Regulatory Alerts2020-03-03 | DOF 5588145Added
Modifications and Additions to the General Provisions on Financial Matters of the Retirement Savings Systems
The National Retirement Savings System Commission modifies the Liquidity Coefficient methodology to support long-term pension growth and reduces tactical operations with derivatives. It establishes a maximum annual tracking error limit of 5% for Investment Societies and clarifies the calculation methodology for this limit. The amendments impose obligations on Investment Societies and Administrators to notify breaches, propose portfolio reconstruction programs, and cover daily shortfalls resulting from non-compliance with liquidity, tracking error, and risk limits.