial, Administrators must indicate which of the Investment Assets were omitted.

Section I

On the Contingent Valuation Procedures of the Investment Assets

that form part of

the Asset Managed by the Investment Society

Article 93.- In the event that the Price Provider does not provide the Updated Prices for Valuation of the Instruments, Foreign Variable Income Securities and Derivative transactions carried out in standardized markets, Administrators, or Valuation Societies in their case, must value said financial assets under the following terms:

I. Using the Last Known Updated Prices for Valuation, which will be updated according to the term of the Valuation Day.

In the case of Investment Assets that, being new issuances, have not been included in the Last Known Updated Prices for Valuation, they must be valued taking the acquisition cost as a basis. In the case of Investment Assets denominated in Investment Units or its equivalent, or in Foreign Currencies, they will be updated with the value of the Investment Unit or its equivalent, or with the Exchange Rate or with the Cross Exchange Rate for Valuation in force for the Valuation Day, respectively;

II. For titles that pay interest, the price will be taken without considering interest from the Last Known Updated Prices for Valuation and the accrued interest will be calculated for the days elapsed until the Valuation Day.

In the case of Instruments denominated in Foreign Currencies, Investment Units or its equivalent, as well as Foreign Variable Income Securities denominated in Foreign Currencies, both the price and the interests will be updated with the value of the Investment Unit or its equivalent or with the Exchange Rate or with the Cross Exchange Rate for Valuation, in force for the Valuation Day, as the case may be;

III. For Derivative transactions carried out in standardized markets, the following will be taken:

the Last Updated Prices for Valuation Known, and

IV.

For Foreign Equity Securities, the Last Updated Prices for Valuation Known shall be taken.

Article 94.- In the event that the Price Provider or Custodian, as applicable, do not provide the Updated Prices for Valuation of Foreign Debt Securities, the Administrators shall value said financial assets under the following terms:

I.

Using the Last Updated Prices for Valuation Known, which shall be updated according to the term of the Valuation Day.

In the case of Foreign Debt Securities that, due to being newly issued, have not been included in the Last Updated Prices for Valuation Known, they shall be valued taking the acquisition cost as the basis.

In the case of Foreign Debt Securities denominated in Investment Units or their equivalent, or in Foreign Currencies, they shall be updated with the value of the Investment Unit or its equivalent, or with the Exchange Rate or with the Cross-Valuation Exchange Rate, valid for the Valuation Day, respectively, and

II.

For Titles that pay interest, the price shall be taken without considering interest from the Last Updated Prices for Valuation Known, and interest shall be calculated for the days elapsed until the Valuation Day.

In the case of Foreign Debt Securities denominated in Investment Units or their equivalent, or in Foreign Currencies, both the price and the interest shall be updated with the value of the Investment Unit or its equivalent, or with the Exchange Rate or with the Cross-Valuation Exchange Rate, valid for the Valuation Day, respectively.

Article 95.- The Administrators, in the event that they hire a Valuation Society for the calculation of the fair value of repo operations and it does not provide the corresponding value, shall carry out the calculation of the fair value of said operations using the Updated Prices for Valuation, and the accrued premium shall be updated according to the term of the Valuation Day. Likewise, the Administrators shall value the guarantees of the repo operations under the terms of Article 81 of these Provisions, or, in the event that the Price Provider does not provide the Updated Prices for Valuation of an Instrument, they shall value the guarantees of the repo operations in terms of fractions I and II of Article 93 of these Provisions.

In the event that they do not have the Updated Prices for Valuation for the calculation of the fair value of the repo operations, the Administrators shall use the Last Updated Prices for Valuation Known.

For the purposes of what is established in this article, the fair value of the repo shall be equal to the present value of the sum of the value of the cash plus the repo premium. The present value, in turn, shall be calculated using the discount rate of the Updated Prices for Valuation or, if applicable, the discount rate of the Last Updated Prices for Valuation, corresponding to the maturity term of the repo and in accordance with the credit quality of the Counterparty.

Article 96.- The Administrators, in the event that the Price Provider or Custodian, as applicable, do not provide the Risk Factors to calculate the Value at Risk, the Conditional Value at Risk Differential, or the risk measures defined by the Commission or those that must be regulatorily proposed by the Financial Risks Committee and approved by the Governing Body of the Investment Societies, of one or more Investment Assets of the Investment Societies, shall use the Risk Factors of the day prior to that on which the Price Provider or Custodian does not provide said factors, which correspond to the Investment Asset whose Risk Factor was not provided. In this last case, if the Risk Factors were not available for any Investment Asset, the Administrator shall use the methodologies authorized for these purposes by the Financial Risks Committee, which must be documented and formalized. The Administrator shall inform this Commission about said procedures no later than 10 business days after their approval.

Section II

Of the Contingent Valuation Procedures of the Investment Assets that form part of the Asset Managed by the Mandatary

Article 97.- The Financial Risks Committee of the Investment Society shall approve the contingent procedures defined by the Price Providers and the Valuation Societies that they hire to calculate the Updated Prices for Valuation and the Risk Factors of the Investment Assets that form part of the Assets Managed by the Mandatary. Such approval must have the approval of the majority of the Independent Advisors of the Financial Risks Committee.

Likewise, the aforementioned procedures must adhere to the best international practices observed in the market.

The Administrator shall inform this Commission about said procedures no later than 10 business days after their approval.

Section III

Of the Hiring of Valuation Societies

Article 98.- The Administrators that hire a Valuation Society shall establish in the contract that the Valuation Society must have the necessary information exchange systems to deliver daily to the Commission, on behalf of the Administrator that operates each Investment Society, the information for which it has been hired by the Administrators, in accordance with the characteristics established in the General Rules that the Commission establishes for the delivery of information for this purpose.

The contract that the Administrator enters into with the Valuation Society must be ratified by the Governing Body of the Administrator, in the first session following the celebration of said contract.

Article 99.- When the Administrators hire a Valuation Society, they must inform the Commission of this fact, as well as of the services hired, within the 10 business days following the celebration of the contract, and with 20 business days of advance notice before the start of the validity of the respective contract in the event of a change of Valuation Society.

For the purposes of the foregoing, the Administrators must keep available to the Commission a copy of the contract celebrated between the Administrator and the Valuation Societies that provide services applicable to the Assets Managed by the Investment Society or to the Assets Managed by the Mandataries. Likewise, within the 10 business days following the ratification of the contract by the Governing Body of the Administrator, the Administrators must deliver to the Commission a copy of the corresponding agreement, certified by the secretary of said Body, in which the approval of the hiring of the Valuation Society is stated.

For the purposes of carrying out the valuation activities of the investment portfolio of the Asset Managed by Mandataries, the Valuation Societies may provide administrative services for funds known in practice and in the English language as "fund services" for which they are authorized by the authorities that regulate and supervise them. The requirements that apply to the Assets Managed by the Mandataries must be indicated, as part of an annex, in the contract that the Administrator and the Valuation Society celebrate.

Section IV

Of the Valuation of the shares representing the paid-in capital of the Investment Societies

Article 100.- The Valuation Committee, referred to in Article 46 of the Law, may define criteria on the inputs that will be used to value the positions in the Countries Eligible for Investments that are maintained with the Total Asset of the Investment Society.

Article 101.- The Administrators, or in their case the Valuation Societies that they hire for such effect, shall value in national currency the shares representing the paid-in capital of the Investment Societies.

The value of the shares representing the paid-in capital of the Investment Societies must be effected by dividing the book capital by the number of shares in circulation.

Article 102.- The Administrators shall be responsible for verifying that the value of the share on the stock exchange, rounded to millionths, is correctly and daily registered, through an independent third party or any other alternative mechanism provided for in the Securities Market Law, said value being the valid valuation price for that day.

Article 103.- The sale or acquisition that the Investment Societies carry out with respect to the shares representative of their social capital, shall be made at the valid valuation price of the day of the realization of the operation in question.

TITLE VI

OF THE ACCESS TO INTERNATIONAL MARKETS

CHAPTER I

OF THE MECHANISMS OF ACCESS TO INTERNATIONAL MARKETS

Article 104.- Regarding international markets, the Total Asset of the Investment Societies shall only be operated with Financial Intermediaries, or in their case through Real Estate Investment Vehicles, Vehicles, including Mutual Funds among others, or through Financial Service Providers, including Mandataries.

Article 105.- Investment Societies may only enter into contracts with Financial Service Providers and in their case Mandataries that enjoy moral solvency and recognized prestige in the financial markets.

When Investment Societies operate in international markets through Financial Service Providers and in their case Mandataries, they must previously subscribe with them the contract or contracts required for the Financial Service Providers and in their case Mandataries to act on behalf and order of the Investment Society in question.

In the contracts that Investment Societies enter into with Financial Service Providers and in their case Mandataries to carry out operations in international markets, it must be agreed that the Financial Service Providers and in their case Mandataries will keep in separate accounts the investments they make on behalf of the Investment Society, from the investments they make on their own behalf or on behalf of any other third party.

Likewise, in the contracts referred to in this Title, the prohibitions established in Title IV, Chapter III of these Provisions must be included, and in the case of Mandataries, it must be provided that they also adhere to the guidelines approved by the Governing Bodies of the Commission, including the criteria defined by the Risk Analysis Committee, and indicate in the same that in case of non-observance, the contract will be terminated.

Article 106.- The contracts that are celebrated with Financial Service Providers, including Mandataries, to carry out operations in international markets must, at a minimum, meet the following requirements:

I.

Be approved in session by the Investment Committee, with the favorable vote of the majority of the Independent Advisors participating in it, and

II.

Be previously audited by a lawyer of recognized prestige in financial matters who has professional experience of at least five years in said matter, in whose audit it must be expressly mentioned that the referred contract complies with what is provided in the regulations of the Savings Systems for Retirement.

Article 107.- For the celebration of contracts with Mandataries, the Administrator must provide evidence to the Commission that the following requirements are satisfied:

I.

Have a Process of Observation of the Regulatory Controller, in terms of the General Provisions applicable to Regulatory Controllers;

II.

Have the audit of a lawyer of recognized prestige in financial matters referred to in Article 106, fraction II above, in which it is stated that the Mandatary does not have pending investigations for fraud in the jurisdiction where the contract is signed;

III.

Inform the Governing Body of the Administrator;

IV.

Be the result of a selection process known as "Request for Proposal", RFPs, by its acronym in the English language, previously approved by the Investment Committee, with the favorable vote of the majority of the Independent Advisors;

V.

The cost of the investment mandate;

VI.

The maximum percentage of the investment portfolio of the Investment Society that will be managed by the Mandatary;

VII.

The Asset Classes in which the Asset Managed by the Mandatary will be invested;

VIII.

A reference portfolio to evaluate the Mandatary, as well as limits and risk measures of the investment portfolio of the Asset Managed by the Mandatary relative to said portfolio;

IX.

That the contract provides for the obligation to calculate the attribution to risk and performance of the investment portfolio of the Asset Managed by the Mandatary, applying some methodology approved by the Financial Risks Committee. The periodicity of the calculation as well as the horizon must be defined by the Investment Committee;

X.

The investment strategy that the Mandatary will follow, including, without being limiting, the investment horizon, the geographic region, and the Asset Classes that it will invest in;

XI.

That the contract provides for the obligation to have a list of Selected Counterparties based on eligibility criteria to select them determined by the Investment Committee of the Investment Society, and

XII.

The designation of the Mandatary regarding its knowledge of the prohibitions established in Title IV, Chapter III of these Provisions.

The intermediation contract must also comply with the criteria approved by the Risk Analysis Committee and the General Provisions that establish the investment regime to which the Investment Societies must be subject.

Article 108.- The contracts that Investment Societies enter into with Financial Service Providers and in their case with Mandataries, as well as the audits referred to in the previous article, must be available to the Commission at all times. In the event that the contract is written in a language other than Spanish, there must be a translation into the Spanish language carried out by a translator expert authorized by the Federal Judiciary Council.

Likewise, Investment Societies must stipulate in the contracts they enter into with Financial Service Providers and in their case with Mandataries, clauses that provide as a cause for termination of said contracts the non-compliance with the regulations of the Savings Systems for Retirement.

Administrators may hire temporary administrators known in practice and in the English language as "transition managers" to initiate or settle contracts with Mandataries. In the event of termination of the contract, operations already agreed upon but pending execution will continue to be operated until their conclusion.

Article 109.- Investment Societies and in their case Mandataries may operate with the Instruments and Foreign Securities permitted by the Authorized Investment Regime, and in compliance with the General Provisions that establish the investment regime to which the Investment Societies must be subject, these Provisions, and what has been approved by the Risk Analysis Committee, for which, when they acquire a Vehicle or Real Estate Investment Vehicle, they must ensure that the rights it confers to other types of financial assets are permitted by the investment regime.

To comply with the foregoing, Investment Societies must adhere to General Rules that the Commission establishes for this purpose for the delivery of information.

The Administrator may not hire Financial Service Providers, nor Mandataries, for them to make bank deposits on behalf of the Administrator.

Mandatary contracts may provide for the hiring or execution of the investment mandate with subsidiaries or subsidiaries of the Mandatary, provided that the social capital of said subsidiaries or subsidiaries belongs entirely to the Mandatary or to its controlling society, the latter known in practice and in the English language as "holding".

The Mandataries that the Administrator hires on behalf of the Investment Society must inform the Commission, through the Custodian hired by the Administrator for the custody of the Assets Managed by the Mandataries, the composition of the underlying assets subject of the contract between the Mandatary and the Investment Society in accordance with what is provided by the General Rules that the Commission establishes for this purpose for the delivery of information.

In the event that Investment Societies acquire Vehicles or Real Estate Investment Vehicles that, in terms of the corresponding offering prospectus, expressly establish that they replicate underlying assets permitted by the Authorized Investment Regime, the obligation to inform the Commission about the composition of the underlying assets of the Vehicle or Real Estate Investment Vehicle will not be applicable, provided that the Investment Societies in question inform the Commission of the source of information in which the aforementioned requirement is stated. Likewise, in this case, the Investment Societies must keep available to the Commission, the offering prospectus of the Vehicle or Real Estate Investment Vehicle in question.

Article 110.- Administrators must cover the costs that, by reason of advice, administration, management, handling, maintenance, or any other analogous, regardless of the name given to it, are charged by the Financial Service Providers or Independent Service Providers, or that derive from the acquisition of Vehicles, Real Estate Investment Vehicles, or the acquisition or structuring of Structures Linked to Underlyings by the Investment Societies other than Brokerage Costs. Brokerage Costs must be absorbed by the Investment Societies.

The costs charged by the Financial Service Providers or Independent Service Providers, as well as the costs of the Vehicles, Real Estate Investment Vehicles, or Structures Linked to Underlyings, must be known and agreed upon prior to the provision of the service, the acquisition of the Vehicle, the Real Estate Investment Vehicle, Structure Linked to Underlyings, or when they are deducted directly from said Instruments.

Regarding Advisory Costs, said costs must be reimbursed by the Administrator to the Investment Society that incurred them.

For the case of Mandataries, Vehicles, and Real Estate Investment Vehicles, Administrators must cover the excess of costs over the maximums approved by the Risk Analysis Committee.

Article 111.- The Administrator, regarding the commissions it charges, must compensate daily the corresponding amount to the account receivable for this concept, against the Advisory Costs incurred by the Investment Society.

For the purposes of this article, the Administrator or the Investment Society, on the first business day of each month, must settle the difference that arises from the daily compensation between the account receivable for commissions on balance and the account payable for Advisory Costs of the previous month.

CHAPTER II

OF THE VEHICLES

Article 112.- The cost of Vehicles or Real Estate Investment Vehicles that confer, directly or indirectly, rights on the Investment Assets, by reason of advice, management, handling of investments, maintenance, or any other analogous, whatever the name given to it, must be covered by the Administrators. The mentioned costs must be known and agreed upon prior to the acquisition of said Vehicles, and, when deducted directly from said Vehicles, must be reimbursed in their entirety on a daily basis by the Administrator to the Investment Society that acquired them.

Regarding Vehicles, or Real Estate Investment Vehicles that are subject to public offering, listed and traded intraday on stock exchanges of Countries Eligible for Investments, Mutual Funds, as well as intermediation contracts celebrated with Mandataries, the costs will be assimilable to the Investment Society that has invested in them. The investment mechanisms provided for in this paragraph must comply with the criteria determined by the Risk Analysis Committee.

TITLE VII

OF THE CUSTODY

CHAPTER I

OF THE HIRING OF CUSTODY

Article 113.- The Administrators, as well as the Investment Societies, must have only one Custodian for their operations celebrated in international markets with Assets Managed by the Investment Society, which may be the same or a different one from the one they have contracted for their operations in national territory, for which, the compliance with the contents of the General Rules that the Commission establishes for this purpose for the delivery of information must be verified.

Administrators must have one or more Custodians for the operations celebrated in international markets which will focus on the Assets Managed by the Mandataries and may be different from those referred to in the previous paragraph; for the purposes of what is established in this paragraph, the compliance with the contents of the General Rules that the Commission establishes for this purpose for the delivery of information must be verified.

Article 114.- Administrators may only enter into contracts with National Custodians and International Custodians. Said Custodians must comply with the following:

I.

Carry out and supervise the transfer and settlement of Instruments and Foreign Securities, the payment of amortizations, Coupons, principal, and other accessories of the Instruments and Foreign Securities that form part of the investment portfolio of the Investment Societies that operate the Administrator and in their case of the Mandataries;

II.

Carry out the compensation of Instruments and Foreign Securities when the debit and credit accounts are operated by the same Custodian;

III.

Have an absolute separation between their assets and the resources of each of the Investment Societies that operates the Administrator and in their case the resources of the

Investment Societies managed by each of the Mandatories. For the purposes of the foregoing, securities depository institutions must maintain records that allow verifying what is provided in this subsection;

IV.

Meet the requirements established by the Risk Analysis Committee for the selection of Custodians;

V.

Keep a record for each Investment Society operated by the respective Administrator and, if applicable, one for each Investment Society in the name of which each Mandatory operates;

VI.

Be supervised and regulated by authorities belonging to the Countries Eligible for Investments, and

VII.

Carry out operations with Foreign Exchange in the Countries Eligible for Investments and with Counterparties in accordance with the regulation of each country. For such purposes, they must prove that the operations are carried out at market prices and in compliance with the instructions issued by the Administrator or, as applicable, the Mandatory.

For Administrators to operate as Custodians, they must request a no-objection from the Commission; to obtain the no-objection, they must prove compliance with what is provided in this article. The no-objection will be for a period of three years and may be renewed for an equal period, provided that the Administrator proves that it maintains compliance with what is provided in this article and requests renewal six months before its validity expires.

Without prejudice to the foregoing, when any national or international Custodian, acting as a Credit Institution or foreign financial entity authorized for this purpose, receives demand bank deposits of money from any Investment Society, it acquires the status of Counterparty in such operations.

Article 115.- Administrators must pay Custodians directly for the services they provide. In no case may they be paid directly or indirectly by the Investment Societies.

Article 116.- Administrators must verify and check, with respect to the Investment Societies they operate, that as a result of the purchase and sale operations carried out during the day with the shares representing the share capital of the Investment Societies, as well as those carried out with securities and assets forming the investment portfolio of said Societies, when settlement is materialized, the aforementioned securities, titles, and shares are deposited on the same day in a securities depository institution, in accordance with what is established by the Regulation. Likewise, the Administrator must ensure that, if applicable, the Mandatories carry out a verification if the securities they operate have been effectively deposited in a securities depository institution authorized by the applicable regulations, considering the operations carried out with Assets Managed by the Mandatories.

CHAPTER II

OF THE REQUIREMENTS OF THE CONTRACT

Article 117.- In the contracts that Administrators celebrate on behalf of the Investment Societies with national Custodians and international Custodians, the following must be agreed:

I.

That the payment of custody services is made directly by the Administrator;

II.

That the settlement of operations is carried out under the modality known in practice as "delivery against payment" (DVP), in financial markets where such modality exists;

III.

That Administrators must receive from the Custodian contracted to safeguard the investment portfolio of the Assets Managed by the Mandatories information on the operations that said Custodian carries out, as well as their position at closing.

The information that Administrators receive in terms of this subsection must comply with the General Rules established for this purpose by the Commission for the delivery of information;

IV.

The express authorization of the Administrator and the express obligation of the Custodian for the latter to send to the Commission, in accordance with the periodicity defined by the latter, the information they receive in terms of subsections III and VII of this article;

V.

The procedure that Administrators will use to instruct the Custodian, as well as for the latter to confirm the receipt of the instructions issued by the Administrator;

VI.

That the custody services for safeguarding the investment portfolio of the Assets Managed by the Mandatories that the Administrator has contracted must be provided in all countries where Mandatories make investments. Likewise, international custody services for safeguarding the investment portfolio of the Assets Managed by the Investment Society must be provided in all countries where the Investment Societies operated by the contracting Administrator make investments. Without prejudice to the foregoing, Custodians may use sub-custodians that comply with the applicable regulations for Custodians provided in these Provisions;

VII.

The services that the Custodian will provide directly and the services that are provided through third parties.

In the event that the Custodian uses third-party services, the full assumption of responsibility by the latter for what is executed by third parties;

VIII.

If applicable, that the Custodian will provide prices for the valuation of the Assets Managed by the Investment Society in international markets and the corresponding Risk Factors for said assets. Likewise, the Custodian that the Administrator has contracted for the safeguarding of the investment portfolio of the Assets Managed by the Mandatories, if applicable, will provide prices for the valuation of said assets, as well as the corresponding Risk Factors;

IX.

All the requirements that apply to the Assets Managed by the Mandatories must be indicated, as part of an annex, in the contract that the Administrator and the Custodian celebrate, and

X.

The means and manner in which the information required by the Commission will be delivered by the Custodian. It must be indicated that the Administrator will be responsible regarding the delivery of information to the Commission.

The Administrator will be responsible for verifying that the Custodian complies with what is provided in this article.

Article 118.- Contracts that are celebrated with national and international Custodians must:

I.

Be approved by the Investment Committee of each of the Investment Societies to which it will provide services, with the favorable vote of the majority of the Independent Directors participating in it, and

II.

Be previously reviewed by a lawyer of recognized prestige in financial matters with professional experience of at least five years in said matter, in whose report it must expressly mention that the referred contract complies with what is provided in the regulations of the Retirement Savings Systems.

Administrators may only contract Custodians that comply with what is established in subsection IV of the previous article 114.

Article 119.- Contracts that are celebrated with Custodians, as well as the reports referred to in the previous article, must be kept available to the Commission at all times. In the event that the contract is written in a language other than Spanish, a translation into Spanish must be available, performed by a translator authorized by the Federal Judiciary Council.

Investment Societies may not carry out operations in the national or international market with any Custodian that fails to comply with what is provided in the General Provisions establishing the investment regime to which Investment Societies must be subject, issued by the Commission, in the Prudential Rules on risk management, these Provisions, the criteria defined by the Risk Analysis Committee, and the regulations issued for such purposes by the National Banking and Securities Commission or has any pending violation or investigation with the corresponding supervisory authority.

For the purposes of what is established in this article, Administrators on behalf of the Investment Societies must stipulate in the contracts they celebrate with Financial Service Providers or with Mandatories, clauses that provide as a cause for termination of said contracts the non-compliance with the regulations of the Retirement Savings Systems.

In the event of contract termination, operations already agreed upon but pending execution will continue to be operated until their conclusion.

Article 120.- Administrators must notify the Commission, within three business days following the signing of the contract with the Custodian:

I.

The name or corporate name thereof;

II.

Address, telephone, and email;

III.

Start date of the contract, and

IV.

Technical responsible of the Custodian who will send the information.

Article 121.- Investment Societies may not carry out operations in national or international markets until the Commission notifies the Administrator that operates them, that their international Custodian or the securities depository institutions, are connected to the Commission's systems so that it receives daily information from them, and the corresponding tests have been made.

TITLE VIII

OF DERIVATIVE OPERATIONS

Article 122.- Administrators that intend for their Investment Societies, either directly or through Mandatories, to initiate operations with Derivatives authorized by the Bank of Mexico in terms of article 48 subsection IX of the Law, or with the Derivatives and underlyings referred to in Annex M of these Provisions, must previously comply with the following requirements:

I.

Not have obtained from the Commission any unresolved observations regarding the instrumentality of their comprehensive risk management project in terms of the Prudential Rules on risk management issued by the Commission, to which Administrators must be subject with respect to the Investment Societies they operate;

II.

At least one Operator and the Head of the Investments Area, as well as one Executive and the Head of the Risks Area, must be certified by one of the independent third parties designated by the Commission for the operation with Derivatives.

For each of the areas of, regulatory compliance, confirmation, settlement, accounting registration, and generation of financial statements of the Investment Societies, there must be at least one Executive certified by one of the independent third parties designated by the Commission for the operation with Derivatives. The certifications referred to in this subsection will have the validity established in Annex J of these Provisions, and

III.

Have an Integrated Automated System that allows them to measure and evaluate daily the risks arising from Derivative operations, their margin accounts and guarantees, as well as to account for these operations and inform the Operator in the event that the risk level reaches the limits provided for in the investment regime or the Prudential Limits defined by the Financial Risk Committee. These systems must allow access to their information by the UAIR at all times, as well as present the consolidated position of securities and Derivative operations.

Investment Societies may only carry out Derivative operations directly for which they have the no-objection of the Commission, or through Mandatories for which the latter have authorization from the corresponding authorities in the Countries Eligible for Investments.

Article 123.- In the event that the Administrator operating an Investment Society does not have the certifications referred to in subsection II of the previous article 122, the celebration of operations with Derivatives must be suspended, and the Administrator must present for no-objection of the Commission an investment portfolio administration and follow-up program no later than the business day following the occurrence of this event, in which the designation of a new certified Operator or a person in charge of the control and registration of Derivative operations certified is provided.

In the event that the investment portfolio administration and follow-up program is approved by the Commission, operations with Derivatives may be resumed in the terms indicated by said program.

Article 124.- Investment Societies and, as applicable, Mandatories may celebrate operations with Derivatives with the following persons:

I.

Financial Intermediaries authorized in the Derivatives Exchanges referred to in article 126 of these Provisions, or

II.

Financial Intermediaries from the Countries Eligible for Investments, that carry out operations outside a Derivatives Exchange, that hold the credit ratings determined for this purpose by the Commission in the General Provisions establishing the investment regime to which Investment Societies must be subject.

Article 125.- Investment Societies may not carry out Derivative operations on individual Commodities. Without prejudice to the foregoing, Investment Societies may acquire exposure with Derivatives on Commodity indices using authorized mechanisms. Administrators, through Mandatories, may carry out Derivative operations on individual Commodities or on authorized Commodity indices. The operations provided in this article must be subject to the leverage criteria with Derivatives through Mandatories defined by the Risk Analysis Committee.

Article 126.- Operations with Derivatives may only be carried out in Derivatives Exchanges supervised and regulated by authorities of the Countries Eligible for Investments.

Article 127.- Derivative operations that are not carried out in the Derivatives Exchanges mentioned in the previous article must be formalized using master agreements approved by the "International Swaps and Derivatives Association, Inc.", ISDA, by its acronym in English and translated in Spanish as the International Swaps Association, the "International Securities Market Association", ISMA, by its acronym in English and translated in Spanish as the International Securities Market Association, or by other national or international organizations of recognized prestige in the matter that the Commission makes known through its Internet page. Likewise, such master agreements must consider a section or supplement regarding the executives authorized to carry out the indicated operations and keep them updated or inform the Counterparties about the executives authorized to celebrate Derivative operations through the policy that the Investment Committee has defined for such purposes. Administrators must request Counterparties to keep the section or supplement of the executives authorized for the aforementioned operations updated.

Article 128.- Derivative operations carried out both in over-the-counter markets and in Derivatives Exchanges must be documented, and confirmation means must be available, applied no later than the close of the day, for each operation, either individually or aggregating the operations arranged during the day by Counterparty. Such means and confirmation policies must be defined by the Investment Committee, must be described in the Investment Manual, and be kept available to the Commission at all times.

Article 129.- For Derivative operations carried out both in over-the-counter markets and in Derivatives Exchanges, the confirmation area must receive the confirmation from the Counterparty, review it against the Administrator's records, and in case of coincidence, the authorized persons must ratify it to the Counterparty. In case of non-coincidence, in order to maintain the independence of the process, the operation will be reviewed with the Counterparty's confirmation area and against the magnetic and electronic record of the operation.

It must be guaranteed that all arranged operations are captured and reflected in the accounting of the Investment Society.

Article 130.- The Derivative operations referred to in these Provisions may not have as an underlying asset any asset not provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject or another Derivative, except for those assets or Derivatives authorized by the Bank of Mexico for such purposes.

Article 131.- Administrators operating Investment Societies that intend to celebrate the Derivative operations provided in Circular 6/2013 containing the "Rules to which Specialized Retirement Fund Investment Societies must be subject in the realization of derivative operations" issued by the Bank of Mexico in terms of article 48 subsection IX of the Law, must previously prove to the Commission compliance with the requirements provided in these Provisions.

The Commission, after the evaluation it carries out for this purpose and once it has accredited such compliance, will manifest its no-objection for the celebration of Derivative operations provided in the General Provisions establishing the investment regime to which Investment Societies must be subject.

The no-objection to celebrate Derivative operations issued by the Commission will remain valid for a period of three years, and as long as the Administrator continues to comply, during the validity of the certification, with the requirements and procedures established in article 122, subsection III of these Provisions and regarding the logistics for operating with Derivatives provided in article 16, subsection XIII of these Provisions. For the purposes of the renewal of the no-objection provided in this article, Administrators must send the renewal request to the Commission six months before the validity period of the no-objection expires.

In the event that the Commission detects in the exercise of its supervisory powers that the Administrator has ceased to comply with any of the aforementioned requirements and procedures, it must notify it, so that the Administrator in question and, as applicable, the Mandatories suspend all Derivative operations of their Investment Societies.

In the event that the suspension referred to in the previous paragraph is determined, the Investment Society and, as applicable, the Mandatories may not celebrate new Derivative operations, except for the operations necessary to rebalance the portfolio and with respect to operations that were celebrated previously, they must be subject to what is established in these Provisions regarding portfolio rebalancing for failing to comply with the limits established in the Investment Regime Authorized by acquisition or sale of Investment Object Assets, and for the violation of investment limits established for Investment Object Assets due to causes attributable to the Administrator, without understanding the suspension of Derivative operations as a violation of the Investment Regime.

Mandatories may operate with authorized Derivatives and authorized underlyings as long as the Administrator that hires them has the no-objection of the Commission for the Investment Societies they administer to celebrate operations with said Derivatives. For the evaluation that the Commission carries out for the purposes provided in this paragraph, it must consider the reduction in the Administrator's operational risks when employing an eligible Mandatory.

TITLE IX

OF THE OPERATION WITH STRUCTURES LINKED TO UNDERLYINGS

Article 132.- Investment Societies may acquire, as well as create Structures Linked to Underlyings referred to authorized underlying variables.

Only Administrators that have the no-objection of the Commission for the Investment Societies they administer and operate to celebrate operations with Derivatives may create and operate with Structures Linked to Underlyings in which the exposure to the underlying is acquired through a Derivative.

Article 133.- For the purposes of documenting Structures Linked to Underlyings, Administrators must be subject to the General Rules established for this purpose by the Commission for the delivery of information.

Article 134.- Investment Societies must adjust the weightings of Foreign Equity Values of the Structures Linked to Underlyings with Foreign Equity Values acquired directly, when as a consequence of the Exercise of Property Rights associated with the shares that make up Foreign Equity Values, a deviation within the initial weighting of the same that exceeds the Allowed Deviation occurs.

For this purpose, Investment Societies may sell or buy the necessary shares to adjust to the current weighting of the shares that make up the index or Basket of Indices that replicate Foreign Equity Values.

Article 135.- Investment Societies, in the event that they proceed to adjust the weightings of Foreign Equity Values of the Structures Linked to Underlyings that make up the investment portfolio or of the Foreign Equity Values acquired directly, must agree on such act within the business day following the one in which the weighting of the index or Basket of Indices is modified as a consequence of the Exercise of Property Rights, or as applicable, the business day following the one in which the Exercise of Property Rights is publicly announced and as a consequence, a deviation within the initial weighting of the Foreign Equity Values occurs.

For this purpose, Investment Societies must order the purchase or sale of the necessary shares so that the weightings that make up the Foreign Equity Values do not exceed the Allowed Deviation, within a maximum period of four business days counted from the date on which the weighting of the index or Basket of Indices is modified as a consequence of the Exercise of Property Rights.

Article 136.- Investment Societies, in the event that they proceed to adjust the weightings of the Foreign Equity Values that make up a Structure Linked to an Underlying, must

comply with what is stated in the preceding Article 67.

Article 137.- Investment Societies and, where applicable, Mandatories are prohibited from directly or indirectly, or through Financial Service Providers, from doing the following:

I.

Acquiring Investment Assets, Vehicles, or Real Estate Investment Vehicles issued by Financial Entities with which the Administrator operating the Investment Societies has Property Links, and

II.

Acquiring Investment Assets, Vehicles, or Real Estate Investment Vehicles from Financial Intermediaries with which the Administrator operating the Investment Societies has Property Links.

The prohibitions to which the Investment Society must adhere, described in the preceding subsections, shall be applicable even when the investment is made through Mandatories.

Article 138.- Investment Societies and, where applicable, Mandatories may acquire directly or through Financial Service Providers Investment Assets, issued by Financial Entities with which the Administrator operating the Investment Societies has Property Links, solely for the purpose of replicating the indices or Basket of Indices composed of Investment Assets provided for in the General Provisions that establish the investment regime to which Investment Societies must adhere.

TITLE X

ON THE TRADING OF STRUCTURED INSTRUMENTS,

FIBRAS AND BURSÁTILES CERTIFICATES

LINKED TO REAL PROJECTS

Article 139.- Investment Societies must submit to the approval of their Investment Committee the acquisition of Structured Instruments, FIBRAs, and Bursátil Certificates Linked to Real Projects, in accordance with the following:

I.

When they do not belong to an investment program referred to in Article 30, subsection VI, of these Provisions:

A.

For FIBRAs and Bursátil Certificates Linked to Real Projects, the investments area or, where applicable, the risk area must previously conduct an analysis on the characteristics and risks inherent to each instrument to be acquired. The Head of the Investments Area must submit the aforementioned analysis to the Investment Committee considering the following:

i.

The additional information provided for in these Provisions, regarding relevant events provided for in the Securities Market Law that have been made public by the issuer of the instrument, as well as any other information disseminated in the market regarding the instrument;

ii.

The content of the questionnaire referred to in Annex B, Chapter II that allows evaluating the policies defined in the different concepts of FIBRAs or Bursátil Certificates Linked to Real Projects; the analysis must refer to the investment plan and experience of the administrator of the instrument's assets;

iii.

For monitoring purposes, report on the results of the behavior tests referred to in Article 63 of these Provisions that are conducted on FIBRAs or Bursátil Certificates Linked to Real Projects using methodologies that consider the information available as of the date of the tests or, where applicable, Investment Societies may use Generic Instruments to conduct the tests referred to in this subsection;

iv.

The known costs and commissions in favor of the administrator of the structure, the structurer, and other participants in the operation. The analysis must include the return corresponding to the administrator or that one performing analogous functions of the FIBRA or Bursátil Certificate Linked to Real Project;

v.

The source of resources destined for the payment to the holders of the instrument and the payment priority that corresponds to each class of holders;

vi.

The valuation of the FIBRA or Bursátil Certificate Linked to Real Project and its sensitivity to identified risks in accordance with what is provided for in this Article, and

vii.

The information on the quantitative methodology, parameters, and bases on which the analysis has been performed.

The Head of the Investments Area must present to the Investment Committee a general opinion on the convenience of the investment in the FIBRAs or Bursátil Certificates Linked to Real Projects provided for in subsection A of this subsection, prior to the approval of the Investment Committee, as well as express their opinion on the information provided in items ii. and iv. of subsection A of this subsection.

In the event that market prices or Risk Factors are not available to perform the analysis requested in items iii. and vi. of this subsection, Generic Instruments may be used.

The approvals granted by the Investment Committee, for Investment Societies to invest in FIBRAs or Bursátil Certificates Linked to Real Projects, individually, must be agreed upon expressly, have the favorable vote of the majority of the Independent Councilors who are members of said Committee, and be recorded in the Detailed Minutes of the corresponding Investment Committee session in which the analysis described in subsection A of this subsection was presented.

Investment Societies may only acquire FIBRAs or Bursátil Certificates Linked to Real Projects that satisfy the criteria established in the general investment policies for these instruments, approved by the Investment Committee of the Investment Societies. Such policies must cover the aspects referred to in items i. to vii. of subsection A of this subsection and be approved complying with the formalities referred to in the preceding paragraph.

B.

For Structured Instruments, the Head of the Investments Area must submit to the consideration of the Investment Committee the investment proposal in the Structured Instrument in which they intend to invest, considering the following:

i.

The additional information to that required in these Provisions that has been made known to investors by the administrator, as well as the independent valuer of the Structured Instrument;

ii.

The content of the questionnaire referred to in Annex B, Chapter II that allows evaluating the policies defined in the different concepts of Structured Instruments;

iii.

The compliance with the policies defined in Article 30, subsection II, item a), based on the information collected in Annex B, Chapter I of these Provisions applicable to this type of Structured Instruments;

iv.

Each of the assets that in their case integrate the Structured Instrument, in accordance with the investments revealed by the administrator, and regarding the investment plan of the instrument in question;

v.

For monitoring purposes, report on Risk Factors, sensitivities, and scenarios that the administrator or the independent valuer of the instrument in question provides periodically;

vi.

The known costs and commissions in favor of the administrator of the structure and other participants in the operation. Where applicable, the subordination of the payment of commissions applicable to the administrator to the distribution of returns among investors in accordance with what is provided for in Article 30, subsection IX of these Provisions.

Within the analysis, it must be verified the return that corresponds to the administrator of the Structured Instrument;

vii.

Where applicable, if there are capital calls, for monitoring purposes, report on the risk factors associated with the capital call mechanism, in an illustrative but not exhaustive manner, the impact generated on returns, on the business plan, or on the investment schedule due to the non-compliance by investors of the instrument with such calls;

viii.

The management of the instrument's liquidity, in an illustrative but not exhaustive manner, the types of financial assets in which the cash that forms part of the trust's assets may be maintained in accordance with the criteria approved by the Risk Analysis Committee, as well as the destination or administration systems of the cash coming from capital calls, and

ix.

The source of resources destined for the payment to the holders of the Structured Instrument and the payment priority that corresponds to each class of holders.

The Head of the Investments Area must present to the Investment Committee a general opinion on the convenience of the investment in the Structured Instruments, prior to the approval of the Investment Committee, as well as express their opinion on the information collected to satisfy the contents of Article 30, subsection II, item a), numerals i., i bis., ii., iii. and iv. of these Provisions.

The approvals granted by the Investment Committee, for Investment Societies to invest in Structured Instruments, individually, must be agreed upon expressly, have the favorable vote of the majority of the Independent Councilors who are members of said committee, and be recorded in the Detailed Minutes in which the session of the corresponding Investment Committee presented the analysis described in subsection B of this subsection.

Investment Societies may only acquire Structured Instruments that satisfy the criteria established in general investment policies for these instruments approved by the Investment Committee. Such policies must cover the aspects referred to in items i. to ix. of subsection B of this subsection and be approved complying with the formalities referred to in the preceding paragraph.

To comply with the analyses, studies, or investment proposals provided for in this subsection, the Administrator must designate the Investment Committee or the Financial Risk Committee as responsible. In the event that the Administrator defines the Investment Committee, it must:

1.1.

Designate the Official of the investments area responsible for complying with the analyses, studies, or investment proposals provided for in this subsection, and

1.2.

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

II.

The Structured Instruments referred to in item a) of the Second Provision, subsection LI of the General Provisions that establish the investment regime to which Investment Societies must adhere, the FIBRAs, and the Bursátil Certificates Linked to Real Projects may be acquired in accordance with what is provided for in Article 30, subsection VI of these Provisions, through investment programs that must be previously approved by the Investment Committee and that additionally satisfy:

A.

That the program is approved expressly and has the favorable vote of the majority of the Independent Councilors who are members of said Committee and be recorded in the Detailed Minutes of the corresponding session;

B.

The programs must cover the aspects referred to in subsection A of subsection I above, when they include FIBRAs and Bursátil Certificates Linked to Real Projects, or subsection B of subsection I above, when they include the Structured Instruments referred to in item a) of the Second Provision, subsection LI of the General Provisions that establish the investment regime to which Investment Societies must adhere. The aforementioned analyses must be available to the Commission, and

C.

Investments in Structured Instruments referred to in this subsection, FIBRAs, and Bursátil Certificates Linked to Real Projects made through investment programs are not obligated to be presented to the Investment Committees prior to their acquisition. The results of the analyses provided for in subsections A and B of subsection I above must be presented to the Investment Committee in the session immediately following the date of acquisition of the Structured Instrument, FIBRA, or Bursátil Certificate Linked to Real Project.

III.

For subsequent investments in the same Structured Instrument, FIBRA, or Bursátil Certificate Linked to Real Project, subsections I and II of this Article shall not apply, and

IV.

In accordance with Article 30, second-to-last paragraph of these Provisions, the Head of the Investments Area, or whom they designate, must monitor the Structured Instrument, FIBRA, or Bursátil Certificate Linked to Real Project and the assets that in their case integrate it, as well as deliver to the Investment Committee the results of the analysis provided for in subsection A of subsection I of this Article, when it concerns FIBRAs and Bursátil Certificates Linked to Real Projects, or to that provided for in subsection B of subsection I of this Article, when it concerns Structured Instruments. Such analyses must be available to the Commission.

Article 140.- Operators of Investment Societies in charge of the purchase and sale of Structured Instruments, as well as an Official of the UAIR and one of the normative comptroller, must be certified by one of the independent third parties designated for this purpose by the Commission. The certifications referred to in this Article shall have the validity referred to in Annex J of these Provisions.

TITLE XI

ON NON-COMPLIANCE WITH THE INVESTMENT REGIME AND THESE PROVISIONS

Article 141.- To determine compliance with the limits of the investment regime, Investment Societies must use the prices, the Conditional Value at Risk Differential, where applicable, the Value at Risk that are provided by the Price Provider, the Custodian, or the Valuation Society that they have contracted, as appropriate to the type of Investment Asset in question or, where applicable, those determined by the Administrator itself.

For the purpose of computing positions in Currencies that the investment portfolio forming the Total Asset of the Investment Society may hold, it shall be subject to the criteria defined in Annex E of these Provisions.

For the purpose of computing positions in Foreign Securities that the investment portfolio forming the Total Asset of the Investment Society may hold, it shall be subject to the criteria defined in Annex F of these Provisions.

For the purpose of computing limits applicable to Counterparties that the Asset Managed by the Investment Society, or where applicable, the Asset Managed by the Mandatory, must observe, it shall be subject to the criteria defined in Annex G of these Provisions.

For the purpose of computing positions in Derivatives operations on UDIS or where applicable on variables that provide inflationary protection for the investment portfolio forming the Total Asset of the Investment Society, it shall be subject to the criteria defined in Annex H of these Provisions.

For the purpose of computing positions in Commodities of the investment portfolio forming the Total Asset of the Investment Society, it shall be subject to the criteria defined in Annex I of these Provisions.

For the purpose of computing limits applicable to the Asset Managed by the Investment Society regarding the parameter known as Conditional Value at Risk Differential or where applicable, the Value at Risk, it shall be subject to the criteria defined in Annex L of the General Provisions that establish the investment regime to which Investment Societies must adhere.

For the purpose of computing limits applicable to the Total Asset of the Investment Society regarding the maximum limits authorized in investments in Equity Components, FIBRAs, and Real Estate Investment Vehicles, it shall be subject to the criteria defined in Annex N of the General Provisions that establish the investment regime to which Investment Societies must adhere.

For the purpose of computing limits applicable to the investment portfolio of the Asset Managed by the Investment Society regarding the Liquidity Coefficient, it shall be subject to the criteria defined in Annex N of these Provisions.

TITLE XII

ON PORTFOLIO RECOMPOSITION OF SPECIALIZED INVESTMENT SOCIETIES

FOR RETIREMENT FUNDS

Article 142.- When Investment Societies do not cover, or exceed, the limits provided for in the Authorized Investment Regime, or acquire assets not permitted by said regime with the Total Asset of the Investment Society, they must reconstitute their portfolio. Investment Societies must carry out such reconstitution and, where applicable, instruct Mandatories to do so, within a period not exceeding six months.

These Provisions shall be applicable in any of the following events:

I.

When one or more of the Investment Assets that integrate the investment portfolio of the Total Asset of the Investment Society and, where applicable, of the Mandatories, suffer changes in their credit rating and thereby violate the limit by issuer, by Category, or if the new credit rating is lower than that required by the Authorized Investment Regime;

II.

When with the Total Asset of the Investment Society, Investment Assets have been acquired or sold observing the percentages provided for in the Authorized Investment Regime, but due to variations in the price of the Investment Assets that integrate its assets, they do not cover or exceed such percentages;

III.

When due to the change in the composition of the indices or Basket of Indices that were used as a reference to acquire a Foreign Equity Security, the Permitted Deviation in the weighting of the shares of said index or Basket of Indices provided for in the Authorized Investment Regime is exceeded, or when it is not possible to acquire or liquidate the Foreign Equity Security within the timeframes established in these Provisions for the operation with Foreign Equity Securities, for causes not attributable to the Investment Society directly or through Mandatories. In the event that the Investment Society, which performs the replication of Indices provided for in the Authorized Investment Regime, decides to carry out any purchase or sale of shares that make up the replication basket, it will be assumed that the Investment Society has started with portfolio reconstitution and it will have four business days to comply with the Permitted Deviations in the weighting of the shares of said index;

IV.

When due to the change in the composition of the index referred to in subsection II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Societies must adhere for shares of National Issuers, the permitted weighting of the shares referred to in said subsection is exceeded, or when it is not possible to acquire or liquidate the share of National Issuers within the timeframes established in these Provisions for the operation with such instruments, for causes not attributable to the Investment Society. In the event that the Investment Society decides to carry out purchases or sales of these issuers, it will be assumed that it has started with portfolio reconstitution and must comply with the permitted weightings on the same day it carried out the purchases or sales;

V.

When as a consequence of the Exercise of Property Rights associated with the shares that integrate the Foreign Equity Security, an excess in the Permitted Deviation occurs or the Authorized Investment Regime is violated. In the event that the Investment Society, which performs the replication of indices provided for in the Authorized Investment Regime, decides to carry out any purchase or sale of shares that make up the replication basket, it will be assumed that the Investment Society has started with portfolio reconstitution and it will have four business days to comply with the permitted deviations in the weighting of the shares of said index;

VI.

When as a consequence of the Exercise of Property Rights associated with the shares of National Issuers, an excess in the Permitted Deviation occurs or the Authorized Investment Regime is violated. In the event that the Investment Society decides to carry out purchases or sales of these issuers, it will be assumed that it has started with portfolio reconstitution and must comply with the Permitted Deviation on the same day it carried out the purchases or sales;

VII.

When with the Total Asset of the Investment Society, Investment Assets are acquired or sold, violating the limits permitted by the Authorized Investment Regime, or Investment Assets not permitted by the same are acquired, or when it is not possible to acquire or liquidate Foreign Equity Securities within the timeframes established by the Commission for causes attributable to the Investment Society and, where applicable, to the Mandatory. In this case, the Administrator operating the Investment Society in question must cover the daily losses that have occurred from the day the event that gave rise to the non-compliance occurred and until the investment regime is complied with. For such purposes, the Mandatory may apply portfolio reconstitution rules in accordance with the regulation applicable in its country of origin that seek to minimize the magnitude of the loss;

VIII.

When the Conditional Value at Risk Differential or where applicable, the Value at Risk of the investment portfolio of the Asset Managed by the Investment Society, exceeds the maximum provided for in the Authorized Investment Regime and, where applicable, when the Mandatory exceeds the limit applicable to the risk measure relative to the authorized reference portfolio in the corresponding investment mandate contract;

IX.

When the Liquidity Coefficient of the investment portfolio of the Asset Managed by the Investment Society, exceeds the maximum provided for by the Risk Analysis Committee;

X.

When due to regulatory changes, conditions or criteria more restrictive than those previously existing are defined, and

XI.

When as a consequence of capital calls not being covered by other investors of the Structured Instrument that integrates the investment portfolio of the Total Asset of the Investment Society, an excess in the limits for Structured Instruments provided for in these Provisions and in the General Provisions that establish the investment regime to which Investment Societies must adhere occurs.

Article 143.- The Administrator shall provide in the contracts it enters into with Financial Service Providers and Mandatories that non-compliance with the Authorized Investment Regime shall be a cause for rescission.

Non-compliance with the investment regime shall be attributable to the Administrator when the Asset Operator with which the investment regime is not complied with does not satisfy the requirements regarding the certification of Officials provided for in these Provisions, as well as violations of the Authorized Investment Regime caused by failures in the Integrated Automated System or the distinct computer system they have to comply with what is provided for in these Provisions.

Without prejudice to the foregoing, Administrators shall be responsible for the sanctions that may apply when the Authorized Investment Regime is not complied with as a result of the operations carried out by the Mandatories they have hired, or by the operations carried out by the Administrator itself.

CHAPTER I

ON THE PROCEDURE FOR PORTFOLIO RECOMPOSITION

Section I

On the degradation of rating

Article 144.- The Investment Society that has in its investment portfolio Investment Assets subject to credit rating, whose rating or Counterparty Rating in the case of Derivatives, bank deposits, securities lending or repos, degrades subsequent to its acquisition and thereby violates the Authorized Investment Regime, shall proceed as follows:

I. In the event that the respective limits by issuer are violated, it shall refrain from acquiring Investment Assets subject to credit rating of the same issuance, making bank deposits in said institution or entering into new operations with Derivatives, repos or securities lending with that Counterparty in the event that such net operations imply an increase in the Investment Society's exposure to that Counterparty or Issuer;

II. When the Investment Assets subject to credit rating or Counterparty of the Derivative, repo or securities lending are part of another Category as a result of the degradation, exceeding the percentages established in the Authorized Investment Regime, it shall refrain from acquiring such additional Investment Assets of the Category to which said Asset belongs in its credit rating, or entering into new operations with Derivatives, bank deposits, repos or securities lending with Counterparties of said Category unless, such operations, at all times, must be fully guaranteed, and

III. When the credit rating of Investment Assets subject to credit rating or of the Counterparties of the Derivatives, bank deposits, repos or securities lending corresponding to a Category degrades below the minimum allowed in the Authorized Investment Regime, it shall be computed in the minimum Category allowed in said Investment Regime and no more of these operations may be carried out with said Counterparty. Bank deposits in Credit Institutions whose credit rating is lower than the minimum authorized in the General Provisions that establish the investment regime to which Investment Societies must be subject shall not be maintained.

For the case of Mandatories, Investment Societies shall establish in the intermediation contracts in which a mandate is granted to a third party for the acquisition of Investment Assets how Mandatories shall proceed in the event that the events described in this article occur, providing that the investments of the Total Asset of the Investment Society adhere to these Provisions and to the General Provisions that establish the investment regime to which Investment Societies must be subject.

Article 145.- The Head of the Risk Area shall notify the Financial Risk Committee and the Investment Committee, when any of the Investment Assets subject to credit rating, including bank deposits, acquired by the Investment Society, or any Counterparty with which operations with Derivatives, repos or securities lending are held, is in any of the circumstances established in the previous article, on the next business day after that on which the Investment Asset subject to credit rating or Counterparty in question has been subject to a degradation in its credit rating. The Administrator shall provide in the contract it enters into with each Mandatory that this informs it promptly when any event described in this article occurs under the management of the Assets Administered by the Mandatory.

Likewise, it shall notify the Commission each time any Investment Asset subject to credit rating or Counterparty changes its applicable credit rating limit and violates regulatory limits, as a result of a degradation, or when any Investment Asset having a credit rating lower than the minimum permitted is degraded to the level of default, on the next business day after that on which the Investment Asset subject to credit rating or Counterparty in question has been subject to a degradation in its Rating.

Article 146.- The Financial Risk Committee shall present to the Investment Committee in session a study that shall contain the following:

I. The description of the Investment Asset subject to credit rating or Counterparty, as well as the analysis of the situation that originated the credit rating degradation in question;

II. Opinion on the credit quality of the issuer of the Investment Asset subject to credit rating, including bank deposits, or Counterparty of the Derivative, repo or securities lending whose credit rating degraded;

III. The impact on the investment portfolio as a result of the degradation of the issuer or Counterparty of the Derivative, bank deposits, repo or securities lending, and

IV. The analyses described in this article shall be presented in the session immediately following the date of the degradation event, unless this occurs with 3 business days or less in advance of said session, in which case it must be presented in the immediately subsequent session.

The Financial Risk Committee shall include the study referred to in this article in the Detailed Minutes that are drawn up from its corresponding session.

Investment Societies shall stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that the Mandatory shall carry out an analysis of the same nature when what is described in this article occurs and be informed to the Administrator within the timeframe determined in the contract.

Article 147.- The Investment Committee, considering the information contained in the study presented to it by the Financial Risk Committee, may opt for:

I. To conserve the Investment Asset subject to credit rating, unless it concerns bank deposits, or

II. To carry out the recomposition of the portfolio.

The Investment Committee shall include the study referred to in this article in the Detailed Minutes that are drawn up from its corresponding session.

Investment Societies shall stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that Mandatories may opt for the options described in this article. For the purpose of executing what is provided for in this paragraph, the contract may provide that the Mandatory acts promptly and in accordance with the regulation applicable to the Mandatory in its country of origin in order to mitigate the harm to the assets administered by them.

Article 148.- For the Asset Administered by the Investment Society, in the event that the Investment Committee opts for the conservation of the Investment Assets subject to credit rating referred to in fraction I of the previous article, the following shall be done:

I. The Investment Society, through its Investment Committee, shall notify the Commission of the strategy it adopts, within a period not greater than 20 business days counted from the date on which the credit rating degradation in question occurs;

II. The Financial Risk Committee shall update the opinion on the credit quality of the issuer or Counterparty of the Derivative referred to in fraction II of article 146 of these Provisions, quarterly, which it shall present to the Investment Committee with the same periodicity, and

III. The Investment Committee shall follow up on the behavior of the Investment Assets subject to credit rating or of the Counterparty of the Derivative, repo or securities lending whose rating has been degraded and, having the opinion of the Financial Risk Committee, may decide on the modification of the strategy adopted.

In the event that it is decided to modify the strategy adopted by the Investment Society, its Investment Committee shall, if applicable, present a portfolio recomposition program in the terms referred to in the following article. The portfolio recomposition program shall be presented within a period not greater than 20 business days counted from the date on which the change of strategy is agreed.

The actions provided for in fractions II and III of this article shall be executed until the possession in the investment portfolio of the Asset Administered by the Investment Society or the Counterparty whose credit rating has been degraded is maintained, or until its credit rating is reviewed and returns to be within the limits allowed in the Authorized Investment Regime.

For the case of the Asset Administered by the Mandatory, the Administrator shall provide that the Mandatory informs it regarding the policies that said Mandatory applies to the issuers as well as to the Counterparties, within the criteria established in the investment mandate contract, which shall provide for a retrospective report of the policies applied.

Article 149.- For the Asset Administered by the Investment Society, in the event that the option of recomposing the portfolio referred to in article 147 fraction II of these Provisions is taken, the Investment Committee shall record the portfolio recomposition program in the Detailed Minutes that are drawn up from its corresponding session and establish:

I. The Investment Assets that must be alienated, and

II. The timeframe for the recomposition of the portfolio.

Said program shall be notified to the Commission within a period not greater than 20 business days counted from the date on which the degradation of the credit rating that gives rise to it occurs.

For the purpose of executing what is provided for in this article, Investment Societies may provide that in the intermediation contracts in which they grant a mandate to a third party that the Mandatory acts promptly and in accordance with the regulation applicable to the Mandatory in its country of origin in order to mitigate the harm to the assets administered by them. Likewise, the investment mandate contract shall provide for a retrospective report of the policies applied by the Mandatory.

Article 150.- Compliance with the portfolio recomposition program defined in accordance with what is provided for in articles 148 second paragraph and 149 above shall be mandatory for the Investment Society in question.

Investment Societies shall stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that Mandatories shall comply with the portfolio recomposition program in accordance with what is stipulated in the contracts prior to informing the Administrator that hired them.

Section II

On the variations in the prices of the Investment Assets that make up the Asset Administered by the Investment Society and of the violation of investment limits in the Equity Income Components and other Investment Assets due to causes not attributable to the Investment Society

Article 151.- The Investment Society shall proceed in accordance with what is provided for in this Section when any of the following events occur:

I. When the Investment Society does not cover or exceeds in one or several days the limits provided for in the Authorized Investment Regime due to variations in the price of the Investment Assets;

II. When to acquire the Equity Income Component, FIBRA or Real Estate Investment Vehicles, the shares, Vehicles, Real Estate Investment Vehicles or Derivatives that make up, in their case, indices or Basket of Indices are purchased and, due to the valuation of said values, the Permitted Deviation or the weighting of the shares allowed in accordance with the General Provisions that establish the investment regime to which Investment Societies must be subject is exceeded;

III. When to acquire an Equity Income Component, FIBRA or Real Estate Investment Vehicle, or Merchandise, shares, Vehicles, Real Estate Investment Vehicles or Derivatives that make up, in their case, indices or Basket of Indices are purchased and the Permitted Deviation or the weighting of the shares allowed in accordance with the General Provisions that establish the investment regime to which Investment Societies must be subject is exceeded, due to the change in the composition of said index or Basket of Indices;

IV. When to integrate the Equity Income Component through the direct acquisition of shares, the Permitted Deviation or the weighting of the shares allowed in accordance with fraction II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Societies must be subject is exceeded, and

V. When as a result of the Exercise of Patrimonial Rights associated with the shares, Vehicles or Real Estate Investment Vehicles that make up an Equity Income Component, said component exceeds the Permitted Deviation or the weighting of the shares allowed in accordance with fraction II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Societies must be subject.

With respect to what is established in fractions II, III and V above, it shall be considered that an event is not attributable to the Investment Society when:

1.1 It orders the negotiation of purchase or sale of shares, Vehicles or Real Estate Investment Vehicles within a maximum period of four business days, counted from the date on which the Permitted Deviation has been exceeded, or

1.2 The Investment Society complies with the obligations derived from the settlement of the purchase or sale orders of shares, Vehicles or Real Estate Investment Vehicles within a maximum period of four business days counted from the date on which the operation was negotiated and the Counterpart(s) fail(s) in the delivery of the shares, Vehicles or Real Estate Investment Vehicles.

With respect to what is established in fraction IV above, it shall be considered that an event is not attributable to the Investment Society when:

2.1 It orders the negotiation of purchase or sale of shares, Vehicles or Real Estate Investment Vehicles in accordance with the General Provisions that establish the investment regime to which Investment Societies must be subject, as well as the criteria defined by the Risk Analysis Committee for the operation with Foreign Equity Securities and the Permitted Deviation is exceeded because the Counterpart(s) fail(s) in the delivery of some shares necessary to integrate the Foreign Equity Security, or

2.2 Between the date of negotiation of purchase or sale of shares, Vehicles or Real Estate Investment Vehicles and the date of settlement of the referred assets, a variation in their valuation occurs.

Non-compliance with the contracts that Administrators enter into with Mandatories shall not be a cause attributable to the Investment Society when said non-compliance does not contravene the investment regime provided for in the applicable regulations or in the information prospectus.

It shall not be a cause attributable to the Investment Society the non-compliance with the limits for Structured Instruments provided for in these provisions in Annexes T and U, as well as in the General Provisions that establish the investment regime to which Investment Societies must be subject when as a result of capital calls, the investors of the Structured Instrument that integrates the investment portfolio of the Total Asset of the Investment Society do not contribute the requested amount and are subject to punitive dilution.

In the event that the administrator of the Structured Instruments, with the public information available and its own, does not sufficiently diversify the base of investors referred to in Annex U and causes that Investment Societies fail to comply with the limits provided for in the aforementioned Annex U of these provisions and in the General Provisions that establish the investment regime of Investment Societies, it shall not be a cause attributable to the Investment Society.

It shall not be a cause attributable to the Investment Society the non-compliance with the regulations on investments in Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments or Debt Indices of Countries Eligible for Investments, as well as the Vehicles that replicate them, which are audited by independent experts, said audit and the evidence of compliance with the requirements established in the General Provisions that establish the investment regime to which Investment Societies must be subject and the criteria defined by the Risk Analysis Committee, shall be at the disposal of the Commission at all times.

The previous paragraph applies only to Vehicles that replicate Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments or Debt Indices of Countries Eligible for Investments, known in practice as "Exchange Traded Funds" and Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments or Debt Indices of Countries Eligible for Investments that are audited by independent experts.

The independent expert referred to in the previous paragraphs shall comply with the requirements provided for in Annex S of these Provisions and shall be in charge of auditing the compliance with the requirements established in the General Provisions that establish the investment regime to which Investment Societies must be subject and the criteria defined by the Risk Analysis Committee of the Vehicles, as well as the Equity Indices of Countries Eligible for Investments, the Real Estate Indices of Countries Eligible for Investments and the Debt Indices of Countries Eligible for Investments.

Article 152.- The Head of the Risk Area shall notify the Commission in writing, the Financial Risk Committee and the Investment Committee of the events referred to in the circumstances of the previous article 151, on the next business day after that on which any of the established events occur.

Article 153.- For the Asset Administered by the Investment Society, the Financial Risk Committee shall present to the Investment Committee a study that shall contain:

I. The description of the Investment Assets by virtue of which the defect or excess in the limits provided for in the Authorized Investment Regime occurred;

II. The description of the actions in which the Permitted Deviation was exceeded in the weighting of the index or Basket of Indices of reference established in the Authorized Investment Regime to acquire the Equity Income Component, in the event that a change in the composition of the index or Basket of Indices occurs, the new weightings and the deviations of the percentages of each share to the same;

III. The circumstances or causes that originated the deviation with respect to the limits provided for in the Authorized Investment Regime and the Permitted Deviations, and

IV. The elements that allow supporting the decision-making on the convenience of maintaining or not the defect or excess in the Investment Assets due to variations in the prices.

The Financial Risk Committee shall include the study referred to in this article in the Detailed Minutes that are drawn up from its corresponding session.

Article 154.- The Investment Committee, considering the study presented to it by the Financial Risk Committee, may opt for:

I. To maintain the defect or excess in the Investment Assets, or

II. To carry out the recomposition of the portfolio.

The Investment Committee, in all cases, shall draw up Detailed Minutes of the session in which it takes the corresponding decision.

In the event that any of the events established in fractions IV or V of the previous article 151 occur, the Investment Society shall proceed to recompose its portfolio in accordance with this Section, as well as present the corresponding portfolio recomposition program.

Likewise, in the event that the violation is due to the Counterpart(s) failing in the delivery of the shares, Vehicles or Real Estate Investment Vehicles, the Investment Committee shall decide whether to continue carrying out operations with the Counterparty that failed.

For the purpose of executing what is provided for in this article, Investment Societies may provide that in the intermediation contracts in which they grant a mandate to a third party that the Mandatory acts promptly and in accordance with the regulation applicable to the Mandatory in its country of origin in order to mitigate the harm to the assets administered by them. Likewise, the investment mandate contract shall provide for a retrospective report of the policies applied by the Mandatory.

Article 155.- For the Asset Administered by the Investment Society, in the event that it opts to temporarily maintain the defect or excess in the Investment Assets, in accordance with what

established in fraction I of the previous article, must request authorization from the Commission through its Investment Committee to temporarily maintain the defect or excess in said assets, within a period not exceeding 20 business days counted from the day any of the events contemplated in article 151 of these Provisions occurs.

The Commission, provided that no new acquisitions or sales of the Investment Assets causing the defect or excess are carried out, will grant non-objection to temporarily maintain the defect or excess in said assets until the applicable limits are restored.

In any case, the period during which the defect or excess in the Investment Assets constituting the Asset Managed by the Investment Company that gave rise to the non-compliance due to any of the events contemplated in the previous article 151 can be maintained shall not exceed six months counted from when said event occurs.

Article 156.- In the event that the portfolio is chosen to be recomposed in accordance with what is provided in article 154 of these Provisions, the Investment Committee must record in the Detailed Minutes of its corresponding session the portfolio recomposition program, as well as establish at least the following:

I.

The Investment Assets that must be sold or purchased;

II.

In its case, the investment of new resources, and

III.

The deadline for the portfolio recomposition.

The Investment Company, through its Investment Committee, must notify the portfolio recomposition program to the Commission, within a period not exceeding 20 business days counted from the date the deviation with respect to the limits provided for this effect in the investment regime occurs.

Article 157.- Compliance with the portfolio recomposition program defined in accordance with the provisions of the previous article is mandatory for the Investment Company in question.

Article 158.- The Administrator operating the Investment Company in question, in the event that the notification referred to in article 152 is not presented within the deadlines provided for such effect, the request referred to in article 155, or the portfolio recomposition program referred to in article 156, must cover the daily shortfalls that have occurred between the day any of the events contemplated in article 151 that gave rise to the non-compliance occurred and the day the notification, request, or portfolio recomposition program is presented, as the case may be, charged to the special reserve constituted in terms of what is provided by article 28 of the Law and, in the event that this proves insufficient, it must be done charged to its share capital or equity.

In those cases where the Investment Company does not cover or exceeds in one or several days the limits provided in the Authorized Investment Regime due to price variations; and that once the applicable limits are restored, whether it has chosen to maintain the defect or excess in the Investment Assets or has carried out the portfolio recomposition, it may carry out new acquisitions or sales of the Investment Assets in question without the Commission's approval, provided that the Investment Company has adhered to the procedure provided in these Provisions and the respective documentary evidence remains available to the Commission.

Likewise, in the event that the Permitted Deviation is exceeded due to causes attributable to the Investment Company, it must recompose its portfolio in accordance with what is established in the following Section.

Section III

On portfolio recomposition for failing to comply with the limits established in the Authorized Investment Regime due to the acquisition or sale of Investment Assets and for the violation of investment limits that constitute the Total Asset of the Investment Company in the Variable Income Components due to causes attributable to the Investment Company

Article 159.- The Investment Company must recompose the portfolio that constitutes the Total Asset of the Investment Company in accordance with what is provided in this Section when any of the following events occur:

I.

When the Investment Company directly or through Financial Service Providers, including Mandatories, has acquired or sold Investment Assets, failing to comply with the limits provided in the Authorized Investment Regime;

II.

When the Investment Company directly or through Financial Service Providers, including Mandatories has acquired Investment Assets not contemplated in the Authorized Investment Regime, and

III.

For the case of the Asset Managed by the Investment Company, when the period of four business days established by the Commission to form or liquidate the Foreign Variable Income Value is exceeded, failing to comply with the Authorized Investment Regime, the excess being attributable to the Administrator operating the Investment Company.

An event is considered attributable to the Investment Company, unless proven otherwise, when:

a)

The Investment Company does not arrange the purchase and sale of shares, Vehicles, or Real Estate Investment Vehicles necessary to form a Foreign Variable Income Value within the four business days following the date on which the Foreign Variable Income Value should have been formed, or

b)

The Investment Company, having arranged the purchase and sale of shares, Vehicles, or Real Estate Investment Vehicles, due to causes attributable to the Administrator, the agreed settlement of said assets is not carried out within the four business days following the date on which the operation was arranged.

Article 160.- The Head of the Risk Area must notify the Commission in writing, to the Financial Risk Committee and to the Investment Committee, when due to any of the causes established in the previous article, the Authorized Investment Regime has been violated, on the next business day after that on which the violation of said Regime originated or in the case of Assets Managed by a Mandatory on the next business day after having knowledge of the violation.

Article 161.- The Financial Risk Committee must present to the Investment Committee a study that must contain at least the following:

I.

Description of the Investment Assets that constitute the Asset Managed by the Investment Company by virtue of which the Authorized Investment Regime was violated in accordance with the provisions of the previous article, and

II.

Proposal for a portfolio recomposition program that constitutes the Asset Managed by the Investment Company that allows restoring, within a maximum period of six months counted from when the violation originated, the limit provided in the General Provisions that establish the investment regime to which Investment Companies must be subject.

The Financial Risk Committee must include the study referred to in this article in the Detailed Minutes of its corresponding session.

For the case of the Asset Managed by the Mandatory, the Administrator must provide in the intermediation contracts that the Mandatory informs it regarding the study referred to in this article and that said study is informed to the Administrator.

Article 162.- The Investment Committee, considering the study presented by the Financial Risk Committee, will decide the strategy that the Investment Company must follow to recompose its portfolio and for this purpose will define at least the following information:

I.

The Investment Assets that must be sold or purchased;

II.

In its case, the net flows, the new collection that enters or leaves the Investment Company subsequently, and

III.

Its proposal for the deadline for the portfolio recomposition.

The Investment Committee must record the portfolio recomposition program in the Detailed Minutes of the corresponding session.

For the purpose of executing what is provided in this article, Investment Companies may provide that in the intermediation contracts in which they grant a mandate to a third party, the Mandatory acts with timeliness and adherence to the regulation applicable to the Mandatory in its country of origin in order to mitigate damages in the assets managed by them. Likewise, the investment mandate contract must provide for a retrospective report of the policies applied by the Mandatory.

The Investment Company, through its Investment Committee, must send the portfolio recomposition program to the Commission within a period not exceeding five business days counted from the day the violation originated.

The Commission, once it receives the portfolio recomposition program referred to in the previous paragraph, may set the period in which the Investment Company must recompose its portfolio, which may not be greater than six months counted from when the violation originated, prior to the opinion of the Risk Analysis Committee.

Article 163.- Compliance with the portfolio recomposition program is mandatory for the Investment Company in question, when the Commission sets a deadline for the portfolio recomposition.

Article 164.- When the Investment Company in question violates the Authorized Investment Regime directly or through Financial Service Providers due to any of the events contemplated in article 159 of these Provisions and the notification referred to in article 160 of these Provisions is not presented within the deadline provided for such effect, the Administrator operating it will cover the daily shortfalls that have occurred between the day of the violation and the day said notification is presented.

Likewise, in the event that the Investment Company does not send the portfolio recomposition program to the Commission in accordance with what is provided in article 162 of these Provisions within the deadline provided for such effect, the Administrator operating it will cover the daily shortfalls that have occurred between the day of the violation and the day said portfolio recomposition program is presented.

In any case, the Administrator operating the Investment Company in question must cover the shortfalls that occur on the day of the violation, even if the aforementioned notification or recomposition program is presented.

The shortfalls referred to in this article will be covered charged to the special reserve constituted in terms of what is provided by article 28 of the Law and, in the event that this proves insufficient, they must be covered charged to its share capital or equity.

Section IV

On portfolio recomposition for exceeding the limit of the Conditional Value at Risk Differential, Liquidity Coefficient or Value at Risk

Article 165.- Investment Companies that exceed the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk provided in the Authorized Investment Regime, thereby contravening the respective Provisions, must recompose their portfolio in accordance with what is provided in this Section.

Article 166.- The Head of the Risk Area must notify in writing to the Commission and to the Financial Risk and Investment Committees, when the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk of the Investment Company exceeds the maximum provided in the Authorized Investment Regime, on the next business day after that on which said limit was exceeded.

Article 167.- The Financial Risk Committee must propose to the Investment Committee a portfolio recomposition program in which various strategies are recommended that allow restoring the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk of the Investment Company, in accordance with what is provided in the General Provisions that establish the investment regime to which Investment Companies must be subject.

For the purpose of the foregoing, the Financial Risk Committee must analyze the following information:

I.

If the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk was exceeded due to volatility events, in accordance with what is stated in the General Provisions that establish the investment regime to which Investment Companies must be subject, or due to the Investment Strategy;

II.

The worst scenarios corresponding to the confidence level of the Conditional Value at Risk Differential or, in its case, the Value at Risk, of the day on which the excess in the limit of the Conditional Value at Risk Differential or, in its case, the Value at Risk occurred, and

III.

The Conditional Value at Risk Differential or, in its case, the individual Value at Risk of the Investment Assets of the investment portfolio and their marginal contribution to it.

Article 168.- The Financial Risk and Investment Committees must jointly decide the strategy that the Investment Company must adopt to recompose its portfolio.

The portfolio recomposition program must contain at least the following information:

I.

The Investment Assets that must be sold or purchased;

II.

The investment of new resources, and

III.

Its proposal for the deadline for the portfolio recomposition.

Article 169.- In the event of extreme volatility events in the markets, in which to protect the interests of Workers it is convenient to maintain the Investment Strategy determined by the Investment Committee, Investment Companies may present to the Commission a special portfolio recomposition program, in order to be able to have excesses in the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk.

The special portfolio recomposition programs referred to in this article will have a maximum duration of six months counted from their non-objection, being extendable, and must be subject to the criteria established by the Commission.

These programs must be strictly applied by Investment Companies.

The extension referred to in this article may be granted for the same period, as many times as necessary until the portfolio recomposition programs must be maintained.

The excess in the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk occurred under the protection of an authorized and valid special portfolio recomposition program, will not count for the affectation of the special reserve referred to in the last paragraph of article 44 of the Law.

Article 170.- The Investment and Financial Risk Committees must record the portfolio recomposition program in the Detailed Minutes of their corresponding sessions.

The Investment Company, prior to the approval of the Financial Risk Committee, must send to the Commission through its Investment Committee, the portfolio recomposition program, within a period not exceeding 20 business days counted from when the violation originated.

The Commission, once the portfolio recomposition program is received, may set the period in which the Investment Company must recompose its portfolio, which may not be greater than six months counted from when the violation originated, prior to the opinion of the Risk Analysis Committee, except for what is provided in the previous article.

Article 171.- Compliance with the portfolio recomposition program is mandatory for the Investment Company in question, when the Commission sets a deadline for the portfolio recomposition.

Article 172.- When the Investment Company in question violates the limits provided in the Authorized Investment Regime by exceeding the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk and the notification referred to in the previous article 166 is not presented within the deadline provided for such effect, the Administrator operating it will cover the daily shortfalls that have occurred between the day of the violation and the day the notification is presented.

Likewise, in the event that the Investment Company does not send the portfolio recomposition program to the Commission in accordance with what is provided in the previous article 170, within the deadline provided for this effect, the Administrator operating it will cover the daily shortfalls that have occurred between the day of the violation and the day said portfolio recomposition program is presented.

The shortfalls referred to in this article will be covered charged to the special reserve constituted in terms of what is provided by article 28 of the Law and, in the event that this proves insufficient, it must be done charged to its share capital or equity.

Article 173.- In the event that an Investment Company violates the limits provided in the Authorized Investment Regime by exceeding the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk due to causes attributable to it, the daily shortfalls that occur must be covered until it presents the corresponding portfolio recomposition program. In this case, the Investment Company will not have any deadline for the presentation of said program.

The aforementioned shortfalls must be covered charged to the special reserve constituted by the Administrator operating the Investment Company in question in terms of what is provided by article 28 of the Law and, in the event that this proves insufficient, they must be covered charged to the share capital or equity of said Administrator.

It will be understood that an Investment Company violates the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk due to causes attributable to it, when by using the investment portfolio that constitutes the Investment Company on the day of the first violation and the scenarios that were used to calculate the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk of the previous business day, the cited limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk is exceeded.

In the case of repeated and consecutive violations, it will be assumed that an Investment Company violates the limit of Conditional Value at Risk Differential, Liquidity Coefficient or, in its case, Value at Risk due to causes attributable to it on a specific day when the following conditions occur:

I.

A violation of the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk occurred on the previous day, and

II.

By using the investment portfolio that constitutes the Investment Company on the specific day of the violation and the scenarios that were used to calculate the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk of the previous business day, the limit of the Conditional Value at Risk Differential, the Liquidity Coefficient or, in its case, the Value at Risk observed on the previous business day is exceeded.

For the purposes of the above calculations, the Risk Analysis Committee will determine the criteria that must be observed in the case where the Investment Company's portfolio contains assets not contemplated in the scenarios.

Article 174.- In the event that the corresponding portfolio recomposition program is not presented to the Commission, repetition will be understood for the purposes of the sanction, for each day that passes without presenting said program, with the consequent aggravation of the sanction in terms of the Law.

In the event that Mandatories fail to comply with the investment regime, it will be the responsibility of the Administrator to cover the attributable shortfalls generated due to the Mandatories' non-compliance.

TITLE XIII

ON INFORMATION PROSPECTUSES, EXPLANATORY BROCHURES AND THEIR UPDATE

Article 175.- The information prospectuses prepared by Investment Companies must reveal information regarding their object, general investment policies, financial operations to be followed, and Financial Risks of investment portfolios. It must include, in its case, the objectives set by the Administrator when hiring Mandatories and the criteria for choosing them. Within the general investment policies, a general description of the reference portfolio applicable to the investment portfolio of the Total Asset of the Investment Company must be included. Explanatory brochures will be those that address the basic points of the information prospectuses and in which their content is exposed with simple language.

The explanatory brochures, as well as modifications or addenda to these, must be approved by the Governing Body of the Administrator and reviewed at least by the Head of the Risk Area and by the Head of the Investment Area. Likewise, the Administrator must keep available to the Commission evidence that the Regulatory Controller reviewed the content of the explanatory brochures, and that this corresponds to what was approved by the Governing Body of said Administrator.

The information prospectuses, in their case, the modifications or addenda to these that must be presented to the Commission for authorization, must attach the requirements provided in article 177 of these Provisions.

Likewise, the explanatory brochures and, in their case, the modifications or addenda to these, must be available to the Commission at all times.

Article 176.- The information prospectuses and explanatory brochures must be subject to the content provided in Annexes P and Q. Likewise, subject to the General Provisions that establish the investment regime to which Investment Companies must be subject issued by the Commission.

The Commission, when authorizing the information prospectuses of Investment Companies whose exclusive object is the investment of social pension funds, may order that the respective provisions regarding investment policies, liquidity, selection and diversification of assets, information disclosure, be incorporated,

credit quality, market risk, marketability, and potential conflicts of interest that may

materialize to the detriment of the plan beneficiaries.

Article 177.- The draft information prospectus as well as the modifications or addenda thereof that must be presented to the Commission for its authorization under the terms of this Title, shall attach the following:

I.

A document indicating the modifications made and in electronic version, in which each of the changes or additions made to the draft submitted to authorization with respect to the corresponding current version is identified;

II.

The approval of the adjustments to said documents, carried out by the Government Body of the Administrator, through the Detailed Minutes of the session of the Government Body or of a certificate issued by the secretary of said body, which must comply with what is provided in article 29 of the Law. Such Detailed Minutes must have the favorable vote of the Independent Directors and must be sent to the Commission no later than 20 business days after the holding of the session of the Government Body of the Administrator. In the event that the approval referred to in this subsection is not obtained, the Investment Companies must comply with what is provided in article 179, subsection I of these Provisions;

III.

Evidence indicating that the modifications were reviewed by at least the Head of the Investments Area and by the Head of the Risk Area, regarding their content and consistency, and

IV.

Evidence indicating that the Internal Auditor supervised the content and that it corresponds to what was approved by the Government Body of the said Administrator.

Article 178.- Investment Companies must modify the information prospectus and explanatory booklet, or in their case, the addenda thereof, and present them to the Commission, within 65 business days following the entry into force of:

I.

The General Provisions establishing the investment regime to which Investment Companies must be subject;

II.

The commissions authorized for the Investment Company, except when the information prospectus and explanatory booklet are expressly authorized for them, solely with respect to the update of the commission authorized by the Board of Directors, sending a copy of them prior to the entry into force of the authorized commission, and

III.

Any other general provision issued by the Commission that implies modifications to what is established in the information prospectus and explanatory booklet of said Investment Company.

For the modification of the information prospectus and explanatory booklet, or in their case, the addenda thereof, in accordance with what is established in subsections I to III of the preceding paragraphs of this article, the following shall apply:

a)

When the General Provisions establishing the investment regime to which Investment Companies must be subject or another general provision issued by the Commission that implies modifications to what is established in the information prospectus and explanatory booklet of said Investment Company, or the authorized commissions, or the concentration limits defined by the Financial Risk Committee, establish restrictions greater than those previously in force, the Investment Company must observe them even if such restrictions are not provided for in its information prospectus;

b)

When the General Provisions establishing the investment regime to which Investment Companies must be subject establish a new methodology for quantifying financial characteristics of investment portfolios, the Investment Company must observe it. In the event that the methodology provided for in the information prospectus is compatible with the new methodology, both must be observed, and

c)

When the General Provisions establishing the investment regime to which Investment Companies must be subject or another general provision issued by the Commission that implies modifications to what is established in the information prospectus and explanatory booklet of said Investment Company, or the authorized commissions, or the concentration limits defined by the Financial Risk Committee establish restrictions lesser than those previously in force, the Investment Company may not adopt them until they are provided for in its authorized information prospectus.

Article 179.- For the authorization of the information prospectus, as well as the modifications or addenda thereof, Administrators must be subject to the following procedure:

I.

Administrators may submit for authorization with a resolutive condition from the Commission, the information prospectus, or in their case, the modifications or addenda thereof, from the entry into force of what is provided in the previous article of these Provisions, manifesting that in the next session held by the Government Body of the Administrator, they will be submitted for approval by said Body, in accordance with what is established in article 29 subsection III of the Law and article 175 of these Provisions. Once the approval of the Government Body of the Administrator is obtained and they have the favorable vote of the Independent Directors, they must send to the Commission within a term of 20 business days after the holding of the session, the Detailed Minutes or the certificate issued by the secretary of said Body;

In the event that the Commission does not have the Detailed Minutes of the corresponding session or the certificate issued by the secretary of said Body in accordance with the preceding paragraph, the authorization with resolutive condition will become void, so the Administrator must be subject to what is provided in the last information prospectuses authorized by the Commission without resolutive condition. In this case, the Investment Company operated by the Administrator will be subject to the portfolio reconstruction rules provided for in these Provisions;

II.

The Commission will have a term of 40 business days from the receipt of the request for authorization of the information prospectus, or in their case, the modifications or addenda thereof, to authorize it. If after said term, the Commission does not issue authorization nor makes any observation, the documents referred to in this paragraph shall be deemed authorized, and

III.

The information prospectus, or in their case, the modifications or addenda thereof, will not be authorized when the information delivered to the Commission does not comply with the quality and characteristics required in this Title and in Annex P, of these Provisions.

The authorizations of the Commission will be granted solely on the modifications or additions identified in accordance with what is provided in article 177, subsection I of these Provisions, by which any modification or addition not identified will be deemed unauthorized.

In the event that the Investment Company sends to the Commission a request for clarification through which it makes modifications or additional clarifications to the previously sent request, the Commission will have the term provided for in subsection II of the preceding paragraph, computed from the date of delivery of the clarification.

Article 180.- The Administrator must not deliver to the investing public any information prospectus that is not authorized by the Commission.

Article 181.- The authorized information prospectuses, as well as the updated explanatory booklets, must be available at all times to the investing public, in the offices and branches of the Administrator that operates the Investment Company in question or on the Internet page of the Administrator, and must comply with the formats provided for in Annexes P and Q, as applicable, of these Provisions. For the purposes of this article, it will be sufficient for the Administrator to provide the documents in electronic version.

The information prospectuses of Investment Companies whose exclusive purpose is the investment of social security funds must comply with the requirements established in article 47 bis of the Law, except for what is established by subsection VIII of said article. For these Investment Companies the Administrators may observe the contents of the format provided for in Annex P of these Provisions. In the event that they decide not to adhere, the content of the format must be defined by the Investment Committee and described in the corresponding Detailed Minutes; this information must be available to the Commission.

TITLE XIV

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

Article 182.- Workers, whose pension resources are managed by Investment Societies, may choose that the resources be invested in a Basic Investment Society other than the one in which the resources must be invested, in accordance with what is provided in the General Provisions establishing the investment regime to which Investment Companies must be subject.

Regarding Voluntary Savings, Workers may choose that each sub-account or type of contribution that makes up Voluntary Savings be invested in any of the Basic Investment Societies or Additional Investment Societies operated by the Administrator. In this case, the decision that Workers take regarding the investment of each Sub-account or type of contribution will be independent and in no case will it imply that the other resources must be invested in the same manner. The resources that make up Voluntary Savings will not be subject to the rules issued by the Commission regarding the transfer of resources from one Investment Society to another nor to those provided for in the general provisions on operations of the retirement savings systems.

In the event that Workers do not choose the manner in which the resources are invested, such resources must be invested in the Investment Society determined by the Administrator, in accordance with what is established in the information prospectuses of each Investment Society that operates.

TITLE XV

FINAL PROVISIONS

Article 183.- Investment Companies for the sending and receiving of digital documents must be subject to the procedure for the sending of digital documents and notifications by email of the Participants in the Retirement Savings Systems established in the General Provisions on operations of the Retirement Savings Systems.

Article 184.- Administrators must emphasize control and information on investments in securities by the Internal Auditor and by the Officials who by reason of their position or role have access to information on the investments of the resources of the individual accounts; the foregoing, in accordance with what is provided in article 67 of the Law; likewise, they must prohibit the aforementioned persons from being able to use directly or indirectly the reserved information, to obtain for themselves or for others, advantages through the purchase or sale of securities.

Article 185.- In the event that the Administrator, through the Investment Societies it operates, intends to carry out securities lending operations with shares representing the share capital of Credit Institutions, it must previously have the non-objection of the Commission. The non-objection will be for a term of three years and may be renewed for an equal period, provided that the Administrator requests the renewal six months before its validity expires.

TRANSITORY PROVISIONS

ARTICLE FIRST. These General Provisions will enter into force on the next business day following their publication in the Official Journal of the Federation, with the exception of the following:

I.

Investment Committees must update their reference portfolios to the guidelines provided for in article 36 of these provisions within a maximum term of 180 calendar days following the publication of these provisions in the Official Journal of the Federation. Likewise, the Investment Manuals and Manuals of Policies and Procedures for the Administration of Financial Risk must incorporate the corresponding adjustments.

The foregoing, without prejudice to the non-objection they may have regarding the reference portfolio, in accordance with the General Provisions on financial matters of the Retirement Savings Systems, published in the Official Journal of the Federation on January 26, 2018;

II.

For Administrators to operate as Custodians, they must obtain the non-objection of the Commission within a term of 270 calendar days following the publication of these provisions in the Official Journal of the Federation, and request the non-objection of the Commission within a term of 180 calendar days following the publication of these provisions in the Official Journal of the Federation.

Administrators that on the date of entry into force of these Provisions, already operate as Custodians, may continue to operate, without prejudice to the fact that they must obtain the non-objection of the Commission and request the non-objection, in accordance with what is provided in the preceding paragraph;

III.

For the modifications provided for in Annex P of these provisions, for a single occurrence, Investment Companies must modify their information prospectuses, and the Administrators must request the authorization of the Commission, within a term of 180 calendar days following the publication of these provisions in the Official Journal of the Federation, and

IV.

For the modifications provided for in Annex Q of these provisions, for a single occurrence, Investment Companies must modify their explanatory booklets, and must keep them available to the Commission duly updated from 180 calendar days following the publication of these provisions in the Official Journal of the Federation.

ARTICLE SECOND. The "General Provisions on financial matters of the Retirement Savings Systems", published in the Official Journal of the Federation on January 26, 2018, are repealed. Likewise, with the publication of these Provisions, any provision issued by the Commission that is contrary to this regulation is repealed.

ARTICLE THIRD. For the purposes of compliance with what is provided in subsections I to III of the Second Transitory Provision of the General Provisions establishing the investment regime to which Investment Societies must be subject, Administrators must have documented the contents of the referred subsections in the investment manuals and policies and procedures for the administration of financial risk, as well as be part of the Plan of Functions of the Internal Auditor.

For the purposes of compliance with what is provided regarding the special reserves of Investment Companies in the Second Transitory Provision of the General Provisions establishing the patrimonial regime to which Administrators, the Pensionissste and Investment Societies and the special reserve will be subject, Administrators:

I.

Must prove compliance with what is provided in the first paragraph of this article;

II.

Must not have pending observations to be resolved in financial matters made by the Commission for the purpose of verifying compliance with the contents provided in the preceding paragraph for subsections II and III of the Second Transitory Provision of the General Provisions establishing the investment regime to which Investment Societies must be subject, and

III.

Must prove compliance with what is provided in Title II, Chapter II, article 14 and Title III, Chapter IV of these Provisions.

The Commission, in the exercise of its supervisory powers, will determine the terms in which the special reserve must be reconstituted when any of the conditions provided for in this article is not met.

ARTICLE FOURTH. Investment Societies will observe the following diversification criteria until such time as the Commission verifies that the methodologies and measurement elements for additional credit evaluation, beyond that provided by securities rating agencies, referred to in article 3, subsections XIII and XIV of these provisions, have been fully implemented:

a)

Up to 5% of the Total Assets of the Investment Company in Debt Instruments and Foreign Debt Securities that hold the qualifications provided for in Annexes A, F and J of the General Provisions establishing the investment regime to which Investment Societies specialized in retirement funds must be subject;

b)

Up to 3% of the Total Assets of the Investment Company in Debt Instruments that hold the qualifications provided for in Annexes B and G of these General Provisions establishing the investment regime to which Investment Societies specialized in retirement funds must be subject, and

c)

Up to 2% of the Total Assets of the Investment Company in Debt Instruments that hold the qualifications provided for in Annex C of these General Provisions establishing the investment regime to which Investment Societies specialized in retirement funds must be subject.

d)

Up to 1% of the Total Assets of the Investment Company in Debt Instruments that hold the qualifications provided for in Annex D of these General Provisions establishing the investment regime to which Investment Societies specialized in retirement funds must be subject.

For the purposes of computing the value of investments made with each Counterparty or issuer in accordance with this provision, the provisions of the General Provisions establishing the investment regime to which Investment Societies specialized in retirement funds must be subject and Annex G of these provisions will apply.

Mexico City, November 9, 2018. - The President of the National Commission for the Retirement Savings System, Carlos Ramírez Fuentes. - Signature.

ANNEX A

Fixed Scenarios that Count in the Conditional Value at Risk Differential

The scenarios of the following 5 disjoint dates that will remain fixed within the 1000 scenarios used in the computation of the Conditional Value at Risk Differential:

Scenarios

October 22, 2008

February 20, 2009

October 23, 2008

February 23, 2009

October 24, 2008

The Commission will keep updated the list of fixed scenarios that must be considered in the computation of the Conditional Value at Risk Differential, through publication on its Internet page. It will be the responsibility of the Administrators to comply with the criteria approved by the Risk Analysis Committee, as well as to follow up on any updates and publications that occur regarding the list of fixed scenarios that must be considered in the computation of the Conditional Value at Risk Differential.

ANNEX B

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

Chapter I

Elements that must be provided for in the policies defined by the Investment Committees to carry out investments in Structured Instruments, FIBRAS and Certificates Bursátiles Linked to Real Projects

I.

On the eligibility of the administrator of Structured Instruments:

a)

Independence. Determine policies related to the independence of the administration team of the Structured Instrument with respect to the settlors, contributors, originators or operators, of the assets that make up the underlying investment;

b)

Capacities. Define parameters to evaluate the capacities of the administration team of the Structured Instrument based on the status of the businesses of administration of financial resources focused on the operation of funds and fund of funds, concluded and in progress, including those whose purpose is the financing of real projects, among which are private equity funds, seed capital funds, project financing funds, infrastructure and real estate. Such parameters must consider countries, regions and economic sectors in which the investments are planned to be managed. Likewise, it must determine with how many years of experience and amount of managed resources the administration team of the Structured Instrument must have in the elements described in this subsection;

c)

When key officials exist, determine the experience they must have given the tasks that correspond to each of them, and

d)

Integrity of the team. Know and define policies in the event that the administration team of the Structured Instrument, or some of its members, has pending investigations before any of the regulators of the Eligible Countries for Investments due to reasons related to the non-compliance with the financial regulations of the countries in which they operate, frauds by their officials or ex-officials or non-compliance with their fiduciary responsibility.

II.

On the eligibility of the administrator of FIBRAS:

a)

Independence. Determine policies related to the independence of the administration team of the instrument referred to in this subsection with respect to the settlors, contributors, originators and operators of the assets that make up the underlying investment;

b)

Capacities. Define parameters to evaluate the capacities of the administration team of the instrument referred to in this subsection based on the status of the businesses of administration of financial resources focused on the operation of vehicles whose purpose is the financing of real assets or projects, among which are vehicles for financing infrastructure and real estate projects. Such parameters must consider countries, regions and economic sectors in which the investments are planned to be managed. Likewise, it must determine with how many years of experience and amount of managed resources the administration team of the instrument referred to in this subsection must have in the elements described in this subsection;

c)

When key officials exist, determine the experience they must have given the tasks assigned to each, and

d)

Probity of the team. Know and define policies in case the administration team of the instrument referred to in this subsection has pending investigations before any of the regulators of the Countries Eligible for Investments for reasons related to non-compliance with the financial regulations of the countries in which they operate or fraud by their officials or former officials or breach of their fiduciary responsibility.

III.

Regarding the eligibility of the settlor, operator, or in its case, the contributor of real assets or real projects or of receivables rights on the income they generate, of the Real Project-Linked Securities:

a)

Independence. Determine policies related to the independence between the settlor or contributor of the underlying real assets or projects, the operator, and in its case, the appraiser;

b)

Capabilities. Define parameters to evaluate the capabilities of the operator, and in its case, administrator, of the underlying real assets or projects, including experience in the operation and administration of real assets and projects, as well as the sector, region or economic sector in which the investments are to be managed, and

c)

Probity of the team. Know and define policies in case the settlor or contributor, as well as the operator or administrator of the underlying real assets or projects or executives of the aforementioned entities, have pending investigations before any of the regulators of the Countries Eligible for Investments for reasons related to non-compliance with the financial regulations of the countries in which they operate or fraud by their officials or former officials or breach of their fiduciary responsibility.

IV.

Regarding the eligibility of the co-investor of the Fiduciary Investment Project Securities:

a)

For the purposes of calculating investment in the projects financed by the Fiduciary Investment Project Securities referred to in Annex U of these Provisions, eligible co-investors, distinct from Investment Companies, shall be those defined by the Investment Committee pursuant to Article 30, subsection II, numeral i bis of these provisions and that are provided for in the investment prospectus;

b)

In the event that the co-investor is the one who defines the investment thesis, the Investment Committee must verify:

i.

That it is a private equity fund administrator, pension fund, sovereign fund, operating partner or state productive companies, and

ii.

That it demonstrates experience in investments or project development in which the Structured Instrument of which it is a co-investor approves investing.

In the event that the co-investor is a private equity fund administrator or an administrator of an instrument provided for in subsection a) of provision Second, subsection LI of the General Provisions establishing the investment regime to which Investment Companies must be subject, it must comply with what is provided in subsection I of Chapter I and subsection I of Chapter II of this annex.

To demonstrate the experience of the co-investor and the eligibility criteria provided for in this annex, parent, subsidiary or controlling entities (known in English as "holding") of the co-investor may be considered, provided that, in the case of the co-investor's subsidiaries, the share capital belongs entirely to the co-investor and when demonstrated through the controlling entity, it must be shown that at all times the co-investor observes corporate governance, ethics, information disclosure rules, as well as investment analysis procedures and uses information sources for these purposes, approved by the controlling entity.

Chapter II

Elements that must be included in the selection questionnaires for Structured Instruments, FIBRAS and Real Project-Linked Securities

The Investment Committee or the Financial Risk Committee must include in the questionnaire at least the following elements:

The questionnaire must contain the necessary questions to be able to evaluate the satisfaction of the policies provided for in the previous chapter of this Annex. In particular, it must contain questions that allow verifying that the administrator, or in the case of the Real Project-Linked Security, the corresponding figure, has an evaluation of the legal, technical, political and social risks to which the underlying investments of the assets that will make up the Structured Instruments, FIBRAS and Real Project-Linked Securities are exposed.

I.

For Structured Instruments and FIBRAS, the following information about the instrument administrator must be known:

a)

General information about the administration team of the instruments referred to in this subsection: main clients; main investors in previous investment instruments; independence of the administrator with respect to possible contracting Administrators;

b)

Executive team: Biographies of the members of the executive team of the administrator including education, professional experience and current position in the company; brief description of the executive team's competitive advantages; description of the executive team's compensation scheme for the instrument; experience of the administrative team working together; measures of adherence to investment criteria and risks defined and approved by the respective governing bodies; identification of officials, executives and first-level officers and their remuneration policy; mechanisms for disclosing changes in appointments of officials up to the second level of the administrator; criteria of transparency, integrity and confidentiality applied by the administration team; description of the mechanisms to disclose changes in the appointments of first-level officials of the administration team, and in its case, the advisor; criteria for replacement and termination conditions of the administration team, and in its case, the advisor.

c)

Governing bodies: Structure, composition and functions of the governing bodies of the administration team and in its case, the advisor; mechanisms for the formation of committees for the management of the instruments referred to in this subsection; composition and selection criteria of the members of the independent governing bodies and control group; biographies of the members of the governing bodies; powers, description of the strategic decision-making process and veto rights;

d)

Compliance Officer in the company: Name and contact data; description of any actual or potential conflict of interest; information on the existence of any legal proceedings in progress against the company or any member of the executive team; policies for resolving and mitigating conflicts of interest; indicate if any member of the executive team is involved with any company with which there could be a conflict of interest; and the policies for operating with related parties;

e)

External advice: Information on the use of professional consultants related to auditing, taxes, finance, and legal; description of the functions of professional consultants; auditor contact information; information on the existence of any relationship/affiliation of the auditor to any of the instrument's businesses; policies regarding external audits on the situation of resource management and resolution of potential conflicts of interest; information on subcontracting of third parties for risk management;

f)

Information on the Investment Instrument available to investors in terms of the Securities Market Law and the General Provisions applicable to securities issuers and other securities market participants, issued by the National Banking and Securities Commission: Policy to acquire or assume credits; loans or financing charged to the trust; leverage limits, policy on the use of derivative instruments and; in the case of Structured Instruments, the liquidity administration policies must be considered until the resources from capital calls or prefunding are channeled to the underlying investments object of the Structured Instrument;

g)

Administration, operation and monitoring of the instrument: Description of the investment selection process; description of the investment portfolio supervision process; type of reports sent to investors; frequency of instrument information reporting to investors; periodicity of sending detailed information on investments made; description of the administrator's policy regarding meetings between fund officials and possible institutional investors; indicate the diversification policies of investments, by settlor or contributor, by project operator, by economic sector, by geographic regions, by project development stage, among others; infrastructure in systems and models available to the administration team to perform the processing of operations, valuation and risk control; asset valuation policies that make up the trust's equity, including the experience and independence of the independent appraiser, regarding experience, inputs used and rotation policies of the independent expert, specific audit policies for the Structured Instrument or FIBRAS;

h)

For Structured Instruments, evaluation of adherence to international standards issued by the "Institutional Limited Partner Association", ILPA, by its acronym in English and known in Spanish as the Association of Institutional Investors, or other analogous references regarding:

i.

Information disclosure;

ii.

Valuation practices, and

iii.

Analysis of underlying investments and the fund;

i)

Costs and expenses: Estimated issuance expenses; administration commissions; maintenance commission; incentive commission; preferred commission; sales commission; other instrument commissions; additional expenses that the instrument might incur; indicate if they have any shared compensation system with another company, and

j)

The disclosure, mitigation and resolution policies for conflicts of interest of the administrator itself, as well as those applicable to conflicts of interest of other participants in the Structured Instrument or FIBRA of which the Administrator has knowledge. In the case of Structured Instruments, the Administrator must request the administrator's code of ethics.

k)

Policies for investment selection that consider natural disaster risks.

II.

For Real Project-Linked Securities, the following shall be observed:

a)

General information about the settlor, operator, or in its case, the contributor of real assets and real projects or of receivables rights on the income they generate, such as the operation of other real assets or projects, main competitors, independence of the administrator with respect to possible contracting Administrators, among others;

b)

Governing bodies: Structure, composition and functions of the governing bodies of the entities involved in the operation of the underlying assets;

c)

Information on the Real Project-Linked Security: Characteristics of the real assets or real projects or in its case the receivables rights on the income they generate; Risk Factors, including natural disasters; description of the expected performance (ranges) of the instrument; policy on credits, loans or financing charged to the trust; leverage limits, policy on the use of derivative instruments;

d)

Description of any actual or potential conflict of interest; information on the existence of any legal proceedings in progress against the company or any member of the executive team; policies for resolving and mitigating conflicts of interest; indicate if there are potential conflicts of interest; policies for operating with related parties, and

e)

Costs and expenses: Estimated issuance expenses and other additional expenses that the Real Project-Linked Security might incur.

III.

For Fiduciary Investment Project Securities, in addition to what is provided in subsection I of this chapter, which shall be applicable only to the instrument administrator, the following must be known about the co-investor when it defines the investment thesis:

a)

General information about the co-investor of the Fiduciary Investment Project Securities;

b)

Executive team of the co-investor and, in its case, analysis of the co-investor's parent or subsidiary company responsible for approving investment projects;

c)

Description of any actual or potential conflict of interest of the co-investor, its operating subsidiaries or affiliates with respect to the instrument's investments;

d)

Co-investor policies regarding the administration, operation and monitoring of the instrument:

e)

Description of the co-investor's policies regarding:

i.

Information disclosure;

ii.

Valuation practices, and

iii.

Analysis of underlying investments and the fund.

f)

Code of ethics of the co-investor.

In the event that the co-investor is a private equity fund administrator, it must comply with what is provided in subsection I of this chapter, leaving subsections a) to f) of this chapter inapplicable.

ANNEX C

Minimum elements that must be included in the analysis of companies

I.

The Investment Committee must define and approve an Investment Strategy in individual stocks, which considers among other elements the objectives, the investment horizon, the deviation policies, leverage and liquidity.

II.

Have an analysis of fundamental variables that comprises at least the following elements:

a)

General description of the issuing company;

b)

Characteristics of the series in which the Investment Company invests:

i.

Rights and restrictions of holders;

ii.

Liquidity, and

iii.

Markets in which it trades.

c)

Financial ratios to consider:

i.

Solvency;

ii.

Liquidity;

iii.

Leverage, and

iv.

Profitability.

d)

Current and prospective vision of the company considering:

i.

The general performance of the economy;

ii.

The sector to which it belongs;

iii.

The company's comparative advantages;

iv.

Business strategy;

v.

Growth potential, and

vi.

Risks facing the company that could have an impact on valuation and performance.

vii.

Action plans in case of emergencies or natural disasters.

e)

Valuation:

i.

Description of the reasonable valuation methodology employed by the Administrator;

ii.

Assumptions used in said methodology and information inputs, and

iii.

Deviations between market valuation and reasonable valuation.

f)

In the event that the investment is made through Derivatives, it must additionally include:

i.

Market and Counterparty;

ii.

Valuation Methodology, and

iii.

Financial characteristics of the Derivative.

In the event that the Investment Committee, with the approval of the majority of Independent Trustees, defines that any of the elements provided for in this Annex are unnecessary, it must record this in the Detailed Minutes of the session where such policy is approved, for which it must explicitly state the reasons why they consider the elements in question to be unnecessary.

ANNEX D

Currency Classification

Investment Companies may operate with any Currency authorized in this annex, whose quotation markets are regulated and supervised by an authority belonging to a Country Eligible for Investments, considering the common name used in financial markets; likewise, they may only carry out the authorized operations of the Currencies of the Countries Eligible for Investments in accordance with the following three groups:

Group I: Comprises those Currencies authorized to settle permitted instruments, cover exposure to the Currency and take Pure Positions in Currencies. This group is composed of the following currencies:

Group II: Comprises those Currencies authorized only to settle permitted instruments or cover the exposure to the Currency of the underlying, which are listed below.

The elements of this group of Currencies may be evaluated, individually, by the Risk Analysis Committee for the purpose of being considered in the future within Group I or in its case within Group III.

Group III: Comprises the Currencies authorized only to settle permitted instruments or cover the exposure to the Currency, which are listed below.

Country	Currency	Country	Currency
Brazil	Brazilian Real (BRL)	Thailand	Thai Baht (THB)
Colombia	Colombian Peso (COP)	Czech Republic	Czech Koruna (CZK)
Israel	Israeli Shekel (ISL)	Hungary	Hungarian Forint (HUF)
Chile	Chilean Peso (CLP)	Romania	Romanian Leu (RON)
India	Rupee (UNR)	Bulgaria	Bulgarian Lev (BGN)
China	Chinese Renminbi (CNY)	Iceland	Icelandic Króna (ISK)
Peru	Peruvian Nuevo Sol (PEN)	South Africa	South African Rand (ZAR)
Poland	Polish Zloty (PLN)	Malaysia	Ringgit (MYR)
Taiwan	New Taiwan Dollar (TWD)

In the future, some of these Currencies could be transferred to Group II, if market development conditions allow, prior to the opinion and approval of the Risk Analysis Committee.

In the event that there are different nomenclatures for the same Currency and one of them can be classified in a Currency Group different from those provided for in this Annex, it will be classified within the most conservative Group.

The modifications and additions that the Risk Analysis Committee determines to this shall be published on the Commission's Internet page. It shall be the responsibility of the Administrators to comply with the criteria approved by the Risk Analysis Committee and to follow up on any updates and publications that arise regarding the aforementioned modifications and additions.

ANNEX E

Methodology to calculate the Market Value of Currency positions

For the purposes of verifying compliance with the limit applicable to Currency positions established in the General Provisions issued by the Commission, the following shall be considered:

I.

Total Currency Exposure.

The Currency exposure of the Total Asset of the Investment Company, derived from the investment in the Investment Object Assets, both by the Investment Company and its Mandataries, shall be calculated considering the following criteria and formulas:

a)

Independent positions are considered those of the Asset Managed by the Investment Company and those of the Asset Managed by each of the Mandataries. This implies that the positions of the Asset Managed by the Investment Company are not netted with those of the Asset Managed by any Mandatary, nor are the positions of the Assets Managed between Mandataries netted;

b)

For Currency positions of the Asset Managed by the Investment Company:

i.

Long and short positions in the same Currency are netted;

ii.

Long and short positions between different Currencies are not netted, and

iii.

The net Currency position of the Asset Managed by the Investment Company is obtained by summing the net positions in each Currency.

c)

The same mechanism as in subsection b) above applies to the Currency positions of the Asset Managed by each Mandatary individually, and

d)

The net Currency position of the Asset Managed by the Investment Company and those of the Assets Managed by each of the Mandataries, obtained in accordance with subsections a), b) and c) above, are summed to determine the Currency exposure of the Total Asset of the Investment Company.

The above is achieved by summing the absolute value of the Currency exposure of the Asset Managed by the Investment Company and the absolute values of the Currency exposures of the Asset Managed by each Mandatary. Finally, the result of these sums is divided by the Total Asset of the Investment Company. The following formula shows algebraically the previous mechanism:

ANNEX G

Methodology to calculate the market value of operations that must be considered within the Issuer or Counterparty limits

I.

Total Exposure to an Authorized Issuer or Counterparty.

The exposure to an Authorized Issuer or Counterparty of the Total Asset of the Investment Company, derived from the investment in the Investment Object Assets, both by the Investment Company and its Mandataries, shall be calculated considering the following criteria and formulas.

The exposure to an Authorized Issuer or Counterparty of the Total Asset of the Investment Company as a percentage of the Total Asset of the Investment Company must be less than or equal to the limits provided for in the General Provisions establishing the investment regime to which Investment Companies must be subject.

For such purposes, the level of concentration at each Counterparty and Issuer observed in the Total Asset of the Investment Company shall be computed, for which the weighted average of the concentration observed in the operations carried out with the Assets Managed by the Investment Company and the Assets Managed by each Mandatary shall be used. Said average shall be calculated using the Assets Managed by the Investment Company and those corresponding to each Mandatary.

II. Consumption of Issuer or Counterparty limit through the Managed by the Investment Company.

To calculate the market value of the concentration maintained by the Asset Managed by the Investment Company, in securities and operations of the same issuer or Counterparty, the following must be adhered to:

For the purposes of verifying the concentration limits applicable to Counterparties or Issuers established in the General Provisions issued by the Commission, the following shall be considered

market values of transactions with Derivatives executed in over-the-counter markets

with each Counterparty, the market values of repo and Securities Lending transactions,

celebrated with each Counterparty, net of the guarantees received for this purpose, the value of cash deposits

celebrated with each Counterparty, as well as instruments issued by said Counterparty or issuer,

according to the following formula:

Where:

Market value of the operations, authorized in accordance with the rules

applicable to each Investment Company, which must be computed within the limits for

Counterparties or Issuer, denoting the Issuer or Counterparty with the subscript k. This value is

obtained by considering the operations and investments made with the Assets Managed by the

Investment Company.

:

Denotes the total number of issuances in which the Investment Company invests part of the

asset it administers in Structures Linked to Underlyings or Debt Instruments or Foreign

Debt Securities issued by the same issuer or, the total number of operations or

bank deposits that the Investment Company makes with the same Counterparty.

Denotes the total number of Derivative operations that the Investment Company agrees

with the same Counterparty.

: Denotes the total number of operations with the same Counterparty with which the Investment

Company agrees Securities Lending or Repo operations with the Asset Managed by the

Investment Company.

k= Denotes the k-th Counterparty or Issuer.

= The market value of the i-th instrument of the k-th Issuer. Such instruments

can be Debt Instruments, Foreign Debt Securities or bank

deposits.

= The market value of the j-th authorized Derivative operation, executed with

the k-th Counterparty.

= The market value of the p-th Repo or Securities Lending operation,

executed with the k-th Counterparty.

= Total guarantees provided by the k-th Counterparty in operations of

Derivative Financial Instruments.

= Total guarantees provided by the k-th Counterparty in the p-th operation of

Repo or Securities Lending.

Note that for the calculations described in this Annex, the market value

of the corresponding operations will be considered.

The formula will be used to determine compliance with the concentration limits

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

Investment Companies must be subject. For this reason, only the

Investment Assets and the Counterparties corresponding to the credit rating limits

to be evaluated will be considered.

For the case of operations with Local Counterparties that settle in currencies other than the

national currency or the UDI, the credit rating level provided for in the

General Provisions that establish the investment regime to which

Investment Companies must be subject for Foreign Securities and for Foreign Counterparties will apply.

To determine compliance with concentration limits by Counterparty when this

involves more than one credit rating, after having applied the formula

to each level

of rating, the totals of each level will be added to verify compliance with the consolidated limits

provided for in the regulations.

The concentration limits to each Counterparty or Issuer will be expressed as a percentage of the

Asset Managed by the Investment Company. This factor will be one of the terms with which the

weighted average, mentioned in the previous fraction, with which compliance with the concentration limits provided for in the General Provisions

that establish the investment regime to which Investment Companies must be subject will be verified.

III. Consumption of Issuer or Counterparty limit through the Asset Managed by the

Mandatories

To calculate the market value of the concentration maintained by the Asset

Managed by each Mandatory, in values and operations of the same issuer or Counterparty, it

must adhere to the following:

The formula

will be applied to the operations that are carried out with the Asset Managed by

each Mandatory that, where applicable, the Investment Companies contract.

The percentages derived from the computation provided for in the previous paragraph must observe the

limits provided for in the General Provisions that establish the investment regime to which

Investment Companies must be subject.

IV. Consumption of Issuer or Counterparty limit through the Total Asset of the Investment

Company

The amount of concentration in each Counterparty or issuer obtained from the operations with

Assets Managed by each Mandatory will be expressed as a percentage of the Asset Managed

that corresponds to each Mandatory. Each of these percentages will form the elements

to define the weighted average, mentioned in the previous fraction, with which compliance with the concentration limits provided for in the General Provisions

that establish the investment regime to which Investment Companies must be subject will be verified.

ANNEX H

Methodology for calculating the Investment Company's exposure to Investment Assets denominated in Investment Units (UDI) or whose interests guarantee a yield equal to or greater than the UDI or to the National Consumer Price Index

The following criteria will apply for purposes of verifying compliance with the limits referred to the

positions that Investment Companies must maintain Investment Assets that are denominated in Investment Units (UDI) or in those whose interests guarantee a yield equal to or greater than the UDI or to the National Consumer Price Index.

I.

The sum of the positions maintained by the Asset Managed by the Investment

Company plus the positions maintained by the Asset Managed by each of the Mandatories will be considered.

The aforementioned positions will be considered independently, that is, without performing

offsets between the positions maintained with the Asset Managed by each

Mandatory nor with the positions of the Asset Managed by the Investment Company. The computation will

be carried out as follows:

Where:

:

The total percentage of Investment Assets denominated in Investment

Units (UDI) or those whose interests guarantee a yield equal to or greater than the UDI or

to the National Consumer Price Index, with respect to the Total Assets of the Investment

Company.

:

The value of the position of Investment Assets that are denominated in

Investment Units (UDI) or whose interests guarantee a yield equal to or greater than the UDI or

to the National Consumer Price Index that form part of the Asset Managed by the

Investment Company. This value cannot be negative when it comes to the Asset Managed by

Basic Investment Company 1, that is, the Asset Managed by said Investment Company cannot maintain a net short position in the underlyings described in the

present definition. It should be noted that to determine the exposure of the Asset Managed by the

Investment Company in question, to the underlyings referred to in this definition, the

short and long positions will be netted.

: The value of the position of Investment Assets that are denominated in

Investment Units (UDI) or whose interests guarantee a yield equal to or greater than the UDI or

to the National Consumer Price Index that form part of the Asset Managed by the

i-th Mandatory contracted by the Investment Company. This value cannot be negative

when it comes to the Asset Managed by Basic Investment Company 1, that is, the Asset

Managed by the i-th Mandatory on behalf of said Investment Company cannot

maintain a net short position in the underlyings described in the present definition. It should

be noted that to determine the exposure of the Asset Managed by the i-th Mandatory to

the underlyings referred to in this definition, the short and long positions will be netted.

:

Is the total number of Mandatories that the Investment Company has contracted.

:

Total Asset of the Investment Company.

II.

For the values and

for the market value of the Investment Assets other than Derivatives must be computed directly; while for the case of

Derivatives, the following criteria must be observed:

a)

For Derivative instruments known in practice as call, future, and forward, whose

underlying is denominated in UDIs or whose interests guarantee a yield equal to or greater than

the UDI or to the National Consumer Price Index, their market value will be added when the

position in the Derivative Instruments described above is long, and subtracted when it is short;

b)

For the Derivative instrument known as put whose underlying is denominated in UDIs or

whose interests guarantee a yield equal to or greater than the UDI or to the

National Consumer Price Index, the market value will be added when the position is short and subtracted when the

position is long;

c)

For Derivative instruments known as swaps that have at least one underlying

that is denominated in UDIs or whose interests guarantee a yield equal to or greater than the UDI

or to the National Consumer Price Index, they will be computed according to the following:

i.

If in the operation one is in a long position with respect to a rate linked to a notional

amount denominated in Investment Units, with respect to instruments referenced to

Investment Units, or with respect to instruments referenced to the National Consumer

Price Index, their market value will be added, and

ii.

If in the operation one is in a short position with respect to a rate linked to a notional

amount denominated in Investment Units, with respect to instruments referenced to Investment Units, or with respect to instruments referenced to the National Consumer Price Index, their market value will be subtracted.

ANNEX I

Methodology for calculating exposure to Commodities

Exposure to Commodities must be calculated through the following authorized investment

instruments: Structures Linked to Underlyings, Vehicles, Debt Instruments backed by

Commodities, as well as Derivatives, through the procedure described in this Annex. Structured Instruments linked to Commodities will not count for purposes of this Annex.

For purposes of this Annex, Structures Linked to Underlyings refer to Debt Instruments or Foreign Debt Securities whose returns are linked to Commodities. For the computation of

the exposure referred to in this Annex, the debt component of the

Structures Linked to Underlyings whose underlyings are Commodities will not be considered.

I.

Exposure to Commodities through authorized investment mechanisms:

To determine the exposure to Commodities of the Asset Managed by the Investment Company, and, where applicable, of the Asset Managed by the Mandatories it has contracted, the 'Deltas' of all

authorized investment mechanisms referred to Commodities directly or through the

Vehicles containing them will be used.

The 'Delta' will be:

a)

In the case of Vehicles that confer rights on Commodities, Debt Instruments and

Foreign Securities, as well as futures, forwards, and swaps referred to such underlyings, equal to one, and

b)

In the case of option contracts, they will be calculated by the Price Provider that the

Investment Company has contracted. Such Delta will be calculated per contract unit and assuming a long position.

The amount exposed to each Commodity "i" that forms part of the investment portfolio through the

authorized investment mechanisms j, will be calculated as follows:

b)

In the case of any investment mechanism other than Derivatives: the

number of titles of the authorized investment mechanism j that contain the

Commodity i-th will be used.

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

sign.

: Is the Market Value of each investment instrument, which will be:

a)

In the case of Derivatives: the closing points of the underlying or underlying index

of the Derivative, multiplied by the weighter or relative weight associated with the i-th

Commodity, and

b)

In the case of any investment mechanism other than Derivatives: it is the Market

Value of the authorized investment mechanism "j" that contains the Commodity

i-th multiplied by the weighter or relative weight associated with the i-th Commodity

within each mechanism.

In the case that the exposure amount

is denominated in Foreign Currency, it must be converted into national currency using the exchange rate to value

operations with Foreign Currency.

The foregoing applies to the Assets Managed by the Investment Company and the corresponding Assets Managed by each Mandatory that, where applicable,

the Investment Company has contracted.

II. Exposure to a Commodity of the Asset Managed by the Investment Company or, where applicable, of the Asset Managed by each Mandatory that it has contracted:

The portfolio's exposure to Commodities due to the authorized investment mechanisms will be calculated

as follows:

a) The amount exposed in absolute terms in the i-th Commodity in the portfolio is calculated by summing

over all exposed amounts of the authorized investment mechanisms that are referenced to the

same i-th Commodity and obtaining the absolute value of said sum. This implies that it offsets

between exposures on the same Commodity to which the Asset Managed by the

Investment Company is exposed. Similarly, the exposure corresponding to the Asset Managed by each

Mandatory is calculated. The positions of the Asset Managed by the Investment Company and the

positions of the Asset Managed by each Mandatory are not offset.

Where:

Is the amount exposed, in absolute value, to the i-th Commodity of the Asset

Managed by the Investment Company or, where applicable, of the Asset

Managed by the Mandatory in question. Formula (I2) shows

that exposures to the same commodity are netted in the Asset

Managed by the Investment Company or, where applicable, the Asset

Managed by the Mandatory in question.

Is the amount exposed in the i-th Commodity due to the mechanism of

authorized investment "j" that form the Asset Managed by the

Investment Company or, where applicable, that form the Asset Managed

by the Mandatory in question.

ANNEX J

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

Companies

The validity of the certifications referred to in these Provisions must comply with what is

established in the following scheme:

1. General certification in financial matters.

Certification / Area

Investments

Risks

Comptroller

Regulatory

Confirmation,

Settlement,

Allocation, and

Accounting

Validity: 2 years

Generic certification in investment matters (Published on the

Commission's website)

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 1

Financial Risk Manager

(FRM-GARP) Level 1

Professional Risk Manager

(PRM-PRMIA) 2 Exams

Associate of the Society of Actuaries

(ASA) 3 Exams

Validity: 4 years

Chartered Financial Analyst (CFA) Level

2

Professional Risk Manager

(PRM-PRMIA) 3 Exams

Associate of the Society of Actuaries

(ASA)

Validity: Permanent for completed certifications

Chartered Financial Analyst (CFA)

Financial Risk Manager

(FRM-GARP)

n.a.

Professional Risk Manager

(PRM-PRMIA)

n.a.

Fellow of the Society of Actuaries (FSA): Specialization in Quantitative

Finance and Investment (QFI)

n.a.

Claritas Investment Certificate (administered

by CFA Institute)

n.a.

n.a.

2. Certification for Derivatives operations

Certification / Area

Investments

Risks

Comptroller

Regulatory

Confirmation,

Settlement,

Allocation, and

Accounting

Validity: 3 years

Derivatives Certification (Published

on the Commission's website)

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 1

Financial Risk Manager

(FRM-GARP) Level 1

Professional Risk Manager

(PRM-PRMIA) 2 Exams

Associate of the Society of Actuaries

(ASA)

3 Exams

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 2

Professional Risk Manager

(PRM-PRMIA) 3 Exams

Associate of the Society of Actuaries

(ASA)

Validity: Permanent for completed certifications

Chartered Financial Analyst (CFA)

Financial Risk Manager

(FRM-GARP)

n.a.

Fellow of the Society of Actuaries (FSA): Specialization in Quantitative

Finance and Investment (QFI)

n.a.

3. Certification of Officials for Structured Instruments

Certification / Area

Investments

Risks

Comptroller

Regulatory

Confirmation,

Settlement,

Allocation, and

Accounting

Validity: 3 years

Certification in Structured

Instruments (Published on the website

of the Commission)

Not required

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 1

Not required

Chartered Alternative Investment

Analyst (CAIA) Level 1

Not required

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 2

Not required

Validity: Permanent for completed certifications

Chartered Financial Analyst (CFA)

Not required

Chartered Alternative Investment

Analyst (CAIA)

n.a

Not required

In all the above cases, the validity of the certifications will count from the date on which the

Official obtains the certification, until the end of the period contemplated in the scheme contained in the

present Annex. This is regardless of the Administrator to which the Official is assigned.

The exams and certifications referred to in the tables above count simultaneously for the

activities provided for in said tables; in case the official has two or more valid certifications,

the validity of the one that contemplates the longest period will be taken into account.

ANNEX K

Disclosure of reference portfolios and the deviation policy with the investment portfolio

For purposes of revealing the general characteristics of the reference portfolios applicable to the portfolio

of the Total Asset of the Investment Company, Administrators may publish on their website the following elements:

Reference Portfolio

%

Fixed Income

Equity

Others

Total

The Assets Managed by the Mandatories may be excluded for what is provided for in this annex.

Likewise, regarding the information on the deviation policy authorized by the Investment Committee

of the corresponding Investment Company, the Administrator may disclose the following elements:

Tracking Error Limit

Siefore

Basis

points

ANNEX L

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

online registration of Investment Assets of the Automated Integrated System must meet

The Automated Integrated System referred to in this Annex must allow the Administrator to comply with the following procedures, among others:

I.

Keep a historical record of the acquisition, alienation, repo, and securities lending operations of each

Investment Company, by number of titles, series, value, settlement term,

identifier, folio number, negotiation prices, negotiation rates, means of

negotiation, Counterparties, nominal values, underlyings, market types, date, time, and

transaction operator and other criteria determined by the Investment Committee;

II.

Keep a historical record of the position of each Investment Company, by number of titles,

series, value, identifier, folio number, issuers, nominal values, market values, Equivalent Delta Value for positions in Derivatives, underlyings, and other criteria determined by the

Investment Committee;

III.

Keep a record of exposure by Asset Class and by instrument as a percentage of the Total Asset

of the Investment Company;

IV.

Establish security mechanisms and passwords at different levels for the joint

authorization of:

a)

The allocation of operations, and

b)

Operations that trigger any excess in the Prudential Limits;

V.

Have Early Warning Alarms parameterized online to anticipate possible excesses in regulatory

limits and Prudential Limits. These alarms may come from the Automated Integrated

System in the risk management activity;

VI.

Identify pending operations to be assigned and operations that underwent changes in the

negotiated terms, identifying the reason for such changes;

VII.

Generate the following daily and historical reports:

a)

Report of the acquisition, alienation, repo, and securities lending operations of each

Investment Company, which may include the concepts related in the previous fraction I,

at the beginning or at the end of the day of operation, but observing consistency in the generation of

such information;

b)

Report of the position in each of the Investment Assets, which may include the

concepts related in the previous fraction II, at the beginning or at the end of the day of operation,

but observing consistency in the generation of such information;

c)

Report of available cash at the beginning or at the end of the day of operation, but observing

consistency in the generation of such information. This report must include all expected flows, specifying which of these are known flows and which are estimated, disaggregated by type of Foreign Currency;

d)

Compliance report for each of the regulatory limits and Prudential Limits detailing the level of consumption relative to the reference that the Risk Committee itself

defines, such as Net Asset, regulatory limit, and Prudential Limit;

e)

Report of total exposure in Fixed Income Instruments and Foreign Fixed Income Securities in accordance with the exposure measure provided for in Annex N of the

General Provisions that establish the investment regime to which

Investment Companies must be subject. These reports must be able to be disaggregated by stock index, type of instrument or Vehicle, Eligible Country for Investments and Foreign Currency;

f)

Report of Derivative positions expressed in notionals, market values, and exposure

in Derivative positions in equity and Commodities, the latter in accordance with the

present Provisions and the General Provisions that establish the investment regime of

investment to which Investment Societies must adhere and the Equivalent Delta Value for the rest of the Derivatives positions, identifying the main characteristics, such as Asset Class of the underlying, Counterparty, type of market;

g)

Collateral report, at market value and applying the discount, known in practice and in the English language as 'haircut', received and delivered disaggregated by Counterparty including clearing houses, by type of operation that gave rise to them, such as repo, securities lending, and Derivatives;

h)

Exposure report by issuer or Counterparty that includes the different types of Asset Classes, the credit ratings provided by securities rating agencies, as well as the additional credit assessment;

i)

Report of breaches of regulatory limits and Prudential Limits;

j)

Report of assigned and pending assignment operations, and

k)

Report for the General Manager of the Administrator with a summary of the most important aspects of daily operations. The daily report may contain only the aspects that the General Manager determines, from among those provided in this Annex, for which the Investment Committee must take note and this definition by the General Manager must be recorded in the Detailed Minutes of the Investment Committee of the corresponding Investment Society.

VIII.

Have the capacity to restrict access by users and profiles. Security policies for access must be documented and subject to audit;

ANNEX M

On Operations with Derivatives on Derivatives

In accordance with articles 2, fractions XXX, XXXI and XXXII, and 122 of these Provisions, as well as the General Provisions establishing the investment regime to which Investment Societies must adhere, and Circular 6/2013, The Rules to which specialized investment societies for retirement funds must adhere in carrying out derivative operations, the latter issued by the Bank of Mexico, it is established that Investment Societies may carry out the following permitted operations:

Permitted derivative operations and underlyings:

I.

Future Operations on Interest Rate Swap Contracts. The Currencies will be only from Group 1 defined by the Risk Analysis Committee and in accordance with Annex D of these Provisions;

II.

Option Operations on Future Operations on Stock Indices, and interest rates in different Currencies. The Currencies will be only from Group 1 defined by the Risk Analysis Committee and in accordance with Annex D of these Provisions, and

III.

Option Operations on Interest Rate Swap Contracts. The Currencies will be only from Group 1 defined by the Risk Analysis Committee and in accordance with Annex D of these Provisions.

Administrators may carry out the operations listed above provided they meet at least the requirements described below:

I.

Have the non-objection of the Commission to celebrate operations with the Derivatives and underlyings described in this Annex;

II.

Have policies and procedures authorized by their Committees to carry out these operations, including reports for the members of their Committees;

III.

Have the capacity to value this type of operation through their own Integrated Automated System and independently of the Price Provider;

IV.

Have Prudential Limits regarding this type of operation;

V.

Analyze through their own Integrated Automated System the effect of incorporating these operations, and

VI.

The Derivative Operator must be certified by one of the independent third parties designated for this purpose by the Commission.

ANNEX N

Methodology to calculate the Liquidity Coefficient

Investment Societies must comply daily with the following level of Liquidity Coefficient

The numerator of the liquidity coefficient "PID" corresponds to the value of the Provision for exposure in Derivative Instruments and the denominator "AAC" corresponds to the value of High-Quality Assets.

In particular, the numerator of the CL coefficient is defined as follows and all summands must be in the same Currency:

Where:

represents the market value of the n-th OTC derivatives operation, which lacks a collateral management agreement also known as "Credit Support Annex" (CSA), and which is permitted within the m-th Master Contract approved by the "International Swaps and Derivatives Association, Inc.", ISDA, by its acronym in the English language and translated into Spanish as the International Association of Swap Agents or its equivalent (hereinafter the "contract" in this Annex) for OTC derivatives operation (each counterparty may maintain only one OTC derivatives contract with the Investment Society in question or have more than one and therefore consider the contracts and not the counterparties). It should be noted that this sum allows netting the debtor and creditor positions of the Investment Society, provided for in the same contract. The net balance of a contract that is computed is non-positive. Netting balances between different contracts is not allowed.

represents the market value of the n-th OTC derivative with CSA, for the m-th OTC derivatives contract with CSA.

represents the value of the collateral delivered under the m-th derivatives contract with CSA.

It should be noted that in the second sum, netting of the debtor positions, the creditor positions, and the collateral delivered by the Investment Society, resulting from OTC derivatives operations with CSA provided for in the same contract, is allowed. The net balance of a contract that is computed is non-positive. Netting balances between different contracts is not allowed.

represents the market value of the n-th listed derivative, for the m-th clearing member in the respective listed market.

represents the value of the collateral delivered under the m-th listed derivatives contract (clearing member of said market).

It should be noted that in the third sum, netting of the debtor positions, the creditor positions, and the collateral delivered by the Investment Society, resulting from listed derivatives operations in the same market carried out with the same clearing member, is allowed. The net balance of a contract that is computed is non-positive. Netting balances between different contracts is not allowed.

represents the Conditional Value at Risk (calculated in accordance with the Provisions issued by the Commission) of all operations carried out with the m-th counterparty, when in said operations the margin calls are allowed to be netted regardless of the underlying or other characteristics of the derivatives.

represents the Conditional Value at Risk (calculated in accordance with the Provisions issued by the Commission) of the n-th derivative with the m-th counterparty, when in said operations the margin calls are not allowed to be netted.

The discount, known in practice and in the English language as "haircut", regarding the market valuation, to all national government securities both of real and nominal rate as well as Government Securities of the governments of Countries Eligible for Investments, both of real and nominal rate, which have a credit rating of at least AA+ or its equivalent, defined according to the following table, is included in the weights of the previous formula:

Maturity

Discount or

haircut

Less than or equal to 1 year

No discount

Issued by the federal government and with

maturity greater than 1 year

10%

Issued by governments of eligible countries

and with maturity greater than 1 year

15%

Understanding High-Quality Assets (AAC) to be the following:

I.

Debt Instruments issued or guaranteed by the Federal Government and those issued by the Bank of Mexico;

II.

Foreign Debt Securities issued by governments of Countries Eligible for Investments that have a credit rating of at least equivalent to AA+ on a global scale according to Standard & Poor's Ratings, or in its case, to the equivalent scales of the other securities rating agencies recognized in the General Provisions establishing the investment regime to which Investment Societies must adhere;

III.

Cash deposits in banks, custodians, or trading partners in the currency in question;

IV.

Amounts of repo operations with a maturity of one day (currently only counts for the liquidity requirement in national currency, according to what is provided in the Law on this type of operation);

V.

Excess Initial Minimum Contributions (known by the acronym AIMS), and

VI.

Assets that are already in collateral are not allowed, for example cash deposits with clearing members or Debt Instruments or Foreign Debt Securities that are committed (explicitly or implicitly) as collateral or credit enhancement in any transaction.

Administrators may demonstrate that they have liquidity policies not provided for in this Annex, for which the relevance of considering them within the calculation of the Liquidity Coefficient will be evaluated.

ANNEX O

Valuation criteria to be used to determine the amount of impairment of assets with which the Investment Regime is breached

Based on the valuation policies adopted by Price Providers, to determine the amount of impairment of the assets with which the investment regime is breached, the following valuation prices will be used:

I.

For the case of the maximum investment limits provided for in these Provisions, the transaction prices of the operations carried out with the asset or assets with which the investment regime is breached and the closing prices of said assets on the date of breach will be used. In this case, the impairment of each asset will be calculated as the difference, when it is positive, between the transaction price of the asset in question minus the price of said asset at the close of the day on which the investment regime is breached.

For the case of minimum limits, the impairment will be calculated based on the difference, when it is positive, of the closing price minus the acquisition price, or in its case the valuation price of the previous day.

II.

The exchange rates of the currency operations carried out by the Investment Society, which in its case are associated with the transaction of the asset that breaches the Investment Regime and the Exchange Rate determined on the date the Investment Regime is breached. When the exchange rates of the currency operations carried out that are associated with the transaction of the asset that breaches the Investment Regime are not available, the Exchange Rate corresponding to the date of calculation of the impairment will be used.

The clean prices of the negotiated instruments, with which the investment regime is breached, or in its case to determine the impairment of the fund, of the assets that make up the portfolio of the Investment Society.

The Administrator must compensate for the impairments attributable to it, which affect the Total Asset of the Investment Societies it operates, for breaches of the investment regime through the Asset Managed by the Investment Societies, the Asset Managed by Mandatories, or a combination of the aforementioned.

In the case of impairments attributable to violations of the investment regime through the management of the Asset Managed by a Mandatory, the Commission will determine the amount to be compensated based on the information from the Price Provider contracted to value said investment portfolio.

The Administrator must contractually provide that the Price Provider facilitates the necessary information to the Commission to determine the amount to be compensated for impairments attributable to the Administrator, which may consist of information with different periodicity and detail than those that the Commission may have established in the General Rules established for this purpose by the Commission for the delivery of information.

ANNEX P

Prospectus Information Model

PROSPECTUS INFORMATION

SIEFORE, S.A. de C.V.

Specialized Investment Society for

Retirement Funds

I. General Data

---

General information of the Administrator and the corresponding SIEFORE will be indicated as follows in no more than 10 lines.

1. Corporate Name (Administrator and SIEFORE)

1.1 Type of Investment Society

1.2 Type of Worker who may invest in the Investment Society

1.3 Date and Number of Authorization (Administrator and SIEFORE) ___ of ___________ of ______ through letter number ______________ of the National Commission for the Retirement Savings System.

1.4. Patrimonial Links and Related Societies Among Themselves of the Administrator.

The Patrimonial Links and Related Societies Among Themselves of the Administrator operating the Investment Society must be identified in accordance with the General Provisions establishing the investment regime to which specialized investment societies for retirement funds must adhere, issued by the Commission.

1.5. Disclose whether the Administrator carries out investments and risk management in accordance with environmental, social, and corporate governance principles (ESG by its acronym in the English language) and briefly explain the objective of applying said principles.

II. Investment Policies

---

(Maximum 200 words).

ii.

Include a table indicating the types of Derivatives that

will be operated, the type of underlying, and, in the case of standardized

markets, the markets in which it will operate.

This table must include the investment limits

authorized by its Investment Committee.

d) Investment in Currencies

In the event that the Administrator, through its Committees,

decides to invest in Currencies, it must:

i.

Explain the objective of the Currency investment by the

SIEFORE (Maximum 200 words).

ii.

Include a table indicating the types of Currencies that

will be operated. This table must include the limits of

investment authorized by its Investment Committee.

ii.

Describe the markets, regions, and Asset Classes in

which Mandatories will invest (Maximum 200 words);

iii.

Include investment limits in Mandates, disaggregated

by region and Asset Class, authorized by its Committee

of Investment.

h) Investment in Mutual Funds

In the event that the Administrator, through its Committees,

decides to invest in Mutual Funds, it must:

i.

Explain the objective of the investment in Mutual Funds by

the SIEFORE (Maximum 200 words).

ii.

Describe the markets, regions, and Asset Classes in

which the SIEFORE will invest, through Mutual Funds

(Maximum 200 words).

iii.

Include investment limits in Mutual Funds

disaggregated by region and Asset Class, authorized

by its Investment Committee.

iv.

Include the general criteria employed for

selecting the administrators of these funds

(Maximum 200 words).

Authorized Asset Classes in the

investment regime

Assets in which

the SIEFORE

invests

Demand Deposits

Debt Instruments

A. Governmental

B. Private

C. Hybrid debt instruments

D. Securitized Instruments

a) Certificates

b) Certificates

linked to real projects

Foreign Debt Securities

A. Governmental

B. Private

Equity

A. National

B. Foreign Equity Securities

Structured Instruments

A. CKD's

B. CERPIS

FIBRAS

A. Generic

B. Fibra-E

Real Estate Investment Vehicles

Currencies

Commodities

Type of operations

Repo

Securities Lending

Derivatives

Mandates

ETFs

Mutual Funds

i) ESG Investments

In the event that the Administrator, through its Committees, decides to carry out investments, as well as risk management, in accordance with environmental, social, and corporate governance principles (ESG by its acronym in the English language), it must:

i.

Explain the objective of these investments by the

SIEFORE (Maximum 200 words).

ii.

Explain the way in which these principles are incorporated

both in investments and in risk management (Maximum 200 words).

III. Comprehensive Risk Management

---

The comprehensive risk management policy must be described, including the different types of risks to which the investment portfolio is exposed, as well as the Investment Society's policies to mitigate them. (Maximum 500 words)

The maximum limit of one of the risk control parameters to which the Investment Society must adhere must be indicated, and which adjusts to the General Provisions establishing the investment regime to which specialized investment societies for retirement funds must adhere, either the Value at Risk or the Differential of the Conditional Value at Risk.

IV. Investment Limits

---

Investment limits by Asset Class or Risk Factor, defined by the Financial Risk Committee, must be included.

V. Reference Portfolio

---

Include a general description of the Reference Portfolio applicable to the investment portfolio of the Total Asset of the Investment Society (Maximum 500 words).

VI. Operation Policies

---

a) Types of resources that can be invested in the Investment Society:

The subaccounts whose resources can be invested in the Investment Society will be mentioned.

b) Commission Regime:

The current commission regime applicable to the Investment Society, authorized to the Administrator, will be described, with a brief explanation of the calculation method and percentage to be applied by the Investment Society, in the following format:

COMMISSION

(%)

The legend "Lower commission, higher savings" must be added.

Likewise, the following must be indicated:

"Commissions, as well as discounts, will be applied uniformly for all registered workers, without discrimination among them.

Commissions on balance will only be charged when the resources are effectively invested in the Investment Society and the necessary daily provisions have been recorded in the accounting of the Investment Society.

Commissions for special services will be paid directly by the worker who requested the service and in no way can they be charged to the worker's individual account.

Without prejudice to the foregoing, complete and visible information on the commission structure and, in its case, the discount scheme will be permanently maintained on the internet page defined by the Administrator.

As a consequence of the change in the commission regime, the worker may transfer their individual account to another Administrator. "

c) Price and settlement term of the Investment Society's shares:

The following must be indicated:

"The purchase and sale operations of shares representing the social capital of the Investment Society will be settled on the same day they are ordered, in accordance with the General Provisions on the registration of accounting, preparation, and presentation of financial statements to which Investment Societies must adhere, as well as the General Provisions on financial matters of the Retirement Savings Systems, issued by the Commission, provided that the instruction is issued within the operating hours (____ to ____ hours, Mexico City time). Operations requested outside the aforementioned schedule will be carried out on the next business day and will be settled at the prevailing price of the society's shares on the day the sale of the shares is made. "

d) Fund holding policy:

The following must be indicated:

"The resources of the worker's individual account will remain invested in shares of the Investment Society for at least one year, except in the following cases: a) That the worker requests the transfer of their individual account to another Administrator, given compliance with the regulations in this matter, or their resources are transferred to another Investment Society operated by the same Administrator that operates their individual account, as a consequence of the change in the commission regime, due to their age or the investment policies contained in this information prospectus, or when the Commission has designated the Administrator in accordance with article 76 of the Law; b) When the worker, due to their age, is required to change Investment Societies, requests that the resources accumulated in the Investment Society in which they were located, remain invested in said Society so that in the new Investment Society corresponding to them by age only new cash flows of contributions and deposits are received; c) When the Administrator enters a state of dissolution or merges with another Administrator having the status of merged, and d) When the total resources of the individual account are withdrawn due to the contracting of a life annuity or, in its case, the resources are exhausted due to having made scheduled withdrawals or the worker has the right to withdraw partial or total resources in a single payment.

Likewise, the terms and the period in which withdrawals can be made must be indicated, complying at least with the periods marked by the Law.

The worker may make withdrawals from their voluntary contribution subaccount every _______ months after the first contribution or the last withdrawal. "

Investment Societies whose object is the investment of the resources referred to in articles 74 bis, 74 ter, and 74 quinquies of the Law, will indicate in the information prospectus, the circumstances in which said resources may be withdrawn or transferred, as well as the rights and obligations of their holders.

e) Valuation mechanics.

The following must be indicated:

"The Investment Assets that make up

the securities portfolio of the Investment Society, must be valued daily by a Price Provider in accordance with the General Provisions on financial matters of the

Retirement Savings Systems."

The accounting registration procedure for valuation shall be subject to what is established in the General Provisions on the registration of accounting, preparation and presentation of financial statements to which Investment Societies issued by the Commission must adhere, which state that accounting records will be analytical and allow for the identification and sequence of operations, with accounting movements registered on the same day the operation is carried out.

f) Repurchase Regime.

The circumstances under which the worker will be entitled to have the Investment Society, through the Administrator operating it, repurchase up to 100% of their shareholding shall be indicated, in accordance with the legal provisions applicable to the Investment Society in question.

VII. Fiscal Regime

---

The Administrator shall inform the worker that the Investment Society in which their resources are invested must comply with the fiscal provisions applicable to it; for this purpose, the fiscal provisions to which they will be subject shall be included concisely.

VIII. General Warnings to Workers

---

a) Investment Risks

The following shall be stated:

The Investment Society seeks to offer workers adequate returns in accordance with market conditions, strictly adhering to the Authorized Investment Regime, without this implying a guaranteed return.

The credit ratings granted to Debt Instruments and Foreign Debt Securities by specialized agencies do not represent a guarantee of repayment of initial investments, but rather only an opinion on the issuer's ability to comply with the terms set forth in the corresponding prospectuses.

Registration in the National Securities Registry applicable to certain Instruments does not imply certification of the guarantee of returns of the Instrument or the solvency of each issuer.

b) Losses caused by the responsibility of the Administrator and Investment Society.

The following shall be stated:

"In order to protect workers' resources, when losses arise from non-compliance with the Authorized Investment Regime, the Commission has provided in the General Provisions on financial matters of the retirement savings systems regarding the portfolio reconstruction of Investment Societies, in which the cases are described in which the Administrator operating the Investment Society is obliged to cover such losses from the Administrator's special reserve, and in case this is insufficient, they will be covered from its share capital. "

c)

Inspection and surveillance by the Commission

The following shall be stated:

" CONSAR is the competent authority to regulate, inspect and supervise the operation of the Investment Society, as well as the Administrator operating it. "

d)

Acceptance of the information prospectus by the worker

The following shall be stated:

" In order to comply with what is provided in article 47 bis, penultimate paragraph, of the Law, the Administrator operating the Investment Society shall keep this information prospectus available in its offices and branches or through the Administrator's Internet page, for registered workers. "

e)

Custody of titles

The Financial Intermediaries to whom the Administrator has contracted to deposit the Assets Subject to Investment, as well as the shares of the Investment Society for safekeeping, shall be indicated.

f)

Rating of the Investment Society

The Administrator may disclose on its Internet page and in the information board of its offices and branches the current credit rating granted to the Investment Society by a securities rating agency, as well as its meaning. In its case, this credit rating must be modified within a maximum of 10 business days following the date on which it suffers any modification.

g)

Inquiries, complaints and claims

The following shall be stated:

" The National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) has enabled a public attention service via telephone, free of charge from anywhere in the country, to receive inquiries, complaints and claims about irregularities in the operation and provision of services by Administrators, at the phone (include CONDUSEF phone). "

ANNEX Q

Model of Information Brochure

INFORMATION BROCHURE

Corporate Name (Administrator and SIEFORE)

Type of Investment Society

I. WHERE WILL THE RESOURCES OF YOUR INDIVIDUAL ACCOUNT BE INVESTED?

Include a brief explanation of the investment objectives and policy (Maximum 200 words).

B. Variable Income Foreign Securities

Structured Instruments

A. CKD's

B. CERPIS

FIBRAS

A. Generic

B. Fibra-E

Real Estate Investment Vehicles

Currencies

Merchandise

Type of operations

Repo

Securities lending

Derivatives

Mandates

ETFs

Mutual Funds

II. WHAT FEES WILL BE CHARGED TO YOUR ACCOUNT?

A table with the current fee regime applicable to the Investment Society, authorized for the Administrator, must be included.

As an example, the following table is shown:

FEE

(%)

The following legend must be added: " Lower fees, greater savings. "

IV. HOW COULD YOUR SAVINGS INCREASE?

a)

A table containing the Net Performance Indicator, for the Investment Society in question, must be included and updated quarterly at the close of March, June, September and December, with the following format:

NPI (%)

b)

Include a graph showing the annualized gross performance of the investment portfolio compared to that of the reference portfolio defined by the Administrator, this for the last 1, 3 and 5 years, or those available according to the Investment Society's history. The observed behavior in the Investment Society's returns must be briefly explained (Maximum 100 words).

The following legend must be added: " Past returns do not guarantee future returns. These statistics are provided for informational purposes only. "

III. WHAT ARE THE RISKS OF THE INVESTMENTS?

A brief description of the main financial risks to which the portfolio is exposed must be included (Maximum 200 words).

The following legend must be added: " Higher Net Performance Indicator, greater growth in resources. "

As an example, the following graph is shown.

V. INQUIRIES, COMPLAINTS AND CLAIMS

The following legend must be included:

" CONSAR is the competent authority to regulate, inspect and supervise the operation of AFOREs. "

The Administrator's phone number for public attention is: (include Administrator's public attention phone), and the toll-free phone number available by CONSAR for public attention is SARTEL: 13-28-5000.

The National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) has enabled a public attention service via telephone, free of charge from anywhere in the country, to receive inquiries, complaints and claims about irregularities in the operation and provision of services by Administrators, at the phone (include CONDUSEF phone). "

More information can be obtained at the offices and branches of the AFORE or through the Administrator's Internet page. "

Corporate Address (Administrator and SIEFORE) as a footer of the Information Brochure

ANNEX R

Criteria that Bursatilized Instruments must meet to be considered as issued by an independent issuer

I.

General criteria that Bursatilized Instruments in possession of Investment Societies must meet to be considered as issued by an independent issuer:

a)

The prospectus must clearly indicate the eligibility criteria of the portfolio subject to the

securitization;

b)

There must be a cession of the collection rights of the portfolio subject to the securitization to an irrevocable trust;

c)

Clear rules must be in place to, if applicable, replace the administrator of the portfolio subject to the

securitization. Among other reasons, for the replacement, possible

conflicts of interest of this with the holders, the common representative or with entities

related to the payment of the obligations of the collection rights or with the originator, the

lack of experience in the administration and collection of rights on the assets subject to the

securitization, or a breach of its mandate as administrator must be made known;

d)

The authorized securities rating agency must consider and value all cash flows of the

Bursatilized Instrument (both capital and interest) for the purpose of issuing a

rating;

e)

Minimum standards must be respected to reveal information about the Bursatilized Instrument

in compliance with the regulations issued for such purposes by the National Banking and

Securities Commission;

f)

The valuation of the Bursatilized Instrument must be carried out by a price provider, using

a public methodology;

g)

There must be no repurchase mechanisms for the portfolio subject to the securitization, by the

settlor or the originator, except when the portfolio in question is mortgage or of another

nature as indicated by the Risk Analysis Committee, in which cases they will be subject to the

specific rules established. Nor shall there be mechanisms for the substitution of a part or all of the assets affected in the irrevocable trust, except to comply with the eligibility criteria referred to in the previous letter a), and

h)

Possess the enhancers defined by the Commission. Mortgage Bursatilized Instruments will meet this requirement when they satisfy what is provided in section II of this Annex.

II.

Additional criteria that Bursatilized Instruments in possession of Investment Societies must meet to be considered as issued by an independent issuer when the underlying portfolio is mortgage:

a)

The settlor or, if applicable, the originator may repurchase the portfolio subject to the

securitization from the trust when its value is equal to or less than 10% of what it would have had at the beginning of the

issuance.

In the case of reopenings of issuances, the same rule will be followed considering the total amount

issued in the different reopenings carried out with the same issuance. It will be considered that two Bursatilized Instruments correspond to the same reopened issuance when the above is supported by the legal opinion of an expert independent of the issuer;

b)

Bursatilized Instruments must reach a rating equivalent to any of those

provided in Annex A of the General Provisions establishing the investment regime to which Investment Societies must adhere. For these purposes, Bursatilized Instruments must have a combination of security mechanisms within which the following are included:

i.

Determination of a maximum level applicable to the average value of the relationships between the

value of the credits and the value of the mortgage guarantees of the portfolio subject to the

securitization;

ii.

Issuance of a subordinated series;

iii.

Guarantee granted by an internationally recognized insurance company, and

iv.

Minimum level of coverage or capital retained by the settlor, understood by this

variable as the percentage of the portfolio that is entrusted in excess of the value of the Bursatilized Instrument at the time of issuance;

c)

At the time of issuance of the Bursatilized Instrument, the total value of the sum of the amounts

of the subordinated series, the guarantee and the coverage or capital retained by the settlor, as

a percentage of the issued amount, must be equal to or greater than the values shown in the following table:

Coverage or capital retained by the originator, subordinated series and financial guarantee requirement (percentage of the original issuance)

Value of credit / Value of guarantee

SCV*

95%

90%

85%

80%

75%

70%

60%

50%

0%

22.36%

18.34%

11.90%

9.66%

7.86%

5.96%

2.70%

0.24%

*SCV: Home credit insurance

d)

At the time of issuance of the Bursatilized Instrument, the originator must retain a level of coverage

or capital of the Bursatilized Instrument, as a percentage of the issued amount, equal to or greater than the

values shown in the following table. The value of the Coverage or capital retained by the originator indicated

in this section also counts within the total required in the previous section:

Value of credit / Value of guarantee

SCV*

95%

90%

85%

80%

75%

70%

60%

50%

0%

7.22%

5.75%

3.43%

2.71%

2.16%

1.67%

0.74%

0.06%

*SCV: Home credit insurance.

ANNEX S

Guidelines applicable to independent experts dedicated to evaluating and issuing opinions on Debt Vehicles, Variable Income Components, Real Estate Investment Vehicles and FIBRAS, Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments and Debt Indices of Eligible Countries for Investments

I. Of the eligibility of the independent expert

In case the expert is a company:

1. Experience

a)

It must be constituted in accordance with the regulation of an Eligible Country for

Investments.

b)

It must enjoy recognized international prestige and have proven experience, of at least

five years of the company and three years of the officials, in activities that include the

evaluation or the issuance of opinions on the regulatory compliance of indices or Investment

Vehicles, such as: Mutual Funds, pension funds, Vehicles known as

ETFs (Exchange Traded Funds), among others.

2. Conflicts of interest

a)

The independent expert must have policies to detect, avoid and resolve conflicts of

interest real and potential that it may incur when providing services to Investment

Societies.

b)

The independent expert must not have Property Link or be a Related Company With Each

Other with any Administrator.

c)

The expert must have a code of ethics to which the officials involved in the evaluation and issuance of opinions on indices and Investment Vehicles must adhere.

d)

The independent expert must demonstrate that its evaluation and opinion processes:

i.

Have independence with respect to index providers, sponsor, administrator and investment advisor of Investment Vehicles, Mutual Funds and with any entity dedicated to resource management whose Vehicles are opinioned by

said company, and

ii.

Are auditable.

e)

In case the independent expert has property links or is a related company

of the index provider or the sponsor, administrator and investment advisor of the Investment Vehicle of the index or Investment Vehicle to be opinioned, the following must be demonstrated:

i.

That there is operational separation between activities related to the study, analysis,

opinion, evaluation and opinion of the index or Investment Vehicle, from the other business or commercial areas, such as: areas of promotion and sale of Vehicles to be opinioned, in which a conflict of interest could arise.

ii.

That it has policies and procedures that include reporting lines, supervision and

remuneration structures among the various areas of the company, which must be

designed to eliminate possible conflicts of interest.

3. Corporate governance of the company

a)

Have clear and robust policies regarding the opinion and evaluation process of indices and

Investment Vehicles. These policies must be available to the Administrators to which

it provides service. The Commission may require these policies from the Administrators at any time.

b)

The independent expert must always keep confidential the information that the Administrators or the Commission provide to it with that character.

In case the expert is an association:

1. Experience

a)

It must be constituted in accordance with the regulation of an Eligible Country for

Investments.

b)

It must enjoy recognized prestige and have proven experience, of at least three years of the

association and three years of the officials, in activities that include the evaluation or the

issuance of opinions on the regulatory compliance of indices or Investment Vehicles,

such as: Mutual Funds, pension funds, Vehicles known as ETFs (Exchange

Traded Funds), among others.

c)

It must have the advisory services of a company of recognized international prestige

with at least five years of experience in the provision of evaluation services

or issuance of opinions on the regulatory compliance of indices or Investment Vehicles,

in order to provide recommendations regarding the evaluation process of the cited indices and

investment vehicles.

d)

It must be audited annually by an external auditor of recognized prestige on the

evaluation procedure and issuance of opinions in compliance with the Criteria for the

selection of stock, debt and real estate indices allowed in the Investment Regime of

SIEFORES, Criteria applicable to Investment Vehicles known as ETFs

(Exchange Traded Funds) and Criteria applicable to Mutual Funds issued and approved by the

Risk Analysis Committee. The company responsible for carrying out the external audit must

be a company of recognized national or international prestige.

e)

It must have a Technical Committee in charge of approving the opinions of low,

compliance, inclusion and rejection of indices and Investment Vehicles.

2. Conflicts of interest

a)

The independent expert must have policies to detect, avoid and resolve conflicts

of

interest real and potential that it may incur when providing services to Investment

Societies.

b)

The expert must have a code of ethics to which the officials involved in the evaluation and issuance of opinions on indices and Investment Vehicles must adhere,

including the independent members of the Technical Committee.

c)

The independent expert must demonstrate that its evaluation and opinion processes:

i.

Have independence with respect to index providers, sponsor, administrator and investment advisor of Investment Vehicles, Mutual Funds and with any entity dedicated to resource management whose Vehicles are opinioned by

said company, and are auditable.

d)

In case the independent expert has property links or is a related company

of the index provider or the sponsor, administrator and investment advisor of the Investment Vehicle of the index or Investment Vehicle to be opinioned, the following must be demonstrated:

i.

That there is operational separation between activities related to the study, analysis,

opinion, evaluation and opinion of the index or Investment Vehicle, from the other business or commercial areas, such as: areas of promotion and sale of Vehicles to be opinioned, in which a conflict of interest could arise.

ii.

That it has policies and procedures that include reporting lines, supervision and

remuneration structures among the various areas of the company, which must be

designed to eliminate possible conflicts of interest.

3. Corporate governance of the company

a)

Have clear and robust policies regarding the opinion and evaluation process of indices and

Investment Vehicles. These policies must be available to the Administrators to which

it provides service. The Commission may require these policies from the Administrators at any time.

b)

The independent expert must always keep confidential the information that the Administrators or the Commission provide to it with that character.

II. Of the functions that the independent expert must perform

Evaluate and periodically follow up on the compliance of the Criteria for the selection of

stock, debt and real estate indices allowed in the Investment Regime of

SIEFORES, Criteria applicable to Investment Vehicles known as ETFs (Exchange

Traded Funds) and Criteria applicable to Mutual Funds issued and approved by the Risk Analysis Committee, based on publicly available information, as well as that provided by index providers and sponsors of Investment Vehicles, for which it must:

a)

Check, at least in the initial review, public documents, such as

prospectuses, brochures and periodic reports required by the applicable regulatory entity, with the

information provided by index providers and sponsors of Investment Vehicles.

b)

Have policies and procedures to carry out the functions for which it was

hired. As part of these policies, the independent expert must establish contingency plans for the case of technical failures in its information systems, as well as

backup and service continuity policies. These policies and procedures must be transparent to the Administrators to which it provides service.

c)

In case the Risk Analysis Committee modifies the Criteria for the selection of

stock, debt and real estate indices allowed in the Investment Regime of

SIEFORES, Criteria applicable to Investment Vehicles known as ETFs (Exchange

Traded Funds), and Criteria applicable to Mutual Funds, policies and

procedures must be in place to re-evaluate and follow up on authorized indices and Investment Vehicles. If applicable, the Commission will inform these modifications in advance of the entry into force of such changes.

d)

In case the index methodology, or the prospectus, brochure or any other legal document of the Investment Vehicle, present any change, the compliance with the Criteria for the selection of stock, debt and real estate indices must be re-evaluated

allowed in the Investment Regime of SIEFORES, Criteria applicable to Investment Vehicles

known as ETFs (Exchange Traded Funds) and Criteria applicable to Mutual

Funds. The independent expert may evaluate only what concerns the modifications

made.

The independent expert shall not issue an opinion, value judgment, or investment recommendation regarding the indices or Investment Vehicles evaluated.

III. On the information and certification of Vehicles and indices

The Administrators, and where applicable, the person they authorize, shall send to the Commission, on behalf of the Administrator operating each Investment Company, the list of indices and Investment Vehicles that have obtained an approving opinion from the independent expert, as well as the breakdown of said indices and Investment Vehicles in accordance with the characteristics established in the General Rules that the Commission establishes for the delivery of information. Without prejudice to the foregoing, the Administrators, and where applicable, those they authorize, shall allow the Commission access to the list of indices and Investment Vehicles in question, which shall have a binding character for supervisory purposes.

The Administrators, and where applicable, the person they authorize, shall be responsible for safeguarding the documentary evidence that supports the evaluation of the indices and Investment Vehicles, both for those that received an approving opinion and those that received a negative opinion, both by the independent expert. The documentary evidence must be available to the Commission at all times.

Likewise, the Administrators, and where applicable, the person they authorize, shall inform the Commission in writing of any change or deviation observed in the evaluation and monitoring of the indices and Investment Vehicles by the independent expert.

IV. Procedure for selecting the independent expert

In the event that the expert is a corporation:

The Administrators shall be responsible for verifying compliance with the contents provided for in this Annex by the independent experts they hire to evaluate and certify the indices and Investment Vehicles referred to in this Annex.

The Administrators, or whom they define, shall make available to the Commission the documentation that the latter requests, with which the Administrators support compliance with these guidelines, as well as the process for selecting the independent expert.

The contract with the independent expert must be signed under the jurisdiction of one of the Eligible Countries for Investments and must be available to the Commission.

In the event that the contract is not signed directly by the Administrator, the Administrators must be part of the contract as witnesses. Likewise, the Administrator must deliver in writing to the Commission the designations of the person responsible for signing the contract with the independent expert and the person responsible for accepting the obligation to monitor said contract, both on behalf of the Administrator, and the Administrator's acceptance to submit to the evaluation and certification that is carried out by the independent expert of the Debt Vehicles, Equity Components, Real Estate Investment Vehicles, FIBRAS, Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments, and Debt Indices of Eligible Countries for Investments.

The Administrators must deliver in writing to the Commission the designation of the person they authorize, if applicable, to carry out the functions described in the previous fraction III of this annex.

In the event that the expert is an association:

The Administrators shall be responsible for verifying compliance with the contents provided for in this Annex by the independent experts they hire to evaluate and certify the indices and Investment Vehicles referred to in this Annex.

The Administrators, or whom they define, shall make available to the Commission the documentation that the latter requests, with which the Administrators support compliance with these guidelines, as well as the process for selecting the independent expert.

The Administrators must have the written consent of the independent expert to evaluate and certify the Debt Vehicles, Equity Components, Real Estate Investment Vehicles, FIBRAS, Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments, and Debt Indices of Eligible Countries for Investments.

The Administrators must deliver in writing to the Commission the designation of the person they authorize, if applicable, to carry out the functions described in the previous fraction III of this annex with the corresponding acceptance of the independent third party.

The classification of indices as stock or real estate will be determined by the Commission, hearing the opinion of the Administrators, and where applicable, those they authorize.

Therefore, the Vehicles will not be disaggregated for the purpose of supervising the applicable concentration limits, in accordance with what is provided in Annex N of the General Provisions that establish the investment regime to which Investment Companies must be subject; the exposure of investments in said Vehicles and indices will be computed considering the full Equivalent Delta Value of the acquired or structured Note, Underlying-Linked Structure, Equity Component, Financial Derivative Instrument, or any other permitted Vehicle that replicates the behavior of the index favorably certified by the independent experts.

ANNEX T

Methodology for verifying compliance with limits regarding Structured Instruments.

For the purposes of the limits regarding positions in Structured Instruments established in the General Provisions that establish the Investment Regime to which investment companies must be subject, the following criteria must be observed:

I.

The sum of (i) the market value of Structured Instruments issued without the capital call mechanism, (ii) the market value of capital calls already made on Structured Instruments issued under the capital call mechanism, and (iii) the peso equivalent of the minimum between 35% of the notional value of the issuance or the notional value of the pending capital calls of the Structured Instrument issued under the capital call mechanism, with respect to the Total Asset of the Investment Company, will be considered. That is, for each Investment Company, to compute investments in Structured Instruments, the sum of i) the market value of the total amount invested by said investment company and, ii) 35% of the amount initially committed by the investment company is calculated. The sum of the aforementioned factors will not exceed 100% of the amount initially committed by the investment company; therefore, the computation must be carried out as follows:

For the purposes of computing the capital calls provided for in this annex, pending capital calls will not be considered when the Investment Committee has determined, notified the Commission, and initiated the appropriate procedures for the Structured Instruments that fall under this present scenario to cease being part of the investment portfolios of the Investment Companies, prior to the call, not to participate in the capital calls of any previously acquired Structured Instrument.

Likewise, when the Investment Committee has determined to participate in voluntary participation schemes referred to in Article 30, fraction V, it will be computed within the limit of Structured Instruments until the capital call has been made.

ANNEX U

Methodology for calculating maximum investment limits for the set of Investment Companies operated by the same Administrator, in Structured Instruments.

The maximum amount to be invested by the set of Eligible Investment Companies for investments in Structured Instruments must obey the following criteria:

a)

Basic Investment Companies 1 may only invest in Structured Instruments that meet the following:

i.

Are invested in, at least 80% of the maximum amount of the Structured Instrument issuance, and committed in at least 90% of the maximum amount of the Structured Instrument issuance,

ii.

Are transferred through the transfer of resources from Individual Accounts by the age of Workers in accordance with the General Provisions on the matter of operations of the Retirement Savings Systems.

b)

Administrators must ensure that the amount invested by the set of Investment Companies they operate, at no time exceeds 50% of the value of a project financed through Structured Instruments that have as their object the financing of the same project, regardless of the administrator. The foregoing is not applicable for investment in a project financed through a single Structured Instrument, whose issuance value is lower than the Threshold defined in this annex.

c)

When the co-investor and the Administrator have a Financial Nexus together, they may not exceed 35% of the value of each project financed.

d)

The Threshold referred to in the Twenty-Fourth Provision, fraction IV of the General Provisions that establish the investment regime to which specialized retirement fund investment companies must be subject is equivalent to 4,350 million pesos, and it will be updated once every calendar year in the same proportion as the increase in the value of investment units (UDIs). The aforementioned value corresponds to December 31, 2017.

The Commission will periodically inform Administrators of the value of the Threshold, as well as the value of the Total Asset.

In the case of primary offerings of Structured Instruments and for the purposes of complying with the limits provided for in this annex and in the General Provisions that establish the investment regime of specialized retirement fund investment companies, Administrators must request in writing from the administrator of said instruments and leave evidence thereof, that they commit to diversifying the investor base so that Investment Companies do not fail to comply with the limits referred to in this paragraph.

Administrators must inform the administrator of the absolute amount and the range to be invested, the latter as a percentage of the total notional value of the Structured Instrument in question, which must be recorded in the Detailed Minutes of the corresponding session. For these purposes, the policy must provide for adjustments that the administrator may apply for the purposes of: i) complying with the limits provided for in these Provisions and ii) defining the allocation of amounts of Structured Instruments that may present variations with respect to the bids of the Administrators, provided they are based on policies provided for in the issuance prospectus, within which there may be pro-rata adjustments.

For the purposes of this Annex, it will be understood that the administrators of Structured Instruments are different when:

i.

They are distinct legal entities;

ii.

They have distinct administration teams, that is, when the strategy, execution of investments, and administration of each Structured Instrument depend on teams composed of distinct natural persons, with areas of knowledge and experience directed specifically to the administration of the projects financed by the corresponding Structured Instrument, and

iii.

They have distinct investment theses developed for each Structured Instrument, which are oriented towards distinct economic areas or activities.

ANNEX V

List of Stock Indices of Eligible Countries for Investments approved to determine maximum investment limits in shares of National Issuers listed.

The indices that Administrators may use as a reference to determine maximum investment limits in individual shares of National Issuers listed on a Stock Exchange authorized to organize and operate in terms of the Securities Market Law to which fraction II, of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which specialized retirement fund investment companies must be subject, are the following:

Developer

Index

S&P/BMV

IPC Composite

S&P/BMV

IPC

S&P/BMV

Large Cap

S&P/BMV

Mid Cap

MSCI

Mexico Investable Market

MSCI

Mexico

FTSE

Mexico All Cap

FTSE

Mexico

FTSE

BIVA

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