General Provisions on Financial Matters of the Retirement Savings Systems

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DOF: 26/01/2018

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 1st., 2nd., 5th. fractions I, II, III, VI, VI bis, VII, XIII bis, and XVI; 12 fractions I, VI, VIII and XVI; 18, 25, 29, 30, 36, 39, 42, 42 bis, 43, 44, 44 bis, 45, 46, 47, 47 bis, 48, 64, 64 bis, 67, 68, 69, 70, 89, 90 fractions II, IV, V, VI, VII, IX, XII and XIII, 100 bis, 100 ter and 100 quáter of the Law of the Retirement Savings Systems; 106 of the Law of the Institute for Social Security and Services for State Workers; 1st., 2nd., 14, 17, 18, 19, 20, 21, 22, 23, 24, 25, 33 clause A fraction VIII and clause B, 139, 140, 141, 154 and 155 of the Regulations of the Law of the Retirement Savings Systems and 1, 2 fraction III, and 8 first paragraph of the Internal Regulations of the National Commission for the Retirement Savings System, and

CONSIDERING

That the "General Provisions on financial matters of the Retirement Savings Systems" have as their object to establish the minimum standards of comprehensive management of the investment portfolios of the Investment Companies, to which Administrators and the Investment Companies they operate must adhere, ensuring that all operations carried out for the investment of the resources of said workers are carried out exclusively in the interest of the workers;

That with the objective of implementing policies that promote the economic and social well-being of both its inhabitants and people around the world, the possibility is granted to Administrators to include in the analysis regarding the characteristics and risks inherent to investment in Variable Income Components, the analysis of the adherence of issuers to environmental, social and corporate governance principles;

That due to the recent flexibilization of the General Provisions that establish the investment regime to which specialized investment societies for retirement funds must adhere, through the present, prudential measures are determined to which Administrators must adhere to effect investment in Structured Instruments and in optional titles adhered to shares representing the social capital of a Private Company that are subject to an initial public offering, total or partial, that have as underlying shares representing the social capital of the same Private Company;

That in order to provide legal certainty to the regulated entities, various clarifications are made from some consultations received by this Commission, in which it is requested to resolve the scope of some terms used in the Provisions or to define who is the person responsible for fulfilling obligations currently provided for and that do not have a defined subject, and

That complying with the "Agreement that sets 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", due to the issuance of these provisions, among others, the obligation to integrate the additional credit evaluation into the Automated Integrated System is eliminated; the process of requesting no objection to effect modifications to the Manual of Policies and Procedures for the Management of Financial Risk, as well as to the Investment Manual of the Administrators, is eliminated, and the process of requesting authorization to effect modifications to the informative brochures of the Investment Societies is eliminated, establishing that the same must only be available to the Commission, and migration to a flexible scheme to allow Administrators to contract the services of multiple custodians, has deemed it appropriate to issue the following:

GENERAL PROVISIONS ON FINANCIAL MATTERS OF THE RETIREMENT SAVINGS SYSTEMS

INDEX

TITLE I. GENERAL PROVISIONS Single Chapter. Definitions

TITLE II. OF THE MANAGEMENT OF FINANCIAL RISKS OF THE INVESTMENT COMPANY Chapter I. Of the Financial Risks Committee Chapter II. Of the Comprehensive Risk Management Unit Chapter III. Of the Manual of Policies and Procedures for the Management of Financial Risk

TITLE III. PROVISIONS ON INVESTMENTS Chapter I. Of the Investment Committees Chapter II. Of the Head of the Investments 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 Councilors

TITLE V. OF PRICE PROVIDING AND VALUATION OF ASSETS SUBJECT TO INVESTMENT Chapter I. Of Price Providing for the Valuation of Assets Subject to Investment Section I. Of Price Providing for the Valuation of Assets Managed by the Investment Company Section II. Of Price Providing for the Valuation of Assets Managed by Mandatories Section III. Of Price Providing for the Valuation of Assets Subject to Investment Section IV. Of the Contracting of the Price Provider Chapter II. Of the Valuation of Assets Subject to Investment Section I. Of Contingent Valuation Procedures for Assets Subject to Investment that form part of the Asset Managed by the Investment Company Section II. Of Contingent Valuation Procedures for Assets Subject to Investment that form part of the Asset Managed by the Mandatory Section III. Of the Contracting of Valuation Companies Section IV. Of the Valuation of Shares Representing the Paid Social Capital of Investment Companies

TITLE VI. OF ACCESS TO INTERNATIONAL MARKETS Chapter I. Of Access Mechanisms to International Markets Chapter II. Of Vehicles

TITLE VII. OF THE CUSTODIAN Chapter I. Of the Contracting of the Custodian Chapter II. Of the Requirements of the Contract

TITLE VIII. OF DERIVATIVES OPERATIONS

TITLE IX. OF OPERATION WITH STRUCTURES LINKED TO UNDERLYING ASSETS

TITLE X. OF OPERATION WITH STRUCTURED INSTRUMENTS, FIBRAS AND STOCK 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 COMPANIES FOR RETIREMENT FUNDS Chapter I. Of the Procedure for Portfolio Recomposition Section I. Of Rating Downgrade Section II. Of Variations in Prices of Assets Subject to Investment that integrate the Asset Managed by the Investment Company and of violation of investment limits in Variable Income Components for causes not attributable to the Investment Company Section III. Of Portfolio Recomposition for failing to comply with limits established in the Investment Regime by acquisition or sale of Assets Subject to Investment and for violation of investment limits that constitute the Total Asset of the Investment Company in Variable Income Components for causes attributable to the Investment Company 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 BROCHURES AND THEIR UPDATE

TITLE XIV. OF THE CHOICE OF INVESTMENT OF RESOURCES OF THE RETIREMENT INSURANCE SUBACCOUNT, RETIREMENT SAVINGS SUBACCOUNT AND VOLUNTARY SAVINGS

TITLE XV. FINAL PROVISIONS

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

ANNEX "B". Of Structured Instruments, FIBRAS and Stock Certificates Linked to Real Projects Chapter I Elements that must foresee the policies defined by the Investment Committees to make investments in Structured Instruments, FIBRAS and Stock Certificates Linked to Real Projects Chapter II Elements that must contain the selection questionnaires for Structured Instruments, FIBRAS and Stock 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 positions in Currencies

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 Issuer or Counterparty limits

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

ANNEX "I". Methodology to calculate exposure to Commodities

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

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

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

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 with which the Investment Regime is violated

ANNEX "P". Model of Information Prospectus

ANNEX "Q". Model of Explanatory Brochure

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

ANNEX "S". Guidelines applicable to independent experts dedicated to evaluating and certifying Debt Vehicles, Variable Income Components, Real Estate Investment Vehicles and FIBRAS, Eligible Countries' Stock Indices, Eligible Countries' Real Estate Indices and Eligible Countries' Debt Indices

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

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

GENERAL PROVISIONS ON FINANCIAL MATTERS OF THE RETIREMENT SAVINGS SYSTEMS

TITLE I GENERAL PROVISIONS SINGLE CHAPTER DEFINITIONS

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

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

I. Detailed Minutes, to the minutes of the sessions of the collegiate bodies that are accompanied by the supporting documentation of the session, which contains the comments made in each of the sessions referred to the agreements taken, the explicit agreements for each topic submitted to 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 invited guests present in the corresponding session;

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

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

IV. Derivatives Exchange, to the legal persons that have as their object 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, to the set of stock indices, or subindices 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 Companies must adhere;

VI. Category, to each of the investment limits linked with the credit rating issued by any securities rating institution applicable to Debt Instruments, Foreign Debt Securities or Counterparties, determined in the General Provisions that establish the investment regime to which Investment Companies must adhere;

VII. Asset Class, to Debt Instruments, Foreign Debt Securities, Variable Income Instruments, Foreign Variable Income Securities, Commodities, Structured Instruments, FIBRAS, Real Estate Investment Vehicles, and Pure Positions in Currencies, authorized in accordance with what is provided in the General Provisions that establish the investment regime to which Investment Companies must adhere, which may attend to the disaggregation that defines the Investment Committee based on the classification provided in this fraction;

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

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

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

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

XII. Brokerage Costs, to the incomes distinct from Advisory Costs that receive: 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) The providers of the trading platforms for Assets Subject to Investment employed by Investment Companies, that are linked to each operation contracted;

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

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

XV. Permitted Deviation, to the difference observed between the weighting assigned to a share that integrates an index or Basket of Indices and the weighting assigned to that same share in a Variable Income Component, that in accordance with the General Provisions that establish the investment regime to which Investment Companies must adhere replicates said index or Basket of Indices;

XVI. Valuation Day, to the date on which the price of the share of the Investment Company will be in force;

XVII. Exercise of Patrimonial Rights, to the payment of dividends in cash or in shares, subscriptions, swaps or other analogous to the previous ones to which investors holders of the titles linked to the corresponding Variable Income Instrument or Foreign Variable Income Security have rights;

XVIII. Investment Strategy, to the policies defined by the Investment Committee of each Investment Company that operates the Administrator, referring to the purchase or sale of Assets Subject to Investment and to the aggregated composition of the investment portfolio, according to the prudential framework in matter of risk management that defines and approves the Financial Risks Committee of the Investment Company, in accordance with these Provisions, the General Provisions that establish the investment regime to which Investment Companies must adhere 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 Company and must contemplate the maximum deviation that is allowed between the investment portfolio and the reference portfolio;

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

XX. Official, to any natural person who performs an employment, position or commission in the Administrators, in the Investment Companies or both, excepting Independent Councilors and other external members that participate in the committees and subcommittees of these;

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

XXII. Financial Intermediaries, to Credit Institutions, Financial Entities and other legal persons authorized to emit or operate Assets Subject to Investment, 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. Securitized Instruments, a) Titles or securities that represent credit rights, collections or cash flows emitted through Vehicles and whose underlying assets are said credit rights, collections or cash flows, that represent a commitment to pay Coupons, principal or both for the issuer of the instrument and that have the credit ratings provided in the General Provisions that establish the investment regime to which Investment Companies must adhere. For the case of Securitized Instruments of mortgage credits, the coverage levels, retained capital, subordinate series and financial guarantee that are determined by the Risk Analysis Committee, to which articles 43 fourth paragraph and 45 of the Law refer, must be covered. The instruments to which this fraction refers will be considered as placed by an independent issuer when they comply with what is provided in Annex R of these Provisions. Within this definition, Structured Instruments are not included; b) Stock Certificates Linked to Real Projects, to the titles whose source of payment comes from the use or exploitation of real assets;

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

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

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

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

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

XXIX. Over-the-Counter Operation, to the purchase or sale operation of an Asset Subject to Investment whose execution price is less favorable for the Investment Company than those firm market prices that are available and documented at

carry out such transaction;

XXX.

Futures Operations, 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 containing the Provisions applicable to the operations of Credit Institutions and the National Development Bank for Agricultural, Rural, Forestry and Fishing 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 counter-value 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 Operation, to the operation by virtue of which one of the parties, designated as the option buyer, by paying a premium acquires the right to buy (in the case of an option known in practice and in the English language as "Call") or sell (in the case of an option known in practice and in the English language as "Put") authorized underlyings to its Counterparty, the latter designated as the option seller, which is exercisable on an "Exercise Date" and at the "Exercise Price" previously agreed. The payment of the premium may also give the right to receive a quantity 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 Operation, to the contract by which the negotiating parties commit to exchange money flows on future dates foreseen at the time of agreeing the operation;

XXXIII.

Operator, to the Officials assigned to the investment area of the Administrator that operates the Investment Society 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 can 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 the 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 if applicable, 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 administration and management, 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 Comptroller regarding compliance with the internal and external applicable regulations in financial matters, the detection of the observed deviations 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 resource management process 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 Comptroller regarding the correction of non-compliance in which said entity had incurred with respect to the norms that regulate the Savings Systems for Retirement;

XLV.

Authorized Investment Regime, to that 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 attends the Risk Committee;

XLVIII.

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

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 by establishing 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 influence the valuation of the Investment Assets.

XLIX.

Automated Integrated System, to the computer system or set of interconnected modules used automatically 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 items a) to i) of this fraction and in their respective functions such as, parametrization, analysis prior to the operation that corresponds, assignment, confirmation, settlement, accounting registration, generation of financial statements, queries, and integration of inputs;

iii.

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

iv.

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

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 rely 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 if applicable, by the Administrator itself, as appropriate in accordance with these Provisions, determined on the business day immediately preceding the Valuation Day;

LV.

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

LVI.

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

TITLE II

ON THE 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, on 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 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 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 the Counterparty. These limits must be defined for each Class of Asset with which the Investment Society finances or maintains exposure with the entity in its capacity as issuer and Counterparty. Likewise, an aggregate maximum limit covering simultaneously all Classes of Assets authorized to finance or maintain exposure with the entity in its capacity as issuer and Counterparty must be provided. These limits will apply for direct operations, through Vehicles or Real Estate Investment Vehicles and will also consider the guarantees received by the Investment Society. The Financial Risk Committee may define the Prudential Limits referred to in this fraction based on its own risk 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 used, regarding the maximum exposure that the Investment Society can 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, if applicable, the Financial Risk Committee, as determined by the Administrator, must define the methodologies to carry out the calculations of the expected returns referred to in this fraction;

VII.

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

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 defines the Financial Risk Committee;

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 Mandataries 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 Conditional Value at Risk Differential;

XIII.

Methodologies and measurement elements, whether internal or external, for additional credit evaluation to that provided by securities rating agencies. For this purpose, models, information, procedures, if applicable qualitative elements, and those defined by the Financial Risk Committee must be included, in an enumerative but not exhaustive manner. For the above, the Financial Risk Committee must define and approve the following:

a)

The concentration limits and the periodicity with which these limits will be reviewed;

b)

The periodicity with which the methodology and 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 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 agencies 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 to him.

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 defined concentration limits must be included in the information prospectuses, subject to what is provided in these Provisions.

The periodicity of items a), b), d) and e) must be annual or with a lower periodicity. For the case of item 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 investments in individual shares that each one of the

the mandates, subject to the limits and criteria established and notified by the

Risk Analysis Committee;

XVII.

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

XVIII.

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

XIX.

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

XX.

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

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. If the Administrator designates the Financial Risk Committee, it must:

1.1.

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

1.2.

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

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

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

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

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

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

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

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

The Detailed Minutes of the Financial Risk Committee sessions must 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 such 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.

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

The approval of agreements will be by majority vote, without prejudice to the foregoing, the requirements for the opinion of the 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 the matters presented before the Financial Risk Committee. For such 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 the information related to 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, as well as revealed in the Manual of Policies and Procedures for the Administration of Financial Risk.

Among the activities carried out by the subcommittees, the preparation of the necessary documentation for the decision-making of the 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 complied with using the valuations provided by Price Providers, and in accordance with the Manual of Policies and Procedures for the Administration of Financial Risk. 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 Plan of Functions contains an Observation Process on 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, the independent valuations generated by each Administrator in its Automated Integrated System are used. The foregoing must be reflected in the Manual of Policies and Procedures for the Administration of Financial Risk.

CHAPTER II

OF THE INTEGRAL RISK MANAGEMENT UNIT

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

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 adequate separation of responsibilities. The Financial Risk Committee and the Investment Committee will rely on the UAIR.

The Administrator must have a Head of the Risk Area.

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

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

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 Societies 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 purpose, the models, Parameters, and scenarios for the measurement and control of risk established by the Financial Risk Committee;

III.

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

IV.

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

V.

Follow up on the Investment Strategy defined by the Investment Committee, in accordance with the prudential framework in matters of 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 clause 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 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 Automated Integrated System, the provision in this fraction will not be necessary. The quantitative elements of the additional credit evaluation must be integrated into the Automated Integrated 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 Manager of the Administrator, and the Regulatory Comptroller, about the following matters applicable to the investment portfolio of the Total Asset of the Investment Society, except when otherwise indicated:

I.

The exposure of the investment portfolio of the Asset Managed by the Investment Society 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 what is established in 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 Asset Managed by the Investment Society, as well as by Risk Factors and Asset Class.

II.

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

III.

The observed return, risk-adjusted return, and expected return of the investment portfolio of the Asset Managed by the Investment Society 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 Asset of the Investment Society. 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 perform 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 Asset Managed by the Investment Society observed for each Asset Class or Risk Factor that makes up the portfolio of the Investment Society must be identified, which must be calculated for different time horizons. In the case of Derivatives, risk attribution must be calculated considering Risk Factors. For the reference portfolio, return and risk attribution must be calculated, based on the methodology approved by the Financial Risk Committee, of the investment portfolio of the Total Asset of the Investment Society with respect to the 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 Asset Managed by the Investment Society by type of risk, including the Equivalent Delta 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 Asset Managed by the Investment Society, as well as performing the additional credit evaluation, referred to in fraction XIV of article 3;

VIII.

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

IX.

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

XI.

The values of the sensitivity measures for the investment portfolio of the Asset Managed by the Investment Society must consider the following: duration, convexity, Historical Value at Risk, Parametric Value at Risk, Monte Carlo Value at Risk, Conditional Value at Risk, Differential of Conditional Value at Risk, Greeks for Derivatives, stress scenarios based on a distribution of extreme value theory, weighted average maturities, historical volatility, implied volatility, basis point price value, without prejudice to the others defined by the Financial Risk Committee in the Manual of Policies and Procedures for the Administration of Financial Risk, specifying which measures are applicable for each Investment Asset. In 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, having the approval of the majority of the Independent Directors, which must be recorded in the Detailed Minute of the session in which it is approved by said Committee;

XII.

The credit or credit risk measurement elements applicable to the investment portfolio of the Asset Managed by the Investment Society, defined by the Financial Risk Committee, and the following elements: probability of default using the methodology approved by said Committee, potential severity of loss or impairment, 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 of the Head of the Risk Area regarding the viability of the issuer and Counterparty, as well as maximum investment limits for each issuer and Counterparty. The opinion of the Head of the Risk Area must be backed by credit models, information obtained through systems and subscription means authorized by the Investment Committees, qualitative and quantitative elements defined by the Financial Risk Committee. In the event that the qualitative elements of the additional credit evaluation are integrated into the Automated Integrated System, the provision in this fraction will not be necessary. The quantitative elements of the additional credit evaluation must be integrated into the Automated Integrated System.

The review, updating, 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 Societies acquire a new issuance of Debt Instruments or Foreign Debt Securities or operate with a new Counterparty, as well as when the Financial Risk Committee determines it.

For the purposes of what is provided in this fraction, the Administrator may determine that the Head of the Investment Area is the one who presents the aforementioned opinion.

XIII.

The liquidity risk measurement elements applicable to the investment portfolio of the Asset Managed by the Investment Society, defined by the Financial Risk Committee, considering the following elements: distribution of resources in each Investment Society by specific age, maturity profile in the next ten years, estimates of inflows and outflows of resources through 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 updating of the demographic and actuarial elements must be carried out at least annually.

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

XIV.

Exposure of the investment portfolio of the Asset Managed by the Investment Society 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 Asset Managed by the Investment Society;

XVI.

Prudential leverage measures defined by the Financial Risk Committee, such as unhedged derivatives with reverse operation, known in practice as uncovered operations and in the English language as "naked positions";

XVII.

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

XVIII.

The daily level of the Liquidity Coefficient and, if applicable, those minimum liquidity parameters by Derivative positions applicable to the investment portfolio of the Asset Managed by the Investment Society, defined by the Financial Risk Committee, as well as the Early Warnings at different levels defined by the Financial Risk Committee. Additionally, this report must be informed daily to the Head of the Investment Area;

XIX.

Standard deviations of returns calculated 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 repurchase operations. The yield of these operations, report on changes in the levels of collateral, credit rating of the Counterparties, percentage of use of concentration limits, liquidity, default on any policy determined by the Financial Risk Committee. The aforementioned Committee may define additional elements to those provided for in this subsection;

XXIII.

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 subsection, and

XXIV.

The activities described in Article 14 of these Provisions.

Article 12.- The UAIR will deliver daily to the General Manager of the Administrator, the Regulatory Comptroller, and the Head of the Investments Area, an executive report on the behavior of the Financial Risks of the Investment Societies operated by the Administrator. The General Manager of the Administrator may determine a different periodicity than that provided for 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 recording operations reports to the Operator, prior to agreement, when the level of risk associated with certain Investment Assets reaches the limits provided for in the General Provisions establishing the investment regime to which the Investment Societies must be subject, the Prudential Limits and Early Warning Signals. This level of risk must be calculated in the Automated Integrated System for the risk management activity and, where applicable, transmit the alerts applicable 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 Policy and Procedures Manual for Financial Risk Management. The Financial Risk Committee must define the maximum time for the validity of what is provided for 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. Likewise, it must review and issue an opinion regarding the updates of the Automated Integrated System for the risk management activity in accordance with the policy and periodicity defined by the Financial Risk Committee;

VI.

Generate an independent valuation to that provided by the 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 systems and means of subscription, 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, subsection 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, subsection III of these provisions;

VII.

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

VIII.

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

The reports of the UAIR regarding Financial Risks may be presented in an aggregated manner by the 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 for 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. Likewise, it must allow the calculation of various sensitivity measures, among which are those referred to in Article 11, subsection XI of these Provisions;

II.

Carry out portfolio stress tests applied to the investment portfolio of the Asset Managed by the Investment Societies, as well as to sub-portfolios defined by the Financial Risk Committee and to specific Investment Assets that are part of the investment portfolio of the Asset Managed by the Investment Society. 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 Warning Signals that have been approved by the Financial Risk Committee of the Investment Society, by Asset Class, by issuer or Counterparty, by underlying, for Foreign Securities, by regions and by economic sectors;

IV.

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

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 Equivalent Delta Value for positions in Derivatives;

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 stochastic Monte Carlo 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 the event that 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 Warning Signals at different levels for the Liquidity Coefficient, as well as other minimum liquidity parameters for positions in Derivatives defined by the Financial Risk Committee;

XIII.

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

XIV.

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

XV.

Calculate the measurement elements for the additional credit evaluation described in Article 3, subsection 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 for in subsections V, VI, and VII of this article, provided that it has 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 he participates for the first time, must express his opinion regarding the policies approved by the Financial Risk Committee that will be in effect on the matters provided for in subsections V, VI, and VII of this article. The list of the agreements on which he will express his opinion must be recorded in the Detailed Minutes of the corresponding session.

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

CHAPTER III

ON THE POLICY AND PROCEDURES MANUAL FOR THE

FINANCIAL RISK MANAGEMENT

Article 15.- Each Administrator must prepare a Policy and Procedures Manual for Financial Risk Management, which must be approved by the Financial Risk Committee of the Investment Societies and by the Governance 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:

I.

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

II.

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

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

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

Article 16.- The Policy and Procedures Manual for Financial Risk Management 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 Warning Signals 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 in the investment regime, in the manuals, by the Financial Risk Committee, or when there are extreme market conditions must be provided for;

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, in their case, correct the deviations observed on the risk limits;

VII.

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

VIII.

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

IX.

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

X.

The methodology used for the valuation of the optional titles referred to in paragraph d) of subsection LII of the Second Provision of the General Provisions establishing the investment regime to which the 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 yield, expected yield, risk-adjusted yield, 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 Financial Risk Management and, in their case, 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 reveal 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 the portfolio stress tests applicable to Value at Risk, Conditional Value at Risk, and Differential of Conditional Value at Risk;

XIV.

In the event that operations with Derivatives are intended to be carried out, 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 the event that operations with Derivatives in over-the-counter markets are intended to be carried out, the policy or, in their case, the methodology to which the Investment Society will be subject for the valuation of said operations;

XVI.

In the event that operations with Foreign Securities, Commodities, Currencies, Vehicles, Real Estate Investment Vehicles, as well as investing through Mutual Funds or Mandatories are intended to be carried out, the procedure to operate these and a description of the best execution practices or, in their case, of contracting the 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 Financial Risk Management. 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.

The action plans in case of contingencies in alternate sites. The alternate site 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 the event that it is necessary to recover the continuity of operations, it must be carried out in an alternate site that has not been foreseeably affected by the same circumstances as the Administrator's site.

The minimum functioning of the Investment Societies for the risk area will be understood as complying with subsection 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 to which Chapter II of this Title refers;

XXIII.

The methodology to define the Prudential Limits and Early Warning Signals of maximum exposure for repurchase and securities lending operations by type of permitted Instrument and by each Counterparty with which said 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 Differential of Conditional Value at Risk applying the dates provided for 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 Asset Managed by the Investment Society and of 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 from the methodology referred to in this fraction, and

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.

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 Disposiciones.

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 terms of 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 Assets Subject to Investment, within the limits proposed by the Financial Risk Committee that have been approved by the Governing Body of the respective Investment Society. This obligation will be applicable only to the Assets Subject to Investment 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.

The 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 presented by each of the Risk Factors defined by the Financial Risk Committee;

IV.

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

V.

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

VI.

The Assets Subject to Investment 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 they must represent with respect to the value of the Total Asset, and

VII.

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

The Investment Committee must specify whether the percentages referred to in the previous 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 used.

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 will be the responsibility of the Investment Committee to define and approve additional criteria that make up the Investment Strategy, with the objective of prudently administering pension resources in accordance with the profile of the respective Investment Society.

When new instruments are incorporated into the definition of Assets Subject to Investment 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 Disposiciones. For the case of liquidity facilities provided for in contracts with Custodians, 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 Disposiciones, and

III.

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

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

Article 22.- Investment Committees must approve portfolio rebalancing programs. Without prejudice to the foregoing, said programs must be approved in the event of breaches of 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 Officials authorized to carry out over-the-counter Derivatives operations, and

II.

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

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

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

For the purposes of this article, the Head of the Investment Area must demonstrate to the Investment Committee compliance with said 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.

The foregoing, when the Investment Committee considers it appropriate to use timeframes different from 1, 3, 5 years and historical ones from the start of the investment or at least three alternative horizons defined by the Investment Committee.

The above calculations must be carried out 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 Minute of the corresponding session of the Investment Committee.

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

Article 26.- Investment Committees must determine, for each Asset Class, the percentages of the Total Asset corresponding to the Asset Managed by the Investment Society and the Asset 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 the 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, 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 Disposiciones applicable to Commodities;

II.

Define the long-term objectives to be achieved, regarding diversification and expected profitability 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 the management;

b)

The total costs, identifying the concepts that make up said 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 performance of investments in Commodities. For this purpose, the performance 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 the measures defined by the Financial Risk Committee that must be used to evaluate compliance with Prudential Limits;

V.

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

VI.

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

VII.

Approve the policies regarding operations with Derivative instruments on Commodities 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 Disposiciones, 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 said 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, in their case, 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 Disposiciones applied to them;

II.

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

III.

Provide for policies so that the investment area of the Investment Society has, prior to carrying out investments in each Mutual Fund and, in their case, in each Equity, Debt, and Real Estate Vehicle, an analysis on the characteristics and risks inherent, in accordance with what is provided for in these Disposiciones 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, in their case, 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, in their case, 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 Disposiciones. Such policies must include the administrator's experience as a manager of Vehicles, including Mutual Funds and, in their case, 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, in their case, the Equity, Debt, and Real Estate Vehicle, as well as the total costs and, in their case, entry and exit costs, considering the information that is publicly available in accordance with applicable provisions;

VII.

Evaluate the costs and net returns of the Mutual Funds and, in their case, 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 higher-cost Vehicle 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 Minute 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 granted with respect to the reference index, in its case, considering the times the administrator has changed the reference index for the same Mutual Fund;

VIII.

Monitor the observed and expected performance of investments in Mutual Funds and, in their case, Equity, Debt, and Real Estate Vehicles. For this purpose, the performance 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 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, in their case, 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 periodicities established in the information prospectuses, supplements, or other documents approved by the regulatory authority of the Eligible Countries for Investments with which the shares of the Mutual Funds can be redeemed in accordance with the Investment Strategy, the type of underlyings, as well as the investment horizon of the Investment Societies. For this purpose, they must evaluate that the costs of the Mutual Funds reflect the redemption periodicity, as well as evaluate those costs or any other type of sanction imposed by the administrator of the Mutual Fund that could be generated by an early redemption, and

XI.

For the case of Mutual Funds, ensure that the maximum amount to be invested in each Mutual Fund is not greater than 10% of the net assets of said Mutual Fund. The Investment Committee may determine to invest a percentage higher than that provided for in this fraction and it must be clearly recorded in the corresponding Detailed Minute, having 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 frequency indicated below, or earlier if said Committee so determines:

1.1.

The information of fractions I, II, III, IV, V, VI, IX, and X: annually, and

1.2.

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

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

Article 30.- Investment Committees must approve and monitor the investment in Structured Instruments, FIBRAS, Real Estate Investment Vehicles, and Certificates Secured by Real Projects, 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 establishing the investment regime to which Investment Companies must be subject, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risks Committee. For these purposes, the Investment Committee must define the following:

a)

The horizons in which 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 for reviewing the Investment Strategy, and

f)

The flexibility allowed in the implementation of the authorized Investment Strategy for the investment area for each of the variables described in the preceding subsections.

For the case of Structured Instruments, the Investment Committee must define which types of these it will invest 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 state this in the Detailed Minutes of the corresponding session.

For the case of the investment strategy in Structured Instruments, the Investment Committee must define and approve the criteria under which Investment Companies will invest in the instruments referred to in subsection a) and subsection b) of fraction LI of the Second Provision, of the General Provisions establishing the investment regime to which specialized 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 the realization of investments in Structured Instruments, FIBRAs, Real Estate Investment Vehicles, and Real Project-Linked Securities. Such eligibility policies will include 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 corresponding trusts for 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 team's experience 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 their 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 productive enterprise, or an investor who accredits having experience in the investment or development of projects similar to those financed by the Structured Instrument;

ii.

The operational 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 policies for aligning the interests of the administration team of the estate of the trust corresponding to the Structured Instrument and the FIBRA in question with those of the investors. Within these policies, the percentages of co-investment, previously determined by the Investment Committee, that the administrator must carry out 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 Patrimonial Link, in its case, with the co-investor.

Finally, the policies provided for 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 derived from the determination of the policies provided for in this subsection, applicable to Structured Instruments, the Investment Committee or, in its case, the Financial Risks Committee, must fully identify, and record this, the entity that, among the administrator and the co-investor, is in charge of defining the investment thesis of the referred instruments, as well as the entity in charge of the execution labor, and, 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, fraction 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 administration team of the Real Estate Investment Vehicle in the activities subject to the investment;

ii.

The operational 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 policies for aligning the interests of the asset administration 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 their 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 operational structure of the investment vehicles, including among other factors, the estate 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 the event that 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 fraction, 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 for 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 estate of the trusts corresponding to the Structured Instruments and, in their 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 Retirement Savings System is protected at all times.

III.

Approve the content of a questionnaire that allows evaluating the policies defined in the different concepts of the Structured Instruments, FIBRAs, and Real Project-Linked Securities in which the corresponding Investment 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 fraction, 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 fraction, 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 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 investment in Structured Instruments, the Investment Committee 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 for 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 fraction must be clearly recorded in the corresponding Detailed Minutes, counting 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 fraction II of 139 of these Provisions, an investment program in Structured Instruments referred to in subsection a), fraction LI, Second Provision of the General Provisions establishing 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 for 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 fractions provided for 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 also 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 for 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 the English language and known in the Spanish language 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 of the characteristics and risks inherent to each instrument provided for in this paragraph in which it invests. When subsequent investments are made in any of the instruments referred to in this paragraph that have been previously acquired by the Investment Company, it will not be necessary to 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, at least, when Structured Instruments, FIBRAs, Real Estate Investment Vehicles, or Real Project-Linked Securities are acquired for the first time or when there is 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, 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, count with the favorable vote of the majority of the Independent Directors, and express the reasons, as well as have available to the Commission the analyses that gave rise to said proposal;

X.

With respect to Structured Instruments, they must express their opinion regarding pending capital calls as to the amount and term in which they will be required, if applicable. Likewise, the Investment Committee may determine, being recorded in the Detailed Minutes of the corresponding session, counting with the favorable vote of the majority of the 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 some Structured Instrument that forms part of the investment portfolio of the Investment Companies, for which the Investment Committee must carry out the appropriate actions so that the Structured Instruments that are in the present case cease to form part of the investment portfolios of the Investment Companies;

XI.

For the case of Real Project-Linked Securities for said 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 estate is one or several 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 projects

real or receivables 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 participants in the securities market, 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 agencies, in which case they must comply with the minimum credit ratings provided in the General Provisions establishing the investment regime to which Investment Companies subject to the issuances of Debt Instruments.

XII.

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

XIII.

For the case of Structured Instruments, retrospectively and in accordance with the information available to investors in terms of the Securities Market Law and the General Provisions applicable to securities issuers and other participants in the securities market, 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, for the underlying investments that have ceased to be part 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 Company, or in its case, the risk area, to follow up on the corporate rights policy, such as equity right distributions, the results of assemblies, and any relevant event that occurs during the period;

XV.

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

XVI.

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

a)

The instrument structure 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 investment societies for retirement funds must be subject;

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 in the first instance and at all times.

e)

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

XVII.

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

a)

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

b)

The maximum leverage levels of the trust, and

c)

Analyze and evaluate whether 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 of 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 Councilors 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 the FIBRA-E and Structured Instruments, in the event that the administrator participates as a co-investor of the FIBRA-E or the Structured Instruments in question, said 2% participation will not be additional to the amount of the co-investment. The Investment Committee may modify the minimum percentage limit to invest described in this fraction, for which it may consider additional criteria such as the size of the issuance, the administrator's experience, or the 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 the Independent Councilors who are members of the Investment Committee, record 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 the pending capital calls of the Structured Instruments in which they have previously participated in order to avoid any harm to the Workers' savings.

XXII.

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

a)

They are titles or securities that represent receivables rights or cash flows issued through Vehicles and whose underlying assets are said receivables rights or cash flows, which represent a payment commitment of Coupons, principal, or both for the issuer of the instrument and that have the credit ratings provided in the General Provisions establishing the investment regime to which specialized investment societies for retirement funds must be subject; 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 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 participants in the securities market, issued by the National Banking and Securities Commission and, if applicable, based on information provided to holders of Structured Instruments, FIBRAs, and Certificates Linked to Real Projects and from the independent appraiser. For Fiduciary Trust Certificates for Investment Projects, additionally, the information provided by the co-investor must be considered. For Real Estate Investment Vehicles, information disclosed in accordance with the applicable regulations of Eligible Countries for Investments may be considered.

Updated evaluations must be presented by the Head of the Investment Area at 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 Certificate Linked to Real Projects, when any of these instruments are acquired or disposed of, 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 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 Investment Area Official 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 the 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 Companies must be subject, the criteria defined by the Risk Analysis Committee, and the limits defined by the Financial Risk Committee considering different investment horizons authorized by the Investment Committee;

II.

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

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 the matter of risk management issued by the Commission and in these Provisions. In the case of investments in initial public offerings and individual stocks, 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 replica of a national stock or real estate index and it presents deviations in a range that does not exceed +/- 1.5 percentage points of the official weights avoiding that said weights are 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 replica;

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 acronym in English), considering:

a)

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

c)

The historical performance of the indices referred to in the two previous 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 the 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 administrator's experience as a 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 attached 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 be subject, they must previously:

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, subsections a) to d) and Chapter II, fraction I, subsections a) to g), i) and k), of Annex B of these Provisions.

Investment Societies that intend to carry out operations in the secondary market with the 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 be subject, must previously have the non-objection of the Commission for the Operation of Options whose underlyings are Equity Components;

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 of fraction I: annually, and

1.2.

The information of fractions III to VI: quarterly.

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

Article 32.- Investment Committees must define, approve, and follow up on the Currency Investment Strategy, attending to what is provided in Annex D of these provisions. For the effects of what is provided in this article, Pure Currency Positions, 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 Currency Investment Strategy, in accordance with the General Provisions establishing the investment regime to which Investment Companies must be subject, quantified in accordance with these Provisions, the limits defined by the Financial Risk Committee, and considering different investment horizons, as well as the criteria defined by the Risk Analysis Committee;

II.

Have previously to the investment 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 Currency investments whose exposure is provided in the Investment Strategy.

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 of fraction I: annually, and

1.2.

The information of fractions II and III: quarterly.

The Head of the Investment Area must present to the Investment Committee the referred information, in the immediate session after 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 Company in Debt Instruments and Foreign Debt Securities, including Securitized 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 Companies must be subject, quantified in accordance with these Provisions, the limits defined by the Financial Risk Committee, as well as the criteria defined by the Risk Analysis Committee. For such purposes, the Investment Committee must define the investment horizon, the credit rating, the amounts, and the percentages of the Total Asset of the Investment Company in question;

II.

Create and update matrices containing the issuance and the interest rate margin required with respect to the corresponding governmental or sovereign reference 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 payment seniority, the maturity term or duration, as well as the credit rating.

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

III.

Define and follow up on policies regarding the analysis of Financial Risks applicable to Debt Instruments and Foreign Debt Securities to be acquired;

IV.

Follow up on 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. Follow up on this classification to detect any deviation in the Investment Strategy or excessive concentration in any given classification. Likewise, the Investment Committee must take knowledge of the follow-up to Early Warnings carried out by the Financial Risk Committee for each defined classification;

VI.

For the case of Hybrid Debt Instruments, verify that a part of the issuance is made in international markets;

VII.

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

VIII.

For 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 periodicity indicated below, or earlier if said Committee so determines:

1.1.

The information of fractions I and IV: annually;

1.2.

The information of fraction II, VI, VII, and VIII: in accordance with what the Investment Committee establishes, and

1.3.

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

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

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

2.1.

Non-compliance with obligations;

2.2.

Changes in credit ratings;

2.3.

Changes in credit enhancers or guarantees;

2.4.

Application of specific rules regarding 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 follow up on the information referred to in the above items.

Article 34.- When the Administrator has the non-objection of the Commission to carry out Derivatives transactions, the Investment Committee must define, approve, and follow up on the policy it 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 Derivatives operations, 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 Derivatives operations;

III.

It will define the type and determine the amount of collateral, this latter with respect to the value of the operations entered into, which it may give and receive during the term of the operations;

IV.

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

V.

It must follow up on the exposure and 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 establishing the investment regime to which Investment Companies must be subject. These calculations will be made with the investment portfolio of the Asset Managed by the Investment Company, and, where applicable, with the investment portfolio of the Assets Managed by each Mandatory;

VI.

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

VII.

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

VIII.

Define and follow up on the use of credit lines of each Counterparty, and

IX.

It must have a periodic analysis that identifies the positions of Derivatives operations that it considers may have an effect that is exacerbated by the cycle of Risk Factors, known in practice as " pro-cyclical effects ", and the methodology for following them up, as well as knowing the results of the risk metrics defined by the Commission applied to the investment portfolio of the corresponding Investment Company, and, where applicable, adjusting the Investment Strategies with Derivative Instruments.

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

1.1.

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

1.2.

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

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

Article 35.- The Investment Committees of the Investment Companies, in case they approve the intermediation contracts 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 defined for this purpose by the Commission and the Risk Analysis Committee that have been notified to the Administrators. Likewise, 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 establishing the investment regime to which Investment Companies must be subject issued by the Commission, and the criteria defined by the Risk Analysis Committee;

IV.

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

V.

Determine the type of investment according to the region, asset, and investment horizon for which they are authorized, which the Investment Company will grant to the Mandatories that it may have contracted;

VI.

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

VII.

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

VIII.

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

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

1.1.

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

1.2.

The information of item VI: every four months.

The Head of the Investments Area must present to the Investment Committee the referred information, 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 are subject to international standards such as those issued by " Global Investment Performance Standards ", GIPS, by its acronym in the English language and translated into Spanish as International Standards on the Presentation of Investment Results, 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 Company with which the Administrator will evaluate the performance and risk of each Investment Company that operates, describing the long-term investment objectives.

Said reference portfolio must comply with what is established in the General Provisions establishing the investment regime to which Investment Companies must be subject and the following guidelines for its formation:

I.

Reflect the agreement of the Investment Committee itself regarding the investment horizon and composition by asset class for the reference portfolios most suitable for investing the investment portfolio of the Investment Company;

II.

Consider the demographic characteristics of each Investment Company operated by the Administrator, as well as contemplate the variables that could modify its liquidity requirement, in such a way that the fulfillment of the long-term investment objectives is identified;

III.

Consider the risks and expected returns at 1, 3, 5 years and historical since the beginning of the investment or at least three alternative horizons defined by the Investment Committee. The above calculations must be carried out in accordance with the policies and horizons previously defined by the Investment Committee with the favorable opinion of the majority of the Independent Directors, including the updating of the inputs. The above must be recorded in the Detailed Minutes of the corresponding session of the Investment Committee. The investments area or, where applicable, the risks area must carry out the calculations of the risks and expected returns referred to in this item;

IV.

Have a deviation policy with respect to said reference portfolio;

V.

It must have the approval of the majority of the Independent Directors;

VI.

The Administrator through the UAIR will prepare the analysis of performance and risk attribution of the investment portfolio of the Total Asset of the Investment Company relative to the reference portfolio applicable to the investment portfolio of the Total Asset of the Investment Company. The Assets Managed by the Mandatories may be excluded for the analysis referred to in this item;

VII.

Analyze the deviations between the weights by asset class for the reference portfolios or Risk Factor of the investment portfolio of the Asset Managed by the Investment Company and of the investment portfolio of the Total Asset of the Investment Company with respect to the weights defined in the reference portfolio applicable to the investment portfolio of the Total Asset of the Investment Company. The Assets Managed by the Mandatories may be excluded for what is provided in this item, and

VIII.

Reveal the composition and the deviation policy between the reference portfolio and the investment portfolio of the Total Asset of the Investment Company. The Assets Managed by the Mandatories may be excluded for what is provided in this item. 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 in Annex K of these Provisions.

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

1.1.

The information of items I, II, IV, V and VIII: annually;

1.2.

The information of item III: every four months, and

1.3.

The information of items VI and VII: monthly.

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

To comply with the calculations provided for in the previous item III and the calculation of expected returns provided for in Article 11 item III, the Administrator must define as responsible the Investment Committee or the Financial Risks Committee. In the event that the Administrator defines the Investment Committee, it must:

2.1.

Designate the Official of the investments area responsible for complying with the calculations provided for in this item, and

2.2.

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

Without prejudice to the foregoing, the definition of the reference portfolio must consider at least the following:

3.1.

The policy for the inclusion or exclusion of Investment Target Assets and the determination of their weights within the reference portfolio;

3.2.

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

a)

The asset classes indicated in item VII, of Article 2 of these Provisions. The Investment Committee may consider asset classes for the reference portfolios additional to those provided for in this subsection;

b)

Currencies, referred to in the Second Provision, item XXIX of the General Provisions establishing the investment regime to which Investment Companies and Investment Units must be subject;

c)

Investments made directly by the Investment Companies and through Vehicles and Mandatories;

d)

Exposure through Derivatives, quantified through delta value and subject to the Conditional Value at Risk Differential. Within these investments, the aggregate exposure by type of underlying must be indicated, considering, Currencies, interest rates, stocks, Commodities, inflation-linked references such as Investment Units, as well as the authorized percentage in listed markets and over-the-counter markets;

e)

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;

f)

Regarding Debt Instruments, they must specify the authorized percentages in accordance with:

i.

The credit rating;

ii.

The term to maturity or duration, considering at least the following ranges:

Values with maturity less than or equal to 1 year;

Values with maturity greater than 1 year and up to 3 years;

Values with maturity greater than 3 years and up to 5 years;

Values with maturity greater than 5 years and up to 10 years;

Values with maturity greater than 10 years and up to 20 years, and

Values with maturity greater than 20 years.

The Investment Committee may determine an alternative measure to the term to maturity.

iii.

The priority in collection rights, indicating at least if it is common debt, subordinated, or convertible.

In all the above cases, the authorized percentages will be computed in accordance with these Provisions and the General Provisions establishing the investment regime to which Investment Companies must be subject.

3.3.

The rules that apply, where applicable, for the rebalancing of the reference portfolio, distinguishing those that apply to each asset class for the reference portfolios or Risk Factor included in the reference portfolio, as well as at an aggregated level;

3.4.

The maximum deviation that the investment portfolio must observe with respect to the reference portfolio, which may include, among others, the one known as " tracking error ". Such deviation must be determined with respect to the investment portfolio at an aggregated level and by asset class for the reference portfolios or Risk Factor, for which such deviation must be technically substantiated;

3.5.

Policies for the inclusion and exclusion of assets in case of abnormal market situations, in which case they must provide a definition of abnormal market situations;

3.6.

Maximum investment policies for Investment Targets not included in the reference portfolio but that are part of the investment portfolios of the Investment Companies;

3.7.

Formula for calculating the level of return and risk of the reference portfolio, and

3.8.

Criteria to make adjustments to the reference portfolio in case of not having complete price information of the Investment Targets included in said portfolio.

The definition of the reference portfolio must be submitted to the Commission for its non-objection, having the approvals of both the Investment Committee and the Financial Risks Committee. For such purposes, the Commission will have a period of 40 business days to issue its resolution. In the event that this period elapses without an express resolution by the Commission, the cited reference portfolio will be deemed non-objectioned.

For the purposes of the aforementioned non-objection, the information delivered to the Commission must meet the quality and characteristics required in this article.

The maximum authorized deviation with respect to the reference portfolio and the investment portfolio, as well as the rebalancing rules, may be adjusted by the Investment Committee every twelve months, and the Administrator must inform the Commission no later than 5 business days after the approved adjustments.

The Administrator must have available to the Commission evidence that the Regulatory Controller supervised that what relates to the reference portfolio corresponds to what was approved by the Investment Committee and the Financial Risks Committee.

Article 37.- The Investment Committees must know the results on portfolio stress tests under scenarios approved by the Financial Risks Committee applicable to the investment portfolio of the Asset Managed by the Investment Company, in terms of what is provided for in Article 63 of these Provisions. Likewise, the Investment Committees must know the evaluations of the Value at Risk, Conditional Value at Risk, and Conditional Value at Risk Differential measures.

Article 38.- The Investment Committees must follow up on the compliance with the criteria issued by the Risk Analysis Committee regarding Stock Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments, Debt Indices of Eligible Countries for Investments, Vehicles, Real Estate Investment Vehicles, Mandatories, Custodians, and Commodities that the Commission notifies to each Administrator or the Investment Companies that it operates.

Article 39.- The Investment Committees must opine and propose improvements to the financial operation mechanisms 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, item III, 29, item IX, 30, items IV, V, and XIV, 31, items III, V and VI, and 38, as well as the contents provided for in Annex C of these Provisions.

The above 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 said Committee.

When any Independent Director of the Investment Committee is incorporated, said Director within a period not greater than 60 business days after the session in which they participate for the first time, must express their opinion regarding the policies approved by the Investment Committee that are in force on the matters provided for in Articles 28, item III, 29, item IX, 30, items IV, V, and XIV, 31, items III, V, VI and VII, and 38, as well as the contents provided for in Annex C of these Provisions that remain in force. The list of agreements on which they express their opinion must be recorded in the Detailed Minutes of the corresponding session.

Article 41.- The Investment Committees must define the policies and 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 Risks Committees, the Investment Committees, or some 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 Company. In the event that the Administrator designates some Official, this Official must not have a conflict of interest in carrying out the referred activities.

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

Article 42.- The Investment Committees in coordination with the Financial Risks Committees must define the policies and frequency of update and improvement of the interconnections between the modules of the Integrated Automated System that they apply to the activities of both Committees. The automated interconnections between modules will be required when they interact directly.

Article 43.- The Investment Committee will define the policies for purchase or sale operations of Investment Targets negotiated through stock exchanges, Derivatives Exchanges, or electronic brokers opened simultaneously to financial participants.

Article 44.- The Investment Committees must expressly record in the Detailed Minutes, the current and potential conflicts of interest that may exist between the Administrator that operates the Investment Companies and the persons with whom they have a Financial Nexus, whether directly through operations of the Investment Company or indirectly through mandates or analogous, in case they approve the acquisition and conservation of Investment Targets, as well as the investment in authorized Vehicles that have been placed or structured by persons with whom they have a Financial Nexus, or when the resource flows derived from the investment can be received by said persons.

Article 45.- The Investment Committee of each Investment Company must be integrated by at least five members, among whom there must be an Independent Director, the general director of the Administrator that operates the Investment Company, and the other members or Officials designated by the Governing Body of the Investment Company in question.

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

Law.

Among the members designated by the Governing Body, there must 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 must 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 must be available to the Commission, which may be presented in stenographic form 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 Investment Committee sessions from the secretary of said Committee.

This Committee must meet at least once a month, and its sessions will be valid only if they have a quorum of 80% of its members who participate with 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 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 a minimum the members, guests, powers, policies, strategies, and accountability mechanisms to 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 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.- Compliance Controllers and the heads of the risk area must attend the Investment Committee sessions operated by the Administrator for which they provide their services. In all cases, they will participate with voice but without vote.

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

Article 48.- 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 Investment Company in question.

Article 49.- 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.

Independent Directors and attendees at Investment Committee sessions must declare any potential conflicts of interest they may face regarding the portfolio management topics subject to their evaluation. 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 Executive 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 a job, 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 which 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 will be in charge of, at a minimum, the following functions:

I.

Be responsible for the execution of the Investment Policy and Strategy determined by the Investment Committee, within the parameters established by the Investment Committees and Financial Risk Committees of the Investment Company, 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 Retirement Savings System 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 Company 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 evidence available to the Commission of the following:

1.1.

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

1.2.

The Compliance 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 exceeding 10 business days from the time such modifications are made. Likewise, they must keep evidence available to the Commission 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 that 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, which the Investment Committee has authorized to invest the resources of the Investment Company. 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 Company 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, the interest of the Workers over any other;

III.

The procedures for the structuring and settlement of Linked Structures 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 Companies 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 so that Investment Companies can acquire them;

VIII.

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

IX.

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 fund of funds, as well as for the selection of Vehicles, Real Estate Investment Vehicles, and mechanisms with exposure to underlyings permitted in the General Provisions that establish the investment regime to which Investment Companies 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 Counterparty's credit risk evaluation. 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 for 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 execution policies 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 Company, for which it must comply with the following requirements:

i.

The Administrator must have the technological capabilities and procedures, according to 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 carried out at the best available price, which must be available to the Commission and the Compliance Controller, and

iii.

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

e)

The minimum number of quotes before concluding an operation;

f)

The time period allowed to quote;

g)

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

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 carried out in accordance with best execution policies;

i)

The sanctions applicable to 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 previous subparagraphs of this fraction determined by the Investment Committee.

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

XII.

That the code of ethics provided for in articles 65 and 66 of these Provisions, contains a section applicable to the members of the Investment Committee and to the Executives of the investment area. Such section must regulate what relates to the personal investments of said participants in order to avoid any type of conflict of interest;

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 which it has Patrimonial Links, what is provided for in articles 64 and 69 of the Law, what is provided for in the General Provisions that establish the investment regime to which the Investment Companies issued by the Commission must be subject, 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 Company 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 Administrators have projections with the net liquidity flows generated by the investment portfolio of the Investment Company in question for each of the following 90 natural days subsequent to the date of analysis, as well as a projection of the net liquidity flows at 180 days, 1, 2, 3, 4, and 5 years, and

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 Company does not invest in any Investment Asset, the aforementioned policy 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, and

XVII.

The definition of the reference portfolio of each Investment Company 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.

The Investment Manual must be subject to what is provided for in these Provisions and must be updated with the necessary frequency to achieve this objective. The Investment Manual must 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. Executives of the Administrator and of the Investment Companies must observe the compliance with said Investment Manual.

CHAPTER IV

OF THE INVESTMENT PROCESS

Article 53.- Administrators must have for the operations they celebrate 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 employ 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 to these Provisions, to the General Provisions that establish the investment regime to which Investment Companies must be subject, to the General Provisions on the registration of accounting, preparation, and presentation of financial statements to which Investment Companies must be subject, to the General Provisions that establish the patrimonial regime to which Administrators, Pensionissste, and Investment Companies will be subject and the special reserve, to the General Provisions that establish the procedure for the construction of the net performance indicators of Investment Companies, to the General Rules that the Commission establishes for the delivery of information, and to what is provided for in the Prudential Rules in matters of risk administration.

Article 55.- Administrators must establish contingency policies in the event of technical failures in the Automated Integrated System or any module of said system, as well as backup and continuity policies for the investment operation with which the Investment Company must have. Such contingency policies must contemplate the functioning of the critical activities defined by the Investment Committee, considering what is provided for in article 56 of these Provisions.

Article 56.- In the event that it is necessary to recover the continuity of operations, it must be carried out at an alternate site that will not be predictably affected by the same circumstances as the Administrator's site. The alternate site of the Administrator must fully satisfy these Provisions, in relation to the minimum functioning that Investment Companies must observe, as well as the additional activities determined by the Administrator itself. In the event that the

The Administrator shall determine the performance of additional functions beyond the minimum operation at the alternate headquarters;

the Administrator shall be responsible for guaranteeing the full compliance with these Provisions.

The minimum operation of Investment Societies shall be understood as the following activities:

I.

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

II.

To send to the Commission the financial information referred to in the General Rules established by the Commission for the delivery of information;

III.

To comply with all settlement obligations of Investment Assets that make up the investment portfolio of the Investment Society, and

IV.

To 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 Countries Eligible for Investments.

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

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

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

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

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

Article 62.- The confirmation, settlement, allocation, accounting registration, and financial statement generation areas of Investment Societies must have a manual indicating the policies and procedures governing their operation, as well as the description of the Integrated Automated System applied 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, with the approver recorded in the manual itself. Furthermore, this manual must record the Committee or Official responsible for defining the policies and frequency of updating and improving the Integrated Automated System in terms of Article 4, second paragraph, of these Provisions.

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

CHAPTER V

OF THE BEHAVIORAL TESTS OF INVESTMENT PORTFOLIOS

Article 63.- The Head of the Investment Area, or whom he/she designates, must consider for their investment decisions in FIBRAS, Real Estate Investment Vehicles, Commodities, Currencies, Debt Instruments, Foreign Debt Securities, Equity Securities, and Foreign Equity Securities that 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 Provisions. The aforementioned tests must be carried out with a monthly frequency.

In the case of FIBRAS, Real Estate Investment Vehicles, and Stock Certificates Linked to Real Projects, Investment Societies may use Generic Instruments to carry out 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 Investment Area, or whom he/she designates, must know and, if applicable, request modifications through the technical committees of the Structured Instruments, regarding the contents of the tests provided for in this paragraph. The results of these tests must be made known to the Financial Risks Committee.

The Head of the Risk Area must present the results of the tests referred to in this provision monthly to the Investment Committee so that they consider them in their 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 by their shareholding participation in a company that is part of the investment portfolio of the Asset Managed by the Investment Society, must adhere to the following:

I.

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

a)

Professional experience in activities such as directors;

b)

Adherence to the code of ethics established by the Investment Committee, which shall include among others:

i.

Abstaining from voting in which the independent director has a conflict of interest in their person;

ii.

Providing for policies in which the independent director as a 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 non-public information for decision-making.

c)

Adherence to the rules and guidelines applicable to directors defined by the regulatory authorities of securities markets and, if applicable, trade 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 draft 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 draft and approve a code of ethics whose objective is to establish the principles with which Officials of the investment area, the risk area, the regulatory oversight that exercise financial observation activities of Investment Societies, the areas or activities of confirmation, settlement, allocation, accounting registration, and financial statement generation of investment operations, as well as all involved in the operation and decision-making of Investment Societies, will conduct themselves in the fulfillment of their functions.

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 presented to the Governing Body of the Administrator;

d)

The criteria on which the remuneration policies of investment and risk personnel of Investment Societies, as well as those responsible for the areas of confirmation, allocation, settlement, accounting registration, and regulatory oversight, could be based. The Administrator shall have the obligation to provide the inputs so that they exercise, in a timely manner, the necessary tools for the exercise of the powers of Independent Directors. Likewise, they shall 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, including in an enumerative but not exhaustive 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 adhere;

b)

The mandatory compliance with the code and its publication on the Administrator's Internet page, and

c)

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

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

Article 66.- The Governing Body of the Administrator may create a subcommittee whose object is:

I.

Regarding the code of good practices, the following:

a)

Analyze potential conflicts of interest in investment and risk management activities presented to 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 on Officials who infringe the code of good practices.

II.

Regarding the code of ethics, the following:

Analyze matters related to the drafting 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 whom the Administrator operating the Investment Society has Property Links;

II.

Conduct operations with Investment Assets with Financial Intermediaries with whom the Administrator operating the Investment Society has Property Links, and

III.

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

Investment Societies may acquire Vehicles and Real Estate Investment Vehicles, which are sponsored or administered by Financial Intermediaries, Mandatories, or Service Providers with whom the Administrator operating the Investment Society has Property Links, provided that such Vehicles or Real Estate Investment Vehicles are included in the list 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 must adhere and the criteria defined by the Risk Analysis Committee. Vehicles and Real Estate Investment Vehicles must comply at all times with the provisions applicable to them.

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

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 Property 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 for in 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 conduct any operation for the contracting Investment Society when acting with Investment Assets that form part of the assets of the Service Providers or Mandatories;

II.

That Service Providers, and if applicable, Mandatories, may not conduct any operation for the contracting Investment Society with Financial Intermediaries with whom the Service Providers or Mandatories have Property Links, and

III.

That Service Providers, and if applicable, Mandatories, may not conduct any operation for the contracting Investment Society with Financial Intermediaries with whom the Administrator operating that Investment Society has Property Links.

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

CHAPTER IV

OF OFFICIAL CERTIFICATION

Article 70.- Officials in charge of activities of Investment Societies must be certified in accordance with this article and Annex J of these Provisions. In particular, Officials of the investment area, the risk area, the regulatory oversight that exercise 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 a third party independent of recognized prestige in the provision 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 shall have a validity in accordance with Annex J of these Provisions.

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

In the event that operational errors caused by Officials who failed to comply with the certification referred to in this article resulted in write-downs, costs, or losses to Investment Societies, the Administrator operating the corresponding Investment Society must reimburse the aforementioned expenditures, for which the complete period in which the event occurred will be considered.

No person linked to the activities of Investment Societies who fails to comply with what is provided for in these Provisions regarding the certifications provided for in this article, may exercise functions for Investment Societies that require execution by an Official certified 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 the days from when they incorporated into the areas referred to in different Administrators or in the same Administrator.

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

CHAPTER V

OF INDEPENDENT DIRECTORS

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

Article 72.- Independent Directors must be informed of Officials who cease to work or provide their services in the Administrator with positions equivalent to or higher than those responsible for each of the areas of the Administrator, among others, the Head of the Investment Area, the Head of Financial Risks, the Head of Operational Risks of the Investment Society, the Head of Administration and Finance, Legal, and the Internal Control Body.

Article 73.- At least once a year through their representation in the Governing Body of the Administrator, Independent Directors must propose and comment on improvements identified in the current corporate governance model of the Administrator.

Article 74.- The Administrator must provide the human and material resources necessary for Independent Directors to 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 situation of the Administrator in financial matters, the most relevant activities of their management, and the activities within the Committees to which they attended during the period they remained with the Administrator, as well as matters pending or in process under their charge and other information they consider relevant. This report must be available to the Commission at all times.

TITLE V

OF PRICE PROVIDING AND VALUATION

OF INVESTMENT ASSETS

Article 76.- Administrators must value Investment Assets owned by Investment Societies themselves or through a Valuation Society they contract. 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 contract a different Valuation Society.

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

For Assets Managed by the Investment Society, Valuation Societies, or if applicable, Administrators, must carry out, in addition to the valuation of Investment Assets referred to, the following:

I.

Calculate the fair value of 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 Risks Committee of the Investment Society and approved by the Governing Body of the Investment Society.

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

a)

Value Assets Managed by Mandatories;

b)

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

c)

Calculate the risk measures defined by the Commission or, if applicable, those regulatorily must be proposed by the Financial Risks Committee of the Investment Society and approved by the Governing Body of the Investment Society, applicable to Assets Managed by Mandatories.

Article 77.- Administrators, before acquiring any Investment Asset, whether through Investment Societies or through Mandatories, must ensure that they have the Price

Updated for the Valuation of Investment Assets corresponding to 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 the Investment Societies and, where applicable, the interest, must correspond to the Valuation Day of the Investment Society's share. The Assets Managed by the 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 the Investment Societies must be subject, issued by the Commission.

Article 78.- Administrators that 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 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 keep for a period of 5 years, the evidence provided by the Price Provider or the Valuation Society that supports the modifications that may have been made to the Updated Prices for Valuation or, where applicable, to the inputs used to determine compliance with the limits applicable to the risk measures determined by the Commission in accordance with the General Provisions establishing the investment regime to which the Investment Societies must be subject.

Article 79.- Bank deposits of money made with the Assets Managed by the Investment Society must be valued exclusively by the Administrators, taking the closing balance of the day prior to the Valuation Day. Regarding the valuation in national currency of deposits in Foreign Currency, the Administrators must use the Exchange Rate, or the Cross Exchange Rate for Valuation, in effect for the Valuation Day. Bank deposits made with the Assets Managed by the 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.- The Administrators or, where applicable, the Valuation Societies that 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 the Investment Assets that form part of the Asset Managed by the Investment Society;

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

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

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

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

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

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

Article 81.- The Administrators or, where applicable, the Valuation Societies that hire for this purpose, must calculate the fair value of the repo operations carried out by the Investment Societies and, where applicable, the Mandatories, using the Updated Prices for Valuation and the accrued premium will be updated in accordance with the term of the Valuation Day. Likewise, the Administrators or, where applicable, the Valuation Societies that hire for this purpose, must value the guarantees of the repo operations, in accordance with articles 83 and 84 of these Provisions.

For the purposes of the provisions of this article, the fair value of the repo operations must be equal to the present value of the sum of the value of the cash, plus the repo premium. The present value, in turn, will be calculated using the discount rate provided by the Price Provider, corresponding to the maturity term of the repo and to the credit rating of the Counterparty with whom such operation is concluded.

Article 82.- The Administrators or, where applicable, the Valuation Societies that hire for this purpose, must calculate the Value at Risk, the Conditional Value at Risk Differential or, where applicable, the risk measure that in accordance with the General Provisions establishing the investment regime to which the Investment Societies must be subject is defined, or that risk measure that regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Societies or that defined by the Risk Analysis Committee applicable to the Investment Assets that form part of the Assets Managed by the Investment Societies.

Likewise, the Valuation Societies that the Administrators hire must calculate the risk measure that in accordance with the General Provisions establishing the investment regime to which the Investment Societies must be subject is defined, which regulatorily must be proposed by the Financial Risk Committee of the Investment Society and approved by the Governing Body of the Investment Societies or that defined by the Risk Analysis Committee, applicable to the Investment Assets that form part of the Assets Managed by the Mandatories.

CHAPTER I

PRICE SUPPLY 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 the Investment Assets that form part of the Assets Managed by the Investment Society, the 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's estate of the Structured Instrument, of the promoted entities, of the promoter and of the fund administrator, and

d) The 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 the Investment Assets that operate in international markets and that form part of the Assets Managed by the Investment Society, the 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 an entity distinct from the Custodian hired for the safekeeping of securities activities in the national market.

Article 85.- Regarding the Assets Managed by the Investment Society, the Administrator may obtain the value of operations with Derivatives that the 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 the Investment Assets that form part of the Assets Managed by the 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 the Custodians authorized to carry out such activities in the Eligible Countries for Investments, which may be entities distinct 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 the Investment Societies and, where applicable, the interest, 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 purposes of calculating the Updated Prices for Valuation.

Likewise, through the general Rules that the Commission establishes for the delivery of information, policies must be delivered to the Commission to define the operations and the assets that will make up the positions that must be valued on each valuation date.

Section IV

On the Hiring of the Price Provider

Article 88.- Each Price Provider or Custodian that the Administrator hires for the purposes of obtaining Updated Prices for Valuation, must provide a single price of the Investment Assets that it values.

For the case of the Price Providers that the Administrator hires to value the investment portfolios managed by the Mandatories and, where applicable, 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 each expert will be responsible for valuing, and

II. For the case of the investment portfolios that the Investment Society itself administers, it must use a unique Price Provider to value said Investment Assets. Notwithstanding the foregoing, the Administrator may hire a Price Provider different from the one referred to in this paragraph to value the investment portfolio of the Assets Managed by the Investment 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 that it operates in international markets. Such 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 the Investment Assets that form part of the Asset Managed by the Investment Society, the Administrators, in the contract they conclude 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 the operations with Derivatives carried out in foreign over-the-counter markets.

Article 90.- The Administrators must establish in the contract they conclude 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, where applicable, correspond, to value and determine the Value at Risk, the Conditional Value at Risk Differential or the risk measures defined by the Commission or those that in accordance with the provisions of 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.- The 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 that it hires for the Assets Managed by Mandatories, within 10 business days following the celebration of the contract, and with 20 business days of advance notice to the start of the validity of the respective contract in case of change of Price Provider or of any Custodian.

For the purposes of the foregoing, the 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, where applicable, between the Administrator and the Price Provider or the Custodians for the case of the Assets Managed by Mandatories. Likewise, within 10 business days following that the contract is ratified by the Governing Body of the Administrator, the Administrators must keep available to the Commission a copy of the corresponding agreement, certified by the secretary of said Body, in which the approval of the hiring of the Price Provider or the Custodian in question is recorded.

Likewise, all 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 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 purposes of obtaining Updated Prices for Valuation must establish an annual validity, unless the termination of the contract had been agreed 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.- The 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, the 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, the 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 operations with Derivatives carried out in standardized markets, the Administrators, or the Valuation Societies in their case, must value said financial assets in the following terms:

I. Using the Last Known Updated Prices for Valuation, which will be updated in accordance with the term of the Valuation Day.

In the case of Investment Assets that, being newly issued, have not been included in the Last Known Updated Prices for Valuation, they must be valued taking as a base the acquisition cost. In the case of Investment Assets denominated in Investment Units or its equivalent, or in Foreign Currency, 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 effect 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 Currency, Investment Units or its equivalent, as well as Foreign Variable Income Securities denominated in Foreign Currency, both the price and the interest will be updated with the value of the Investment Unit or its equivalent or with the Exchange Rate or with the Cross Exchange Rate for Valuation, in effect for the Valuation Day, as the case may be;

III. For operations with Derivatives that are carried out in standardized markets, the Last Known Updated Prices for Valuation will be taken, and

IV. For Foreign Variable Income Securities, the Last Known Updated Prices for Valuation will be taken.

Article 94.- In the event that the Price Provider or Custodian, as applicable, do not provide the Updated Prices for Valuation of the Foreign Debt Securities, the Administrators must value said financial assets in the following terms:

I. Using the Last Known Updated Prices for Valuation that will be updated in accordance with the term of the Valuation Day.

In the case of Foreign Debt Securities that, being newly issued, have not been included in the Last Known Updated Prices for Valuation, they must be valued taking as a base the acquisition cost.

In the case of Foreign Debt Securities denominated in Investment Units or its equivalent, or in Foreign Currency, 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 effect for the Valuation Day, respectively, and

II. For Titles that pay interest, the price will be taken without considering interest from the Last Known Updated Prices for Valuation and the interest will be calculated for the days elapsed until the Valuation Day.

In the case of Foreign Debt Securities denominated in Investment Units or its equivalent, or in Foreign Currency, both the price and the interest will be updated with the value of the Investment Unit or its equivalent, or with the Exchange Rate or with the Cross Exchange Rate for Valuation, in effect 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 the repo operations and it does not provide the corresponding value, must carry out the calculation of the fair value of said operations using the Updated Prices for Valuation and the accrued premium will be updated in accordance with the term of the Valuation Day. Likewise, the Administrators must value the guarantees of the repo operations in accordance with article 81 of these Provisions or, in the event that the Price Provider does not provide the Updated Prices for Valuation of an Instrument, they must value the guarantees of the repo 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 must use the Last Known Updated Prices for Valuation.

For the purposes of the provisions of this article, the fair value of the repo will be equal to the present value of the sum of the value of the cash plus the repo premium. The present value, in turn, will be calculated using the discount rate of the Updated Prices for Valuation or, where applicable, the discount rate of the Last Known Updated Prices for Valuation, corresponding to the 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

corresponding, if they 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 Risk Committee and approved by the Governing Body of the Investment Societies, for one or more Investment Assets of the Investment Societies, they must use the Risk Factors from the day prior to that on which the Price Provider or Custodian does not provide such factors, which correspond to the Investment Asset whose Risk Factor was not provided. In this latter case, if the Risk Factors are not available for any Investment Asset, the Administrator must use the methodologies authorized for these purposes by the Financial Risk Committee, which must be documented and formalized. The Administrator must inform this Commission about such procedures no later than 10 business days following their approval.

Section II

On the Contingent Valuation Procedures for Investment Assets that form part of the Assets Managed by the Mandatary

Article 97.- The Financial Risk Committee of the Investment Society must 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 consent of the majority of the Independent Directors of the Financial Risk Committee.

Likewise, the aforementioned procedures must adhere to the best international practices observed in the market.

The Administrator must inform this Commission about such procedures no later than 10 business days following their approval.

Section III

On the Hiring of Valuation Societies

Article 98.- Administrators that hire a Valuation Society must 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 operating each Investment Society, the information for which it has been hired by the Administrators, in accordance with the characteristics established in the General Rules to this effect established by the Commission for the delivery of information.

The contract entered into by the Administrator 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 Administrators hire a Valuation Society, they must inform the Commission of this fact, as well as the services contracted, within 10 business days following the celebration of the contract, and with 20 business days' advance notice before the start of the validity of the respective contract in case of change of Valuation Society.

For the above effect, Administrators must keep available to the Commission a copy of the contract entered into 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 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 Governing Body, in which the approval of the hiring of the Valuation Society is recorded.

For the purpose of carrying out the valuation activities of the investment portfolio of the Assets Managed by Mandataries, 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 entered into by the Administrator and the Valuation Society.

Section IV

On the Valuation of Shares Representing the Paid-in Capital of 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 Eligible Countries for Investments that are maintained with the Total Asset of the Investment Society.

Article 101.- Administrators, or in their case, the Valuation Societies that they hire for such effect, must 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 calculated by dividing the book capital by the number of shares in circulation.

Article 102.- Administrators must 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 current valuation price for that day.

Article 103.- The sale or acquisition that Investment Societies carry out regarding the shares representing their social capital will be made at the current valuation price of the day on which the operation in question is carried out.

TITLE VI

ON ACCESS TO INTERNATIONAL MARKETS

CHAPTER I

ON THE MECHANISMS OF ACCESS TO INTERNATIONAL MARKETS

Article 104.- Regarding international markets, the Total Asset of Investment Societies must only be operated with Financial Intermediaries, or in their case, through Real Estate Investment Vehicles, Vehicles, including Mutual Funds among others, or through Financial Service Providers, including Mandataries.

Article 105.- Investment Societies may only enter into contracts with Financial Service Providers and in their case Mandataries who 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 entered into by Investment Societies 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 entered into 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 Directors participating therein, 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 opinion it must be expressly mentioned that the referred contract complies with what is provided in the regulations of the Retirement Savings Systems.

Article 107.- For the celebration of contracts with Mandataries, the Administrator must provide evidence to the Commission that the following requirements are met:

I.

Have a Process of Observation of the Regulatory Auditor, in terms of the General Provisions applicable to Regulatory Auditors;

II.

Have a letter from the supervisory entity belonging to the Eligible Countries for Investments stating that the Mandatary has no pending antecedents or investigations;

III.

Inform the Governing Body of the Administrator;

IV.

Be the result of a selection process known as a Request for Proposal, RFPs, by its acronym in the English language, previously approved by the Investment Committee, with the favorable vote of the majority of the Independent Directors;

V.

The cost of the investment mandate;

VI.

The maximum percentage of the Investment Society's investment portfolio that will be managed by the Mandatary;

VII.

The Asset Classes in which the Assets 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 Assets 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 Assets Managed by the Mandatary, applying some methodology approved by the Financial Risk Committee. The periodicity of the calculation as well as the horizon must be defined by the Investment Committee;

X.

The investment strategy that the Mandatary will follow, including, without limitation, 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 for selecting them determined by the Investment Committee of the Investment Society, and

XII.

The indication by 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 Investment Societies must be subject.

Article 108.- The contracts entered into by Investment Societies with Financial Service Providers and in their case with Mandataries, as well as the opinions referred to in the previous article, must be available to the Commission at all times. In case the contract is written in a language other than Spanish, there must be a translation into Spanish carried out by an expert translator 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 Retirement Savings Systems.

Administrators may hire temporary administrators known in practice and in the English language as "transition managers" to initiate or settle contracts with Mandataries. In case 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 Investment Societies must be subject, these Provisions, and what has been approved by the Risk Analysis Committee, for which, when acquiring 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 above, Investment Societies must adhere to General Rules to this effect established by the Commission 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 parent or subsidiary companies of the Mandatary, provided that the social capital of said parent or subsidiary companies belongs entirely to the Mandatary or to its controlling company, the latter known in practice and in the English language as "holding".

The Mandataries hired by the Administrator on behalf of the Investment Society must inform the Commission, through the Custodian hired by the Administrator for the safekeeping of the Assets Managed by the Mandataries, the composition of the underlying assets subject to the contract between the Mandatary and the Investment Society in accordance with what is provided by the General Rules to this effect established by the Commission for the delivery of information.

In case 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 recorded. Likewise, in this case, 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, are charged by Financial Service Providers or Independent Service Providers, or that derive from the acquisition of Vehicles, Real Estate Investment Vehicles, or the acquisition or structuring of Structures Linked to Underlyings by Investment Societies, other than Brokerage Costs. Brokerage Costs must be absorbed by Investment Societies.

The costs charged by Financial Service Providers or Independent Service Providers, as well as the costs of Vehicles, Real Estate Investment Vehicles, or Structures Linked to Underlyings, must be known and agreed upon prior to the provision of the service, the acquisition of the Vehicle, the Real Estate Investment Vehicle, the Structure Linked to Underlyings, or when they are deducted directly from said Instruments.

Regarding Advisory Costs, 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 purpose of this article, the Administrator or the Investment Society, on the first business day of each month, must settle the difference that arises due to the daily compensation between the account receivable for commissions on balance and the account payable for Advisory Costs of the previous month.

CHAPTER II

ON VEHICLES

Article 112.- The cost of Vehicles or Real Estate Investment Vehicles that confer, directly or indirectly, rights on Investment Assets, by reason of advice, management, handling of investments, maintenance, or any other analogous, whatever the name given, must be covered by Administrators. The mentioned costs must be known and agreed upon prior to the acquisition of said Vehicles, and when they are deducted directly from said Vehicles, they must be reimbursed in their entirety on a daily basis by the Administrator to the Investment Society that incurred them.

Regarding Vehicles, or Real Estate Investment Vehicles that are subject to public offering, listed and traded intraday on stock exchanges of Eligible Countries for Investments, Mutual Funds, as well as intermediation contracts entered into 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

ON CUSTODY

CHAPTER I

ON THE HIRING OF CUSTODY

Article 113.- Administrators, as well as Investment Societies, must have only one Custodian for their operations carried out 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, compliance with the contents of the General Rules to this effect established by the Commission for the delivery of information must be verified.

Administrators must hire a Custodian for operations carried out in international markets which will focus on the Assets Managed by Mandataries and may be different from those referred to in the previous paragraph; for the purposes of what is established in this paragraph, compliance with the contents of the General Rules to this effect established by the Commission for the delivery of information must be verified.

Article 114.- Administrators may only enter into contracts with National Custodians and International Custodians. Such 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 operated by the Administrator and in their case of 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 operated by the Administrator and in their case the resources of the Investment Societies managed by each of the Mandataries. For the purposes of the above, securities depository institutions must keep records that allow corroborating what is provided in this fraction;

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 Administrator in question and in their case one for each Investment Society on whose behalf each Mandatary operates;

VI.

Be supervised and regulated by authorities belonging to the Eligible Countries for Investments, and

VII.

Carry out operations with Currencies in Eligible Countries 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 given by the Administrator or in their case the Mandatary.

Without prejudice to the above, when any National or International Custodian, acting as a Credit Institution or foreign financial entity authorized for this purpose, receives bank deposits of demand money from an Investment Society, it acquires the status of Counterparty in said operations.

Article 115.- Administrators must make payments directly to Custodians for the services they provide. In no case may they be paid directly or indirectly by Investment Societies.

Article 116.- Administrators must verify and prove, 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 social capital of the Investment Societies, as well as those carried out with titles and securities forming part of the investment portfolio of said Societies, when the settlement materializes, said values, titles, and shares are deposited on the same day in a securities depository institution, in accordance with what is established by the Regulation. Likewise, the Administrator must provide that in their case Mandataries carry out a verification if the values they operate have been effectively deposited in a securities depository institution authorized by the applicable regulations, considering the operations carried out with Assets Managed by Mandataries.

CHAPTER II

ON THE REQUIREMENTS OF THE CONTRACT

Article 117.- In the contracts entered into by Administrators on behalf of 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", in the financial markets where such modality exists;

III.

That Administrators must receive from the Custodian hired to safeguard the investment portfolio of the Assets Managed by Mandataries information on the operations that said Custodian carries out, as well as the position of the same at closing.

The information that Administrators receive in terms of this fraction must adhere to the General Rules to this effect established by the Commission for the delivery of information;

IV.

The express authorization of the Administrator and the express obligation of the Custodian to send to the Commission, in accordance with the periodicity defined by the latter, the information they receive in terms of fractions 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 receipt of the instructions issued by the Administrator;

VI.

That custody services for the safekeeping of the investment portfolio of the Assets Managed by Mandatories who have been contracted by the Administrator, must be provided in all countries in which the Mandatories make investments. Likewise, international custody services for the safekeeping of the investment portfolio of the Assets Managed by the Investment Society must be provided in all countries in which 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 set forth in these Provisions;

VII.

The services that the Custodian will provide directly and the services that are provided through third parties.

In the event that the Custodian uses the service of third parties, the assumption of full responsibility by the latter for what is executed by third parties;

VIII.

In its case, that the Custodian will provide the prices for the valuation of the Assets Managed by the Investment Society in international markets and the corresponding Risk Factors for said values. Likewise, the Custodian that the Administrator has contracted for the safekeeping of the investment portfolio of the Assets Managed by the Mandatories, in its case, will provide the 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 entered into by the Administrator and the Custodian, and

X.

The means and the 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.- The contracts that are entered into 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 Trustees participating in it, and

II.

Be previously assessed by a lawyer of recognized prestige in financial matters with professional experience of at least five years in said matter, in whose assessment it must be expressly mentioned 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 fraction IV of the previous article 114.

Article 119.- The contracts that are entered into with Custodians, as well as the assessments 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 an expert 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 by the National Banking and Securities Commission for such purposes, or have any pending violation or investigation with the corresponding supervisory authority.

For the purposes of what is established in this article, Administrators on behalf of Investment Societies must stipulate in the contracts they enter into 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 of the latter;

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 they operate, that their international Custodian or the institutions for the deposit of securities, are connected to the Commission's systems so that it receives daily information from them, and the corresponding tests have been made.

TITLE VIII

ON DERIVATIVE OPERATIONS

Article 122.- Administrators who 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 fraction IX of the Law, or with the Derivatives and underlying assets referred to in Annex M of these Provisions, must previously comply with the following requirements:

I.

Not having obtained from the Commission any unresolved observations regarding the implementation 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 Official and the Head of the Risk Area, must be certified by an independent third party designated by the Commission for the operation with Derivatives.

For each of the areas of, regulatory oversight, confirmation, settlement, accounting registration, and generation of financial statements of the Investment Societies, there must be at least one Official certified by an independent third party designated by the Commission for the operation with Derivatives. The certifications referred to in this fraction will have the validity established in Annex J of these Provisions, and

III.

Have an Automated Integrated System that allows them to measure and evaluate daily the risks arising from 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 non-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 fraction II of the previous article 122, the celebration of operations with Derivatives must be suspended, and the Administrator must present for the non-objection of the Commission a program for the administration and follow-up of the investment portfolio no later than the next business day after this event occurs, 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, in their case, Mandatories may enter into Derivative operations with the following persons:

I.

Financial Intermediaries authorized in the Derivatives Exchanges referred to in article 126 of these Provisions, or

II.

Financial Intermediaries from Countries Eligible for Investments, that carry out operations outside a Derivatives Exchange, that hold the credit ratings determined by the Commission for such purposes 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 for in this article must be subject to the leverage criteria with Derivatives through Mandatories defined by the Risk Analysis Committee.

Article 126.- Operations with Derivatives may only be carried out in Derivatives Exchanges supervised and regulated by authorities of Countries Eligible for Investments.

Article 127.- 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 into Spanish as the International Swaps Association, the "International Securities Market Association", ISMA, by its acronym in English and translated into 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, said master agreements must consider a section or supplement regarding the officials authorized to carry out the indicated operations and keep them updated or inform the Counterparties about the officials authorized to enter into Derivative operations through the policy that the Investment Committee has defined for such purposes. Administrators must request that Counterparties keep the section or supplement of officials authorized for the aforementioned operations updated.

Article 128.- 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 by aggregating the operations arranged on 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 enter into the Derivative operations provided for in Circular 6/2013 containing the "Rules to which Specialized Retirement Fund Investment Societies must be subject in the carrying out of derivative operations" issued by the Bank of Mexico in terms of article 48 fraction IX of the Law, must previously demonstrate to the Commission compliance with the requirements provided for in these Provisions.

The Commission, after the evaluation it carries out for such purposes and once it has accredited such compliance, will express its non-objection for the Derivative operations provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject to be entered into.

The non-objection to carry out 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, fraction III of these Provisions and regarding the logistics for operating with Derivatives provided for in article 16, fraction XIII of these Provisions.

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 cited requirements and procedures, it must notify it, so that the Administrator in question and, in its case, 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, in its case, the Mandatories may not enter into new Derivative operations, except for the operations necessary to rebalance the portfolio and with respect to operations previously entered into, must be subject to what is established in these Provisions regarding portfolio rebalancing for failing to comply with the limits established in the Investment Regime Authorized by acquisition or sale of Investment Assets, and for the violation of investment limits established for Investment 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 underlying assets as long as the Administrator that hires them has the non-objection of the Commission for the Investment Societies they administer to enter into operations with said Derivatives. For the evaluation carried out by the Commission for the purposes provided for in this paragraph, it must consider the reduction in the Administrator's operational risks when employing an eligible Mandatory.

TITLE IX

ON THE OPERATION OF STRUCTURES LINKED TO UNDERLYING ASSETS

Article 132.- Investment Societies may acquire, as well as create Structures Linked to Underlying Assets referred to authorized underlying variables.

Only Administrators that have the non-objection of the Commission for the Investment Societies they administer and operate to enter into Derivative operations may create and operate with Structures Linked to Underlying Assets in which the exposure to the underlying is acquired through a Derivative.

Article 133.- For the purpose of documenting Structures Linked to Underlying Assets, Administrators will be subject to the General Rules established by the Commission for the delivery of information for such purposes.

Article 134.- Investment Societies must adjust the weightings of Foreign Equity Securities of Structures Linked to Underlying Assets with Foreign Equity Securities acquired directly, when as a consequence of the Exercise of Patrimonial Rights associated with the shares that make up Foreign Equity Securities, a deviation within the initial weighting of the same that exceeds the Allowed Deviation occurs.

For such 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 Securities.

Article 135.- Investment Societies, in the event that they proceed to adjust the weightings of Foreign Equity Securities of Structures Linked to Underlying Assets that make up the investment portfolio or of Foreign Equity Securities acquired directly, must agree on such act within the next business day following that in which the weighting of the index or Basket of Indices is modified as a consequence of the Exercise of Patrimonial Rights, or in its case, the next business day following that in which the Exercise of Patrimonial Rights is publicly announced and as a consequence, a deviation within the initial weighting of the Foreign Equity Securities occurs.

For such purpose, Investment Societies must order the purchase or sale of the necessary shares so that the weightings that make up the Foreign Equity Securities 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 Patrimonial Rights.

Article 136.- Investment Societies, in the event that they proceed to adjust the weightings of Foreign Equity Securities that make up a Structure Linked to an Underlying Asset, must adhere to what is stated in the previous article 67.

Article 137.- Investment Societies and, in their case, Mandatories are prohibited from directly or indirectly or through Financial Service Providers, the following:

I.

Acquiring Investment Assets, Vehicles or Real Estate Investment Vehicles issued by Financial Entities with which the Administrator operating the Investment Societies have Ownership Ties, and

II.

Acquiring Investment Assets, Vehicles or Real Estate Investment Vehicles from Financial Intermediaries with which the Administrator operating the Investment Societies have Ownership Ties.

The prohibitions to which the Investment Society must be subject, described in the previous fractions, will be applicable even when the investment is made through Mandatories.

Article 138.- Investment Societies and, in their case, Mandatories may acquire directly or through Financial Service Providers Investment Assets, issued by Financial Entities with which the Administrator operating the Investment Societies have Ownership Ties, solely for the purpose of replicating the indices or Basket of Indices formed by Investment Assets provided for in the General Provisions establishing the investment regime to which Investment Societies must be subject.

TITLE X

ON THE OPERATION OF STRUCTURED INSTRUMENTS,

FIBRAS AND

BURSÁTIL 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, according to the following:

I.

When they do not belong to an investment program referred to in article 30, fraction VI, of these Provisions:

A.

For FIBRAS and Bursátil Certificates Linked to Real Projects, the investments area or in its case the risk area must previously carry out an analysis on the characteristics and risks inherent to each instrument that is intended to be acquired. The Head of the Investments Area must submit to the Investment Committee the aforementioned analysis considering the following:

i.

The additional information provided in these Provisions, regarding relevant events provided for in the Securities Market Law that have been made public by the issuer of the instrument, as well as any other information that is disseminated in the market regarding the instrument;

ii.

The content of the questionnaire referred to in Annex B, Chapter II that allows evaluating the policies defined in the different concepts of FIBRAS or Bursátil Certificates Linked to Real Projects, the analysis must refer to the investment plan and experience of the asset manager of the instrument;

iii.

For the purpose of follow-up, to inform about the results of the behavior tests referred to in article 63 of these Provisions that are carried out on FIBRAS or Bursátil Certificates Linked to Real Projects using methodologies that consider the information available at the date of the tests or, in its case, Investment Societies may use Generic Instruments to carry out the tests referred to in this fraction;

iv.

The known costs and commissions in favor of the administrator of the structure, the structurer, and other participants in the operation. The analysis must include the return that corresponds to the administrator or that which performs analogous functions of the FIBRA or Bursátil Certificate Linked to Real Projects;

v.

The source of resources destined for the payment of 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 Projects and its sensitivity to the identified risks in accordance with what is provided in this article, and

vii.

The information of the quantitative methodology, parameters, and bases on which

analysis has been performed.

The Head of the Investment Area must present to the Investment Committee a general opinion on the convenience of investing in FIBRAs or Real Project-Linked Stock Certificates provided for in subsection A of this section, prior to the Investment Committee's approval, as well as express its opinion on the information provided in items ii. and iv. of subsection A of this section.

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 Real Project-Linked Stock Certificates, individually, must be expressly agreed upon, have the favorable vote of the majority of Independent Directors who are members of said Committee, and be recorded in a Detailed Minutes of the corresponding Investment Committee session in which the analysis described in subsection A of this section was presented.

Investment Societies may only acquire FIBRAs or Real Project-Linked Stock Certificates that meet the criteria established in the general investment policies for these instruments, approved by the Investment Committee of the Investment Societies. These policies must cover the aspects referred to in items i. to vii. of subsection A of this section and be approved complying with the formalities referred to in the previous paragraph.

B.

For Structured Instruments, the Head of the Investment Area must submit to the Investment Committee the investment proposal for the Structured Instrument in which it intends to invest, considering the following:

i.

The additional information to that required in these Provisions that has been made known to investors by the administrator, as well as by the independent appraiser 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.

Compliance with the policies defined in Article 30, section 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, where applicable, make up the Structured Instrument, in accordance with the investments revealed by the administrator, and regarding the investment plan of the instrument in question;

v.

For monitoring purposes, to report on Risk Factors, sensitivities, and scenarios provided periodically by the administrator or the independent appraiser of the instrument in question;

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 in Article 30, section IX of these provisions. Within the analysis, the return corresponding to the administrator of the Structured Instrument must be verified;

vii.

Where applicable, if there are capital calls, for monitoring purposes to report on the risk factors associated with the capital call mechanism, in an illustrative but not exhaustive manner, the impact generated on returns, on the business plan, or on the investment calendar due to investors' failure to meet such calls on the instrument;

viii.

The management of the instrument's liquidity, in an illustrative but not exhaustive manner, the types of financial assets in which the cash that forms part of the trust's equity may be held in accordance with the criteria approved by the Risk Analysis Committee, as well as the destination or administration systems for cash from capital calls, and

ix.

The source of resources destined for payment to holders of the Structured Instrument and the payment priority corresponding to each class of holders.

The Head of the Investment Area must present to the Investment Committee a general opinion on the convenience of investing in Structured Instruments, prior to the Investment Committee's approval, as well as express its opinion on the information collected to satisfy the contents of Article 30, section 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 expressly agreed upon, have the favorable vote of the majority of Independent Directors who are members of said committee, and be recorded in Detailed Minutes in which the session of the corresponding Investment Committee presented the analysis described in subsection B of this section.

Investment Societies may only acquire Structured Instruments that meet the criteria established in general investment policies for these instruments approved by the Investment Committee. These policies must cover the aspects referred to in items i. to ix. of subsection B of this section and be approved complying with the formalities referred to in the previous paragraph.

To comply with the analyses, studies, or investment proposals provided for in this section, 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 Investment Area Official responsible for complying with the analyses, studies, or investment proposals provided for in this section, and

1.2.

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

II.

The Structured Instruments referred to in item a) of the Second Provision, section LI of the General Provisions establishing the investment regime to which Investment Societies, FIBRAs, and Real Project-Linked Stock Certificates must be subject may be acquired in accordance with what is provided in Article 30, section 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 expressly approved and has the favorable vote of the majority of Independent Directors 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 the previous section I, when they include FIBRAs and Real Project-Linked Stock Certificates, or subsection B of section I above, when they include the Structured Instruments referred to in item a) of the Second Provision, section LI of the General Provisions establishing the investment regime to which Investment Societies must be subject. The aforementioned analyses must be available to the Commission, and

C.

Investments in Structured Instruments referred to in this section, FIBRAs, and Real Project-Linked Stock Certificates made through investment programs will not be required to be presented to the Investment Committees prior to their acquisition. The results of the analyses provided for in subsections A and B of section I above must be presented to the Investment Committee in the session immediately following the date of acquisition of the Structured Instrument, FIBRA, or Real Project-Linked Stock Certificate.

III.

For subsequent investments in the same Structured Instrument, FIBRA, or Real Project-Linked Stock Certificate, sections I and II of this article will not apply, and

IV.

In accordance with Article 30, second-to-last paragraph of these Provisions, the Head of the Investment Area, or whom he designates, must monitor the Structured Instrument, FIBRA, or Real Project-Linked Stock Certificate and the assets that, where applicable, make it up, as well as deliver to the Investment Committee the results of the analysis provided for in subsection A of section I of this article, when it concerns FIBRAs and Real Project-Linked Stock Certificates, or to that provided for in subsection B of section I of this article, when it concerns Structured Instruments. Such analyses must be available to the Commission.

Article 140.- The Operators of Investment Societies in charge of the purchase and sale of Structured Instruments, as well as one Official from the UAIR and one from the regulatory comptroller, must be certified by an independent third party designated for this purpose by the Commission. The certifications referred to in this article will have the validity referred to in Annex J of these Provisions.

TITLE XI

ON 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 provided by the Price Provider, the Custodian, or the Appraisal Society 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 will 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 will 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 Mandatary, must observe, it will 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 will 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 will 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, Value at Risk, it will be subject to the criteria defined in Annex L of the General Provisions establishing the investment regime to which Investment Societies must be subject.

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 will be subject to the criteria defined in Annex N of the General Provisions establishing the investment regime to which Investment Societies must be subject.

For the purpose of computing limits applicable to the investment portfolio of the Asset Managed by the Investment Society regarding the Liquidity Coefficient, it will 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 restructure their portfolio. Investment Societies must carry out such recomposition and, where applicable, instruct Mandataries to do so, within a period not exceeding six months.

These Provisions will be applicable in any of the following events:

I.

When one or more Investment Assets forming the investment portfolio of the Total Asset of the Investment Society and, where applicable, of Mandataries, suffer changes in their credit rating and thereby violate the limit by issuer, by Category, or if the new credit rating is lower than that required by the Authorized Investment Regime;

II.

When with the Total Asset of the Investment Society, Investment Assets have been acquired or sold observing the percentages provided for in the Authorized Investment Regime, but due to variations in the price of the Investment Assets forming its asset, they do not cover or exceed such percentages;

III.

When due to the change in the composition of the indices or Index Baskets used as reference to acquire a Foreign Equity Security, the Permitted Deviation in the weighting of the shares of said index or Index Basket provided for in the Authorized Investment Regime is exceeded, or when the Foreign Equity Security cannot be acquired or liquidated within the timeframes established in these Provisions for the operation with Foreign Equity Securities, for causes not attributable to the Investment Society directly or through Mandataries. In the event that the Investment Society, which replicates indices provided for in the Authorized Investment Regime, decides to carry out any purchase or sale of shares forming the replication basket, it will be assumed that the Investment Society initiated portfolio recomposition and it will have four business days to comply with the Permitted Deviations in the weighting of the shares of said index;

IV.

When due to the change in the composition of the index referred to in section II of the Twenty-Fourth Provision of the General Provisions establishing the investment regime to which Investment Societies must be subject for shares of National Issuers, the permitted weighting of shares is exceeded as referred to in said section, or when the share of National Issuers cannot be acquired or liquidated within the timeframes established in these Provisions for the operation with said instruments, for causes not attributable to the Investment Society. In the event that the Investment Society decides to carry out purchases or sales of these issuers, it will be assumed that it has initiated portfolio recomposition and must comply with the permitted weightings on the same day it carried out the purchases or sales;

V.

When as a consequence of the Exercise of Patrimonial Rights associated with the shares forming the Foreign Equity Security, there is an excess in the Permitted Deviation or non-compliance with the Authorized Investment Regime occurs. In the event that the Investment Society, which replicates indices provided for in the Authorized Investment Regime, decides to carry out any purchase or sale of shares forming the replication basket, it will be assumed that the Investment Society initiated portfolio recomposition and it will have four business days to comply with the permitted deviations in the weighting of the shares of said index;

VI.

When as a consequence of the Exercise of Patrimonial Rights associated with the shares of National Issuers, there is an excess in the Permitted Deviation or non-compliance with the Authorized Investment Regime occurs. In the event that the Investment Society decides to carry out purchases or sales of these issuers, it will be assumed that it has initiated portfolio recomposition and must comply with the Permitted Deviation on the same day it carried out the purchases or sales;

VII.

When with the Total Asset of the Investment Society, Investment Assets are acquired or sold, violating the limits permitted by the Authorized Investment Regime, or acquires Investment Assets not permitted by the same, or when Foreign Equity Securities cannot be acquired or liquidated within the timeframes established by the Commission for causes attributable to the Investment Society and, where applicable, to the Mandatary. In this case, the Administrator operating the Investment Society in question must cover the daily losses that have occurred from the day the event giving rise to the non-compliance occurred and until the investment regime is complied with. For such purposes, the Mandatary may apply portfolio recomposition rules in accordance with the regulation applicable in its country of origin that seek to minimize the magnitude of the loss;

VIII.

When the 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 Mandatary exceeds the limit applicable to the risk measure relative to the authorized reference portfolio in the corresponding investment mandate contract;

IX.

When the Liquidity Coefficient of the investment portfolio of the Asset Managed by the Investment Society exceeds the maximum provided for by the Risk Analysis Committee;

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 forming the investment portfolio of the Total Asset of the Investment Society, there is an excess in the limits for Structured Instruments provided for in these provisions and in the General Provisions establishing the investment regime to which Investment Societies must be subject.

Article 143.- The Administrator must provide in the contracts it enters into with Financial Service Providers and Mandataries that non-compliance with the Authorized Investment Regime will be grounds for termination.

Non-compliance with the investment regime will be attributable to the Administrator when the Operator of the asset 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 different computer system they have to comply with what is provided for in these Provisions will be attributable.

Without prejudice to the foregoing, Administrators will be responsible for the sanctions that may apply when the Authorized Investment Regime is not complied with as a consequence of the operations carried out by the Mandataries they have hired, or of the operations carried out by the Administrator itself.

CHAPTER I

ON THE PROCEDURE FOR PORTFOLIO RECOMPOSITION

Section I

On Rating Downgrade

Article 144.- The Investment Society that has in its investment portfolio Investment Assets subject to credit rating, whose rating or the Counterparty Rating in the case of Derivatives, bank deposits, securities lending, or repurchase agreements, degrades subsequent to its acquisition and thereby violates the Authorized Investment Regime, must proceed as follows:

I.

In the event that the respective limits by issuer are violated, it must abstain from acquiring Investment Assets subject to credit rating of the same issuance, make bank deposits in said institution, or enter into new operations with Derivatives, repurchase agreements, 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 Investment Assets subject to credit rating or the Counterparty of the Derivative, repurchase agreement, or securities lending forms part of another Category as a consequence of the downgrade, exceeding the percentages established in the Authorized Investment Regime, it must abstain from acquiring such additional Investment Assets of the Category to which the degraded asset belongs in its credit rating, or enter into new operations with Derivatives, bank deposits, repurchase agreements, 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, repurchase agreements, or securities lending corresponding to a Category degrades below the minimum permitted in the Authorized Investment Regime, it must be computed in the minimum Category permitted in said Investment Regime and no more of these operations may be carried out with said Counterparty. Bank deposits in Credit Institutions whose credit rating is lower than the minimum authorized in the General Provisions establishing the investment regime to which Investment Societies must be subject cannot be maintained.

For the case of Mandataries, Investment Societies must establish in the intermediation contracts in which a mandate is granted to a third party for the acquisition of Investment Assets how Mandataries must proceed in the event that the events described in this article occur, providing that the investments of the Total Asset of the Investment Society adhere to these Provisions and to the General Provisions establishing the investment regime to which Investment Societies must be subject.

Article 145.- The Head of the Risk Area must notify the Financial Risk Committee and the

Investment Committee, when any of the Investment Assets subject to credit rating, including bank deposits, acquired by the Investment Company, or any Counterparty with which it has entered into Derivatives, repo, or securities lending transactions, is in any of the circumstances established in the preceding article, on the next business day after the Investment Asset subject to credit rating or Counterparty in question has been subject to a credit rating downgrade. The Administrator must provide in the contract it enters into with each Mandatary that the latter informs it promptly when any event described in this article occurs under the management of the Assets Managed by the Mandatary.

Likewise, it must notify the Commission each time any Investment Asset subject to credit rating or Counterparty changes its applicable credit rating limit and breaches regulatory limits, as a result of a downgrade, or when any Investment Asset having a credit rating lower than the minimum permitted is downgraded to default level, on the next business day after the Investment Asset subject to credit rating or Counterparty in question has been subject to a downgrade in its Rating.

Article 146.- The Financial Risk Committee must present to the Investment Committee in session a study that must 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 downgrade in question;

II. Opinion on the credit quality of the issuer of the Investment Asset subject to credit rating, including bank deposits, or Counterparty of the Derivative, repo, or securities lending whose credit rating was downgraded;

III. The impact on the investment portfolio as a consequence of the downgrade of the issuer or Counterparty of the Derivative, bank deposits, repo, or securities lending, and

IV. The analyses described in this article must be presented in the session immediately following the date of the downgrade event, unless this occurs 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 must include the study referred to in this article in the Detailed Minutes drawn up from its corresponding session.

Investment Companies must stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that the Mandatary must carry out an analysis of the same nature when what is described in this article occurs and be informed to the Administrator within the timeframe determined in the contract.

Article 147.- The Investment Committee, considering the information contained in the study presented to it by the Financial Risk Committee, may opt for:

I. To retain the Investment Asset subject to credit rating, unless it concerns bank deposits, or

II. To carry out portfolio recomposition.

The Investment Committee must include the study referred to in this article in the Detailed Minutes drawn up from its corresponding session.

Investment Companies must stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that the Mandataries may opt for the options described in this article. For the purpose of executing what is provided in this paragraph, the contract may provide that the Mandatary acts promptly and in accordance with the regulation applicable to the Mandatary in its country of origin in order to mitigate harm to the assets managed by them.

Article 148.- For the Asset Managed by the Investment Company, in case the Investment Committee opts for the retention of the Investment Assets subject to credit rating referred to in fraction I of the preceding article, the following procedure must be followed:

I. The Investment Company, through its Investment Committee, must notify the Commission of the strategy it adopts, within a period not exceeding 20 business days counted from the date on which the credit rating downgrade in question occurs;

II. The Financial Risk Committee must update the opinion on the credit quality of the issuer or Counterparty of the Derivative referred to in fraction II of article 146 of these Provisions, on a quarterly basis, which it must present to the Investment Committee with the same frequency, and

III. The Investment Committee must monitor the behavior of the Investment Assets subject to credit rating or the Counterparty of the Derivative, repo, or securities lending whose rating has been downgraded and, with the opinion of the Financial Risk Committee, may decide to modify the adopted strategy.

In case it is decided to modify the strategy adopted by the Investment Company, its Investment Committee must, if applicable, present a portfolio recomposition program in accordance with the terms referred to in the following article. The portfolio recomposition program must be presented within a period not exceeding 20 business days counted from the date on which the change of strategy is agreed upon.

The actions provided for in fractions II and III of this article will be executed until the Investment Company maintains possession in the investment portfolio of the Asset Managed by the Investment Company or the Counterparty whose credit rating has been downgraded, or until its credit rating is reviewed and returns to being within the limits permitted in the Authorized Investment Regime.

For the case of the Asset Managed by the Mandatary, the Administrator must provide that the Mandatary informs it regarding the policies that said Mandatary applies to the issuers as well as to the Counterparties, within the criteria established in the investment mandate contract, which must provide for a retrospective report of the policies applied.

Article 149.- For the Asset Managed by the Investment Company, in case the option to recompose the portfolio referred to in article 147 fraction II of these Provisions is taken, the Investment Committee must record the portfolio recomposition program in the Detailed Minutes drawn up from its corresponding session and establish:

I. The Investment Assets that must be disposed of, and

II. The timeframe for portfolio recomposition.

Such program must be notified to the Commission within a period not exceeding 20 business days counted from the date on which the credit rating downgrade that gives rise to it occurs.

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 that the Mandatary acts promptly and in accordance with the regulation applicable to the Mandatary in its country of origin in order to mitigate harm to the assets managed by them. Likewise, the investment mandate contract must provide for a retrospective report of the policies applied by the Mandatary.

Article 150.- Compliance with the portfolio recomposition program defined in accordance with what is provided in articles 148 second paragraph and 149 above is mandatory for the Investment Company in question.

Investment Companies must stipulate in the intermediation contracts in which they grant a mandate to a third party for the acquisition of Investment Assets that the Mandataries will 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

Of the variations in the prices of the Investment Assets that make up the Asset Managed by the Investment Company and of the violation of investment limits in the Equity Income Components and other Investment Assets due to causes not attributable to the Investment Company

Article 151.- The Investment Company must proceed in accordance with what is provided in this Section when any of the following events occur:

I. When the Investment Company does not cover or exceeds in one or several days the limits provided 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, if applicable, indices or Basket of Indices are purchased and, due to the valuation of said securities, the Permitted Deviation or the permitted weighting of the shares is exceeded in accordance with the General Provisions that establish the investment regime to which Investment Companies must be subject;

III. When to acquire an Equity Income Component, FIBRA, Real Estate Investment Vehicle, or Merchandise, shares, Vehicles, Real Estate Investment Vehicles, or Derivatives that make up, if applicable, indices or Basket of Indices are purchased and the Permitted Deviation or the permitted weighting of the shares is exceeded in accordance with the General Provisions that establish the investment regime to which Investment Companies must be subject, due to the change in the composition of said index or Basket of Indices;

IV. When to integrate the Equity Income Component through the direct acquisition of shares, the Permitted Deviation or the permitted weighting of the shares is exceeded in accordance with fraction II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Companies must be subject, and

V. When as a consequence of the Exercise of Patrimonial Rights associated with the shares, Vehicles, or Real Estate Investment Vehicles that make up an Equity Income Component, said component exceeds the Permitted Deviation or the permitted weighting of the shares in accordance with fraction II of the Twenty-Fourth Provision of the General Provisions that establish the investment regime to which Investment Companies must be subject.

Regarding what is established in fractions II, III, and V above, an event will be considered not attributable to the Investment Company when:

1.1 It orders the negotiation of purchase or sale of shares, Vehicles, or Real Estate Investment Vehicles within a maximum period of four business days, counted from the date on which the Permitted Deviation was exceeded, or

1.2 The Investment Company complies with the obligations derived from the settlement of purchase or sale orders of shares, Vehicles, or Real Estate Investment Vehicles within a maximum period of four business days counted from the date on which the operation was negotiated and the Counterparty(ies) fail(s) to deliver the shares, Vehicles, or Real Estate Investment Vehicles.

Regarding what is established in fraction IV above, an event will be considered not attributable to the Investment Company when:

2.1 It orders the negotiation of purchase or sale of shares, Vehicles, or Real Estate Investment Vehicles in accordance with the General Provisions that establish the investment regime to which Investment Companies must be subject, as well as the criteria defined by the Risk Analysis Committee for the operation with Foreign Equity Securities, and the Permitted Deviation is exceeded because the Counterparty(ies) fail(s) to deliver some of the shares necessary to integrate the Foreign Equity Security, or

2.2 Between the date of negotiation of 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.

Breach of contracts that Administrators enter into with Mandataries will not be a cause attributable to the Investment Company when such breaches do not contravene the investment regime provided for in the applicable regulations or in the information prospectus.

It will not be a cause attributable to the Investment Company the breaches of limits for Structured Instruments provided for in these provisions in Annexes T and U, as well as in the General Provisions that establish the investment regime to which Investment Companies must be subject when, as a consequence of capital calls, investors in the Structured Instrument that integrates the investment portfolio of the Total Asset of the Investment Company do not contribute the requested amount and are subject to punitive dilution.

In case the administrator of the Structured Instruments, with the public information available and its own, does not sufficiently diversify the base of investors referred to in Annex U and causes Investment Companies to breach the limits provided for in the aforementioned Annex U of these provisions and in the General Provisions that establish the investment regime of Investment Companies, it will not be a cause attributable to the Investment Company.

It will not be a cause attributable to the Investment Company the breaches of 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. Such audit and the evidence of compliance with the requirements established in the General Provisions that establish the investment regime to which Investment Companies must be subject and the criteria defined by the Risk Analysis Committee, must be at the disposal of the Commission at all times.

The preceding paragraph applies only to Vehicles that replicate Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments, or Debt Indices of Countries Eligible for Investments, known in practice as "Exchange Traded Funds" and Equity Indices of Countries Eligible for Investments, Real Estate Indices of Countries Eligible for Investments, or Debt Indices of Countries Eligible for Investments that are audited by independent experts.

The independent expert referred to in the preceding paragraphs must comply with the requirements provided for in Annex S of these Provisions and will be responsible for auditing the compliance with the requirements established in the General Provisions that establish the investment regime to which Investment Companies must be subject and the criteria defined by the Risk Analysis Committee of the Vehicles, as well as the Equity Indices of Countries Eligible for Investments, the Real Estate Indices of Countries Eligible for Investments, and the Debt Indices of Countries Eligible for Investments.

Article 152.- The Head of the Risk Area must notify the Commission in writing, the Financial Risk Committee, and the Investment Committee of the events referred to in the circumstances of the preceding article 151, on the next business day after any of the established events occurs.

Article 153.- For the Asset Managed by the Investment Company, the Financial Risk Committee must present to the Investment Committee a study that must contain:

I. The description of the Investment Assets by virtue of which the defect or excess in the limits provided 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 case 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 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 prices.

The Financial Risk Committee must include the study referred to in this article in the Detailed Minutes drawn up from its corresponding session.

Article 154.- The Investment Committee, considering the study presented 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 portfolio recomposition.

The Investment Committee, in all cases, must draw up Detailed Minutes of the session in which it takes the corresponding decision.

In case any of the events established in fractions IV or V of the preceding article 151 occurs, the Investment Company must proceed to recompose its portfolio in accordance with this Section, as well as present the corresponding portfolio recomposition program.

Likewise, in case the violation is due to the Counterparty(ies) failing to deliver the shares, Vehicles, or Real Estate Investment Vehicles, the Investment Committee must decide whether to continue carrying out operations with the Counterparty that breached.

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 that the Mandatary acts promptly and in accordance with the regulation applicable to the Mandatary in its country of origin in order to mitigate harm to the assets managed by them. Likewise, the investment mandate contract must provide for a retrospective report of the policies applied by the Mandatary.

Article 155.- For the Asset Managed by the Investment Company, in case it opts to temporarily maintain the defect or excess in the Investment Assets, in accordance with what is established in fraction I of the preceding article, it must request from the Commission through its Investment Committee, the authorization to temporarily maintain the defect or excess in said assets, within a period not exceeding 20 business days counted from the date on which any of the events contemplated in article 151 of these Provisions occurs.

The Commission, on the condition that no new acquisitions or sales of the Investment Assets causing the defect or excess are carried out, will grant non-objection to temporarily maintain the defect or excess in said assets until the applicable limits are restored.

In any case, the period in which the defect or excess in the Investment Assets that make up the Asset Managed by the Investment Company, which gave rise to the breach due to any of the events contemplated in the preceding article 151, can be maintained, cannot exceed six months counted from the date on which said event occurs.

Article 156.- In case it is opted to recompose the portfolio in accordance with what is provided in article 154 of these Provisions, the Investment Committee must record in the Detailed Minutes drawn up from 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. If applicable, the investment of new resources, and

III. The timeframe for 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 on which the deviation with respect to the limits that are provided for this effect in the investment regime occurs.

Article 157.- Compliance with the portfolio recomposition program defined in accordance with what is provided in the preceding article is mandatory for the Investment Company in question.

Article 158.- The Administrator that operates the Investment Company in question, in case the notification referred to in article 152 is not presented within the timeframes 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 losses that have occurred between the day on which any of the events contemplated in article 151 that gave rise to the breach occurs and the day on which 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 case this proves insufficient, it must do so 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 variations in prices; and that once the applicable limits are restored, whether it has opted to maintain the defect or excess in the Investment Assets or has carried out the portfolio 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 for in these Provisions and the respective documentary evidence remains at the disposal of the Commission.

Likewise, in case 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

Of portfolio recomposition for failing to comply with the limits established in the Authorized Investment Regime due to acquisition or sale of Investment Assets and for the violation of investment limits that make up the Total Asset of the Investment Company in the Equity Income Components due to causes attributable to the Investment Company

Article 159.- The Investment Company shall restructure the portfolio constituting the Total Assets 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 Mandataries, 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 Mandataries, has acquired Investment Assets not contemplated in the Authorized Investment Regime, and

III. For the case of Assets Managed by the Investment Company, when the four business days deadline established by the Commission to form or liquidate the Foreign Variable Income Value is exceeded, failing to comply with the Authorized Investment Regime, with the excess 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 does not take place within the four business days following the date on which the operation was arranged.

Article 160.- The Head of the Risk Area shall notify the Commission, the Financial Risk Committee, and the Investment Committee in writing when, due to any of the causes established in the previous article, the Authorized Investment Regime has been violated, on the business day following that on which the violation of said Regime originated, or in the case of Assets Managed by a Mandatary, on the business day following that on which knowledge of the violation is obtained.

Article 161.- The Financial Risk Committee shall present to the Investment Committee a study that must contain at least the following:

I. Description of the Investment Assets that, constituting the Assets Managed by the Investment Company, caused the violation of the Authorized Investment Regime as provided in the previous article, and

II. Proposal for a portfolio restructuring program for the Assets 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 establishing the investment regime to which Investment Companies must be subject.

The Financial Risk Committee must include the study referred to in this article in the Detailed Minutes drawn up from its corresponding session.

For the case of Assets Managed by the Mandatary, the Administrator must provide in the intermediation contracts that the Mandatary informs it regarding the study referred to in this article and that said study is reported to the Administrator.

Article 162.- The Investment Committee, considering the study presented by the Financial Risk Committee, shall decide the strategy that the Investment Company must follow to restructure its portfolio and for this purpose shall 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 collections that enter or exit the Investment Company subsequently, and

III. Its proposal for the timeframe for portfolio restructuring.

The Investment Committee must record the portfolio restructuring program in the Detailed Minutes drawn up in 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 Mandatary acts promptly and in compliance with the regulation applicable to the Mandatary in its country of origin in order to mitigate damages to the assets managed by them. Likewise, the investment mandate contract must provide for a retrospective report on the policies applied by the Mandatary.

The Investment Company, through its Investment Committee, must send the portfolio restructuring 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 restructuring program referred to in the previous paragraph, may set the period in which the Investment Company must restructure 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 restructuring program shall be mandatory for the Investment Company in question, when the Commission sets a timeframe for portfolio restructuring.

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 timeframe provided for such effect, the Administrator operating it shall 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 restructuring program to the Commission as provided in Article 162 of these Provisions within the timeframe provided for such effect, the Administrator operating it shall cover the daily shortfalls that have occurred between the day of the violation and the day said restructuring program is presented.

In all cases, 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 restructuring program is presented.

The shortfalls referred to in this article shall be covered from 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 from its social capital or equity.

Section IV

On Portfolio Restructuring 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 restructure their portfolio in accordance with what is provided in this Section.

Article 166.- The Head of the Risk Area shall 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 business day following that on which said limit was exceeded.

Article 167.- The Financial Risk Committee shall propose to the Investment Committee a portfolio restructuring 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 establishing 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. Whether 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 establishing 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 restructure its portfolio.

The portfolio restructuring 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 timeframe for portfolio restructuring.

Article 169.- In the event of extreme volatility events in the markets, where 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 restructuring 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 restructuring programs referred to in this article shall 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 such time as the portfolio restructuring 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 restructuring program, shall 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 restructuring program in the Detailed Minutes drawn up in their corresponding sessions.

The Investment Company, with the prior approval of the Financial Risk Committee, must send to the Commission through its Investment Committee, the portfolio restructuring program, within a period not exceeding 20 business days counted from when the violation originated.

The Commission, once the portfolio restructuring program is received, may set the period in which the Investment Company must restructure 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 restructuring program shall be mandatory for the Investment Company in question, when the Commission sets a timeframe for portfolio restructuring.

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 timeframe provided for such effect, the Administrator operating it shall 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 restructuring program to the Commission as provided in the previous Article 170, within the timeframe provided for such effect, the Administrator operating it shall cover the daily shortfalls that have occurred between the day of the violation and the day said restructuring program is presented.

The shortfalls referred to in this article shall be covered from 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 from its social 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 restructuring program. In this case, the Investment Company will not enjoy any timeframe for the presentation of said program.

The aforementioned shortfalls must be covered from 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 from the social 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 aforementioned 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 shall determine the criteria that must be observed in the event that the Investment Company's portfolio contains assets not contemplated in the scenarios.

Article 174.- In the event that the corresponding portfolio restructuring program is not presented to the Commission, repetition shall 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 Mandataries fail to comply with the investment regime, it shall be the responsibility of the Administrator to cover the attributable shortfalls generated due to the Mandataries' violation.

TITLE XIII

ON INFORMATION PROSPECTUSES, EXPLANATORY BOOKLETS, 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 Mandataries 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 Assets of the Investment Company must be included. Explanatory brochures shall 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 thereto, 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 Comptroller reviewed the content of the explanatory brochures, and that it corresponds to what was approved by the Governing Body of said Administrator.

The information prospectuses, in its case, the modifications or addenda thereto 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 its case, the modifications or addenda thereto, 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 establishing the investment regime to which Investment Companies must be subject issued by the Commission.

The Commission, when authorizing the information prospectuses of Investment Companies whose exclusive object is the investment of social pension funds, may order that provisions regarding investment policies, liquidity, selection and diversification of assets, information disclosure, credit quality, market risk, marketability, and potential conflicts of interest that may materialize to the detriment of the beneficiaries of the plan be incorporated.

Article 177.- The draft information prospectus as well as the modifications or addenda thereto that must be presented to the Commission for authorization in terms of this Title, must attach the following:

I. A document indicating the modifications made and in electronic version, in which each of the changes or additions made in the draft submitted for authorization with respect to the corresponding current version are identified;

II. The approval of the adjustments to said documents, carried out by the Governing Body of the Administrator, through the Detailed Minutes of the session of the Governing Body or 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 Councilors and must be sent to the Commission no later than 20 business days following the celebration of the session of the Governing Body of the Administrator.

In the event of not having the approval referred to in this fraction, Investment Companies must be subject to what is provided in Article 179, fraction I of these Provisions;

III. Evidence indicating that the modifications were reviewed at least by the Head of the Investment Area and by the Head of the Risk Area, regarding their content and consistency, and

IV. Evidence indicating that the Regulatory Comptroller supervised the content and that it corresponds to what was approved by the Governing Body of said Administrator.

Article 178.- Investment Companies must modify the information prospectus and explanatory booklet, or in its 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 by them, only with respect to the update of the commission authorized by the Board of Government, 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 its case, the addenda thereof, in accordance with what is established in fractions I to III of the previous article of this article, the following must 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 greater restrictions 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 to quantify financial characteristics of investment portfolios, the Investment Company must observe it. In the event that the methodology provided 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 are modified,

investment to which Investment Companies must adhere or 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, or the authorized commissions, or the concentration limits defined by the Financial Risk Committee establish restrictions lower 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 modifications or addenda thereto, Administrators must adhere to the following procedure:

I.

Administrators may submit for authorization with a resolutive condition by the Commission, the information prospectus, or in its case, the modifications or addenda thereto, from the entry into force of what is provided in the previous article of these Provisions, stating that in the next session held by the Governing Body of the Administrator, they will be submitted for approval by said Body, in accordance with what is established in Article 29, fraction III of the Law and Article 175 of these Provisions. Once the approval of the Governing Body of the Administrator is obtained and the favorable vote of the Independent Trustees is secured, they must remit to the Commission within a term of 20 business days following 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 terms of the previous paragraph, the authorization with resolutive condition will become void, so the Administrator must adhere 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 recomposition rules provided 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 its case, the modifications or addenda thereto, to authorize it. If this term expires and the Commission does not issue authorization nor make any observation, the documents referred to in this paragraph will be considered authorized, and

III.

The information prospectus, or in its case, the modifications or addenda thereto, will not be authorized when the information delivered to the Commission does not meet the quality and characteristics required in this Title and in Annex P of these Provisions.

The authorizations of the Commission will be granted only on the modifications or additions identified in accordance with what is provided in Article 177, fraction I of these Provisions, so any modification or addition not identified will be considered unauthorized.

In the event that the Investment Company submits a request for clarification to the Commission through which it makes additional modifications or clarifications to the previously sent request, the Commission will have the term provided in the previous fraction II, counting from the date of delivery of the clarification.

Article 180.- The Administrator must not deliver to the investing public any information prospectus that is not authorized by the Commission.

Article 181.- The authorized information prospectuses, as well as the updated explanatory booklets, must be available at all times to the investing public, in the offices and branches of the Administrator operating the Investment Company in question, or on the Internet page of the Administrator, and must adhere to the formats provided 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 prevision funds must meet the requirements established in Article 47 bis of the Law, except for what is established by fraction VIII of said article. For these Investment Companies, Administrators may observe the contents of the format provided 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 pensionary resources are managed by Investment Companies, may choose to have the resources invested in a Basic Investment Company other than the one in which the resources must be invested, in accordance with the General Provisions that establish the investment regime to which Investment Companies must adhere.

Regarding Voluntary Savings, in the event that the Administrator does not have an Additional Investment Company, Workers may choose that each sub-account or type of contribution that makes up Voluntary Savings be invested in different Basic Investment Companies, provided that the chosen Basic Investment Company allows the investment of the resources in question. In this case, the decision taken by Workers regarding the investment of each Sub-account or type of contribution will be independent and in no case will it imply that other resources must be invested in the same way. The resources that make up Voluntary Savings will not be subject to the rules issued by the Commission regarding the transfer of resources from one Investment Company to another, nor to those provided 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, said resources must be invested in the Investment Company determined by the Administrator, in accordance with what is established in the information prospectuses of each Investment Company operated. If Administrators operate Additional Investment Companies whose purpose is the investment of Workers' Voluntary Savings resources, said contributions must be invested in these Companies.

TITLE XV

FINAL PROVISIONS

Article 183.- Investment Companies for the sending and receiving of digital documents must adhere to the procedure for the sending of digital documents and notifications by email of Participants in the Retirement Savings Systems established in the General Provisions on operations of the Retirement Savings Systems.

Article 184.- Administrators must emphasize control and information on investments in securities by the Regulatory Controller and by Officials who, by reason of their position or role, have access to information on the investments of the resources of individual accounts; the foregoing, in accordance with what is provided in Article 67 of the Law; likewise, they must prohibit the aforementioned persons from directly or indirectly using the reserved information to obtain for themselves or for others, advantages through the purchase or sale of securities.

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:

I.

Articles 15, 18 and 52 of these provisions, will enter into force once the Administrators present to the Commission the complete and updated version of the Manual of Policies and Procedures for the Administration of Financial Risk and the Investment Manual, within 3 months from the publication of these Provisions;

II.

Article 70 and Annex J of these provisions, will enter into force within 5 business days following the publication in the Official Journal of the Federation, and

III.

Article 175 of these provisions, relating to explanatory booklets, will enter into force once the Administrators present to the Commission, the complete and updated version of the explanatory booklets, within 3 months from the publication of these Provisions.

ARTICLE SECOND. The "General Provisions on Financial Matters for the Retirement Savings Systems", published in the Official Journal of the Federation on April 25, 2016, are hereby 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 fractions I to III of the Second Transitory Provision of the General Provisions that establish the investment regime to which Investment Companies must adhere, Administrators must have documented the contents of said fractions 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 Regulatory Controller.

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 that establish the patrimonial regime to which Administrators, the Pensionissste and Investment Companies 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 of a financial nature made by the Commission for the purpose of verifying compliance with the contents provided in the previous paragraph for fractions II and III of the Second Transitory Provision of the General Provisions that establish the investment regime to which Investment Companies must adhere, 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 in this article are not met.

ARTICLE FOURTH. Administrators that, from the publication of these Provisions, submit for approval by the Commission the information prospectuses and explanatory booklets must present them in the formats provided in Annexes P and Q.

ARTICLE FIFTH. Investment Companies that, at the entry into force of these provisions, fail to comply with the rules provided in Annex T of these provisions, with the prior approval of the Financial Risk Committee, must send to the Commission through its Investment Committee, a portfolio recomposition program, within a term not exceeding 20 business days counted from the entry into force of these provisions, for such purposes, Administrators that find themselves in said situation must suspend their participation in other Structured Instruments until such time as they comply with the investment regime, without prejudice to the foregoing, Investment Companies must participate in the pending capital calls of the Structured Instruments in which they have previously participated in order to avoid any detriment to the savings of Workers.

ARTICLE SIXTH. Administrators that, at the date of entry into force of these Provisions, have requests for the issuance of approval before this Commission regarding intermediation contracts in which they grant investment mandates to Mandatarios, said contracts will be governed by these provisions.

ARTICLE SEVENTH. Investment Companies will observe the following diversification criteria until such time as the Commission verifies that the methodologies and measurement elements for additional credit evaluation provided by securities rating institutions, referred to in Article 3, fractions 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 in Annexes A, F and J of the General Provisions that establish the investment regime to which specialized investment companies for retirement funds must adhere;

b)

Up to 3% of the Total Assets of the Investment Company in Debt Instruments that hold the qualifications provided in Annexes B and G of these General Provisions that establish the investment regime to which specialized investment companies for retirement funds must adhere, and

c)

Up to 2% of the Total Assets of the Investment Company in Debt Instruments that hold the qualifications provided in Annex C of these General Provisions that establish the investment regime to which specialized investment companies for retirement funds must adhere.

d)

Up to 1% of the Total Assets of the Investment Company in Debt Instruments that hold the qualifications provided in Annex D of these General Provisions that establish the investment regime to which specialized investment companies for retirement funds must adhere.

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 that establish the investment regime to which specialized investment companies for retirement funds must adhere and Annex G of these provisions will apply.

ARTICLE EIGHTH. For the purposes of what is provided in item b) of Annex U of these provisions, Structured Instruments that are in force at the entry into force of these provisions will be considered.

Mexico City, January 16, 2018.- The President of the National Commission for the Retirement Savings System,

Carlos Ramírez Fuentes .- Rubric.

ANNEX A

Fixed Scenarios that Count in the Conditional Value at Risk Differential

The scenarios of the following 5 disjoint dates that will remain fixed within the 1000 scenarios used in the computation of the Conditional Value at Risk Differential:

Scenarios

October 22, 2008

February 20, 2009

October 23, 2008

February 23, 2009

October 24, 2008

The Commission will keep updated the list of fixed scenarios that must be considered in the computation of the Conditional Value at Risk Differential, through publication on its Internet page.

It will be the responsibility of Administrators to comply with the criteria approved by the Risk Analysis Committee, as well as to follow up on any update and publication that occurs regarding the list of fixed scenarios that must be considered in the computation of the Conditional Value at Risk Differential.

ANNEX B

On Structured Instruments, FIBRAs and Securities Certificates Linked to Real Projects

Chapter I

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

investments in Structured Instruments, FIBRAs and

Securities Certificates Linked to Real Projects

I.

On the eligibility of the Structured Instrument administrator:

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 financial resource administration businesses 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 funds. These parameters must consider countries, regions and economic sectors in which investments are planned to be managed. Likewise, it must determine how many years of experience and amount of managed resources the administration team of the Structured Instrument must have in the elements described in this item;

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 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 for 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 breach of their fiduciary responsibility.

II.

On the eligibility of the FIBRA administrator:

a)

Independence. Determine policies related to the independence of the administration team of the instrument referred to in this fraction with respect to the settlors, contributors, originators and operators of the assets that make up the underlying investment;

b)

Capacities. Define parameters to evaluate the capacities of the administration team of the instrument referred to in this fraction based on the status of financial resource administration businesses focused on the operation of vehicles whose purpose is the financing of real assets or projects, among which are infrastructure and real estate project financing vehicles. These parameters must consider countries, regions and economic sectors in which investments are planned to be managed. Likewise, it must determine how many years of experience and amount of managed resources the administration team of the instrument referred to in this fraction must have in the elements described in this item;

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 the event that the administration team of the instrument referred to in this fraction has pending investigations before any of the regulators of the Eligible Countries for Investments for reasons related to the non-compliance with the financial regulations of the countries in which they operate or frauds by their officials or ex-officials or breach of their fiduciary responsibility.

III.

On the eligibility of the settlor, operator, or in its case, the contributor of real assets or real projects or of receivables on the income they generate, of the Securities Certificates Linked to Real Projects:

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)

Capacities. Define parameters to evaluate the capacities of the operator, and in its case, administrator, of the underlying real assets or projects, including experience in the operation and administration of real assets and projects, as well as the sector, region or economic sector in which investments are planned to be managed, and

c)

Probity of the team. Know and define policies in the event that the settlor or contributor, as well as the operator or administrator of the underlying real assets or projects or well executives of the aforementioned entities, have pending investigations before any of the regulators of the Eligible Countries for Investments for reasons related to the non-compliance with the financial regulations of the countries in which they operate or frauds by their officials or ex-officials or breach of their fiduciary responsibility.

IV.

On the eligibility of the co-investor of the Fiduciary Securities Certificates of Investment Projects:

a)

For the purposes of computing investment in the projects financed by the Fiduciary Securities Certificates of Investment Projects referred to in Annex U of these Provisions, eligible co-investors, distinct from Investment Companies, will be considered those defined by the Investment Committee in accordance with Article 30, fraction II, numeral i bis of these provisions and that are provided 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 prove:

i.

That it is a private equity fund administrator, pension fund, sovereign fund, operating partner or state productive companies, and

ii.

That it proves to have experience in investments or development of projects in which it approves investing the Structured Instrument of which it is a co-investor.

In the event that the co-investor is a private equity fund administrator or well is an administrator of an instrument provided for in item a) of the Second Provision, fraction LI of the General Provisions that establish the investment regime to which Investment Companies must adhere, it must comply with what is provided in fraction I of Chapter I and fraction I of Chapter II of this annex.

To prove the experience of the co-investor and the eligibility criteria provided for in this annex, subsidiary, holding or controlling companies (known in English as "holding") of the co-investor may be considered, provided that, in the case of the subsidiaries of the co-investor, the share capital belongs entirely to the co-investor and when it is proved through the controlling entity, it must be demonstrated that at all times the co-investor observes rules of corporate governance, ethics, information disclosure, as well as investment analysis procedures and employs sources

of information for these purposes, approved by the controlling entity.

Chapter II

Elements that must be contained in the selection questionnaires for Structured Instruments, FIBRAS

and Real Project-Linked Securities

The Investment Committee or the Financial Risk Committee must include in the questionnaire at

a minimum 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 the

present subsection: main clients; main investors in previous investment instruments;

independence of the administrator with respect to possible contracting Administradoras;

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 competitive advantages of the executive team; description of the scheme

of compensation for the executive team of the instrument; experience of the team

administrative working together; measures of compliance with the defined and approved investment and

risks by the respective governing bodies; identification of

officials, executives, and first-level officers and their remuneration policy;

mechanisms for disclosure of changes in appointments of officials up to

second level of the administrator; criteria of transparency, integrity, and of

confidentiality applied by the administration team; description of the

mechanisms to reveal changes in the appointments of officials

of

first level of the administration team, and if applicable, the advisor; criteria of

substitution and conditions of settlement of the administration team, and if applicable, the

advisor.

c)

Governing Bodies: Structure, composition, and functions of the governing bodies of the

team of administration and if applicable, the advisor; mechanisms for

the

formation of committees for the management of the instruments referred to in the

present subsection; composition and selection criteria of the members of the

governing bodies independent and control group; biographies of the members of

the governing bodies; powers, description of the strategic decision-making process and veto rights;

d)

Compliance Officer in the company: Name and contact data; description of any conflict of interest current or potential; information

about the existence of any legal procedure in process against the company

or of any member of the executive team; policies for resolution and mitigation of

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 of

operation with related persons;

e)

External Advisories: Information on the use of professional consultants related

with auditing, taxes, finance, and legal; description of the functions of the

professional consultants; contact information of the auditor; information on the

existence of any relationship/affiliation of the auditor to any of the businesses of the

instrument; policies regarding external audits on the situation of the management

of resources and resolution of potential conflicts of interest; information on

outsourcing of third parties for risk management;

f)

Information of the Investment Instrument available to investors in terms of

the Securities Market Law and of the General Provisions applicable to

security issuers and other market participants, issued by

the National Banking and Securities Commission: Policy to acquire or assume

credits; loans or financing charged to the trust; limits of

leverage, policy on the use of derivative instruments and; in the case of Structured Instruments, the administration policies of

liquidity 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 process of

selection of an investment; description of the process of supervision of the investments

of the investment portfolio; type of reports sent to investors; frequency of

reporting of instrument information to investors; periodicity of sending

detailed information of the investments made; description of the policy of the

administrator regarding meetings between the fund officials and possible

institutional investors; indicate the diversification policies of investments,

by trustor 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;

policies for the valuation of the assets that make up the trust's equity,

including the experience and independence of the independent appraiser, with respect to the

experience, the inputs used, and policies of rotation of the independent expert,

specific audit policies for the Structured Instrument or FIBRAS;

h)

For Structured Instruments, evaluation of compliance with international standards

issued by the "Institutional Limited Partner Association", ILPA, by its

acronym in the English language and known in the Spanish language as the Association of

Institutional Investors, or other analogous references regarding:

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 commissions of the instrument; additional expenses in which the

instrument could incur; indicate if they have any shared compensation system

with another company, and

j)

The policies of disclosure, mitigation, and resolution of conflicts of interest of the own

administrator, 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 Administradora must request the

code of ethics of the instrument administrator.

k)

Policies for the selection of investments that consider the risks of natural

disasters.

II.

For Real Project-Linked Securities, the following shall be observed:

a)

General information about the trustor, operator, or if applicable, the contributor of real

assets and real projects or of rights to collect on the income they generate,

such as the operation of other assets or real projects, main competitors,

independence of the administrator with respect to possible contracting Administradoras,

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 if applicable, the rights to collect on the income

that 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; limits of leverage, policy on the use of

derivative instruments;

d)

Description of any current or potential conflict of interest; information on the

existence of any legal procedure in process against the company or of any

member of the executive team; policies for resolution and mitigation of conflicts of interest;

indicate if there are potential conflicts of interest; policies of operation with related

persons, and

e)

Costs and expenses: Estimated issuance expenses and other additional expenses in which

the Real Project-Linked Security could incur.

III.

For Fiduciary Securities for Investment Projects, in addition to what is

provided in subsection I of this chapter, which shall be applicable only to the

administrator of the instrument, information about the co-investor must be known

when the latter defines the investment thesis:

a)

General information about the co-investor of the Fiduciary Securities for

Investment Projects;

b)

Executive team of the co-investor and, if applicable, analysis of the parent company or

subsidiary of the co-investor that will be in charge of the approval of projects

of

investment;

c)

Description of any current or potential conflict of interest of the co-investor, its

affiliates or operating subsidiaries with respect to the investments of the instrument

in

question;

d)

Policies of the co-investor regarding the administration, operation, and monitoring of the

instrument:

e)

Description of policies of the co-investor 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 case where the co-investor is an administrator of private equity funds, it must comply with

what is provided in subsection I of this chapter, leaving without application what is provided in subsections a) to f) of the

present chapter.

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

shares, 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 Society invests:

i.

Rights and restrictions of the 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 comparative advantages of the company;

iv.

Business strategy;

v.

Growth potential, and

vi.

Risks facing the company that can 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 Administradora;

ii.

Assumptions used in said methodology and information inputs, and

iii.

Deviations between market valuation and reasonable valuation.

f)

In case of making the investment through Derivatives, it must also include:

i.

Market and Counterparty;

ii.

Valuation Methodology, and

iii.

Financial characteristics of the Derivative.

In case the Investment Committee, with the approval of the majority of the Independent Directors,

defines that any of the elements provided for in this Annex are unnecessary, it must

record it in the Detailed Minutes of the session in which 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 Societies may operate with any Currency authorized in this annex, whose

quotation markets are regulated and supervised by an authority belonging to an Eligible Country for

Investments, considering the common name used in financial markets; likewise, they may only

carry out the authorized operations of the Currencies of the Eligible Countries for Investments in accordance

with the following three groups:

Group I: It is composed of those Currencies authorized to settle permitted instruments, hedge

exposure to the Currency and take Pure Positions in Currencies. This group is composed of the following currencies:

Group II: It is composed of those Currencies authorized only to settle permitted instruments or

hedge the exposure to the Currency of the underlying, which are listed below.

The elements of this group of Currencies may be evaluated, individually, by the Committee of

Risk Analysis for the purpose that in the future they are considered within Group I or if applicable within

Group III.

Group III: It is composed of the Currencies authorized only to settle permitted instruments or hedge

exposure to the Currency, which are listed below.

In the future, some of these Currencies could be transferred to Group II, if the market development conditions

allow it, prior to opinion and approval of the Risk Analysis Committee.

In case 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, will be

published on the Commission's Internet page. It is the responsibility of the Administradoras 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 purpose of verifying compliance with the limit applicable to positions in Currencies 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 Society, derived from the investment in the

Investment Object Assets, both by the Investment Society and its Mandataries, shall

be calculated considering the following criteria and formulas:

a)

Independent positions are considered those of the Asset Managed by the Society

of Investment and those of the Asset Managed by each of the Mandataries. This implies that no

netting is performed of the positions of the Asset Managed by the Society of Investment 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 Society of Investment:

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 Society of

Investment is obtained by summing the net positions in each Currency.

c)

The same mechanism as in subsection b) above is applied to the Currency positions of the Asset

Managed by each Mandatary individually, and

d)

The net Currency position of the Asset Managed by the Society of Investment 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

Society of Investment.

The above is achieved by summing the absolute value of the Currency exposure of the Asset Managed by the

Society of Investment 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 Society of

Investment. The following formula shows algebraically the previous mechanism:

ANNEX G

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

within the

limits of Issuers or Counterparties

I.

Total Exposure to an Authorized Issuer or Counterparty.

The exposure to an Authorized Issuer or Counterparty of the Total Asset of the Investment Society, derived

from the investment in the Investment Object Assets, both by the Investment Society 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 Society as

a percentage of the Total Asset of the Investment Society must be less than or equal to the limits provided for in the

General Provisions that establish the investment regime to which the

Investment Societies must be subject.

For such purposes, the level of concentration at each Counterparty and Issuer that observes the

Total Asset of the Investment Society will be computed, for which the weighted average of the concentration

observed in the operations carried out with the Assets Managed by the Society of Investment and the

Assets Managed by each Mandatary will be used. Said average will be calculated using the Assets Managed by

the Society of Investment and those corresponding to each Mandatary.

II. Consumption of Issuer or Counterparty limit through the Asset Managed by the Society

of

Investment.

To calculate the market value of the concentration maintained by the Asset Managed by the

Society of Investment, in securities and operations of the same issuer or Counterparty, it must adhere to

the following:

For the purpose of verifying the concentration limits applicable to Counterparties or Issuers

established in the General Provisions issued by the Commission, the

compensated market values of operations with Derivatives carried out in over-the-counter markets

with each Counterparty, the market values of repo and Securities Lending operations,

celebrated with each Counterparty, net of the guarantees received for this purpose, the value of cash deposits

celebrated with each Counterparty, as well as the instruments issued by said Counterparty or issuer,

according to the following formula:

ANNEX H

Methodology to calculate the exposure of the Investment Society to Investment Object 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 be applied for the purpose of verifying compliance with the limits referred to the

positions that Investment Societies must maintain in Investment Object 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 Society

of Investment plus the positions maintained by the Asset Managed by each of the

Mandataries will be considered. The aforementioned positions will be considered independently, that is,

without performing netting between the positions maintained with the Asset Managed by

each Mandatary nor with the positions of the Asset Managed by the Society of Investment.

The computation will be carried out as follows:

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 it will

be 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 it will

be 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, its 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, its market value will be subtracted.

ANNEX I

Methodology to calculate exposure to Commodities

Exposure to Commodities must be calculated through the following authorized investment

instruments: Structures Linked to Underlyings, Vehicles, Debt Instruments backed by

Commodities, as well as Derivatives, through the procedure described in this Annex. Structured Instruments

linked to Commodities will not count for the purposes of this Annex.

For the purposes of this Annex, Structures Linked to Underlyings refer to Debt Instruments or Foreign Debt Securities whose returns are linked to Commodities. For the computation of

the exposure referred to in this Annex, the debt component of the

Structures Linked to Underlyings whose underlyings are Commodities will not be considered.

I.

Exposure to Commodities through authorized investment mechanisms:

To determine the exposure to Commodities of the Asset Managed by the Society of Investment, and if applicable,

of the Asset Managed by the Mandataries that it has hired, the 'Deltas' of

all authorized investment mechanisms referred to Commodities directly or through the

Vehicles that contain them will be used.

The 'Delta' will be:

a)

---

In the case of Vehicles that confer rights over Goods, Debt Instruments and Foreign Securities, as well as futures, forwards and swaps referred to said underlyings, equal to one, and

b)

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

The amount exposed to each Good "i" that forms part of the investment portfolio through the authorized investment mechanisms j, shall be calculated as follows:

ANNEX J

On the certification of Officials with activities in resource management

of Investment Societies

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

Audit

Regulatory

Confirmation,

Liquidation,

Allocation, and

Accounting

Validity: 2 years

Generic certification in investment matters (Published on the

Commission's Internet page)

P

P

P

P

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 1

P

P

P

P

Financial Risk Manager

(FRM-GARP) Level 1

P

P

P

P

Professional Risk Manager

(PRM-PRMIA) 2 Exams

P

P

P

P

Associate of the Society of Actuaries

(ASA) 3 Exams

P

P

P

P

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 2

P

P

P

P

Professional Risk Manager

(PRM-PRMIA) 3 Exams

P

P

P

P

Associate of the Society of Actuaries

(ASA)

P

P

P

P

Validity: Permanent for completed certifications

Chartered Financial Analyst (CFA)

P

P

P

P

Financial Risk Manager

(FRM-GARP)

n.a.

P

P

P

Professional Risk Manager

(PRM-PRMIA)

n.a.

P

P

P

Fellow of the Society of Actuaries (FSA) : Specialization in Quantitative

Finance and Investment (QFI)

n.a.

P

P

P

Claritas Investment Certificate (applied

by CFA Institute)

n.a.

n.a.

P

P

2. Certification for Derivatives Operations

Certification / Area

Investments

Risks

Audit

Regulatory

Confirmation,

Liquidation,

Allocation, and

Accounting

Validity: 3 years

Derivatives Certification (Published

on the Commission's Internet page)

P

P

P

P

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 1

P

P

P

P

Financial Risk Manager

(FRM-GARP) Level 1

P

P

P

P

Professional Risk Manager

(PRM-PRMIA) 2 Exams

P

P

P

P

Associate of the Society of Actuaries

(ASA)

3 Exams

P

P

P

P

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 2

P

P

P

P

Professional Risk Manager

(PRM-PRMIA) 3 Exams

P

P

P

P

Associate of the Society of Actuaries

(ASA)

P

P

P

P

Validity: Permanent for completed certifications

Chartered Financial Analyst (CFA)

P

P

P

P

Financial Risk Manager

(FRM-GARP)

n.a.

P

P

P

Fellow of the Society of Actuaries (FSA) : Specialization in Quantitative

Finance and Investment (QFI)

n.a.

P

P

P

3. Certification of Officials for Structured Instruments

Certification / Area

Investments

Risks

Audit

Regulatory

Confirmation,

Liquidation,

Allocation, and

Accounting

Validity: 3 years

Certification in Structured

Instruments (Published on the

Commission's Internet page)

P

P

P

Not required

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 1

P

P

P

Not required

Chartered Alternative Investment

Analyst (CAIA) Level 1

P

P

P

Not required

Validity: 4 years

Chartered Financial Analyst (CFA)

Level 2

P

P

P

Not required

Validity: Permanent for completed certifications

Chartered Financial Analyst (CFA)

P

P

P

Not required

Chartered Alternative Investment

Analyst (CAIA)

P

P

P

Not required

In all the above cases, the validity of the certifications shall count from the date the Official obtains the certification, until the end of the period contemplated in the scheme contained in this 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 in said tables; in the event that the official has two or more valid certifications, the validity of the one that contemplates the longer period shall be taken into account.

ANNEX K

Disclosure of reference portfolios and the deviation policy with the investment portfolio

For the purpose of disclosing the general characteristics of the reference portfolios applicable to the investment portfolio of the Total Asset of the Investment Society, Administrators may publish on their Internet page the following elements:

Reference Portfolio

%

Fixed Income

Equity

Others

Total

The Assets Managed by Mandatories may be excluded for what is provided in this annex.

Likewise, regarding the information on the deviation policy authorized by the Investment Committee of the corresponding Investment Society, 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 the historical record of acquisition, alienation, repo and lending operations of securities of each Investment Society, by number of titles, series, value, settlement term, identifier, folio number, negotiation prices, negotiation rates, means of negotiation, Counterparties, nominal values, underlyings, market types, date, time and operator of the transaction and other criteria determined by the Investment Committee;

II.

Keep the historical record of the position of each Investment Society, by number of titles, series, value, identifier, folio number, issuers, nominal values, market values, Equivalent Delta Value for positions in Derivatives, 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 Society;

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 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 allocated and operations that underwent changes in the negotiated terms, identifying the reason for said changes;

VII.

Generate the following daily and historical reports:

a)

Report of acquisition, alienation, repo and lending operations of securities of each Investment Society, which may include the concepts related in the previous fraction I, at the beginning or at the end of the day of operation, but observing consistency in the generation of said information;

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 said 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 said information. This report must include all expected flows, specifying which of these are known flows and which are estimated, disaggregated by type of Currency;

d)

Compliance report for each of the regulatory limits and Prudential Limits detailing the level of consumption relative to the reference that the Financial Risk Committee itself defines, such as Net Asset, regulatory limit, and Prudential Limit;

e)

Total exposure report in Fixed Income Instruments and Foreign Fixed Income Securities in accordance with the exposure measure provided in Annex N of the General Provisions that establish the investment regime to which Investment Societies must be subject. These reports must be able to be disaggregated by stock index, type of instrument or Vehicle, Eligible Country for Investments and Currency;

f)

Report of positions in Derivatives expressed in notionals, market values and exposure in Derivatives positions in fixed income and Goods, the latter in accordance with these Provisions and the General Provisions that establish the investment regime to which Investment Societies must be subject and the Equivalent Delta Value for the rest of the positions in Derivatives, identifying the main characteristics, such as Asset Class of the underlying, Counterparty, 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, lending of securities, 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 additional credit assessment;

i)

Report of breaches of regulatory limits and Prudential Limits;

j)

Report of allocated and pending operations to be allocated, and

k)

Report for the general director of the Administrator with a summary of the most important aspects of daily operation. The daily report may contain only the aspects that the general director determines, among those provided in this Annex, for which the Investment Committee must take knowledge and this definition of the general director must be recorded in the Detailed Minutes of the Investment Committee of the corresponding Investment Society.

VIII.

Have the capacity to restrict access by users and profiles. Access security policies must be documented and subject to audit;

ANNEX M

On Derivatives Operations on Derivatives

In accordance with articles 2, fractions XXX, XXXI and XXXII, and 122 of these Provisions, as well as the General Provisions that establish the investment regime to which Investment Societies must be subject, and Circular 6/2013, The Rules to which specialized investment societies for retirement funds must be subject in carrying out derivative operations, the latter issued by the Bank of Mexico, it is established that Investment Societies may carry out the following permitted operations:

Permitted derivative operations and underlyings:

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 of Stock Indices, of 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 carry out operations with the Derivatives and underlyings described in this Annex;

II.

Have policies and procedures authorized by their Committees to carry out these operations, including reports for the members of their Committees;

III.

Have the capacity to value this type of operation through its own Automated Integrated System and independently of the Price Provider;

IV.

Have Prudential Limits with respect to this type of operation;

V.

Analyze through its own Automated Integrated System the effect of incorporating these operations, and

VI.

The Derivatives Operator must be certified by an independent third party designated for this purpose by the Commission.

III.

Cash deposits in banks, custodians or operating partners in the currency in question;

IV.

Amounts of repo operations with a one-day term (currently only counts for the liquidity requirement in national currency, according to what is provided in the Law on this type of operation);

V.

Minimum Initial Contributions (known by the acronym AIMS) in excess, and

VI.

Assets that are already in collateral are not allowed, for example cash deposits with clearing partners or Debt Instruments or Foreign Debt Securities that are committed (explicitly or implicitly) as collateral or credit enhancement in any transaction.

Administrators may demonstrate that they have liquidity policies not provided for in this Annex, for which the relevance of considering them within the calculation of the Liquidity Coefficient will be evaluated.

ANNEX O

Valuation criteria to be used to determine the amount of the shortfall of assets with which the Investment Regime is breached

Based on the valuation policies adopted by Price Providers, to determine the amount of the shortfall of 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 negotiation 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 the breach will be used. In this case, the shortfall of each asset will be calculated as the difference, when it is positive, between the negotiation price of the asset in question minus the price of said asset at the close of the day on which the investment regime is breached.

For the case of minimum limits, the shortfall 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 shortfall will be used.

The clean prices of the negotiated instruments, with which the investment regime is breached, or in its case to determine the shortfall of the fund, of the assets that make up the portfolio of the Investment Society.

The Administrator must compensate for the shortfalls attributable to it, which affect the Total Asset of the Investment Societies it operates, due to 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 event of shortfalls 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 shortfalls attributable to the Administrator, which may consist of information with different periodicity and detail than those that the Commission has established in the General Rules established by the Commission for the delivery of information.

ANNEX P

Model of Information Prospectus

I. DEFINITIONS

1. For the purposes of this prospectus, the following shall be understood:

In this section, the definitions necessary for the understanding of the information prospectus must be included.

II. GENERAL DATA

1. Data of the Investment Society.

1.1. Corporate name. ________________________________________________________

1.2. Type of Investment Society. ________________________________________________

1.2.1. Type of Worker who can invest in the Investment Society.

1.3. Constitution.

On the day __________________ before the notary public No. _________, Lic. __________________ of

______________________, through notarial instrument No. ______________ the society was constituted, which

was inscribed in the Public Registry of Commerce on the day ______________ under folio number

__________________.

1.4. Date and number of authorization.

___ of ___________ of ______ through office number ______________ of the National Commission of the Retirement Savings System.

1.5. Corporate Address. ____________________________________________________________

2. General Data of the Administrator operating the Investment Society.

2.1. Corporate name. _______________________________ _______________________

2.2. Constitution.

On the day __________________ before the notary public No. _________, Lic. __________________ of

______________________, through notarial instrument No. ______________ the society was constituted, which

was inscribed in the Public Registry of Commerce on the day ______________ under folio number

__________________.

2.3. Date and number of authorization:

___ of ___________ of ______ through office number ______________ of the National Commission of the Retirement Savings System.

2.4. Corporate Address. ___________________________________________________________

2.5 Patrimonial Links and Related Societies Among Themselves of the Administrator that operates the

Investment Society.

The Patrimonial Links of the Administrator operating the Investment Society must be identified in accordance with the

General Provisions for the operation of Investment Assets acquired by Investment Societies,

issued by the Commission.

The Related Societies Among Themselves must be identified in accordance with the General Provisions that

establish the investment regime to which Investment Societies must be subject,

issued by the Commission.

2.6

Disclose if the Administrator complies with any Socially Responsible Company (CSR) certification.

2.7 Conflicts of Interest.

The following must be stated verbatim:

"The Administrator has taken the necessary measures to avoid conflicts of interest"

3. Investment Committee.

What is established in the Law and in these Provisions, regarding the object and integration of the

Investment Committees must be indicated.

4. Financial Risk Committee.

What is established in these Provisions and in the Prudential Rules in matters of

risk management to which Administrators must be subject with respect to Investment Societies

that they operate, regarding the object and integration of the Financial Risk Committees.

Additionally, they must indicate the general policies defined by the Financial Risk Committee of the Investment

Society regarding the credit risk analysis of the securities portfolio.

III.- INVESTMENT POLICIES

a) Investment objectives.

Depending on the type of Investment Society, the investment objectives in Investment Assets will be included,

including the policy and risk of the investment, in accordance with what is provided by article 43 of the Law.

b) Investment policies, comprehensive risk management, liquidity, acquisition, selection and diversification

of securities.

The Administrator must indicate the general criteria on the risk management and investment policy that the

Investment Society in question will follow, which will contain:

i.

A description of the Asset Classes in which it will invest, making a comparative table relative to all the

Asset Classes authorized in the investment regime;

ii.

Measures of sensitivity of the investment portfolio such as the weighted average term of the investments that

it considers adequate for the investment portfolio in question, stating that this will not have a binding

character, but only informative. For the definition of the weighted average term, they must adhere to the

standard rules, for example by counting only the values that have a specific date of

maturity in their placement prospectus, considering the cut of the next Coupon for assets with

Variable Coupons, using as weights the amount of investments made in each asset with respect to the

Total Asset of the Investment Society;

iii.

Include risk measures such as Conditional Value at Risk Differential, and

iv.

The investments made through Mandatories, the general criteria used to select them, as well as the

added value for the worker derived from this policy.

The Administrator must indicate in the information prospectus the Internet address where the worker can

know in greater detail and depth the previous characteristics on the management of the investment portfolio of the

Investment Society and of the Assets Managed by the Mandatories that have been hired.

The Administrator may indicate the general criteria that the Investment Society follows regarding the

risk management, indicating the various types of risks to which the Investment Society is exposed and the

policies of the Administrator to mitigate them. The Administrator must indicate in the information prospectus the

Internet address where the worker can know in greater detail about the comprehensive risk management

of the investment portfolio of the Investment Society.

Likewise, Investment Societies must include a general description of the Reference Portfolio applicable to

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

c) Investment in Derivatives.

In the event that the Investment Society has the Commission's non-objection to conduct operations with Derivatives in accordance with the Prudential Rules on risk management and these Provisions for the celebration of operations with Derivatives, the Investment Strategy for these operations, the types of Derivatives it will operate, and, in the case of standardized markets, the markets in which it will operate, shall be described. Furthermore, the following must be indicated:

i. The Commission's non-objections to operate Derivatives and a comparison with the total operations with Derivatives that can be certified;

ii. The Commission's non-objections obtained in the last 12 months to operate Derivatives, and

iii. The Commission's non-objections that have been withdrawn in the last 12 months to operate Derivatives.

d) Investment in Structured Instruments, FIBRAS, and Real Estate Investment Vehicles

In the event that the Administrator, through its committees, decides to invest in Structured Instruments, FIBRAS, or Real Estate Investment Vehicles, it must explain the following regarding the investment criteria approved by the Investment Committee concerning investments in this Class of Asset:

i. The investment percentages it expects to maintain in accordance with its Investment Strategy;

ii. For Structured Instruments and Real Estate Investment Vehicles, the weighted average maturities;

iii. The economic sectors it will finance and those it considers should not be financed, and

iv. The criteria for selecting administrators of funds and trusts;

Additionally, it must include a conceptual explanation of the characteristics of this type of investment, regarding risks and diversification in these investments, as well as a reference to the Administrator's website where the worker can learn about the profitability of these instruments.

e) Investment in Commodities

In the event that the Administrator, through its Committees, decides to invest in Commodities, the Investment Strategy shall be described.

Additionally, it must include a conceptual explanation of the characteristics of this type of investment, regarding risks and diversification in these investments.

f) Investment in Currencies

In the event that the Administrator, through its Committees, decides to invest in Currencies, it must explain:

i. Why these investments are relevant in the realization of the Investment Strategy authorized by the Investment Committee of the Investment Society;

ii. The types of Currencies it will operate and in which markets it will operate, and

iii. What percentage of the portfolio and over what horizon it is authorized by its Investment Committee to keep invested.

Additionally, it must include a conceptual explanation of the characteristics of this type of investment, regarding risks and diversification in these investments.

g) Investment in Mutual Funds

In the event that the Administrator, through its Committees, decides to invest in Mutual Funds, it must explain:

i. Why these investments are relevant in the realization of the Investment Strategy authorized by the Investment Committee of the Investment Society;

ii. The types of Mutual Funds in which it will invest;

iii. The amounts and, if applicable, the terms it will maintain on average in investments in these funds;

iv. The markets, regions, and types of assets these funds will invest in, and

v. The general criteria employed to select the administrators of these funds, among which must be included the years of experience in this task, the amount of assets it administers, the costs, and the performance.

Additionally, it must include a conceptual explanation of the characteristics of this type of investment, regarding risks and diversification in these investments.

h) Investment through Mandatories

In the event that the Administrator, through its Committees, decides to enter into intermediation contracts in which an investment mandate is granted, the characteristics of the investment it intends to outsource shall be described. Among other aspects, it must indicate the following:

i. An explanation of why these investments are relevant in the realization of the Investment Strategy authorized by the Investment Committee of the Investment Society;

ii. The types of mandates it will contract, in terms of Classes of Assets;

iii. A description of the markets, regions, and Classes of Assets that the Mandatories will invest in;

iv. The amounts it will maintain on average in these investments with respect to the previous item, and

v. The general criteria approved by its Investment Committee to select the Mandatories, among which must be included the years of experience in this task, the amount of assets it administers, the costs, and the performance.

Likewise, it must communicate to the general public the address of the Administrator's website where more detailed information about these and other investment policies can be found.

i) ESG Investments

In the event that the Administrator, through its Committees, decides to invest in individual stocks or Stock Indices of Countries Eligible for Investments that adhere to environmental, social, and corporate governance principles (ESG by its acronym in English), it may indicate the following.

i. Why these investments are relevant in the realization of the Investment Strategy authorized by the Investment Committee of the Investment Society;

ii. The amounts it will maintain on average in these investments, and

iii. The general criteria employed to select the issuers or Stock Indices of Countries Eligible for Investments.

IV. INVESTMENT REGIME

In accordance with what is established in the General Provisions establishing the investment regime to which Investment Societies must be subject, the investment limits, risk limits, and their calculation mechanics shall be described in detail, which may be more restrictive than those established in said Provisions, if the Investment Society so decides.

A qualitative description of the Prudential Limits defined by the Financial Risk Committee that the Investment Society will observe for the complete investment portfolio in an aggregated manner must be included, among which must be established at least the following:

i. The limits applicable to each of the Financial Risks to which it is exposed; and,

ii. Limits for securities lending and repo operations disaggregated by Class of Asset;

Likewise, the information prospectus must explicitly inform the quantitative limits defined by the Financial Risk Committee that are part of the investment regime of the Investment Societies, as well as the concentration limits for issuers and Counterparties, in accordance with the additional credit assessment.

In its case, in accordance with the General Provisions establishing the investment regime to which Investment Societies must be subject and these Provisions, provisions regarding investments in Foreign Securities shall be included.

V. OPERATING 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) Price and settlement term of the Investment Society's shares:

The following must be indicated textually:

" 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 be subject, 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, Federal District). 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 shares are sold. "

c) Fund holding policy:

The following must be indicated textually:

" 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 entity, and d) When the total resources of the individual account are withdrawn due to the contracting of a life annuity or, if applicable, the resources are exhausted due to scheduled withdrawals or the worker has the right to withdraw their resources partially or totally in a single payment. "

(Also, in the event that the object of the Investment Society includes the voluntary contributions subaccount, the term in which withdrawals can be made must be indicated, complying at least with the terms established by the Law)

The worker may make withdrawals from their voluntary contributions subaccount every _______ months following 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 can be withdrawn or transferred, as well as the rights and obligations of their holders.

d) Commission regime.

The commission regime applicable to the Investment Society, authorized to the Administrator, will be described, detailing amounts and percentages to be applied by the Investment Society, as well as the concepts of application.

Likewise, the following must be indicated textually:

" 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 registered in the accounting of the Investment Society.

Commissions for special services will be paid directly by the worker who requested the service and under no circumstances can they be charged to the worker's individual account.

Without prejudice to the foregoing, complete and visible information on the commission structure and, if applicable, the discount scheme will be permanently maintained on the website defined by the Administrator.

As a consequence of the change in the commission regime, the worker may transfer their individual account to another Administrator. "

e) Valuation mechanics.

The following must be indicated textually:

" 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 will 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 must be subject, issued by the Commission, which state that accounting records will be analytical and allow for the identification and sequence of operations, with accounting movements registered on the same day the operation is celebrated. "

f) Repurchase regime.

The circumstances in which the worker will have the right to have the Investment Society, through the Administrator operating it, repurchase up to 100% of their shareholding will be indicated, in accordance with what is provided in the legal provisions applicable to the Investment Society in question.

VI. FISCAL REGIME

The Administrator will make known to the worker that the Investment Society in which their resources are invested must comply with the fiscal provisions applicable to it.

VII. PUBLIC INFORMATION ON THE SECURITIES PORTFOLIO

a) Securities Portfolio.

The following must be indicated textually:

" The composition of the aggregated investment portfolio by Classes of Assets will be available in the offices of the Administrator operating the Investment Society on a monthly basis with a cutoff on the last business day of the month. Likewise, the investment portfolio will be reported in the terms referred to above through at least one newspaper of national circulation or on the Administrator's website. The respective publications will be made within the first 10 business days of the month following the one to which the information corresponds. "

Historical returns and the Net Performance Indicator of the Investment Society will be available on the website designated by the Administrator for this purpose. Both indicators referred to in this paragraph will be expressed in annual terms, in nominal and real rates. The following legend must be added:

" Past returns do not guarantee future returns. These statistics are provided solely for informational purposes. "

These returns must be updated within the first 12 business days of each month. "

VIII. GENERAL WARNINGS TO WORKERS

a) Investment risks.

A description of the different types of risk to which the Investment Society's investment portfolio is exposed will be made.

Likewise, the following must be indicated textually:

" 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 only an opinion on the issuer's ability to comply with the terms provided 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 must be indicated textually:

" 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, provisions 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 said losses from the Administrator's special reserve, and in case this is insufficient, it will cover them from its social capital. "

c) Inspection and supervision by the Commission

The following must be indicated textually:

" The Commission is the competent authority to regulate, inspect, and supervise the operation of the Investment Society, as well as the Administrator operating it. "

d) Custody of titles

The Financial Intermediaries to whom the Administrator has contracted to deposit the Investment Assets, as well as the shares of the Investment Society for safekeeping, will be indicated.

e) Acceptance of the information prospectus by the worker

The following must be indicated textually:

" In order to comply with what is provided in article 47 bis, penultimate paragraph, of the Law, the Administrator operating the Investment Society will have this information prospectus available in its offices and branches or through the Administrator's website, for registered workers. "

f) Rating of the Investment Society

The Administrator may disclose on its website 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 must be indicated textually:

" 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 number (include CONDUSEF phone number). "

ANNEX Q

Model of Explanatory Brochure

GENERAL DATA

1.1. Data of the Investment Society.

1.2. Corporate name.

1.3. Type of Investment Society (Basic Investment Society or Additional Investment Society).

1.4. Type of Worker who can invest in the Investment Society and, if applicable, subaccount.

1.5. Corporate name of the Administrator operating the Investment Society.

INVESTMENT REGIME

2.1. A comparative table of all Classes of Assets with respect to the Classes of Assets that Investment Societies are authorized to invest in by their committees and within the limits established in current regulation, as well as the different types of vehicles provided for, must be included.

2.2. It may be indicated whether investments are being made in individual stocks or Stock Indices of Countries Eligible for Investments that adhere to environmental, social, and corporate governance principles (ESG by its acronym in English).

OPERATING POLICIES

3.1. Commission regime.

The commission regime applicable to the Investment Society, authorized to the Administrator, will be described.

PUBLIC INFORMATION ON THE SECURITIES PORTFOLIO

4.1. The following must be indicated textually:

" Will be available in the offices of the Administrator operating the Investment Society or through the Administrator's website:

a)

The composition of the aggregated investment portfolio by Classes of Assets on a monthly basis with a cutoff on the last business day of the month.

b)

The Net Performance Indicator of the Investment Society determined by the Commission.

Past returns do not guarantee future returns. These statistics are provided solely for informational purposes.

c)

Financial Risk Limits "

GENERAL WARNINGS TO WORKERS

5.1. Losses caused by the responsibility of the Administrator and Investment Society.

The following must be indicated textually:

" 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, provisions 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 said losses from the Administrator's special reserve, and in case this is insufficient, it will cover them from its social capital. "

5.2. Inspection and supervision by the Commission

The following must be indicated textually:

" The Commission is the competent authority to regulate, inspect, and supervise the operation of the Investment Society, as well as the Administrator operating it. "

5.3. Information Prospectus of the Investment Society

The following must be indicated textually:

" More information regarding the information prospectus of the Investment Society can be obtained in the offices and branches or through the Administrator's website. "

5.4. Inquiries, complaints, and claims

The following must be indicated textually:

" The Administrator's phone number for public attention (include public attention phone number of the Administrator) and the phone number available free of charge by the Commission for public attention: SARTEL 01800-50-00-747.

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 number (include CONDUSEF phone number). "

ANNEX R

Criteria that Bursatilized Instruments must meet to be considered as placed by an independent issuer

I. General criteria that Bursatilized Instruments in possession of Investment Societies must meet to be considered as placed by an independent issuer:

a)

The prospectus must clearly indicate the eligibility criteria of the portfolio object of the

bursatilization;

b)

There must be a transfer of the collection rights of the portfolio object of the bursatilization to an

irrevocable trust;

c)

Clear rules must exist to, if applicable, replace the administrator of the portfolio object of the

bursatilization. Among other reasons, for the replacement, the possible

conflicts of interest of this with the holders, the common representative, or with entities

must be disclosed.

related to the payment of obligations of the receivables rights or with the originator, the lack of experience in the administration and collection of rights over the assets subject to securitization, or a breach of their mandate as administrator;

d)

The authorized securities rating agency must consider and value all cash flows of the Secured Instrument (both principal and interest) for the purpose of issuing a rating;

e)

To respect minimum standards for disclosing information about the Secured Instrument in compliance with the regulations issued by the National Banking and Securities Commission for such purposes;

f)

That the valuation of the Secured Instrument be carried out by a price provider, using a public methodology;

g)

There shall be no repurchase mechanisms for the portfolio subject to securitization, by the settlor or the originator, except when the portfolio in question is mortgage or of another nature specified by the Risk Analysis Committee, in which cases they shall be subject to the specific rules established. Nor shall there be mechanisms for substituting part or all of the assets affected in the irrevocable trust, except to comply with the eligibility criteria referred to in the previous letter a), and

h)

To have the enhancers defined by the Commission. Mortgage Secured Instruments will meet this requirement when they satisfy what is provided in fraction II of the present Annex.

II.

Additional criteria that Secured Instruments held by Investment Societies must meet to be considered as issued by an independent issuer when the underlying portfolio is mortgage:

a)

The settlor or, where applicable, the originator may repurchase the portfolio subject to securitization from the trust when its value is equal to or less than 10% of what it would have been at the start 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 Secured Instruments correspond to the same reopened issuance when the foregoing is supported by the legal opinion of an independent expert from the issuer;

b)

Secured Instruments must achieve a rating equivalent to any of those provided in Annex A of the General Provisions establishing the investment regime to which Investment Societies must be subject. For these purposes, Secured Instruments must have a combination of security mechanisms among which are the following:

i.

Determination of a maximum level applicable to the average ratio between the value of the credits and the value of the mortgage guarantees of the portfolio subject to securitization;

ii.

Issuance of a subordinated series;

iii.

Guarantee granted by an internationally recognized insurance company, and

iv.

Minimum level of coverage or capital retained by the settlor, understood as this variable the percentage of the portfolio that is entrusted in excess of the value of the Secured Instrument at the time of issuance;

c)

At the time of issuance of the Secured 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 requirements (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 Secured Instrument, the originator must retain a level of coverage or capital of the Secured 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 towards 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 reporting on Debt Vehicles, Equity Components, Real Estate Investment Vehicles and FIBRAs,

Equity 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:

1. Experience

a)

It must be constituted in accordance with the regulation of an Eligible Country for Investments.

b)

It must enjoy international prestige and have proven experience of at least five years for the company and three years for the officials in the provision of evaluation services or issuing reports on 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 not have antecedents or pending investigations before courts or supervisory entities of Eligible Countries for Investments due to damages caused by issuing incorrect reports, or by omitting information that contravenes the proper compliance of the indices or of the Investment Vehicles with respect to the applicable regulations.

2. Conflicts of interest

a)

The independent expert must have policies to detect, avoid, and resolve real and potential conflicts of interest in which it may incur when providing services to Investment Societies.

b)

The independent expert must not have Property Links or be a Related Company With Each Other with any Administrator.

c)

The independent expert must demonstrate the following:

·

That there is independence in the evaluation and reporting process with respect to index providers, as well as the sponsor, administrator, and investment advisor of the Investment Vehicles, Mutual Funds or any entity dedicated to resource management whose Vehicles are reported on by said company.

·

That the evaluation and reporting of compliance with the Criteria for the selection of equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES and the Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds) issued and approved by the Risk Analysis Committee are auditable.

d)

In the event that the independent expert has property links or is a related company of the index provider or the sponsor, administrator, and investment advisor of the index or Investment Vehicle to be reported on, the following must be demonstrated:

·

That there is operational separation between activities related to the study, analysis, opinion, evaluation, and reporting of the index or Investment Vehicle, from the other business or commercial areas, such as: areas of promotion and sale of Vehicles to be reported on, in which a conflict of interest might arise.

·

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.

4. Corporate governance of the company

a)

To have clear and robust policies regarding the reporting and evaluation process of indices and Investment Vehicles. Such policies must be available to the Administrators they serve. The Commission may request these policies from the Administrators at any time.

b)

The independent expert must always maintain the confidentiality of the information that 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 equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES and the Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds) issued and approved by the Risk Analysis Committee, based on publicly available information, as well as that provided by index providers and sponsors of Investment Vehicles, for which it must:

a)

Cross-check, at least in the initial review, public documents, such as prospectuses, brochures, and periodic reports required by the applicable regulatory entity, with the information provided by index providers and sponsors of Investment Vehicles.

b)

Have policies and procedures to carry out the functions for which it was hired. Such policies and procedures must be transparent to the Administrators they serve.

c)

In the event that the Risk Analysis Committee modifies the Criteria for the selection of equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES and the Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds), policies and procedures must be in place to re-evaluate and follow up on authorized indices and Investment Vehicles. Where applicable, the Commission will inform of such modifications in advance of the entry into force of said changes.

d)

In the event that the index methodology, or the prospectus, brochure, or any other legal document of the Investment Vehicle, presents any change, the compliance of the Criteria for the selection of equity, debt, and real estate indices permitted in the Investment Regime of SIEFORES and the Criteria applicable to Investment Vehicles known as ETFs (Exchange Traded Funds) must be re-evaluated. The independent expert may evaluate only what concerns the modifications made.

The independent expert must not issue an opinion, judgment of value, or investment recommendation on the evaluated indices or Investment Vehicles.

III. Of the information and reporting of Vehicles and indices:

Administrators, and where applicable, the person they authorize, must send to the Commission, on behalf of the Administrator operating each Investment Society, the list of indices and Investment Vehicles that have obtained an approving report 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 established for this purpose by the Commission for the delivery of information. Without prejudice to the foregoing, Administrators, and where applicable, the person they authorize, must allow the Commission access to the list of indices and Investment Vehicles in question, which will have a binding character for supervision purposes.

Administrators, and where applicable, the person they authorize, are responsible for safeguarding the documentary evidence supporting the evaluation of indices and Investment Vehicles, both for those that received an approving report and those that had a negative report, both by the independent expert. The documentary evidence must be available to the Commission at all times.

Likewise, Administrators, and where applicable, the person they authorize, must inform in writing to the Commission any change or deviation observed in the evaluation and follow-up of indices and Investment Vehicles by the independent expert.

IV. Procedure for selecting the independent expert

Administrators are responsible for verifying compliance with the contents provided in this Annex of the independent experts they hire to evaluate and report on the indices and Investment Vehicles referred to in this Annex.

Administrators, or whom they define, will make available to the Commission the documentation that the latter requests with which Administrators support compliance with these guidelines as well as the selection process of the independent expert.

The contract with the independent expert must be signed under the jurisdiction of an Eligible Country for Investments and must be available to the Commission.

In the event that the contract is not signed directly by the Administrator, Administrators must be part of the contract in their capacity as witnesses. Likewise, the Administrator must deliver in writing to the Commission the designations of the person responsible for signing the contract with the independent expert and the person who accepted the obligation to follow up on said contract, both on behalf of the Administrator, and the acceptance of the Administrator to submit to the evaluation and reporting that is carried out by the independent expert of Debt Vehicles, Equity Components, Real Estate Investment Vehicles, FIBRAs, Equity Indices of Eligible Countries for Investments, Real Estate Indices of Eligible Countries for Investments and Debt Indices of Eligible Countries for Investments.

Administrators must deliver in writing to the Commission the designation of the person they authorize, where applicable, to carry out the functions described in fraction III of the previous section of this annex.

The classification of indices as equity or real estate will be determined by the Commission, hearing the opinion of Administrators, and where applicable, the person they authorize.

Therefore, Vehicles will not be disaggregated for the purpose of supervising applicable concentration limits, in accordance with what is provided in Annex N of the General Provisions establishing the investment regime to which Investment Societies must be subject; the exposure of investments in said Vehicles and indices will be computed considering the Equivalent Delta Value of the Acquired or Structured Note, Structure Linked to Underlying, Equity Component, Financial Derivative Instrument, or any other Vehicle allowed that replicate the behavior of the index favorably reported on by independent experts.

ANNEX U

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

The maximum amount to be invested by the set of Investment Societies eligible for investments in Structured Instruments must obey the following criteria:

a)

Basic Investment Societies 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 by means of the transfer of resources from the Individual Accounts of Workers by age in accordance with the General Provisions on matters of operations of Retirement Savings Systems.

b)

Administrators must ensure that the amount invested by the set of Investment Societies they operate, at no time exceeds 50% of the value of a project financed through Structured Instruments intended to finance the same project, regardless of the administrator. The foregoing 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 Property Links jointly, they may not exceed 35% of the value of each financed project.

d)

The Threshold referred to in the Twenty-Fourth Provision, fraction IV of the General Provisions establishing the investment regime to which specialized retirement fund investment societies must be subject is equivalent to 4,078 million pesos, and will be updated once every calendar year in the same proportion as the increase in the value of investment units (UDIs). The previous value corresponds to December 31, 2016.

The Commission will periodically inform Administrators of the value of the Threshold, as well as the value of the Total Asset.

In the case of primary offerings of Structured Instruments and for the purpose of complying with the limits provided in this annex and in the General Provisions establishing the investment regime of specialized retirement fund investment societies, 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 Societies do not fail to comply with the limits referred to in this paragraph.

Administrators must inform the administrator of the absolute amount and the range to be invested, the latter as a percentage of the total notional value of the Structured Instrument in question, which must be recorded in the Detailed Minutes of the corresponding session. For these purposes, the policy must provide for adjustments that the administrator may apply for the purposes of: i) compliance with the limits provided in these Provisions and ii) defining the allocation of amounts of Structured Instruments that may vary with respect to the bids of Administrators as long as they are based on policies provided in the issuance prospectus, among which 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 formed by 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.

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