Resolution SBS No. 0779-2021: Amending the Regulation for Consolidated Supervision of Financial and Mixed Conglomerates, the Annex to the Internal Audit Regulation, the External Audit Regulation, the Accounting Manual for Financial System Companies and the Chart of Accounts

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Lima, March 16, 2021

S.B.S. Resolution
No. 0779-2021

The Superintendent of Banking, Insurance and Private Pension Fund Administrators

WHEREAS:

That, by SBS Resolution No. 11823-2010 and its amending rules, the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates was approved, hereinafter the Regulation for Consolidated Supervision;

That, by SBS Resolution No. 895-98 and its amending rules, the Accounting Manual for Financial System Companies was approved, hereinafter the Accounting Manual;

That, by SBS Resolution No. 348-95 and its amending rules, the Chart of Accounts for Insurance System Companies was approved, hereinafter the Chart of Accounts;

That, by SBS Resolution No. 11699-2008 and its amending rules, the Internal Audit Regulation was approved;

That, by SBS Resolution No. 17026-2010 and its amending rules, the External Audit Regulation was approved;

That it is necessary to improve the use of the information provided by the companies of the supervised systems, in order to achieve greater efficiency in the use of resources and optimize the supervision and analysis of this Superintendency;

That this Superintendency, in the process of optimizing resources, has considered it necessary to make amendments to the Regulation for Consolidated Supervision;

That, likewise, it is necessary to adapt the External Audit and Internal Audit Regulations, as well as the Accounting Manual and the Chart of Accounts, to the amendments established in the Regulation for Consolidated Supervision;

That, in order to gather public opinions on the proposal, the draft rule was pre-published on the Superintendency's electronic portal, under the provisions of Supreme Decree No. 001-2009-JUS;

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239 2

With the approval of the Deputy Superintendencies of Banking and Microfinance, Insurance, Risks, Economic Studies and Legal Advice; and,

In use of the powers conferred by numerals 7 and 13 of article 349 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance approved by Law No. 26702 and its amendments;

RESOLVES:

Article One.- Amend the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates approved by SBS Resolution No. 11823-2010 and its amending rules, in the terms indicated below:

1. Eliminate in article 20 "Information required for consolidated supervision" literal A of the first paragraph and numeral 3 of the second paragraph, as well as the reference to literal A.

2. Replace numeral 4 of the second paragraph of article 20 "Information required for consolidated supervision", with the following:

"4. The annexes must be signed by the General Manager and the General Accountant of the company responsible for the submission of information. In the case of the financial statements referred to in literals B, C and D, the signature of at least two (2) Directors of the company responsible for the submission of information must also be included."

3. Replace numeral 1 of Article 24 "Consolidation of financial statements", with the following:

"Article 24.- Consolidation of financial statements

For the purposes of the consolidation of the financial statements indicated in literals B, C and D of article 20, the following criteria shall be followed:

1. International Financial Reporting Standard 10 "Consolidated Financial Statements" shall be applicable, insofar as it does not conflict with the provisions of this Regulation.

(...)"

4. Eliminate article 30 "External Audit".

Article Two.- Amend the Annex to the Internal Audit Regulation approved by SBS Resolution No. 11699-2008 and its amending rules, in the terms indicated below:

1. Replace section I.8) with the following:

"I. COMPANIES INDICATED IN LITERALS A, B AND C OF ARTICLE 16 OF THE GENERAL LAW (EXCEPT SURETY AND GUARANTEE COMPANIES), BANCO DE LA NACIÓN, BANCO AGROPECUARIO, FONDO MIVIVIENDA AND CORPORACIÓN FINANCIERA DE DESARROLLO (COFIDE)

(...)

8. Analysis of the mechanisms for the comprehensive risk management of the financial group, taking into account the risk exposure from operations carried out with natural persons, legal persons or related legal entities and companies of the conglomerate. Evaluation of the significant accounting policies used in the consolidation of the financial statements of the financial group and of the consolidable groups, as well as the evaluation of compliance with capital requirements, global and concentration limits, and the other provisions established in the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates;

(...)"

2. Replace section II.12) with the following:

"II. INSURANCE AND/OR REINSURANCE COMPANIES:

(...)

12. Analysis of the mechanisms for the comprehensive risk management of the financial group, taking into account the risk exposure from operations carried out with natural persons, legal persons or related legal entities and companies of the conglomerate. Evaluation of the significant accounting policies used in the consolidation of the financial statements of the financial group and of the consolidable groups, as well as the evaluation of compliance with capital requirements, global and concentration limits, and the other provisions established in the Regulation for the Consolidated Supervision of Financial and Mixed Conglomerates;

(...)"

Article Three.- Amend the External Audit Regulation, approved by SBS Resolution No. 17026-2010 and its amending rules, in the terms indicated below:

1. Eliminate article 7 "Examinations applicable to conglomerates".

2. Eliminate in article 9 "Information that must be submitted to the Superintendency", literals c) and d).

3. Replace the first paragraph of article 18 "Contracting of audit firms" in accordance with the following text:

"Article 18.- Contracting of audit firms

The companies must contract audit firms for the evaluation of the reasonableness of the financial statements, the evaluation of the aspects indicated in Annex I corresponding to complementary reports, the evaluation of the internal control system in the field of external audit, no later than June 30 of each year, with prior approval of the General Shareholders' Meeting, the board of directors or equivalent body, in accordance with the provisions of their bylaws.

(...)"

4. Eliminate the third paragraph of article 19 "Opinion on the Financial Statements".

5. Eliminate in article 22 "Deadlines for submission of Opinions and reports", literals c) and d).

6. Replace the Second Final Provision, in accordance with the following text:

"Second.- Annual report

The annual report of the company must contain the opinion of the external auditors on the financial statements corresponding to the fiscal year examined; as well as the financial statements and their respective notes, and when applicable in accordance with the requirements of the Superintendency of the Securities Market (SMV), the annual consolidated financial statements of the company."

7. Incorporate as the seventh final provision of the External Audit Regulation, the following:

"Seventh.- Superintendency of the Securities Market (SMV)

The term "National Supervisory Commission of Companies and Securities (CONASEV) in this regulation must be understood as referring to "Superintendency of the Securities Market (SMV)"."

Article Four.- Amend the Accounting Manual for Financial System Companies, in the terms indicated below:

1. Amend Chapter I "General Provisions" in accordance with the following:

In numeral 2 "Annual Report" of literal H "Approval of the Financial Statements and the Annual Report by the General Shareholders' Meeting or equivalent body", replace literals c) and d) of the second paragraph, in accordance with the following:

"H. APPROVAL OF THE FINANCIAL STATEMENTS AND THE ANNUAL REPORT BY THE GENERAL SHAREHOLDERS' MEETING OR EQUIVALENT BODY

(...)

2. Annual Report

(...)

The annual report must contain, at least:

(...)

c) When applicable, in accordance with the requirements of the Superintendency of the Securities Market (SMV), the annual consolidated financial statements of the company;

d) When applicable, in accordance with the requirements of the SMV, the report of the External Audit Firm on the annual consolidated financial statements of the company;

(...)".

2. Eliminate in Chapter II "Financial Statements and Complementary Information", numeral III "Consolidated Financial Statements".

Article Five.- Amend the Chart of Accounts for Insurance System Companies, in the terms indicated below:

1. Amend Chapter I "General Provisions" in accordance with the following:

In numeral 7 of Section C. Reports, replace literals c) and d) of the second paragraph, in accordance with the following:

"C. REPORTS

(...)

7. (...)

The annual report must contain, at least:

(...)

c) When applicable, in accordance with the requirements of the Superintendency of the Securities Market (SMV), the annual consolidated financial statements of the company;

d) When applicable, in accordance with the requirements of the SMV, the report of the External Audit Firm on the annual consolidated financial statements of the company;

(...)

Article Six.- This resolution enters into force as of April 1, 2021.

Register, communicate and publish,

JAVIER MARTIN POGGI CAMPODONICO
Superintendent of Banking, Insurance and AFP (A.I.)