Resolution SBS No. 2325-2022: Amend Provisions Regarding the Transfer and Relocation Process of an Affiliate in the Private Pension System

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239 Lima, July 25, 2022 S.B.S. Resolution No. 02325-2022 The Superintendent of Banks, Insurance and Private Pension Fund Administrators

CONSIDERING:

That the procedure for the transfer of affiliates, regulated in Articles 28 and following of Subchapter VI of Chapter I of Title V of the Compendium of Regulatory Supervision Norms of the Private Pension Fund Administration System (SPP), approved by Resolution No. 080-98-EF/SAFP, allows guaranteeing the full exercise of the right that affiliates have to choose the AFP of their preference regarding the administration of their pension fund, as well as the type of fund in question;

That, to carry out said procedures, the AFPs make available to their affiliates platforms of the in-person or remote type, oriented to facilitate and flexibilize the process of decision-making by affiliates, based on the information of the relevant variables of the SPP and their own profitability and risk profiles;

That, by means of SBS Resolution No. 504-2021, the Regulation for the Management of Information Security and Cybersecurity was approved, which updates the regulations on information security management with the objective that supervised entities strengthen their cybersecurity capabilities and authentication processes;

That, based on the above and to achieve a continuous improvement of service standards regarding the administration of pension funds under the responsibility of AFPs, it is necessary to establish measures so that these, under the protocols regarding information security management, have the necessary regulatory framework to implement transfer procedures, within an environment of greater flexibility and innovation regarding the actions carried out by AFPs, with the objective of improving efficiency and quality levels in the attention to their potential affiliates and the SPP in general;

That, for the purpose of collecting opinions from the general public regarding the proposed modifications to the SPP regulations, the pre-publication of the draft resolution on the matter was ordered on the electronic portal of the Superintendency in accordance with what is established in Supreme Decree No. 001-2009-JUS;

Having the approval of the Adjunct Superintendencies of Private Pension Fund Administrators, of Risks, of Market Conduct and Financial Inclusion, and of Legal Advice; and,

In exercise of the powers conferred by numeral 9 of Article 349 of the General Law of the Financial System and the Insurance System and the Organic Law of the Superintendency of Banks and Insurance, Law No. 26702 and its amendments, subsection d) of Article 57

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 2/8 of the Single Consolidated Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 054-97-EF and its modifying norms;

RESOLVES:

Article First.- Modify Title V of the Compendium of Regulatory Supervision Norms of the SPP, approved by Resolution No. 080-98-EF/SAFP and its amendments, according to the following:

1. Replace the second and third paragraphs of Article 26, with the following text:

“The completion of the transfer procedure implies the automatic disaffiliation from the AFP in which the affiliate was making their mandatory contributions, referred to as the origin AFP, and their subsequent affiliation to the chosen AFP, referred to as the destination AFP, maintaining their status as incorporated into the SPP. The affiliate may carry out the transfer by in-person or remote means. When carried out by in-person means, the transfer process is carried out in the premises of the destination AFP; when carried out by remote means, it is done at a distance, under the mechanisms that the destination AFP makes available. In both cases, the assistance of the sales promoter is optional; likewise, the use of digital means or pre-printed formats is allowed. The AFP informs affiliates and the general public about the transfer means, through its communication channels.

2. Replace the first paragraph of Article 27, with the following text:

“Article 27.- Requirements. For the purposes of the transfer of funds from one AFP to another, the affiliate must present a transfer request to the destination AFP, under what is established in Article 28.”

3. Replace Articles 28 and 28A, with the following texts:

“Article 28.- Transfer Procedure – Submission of Request. For the purposes of initiating the transfer procedure, the following must be met: a) The transfer request must contain: i) identification information of the affiliate, provided by them or validated by the AFP with confirmation from the affiliate when this is extracted from official information sources; ii) contact information of the affiliate; iii) the channel through which they wish to receive communications associated with the processing of their request; and, iv) the promoter code, in case they participate in the process. The AFP may request additional information or the presentation of additional documentation, and must record the additional documents submitted by the affiliate. b) The transfer request must be signed by the affiliate under the mechanisms established by the destination AFP; thereafter, the transfer request is considered to have been presented. For the purposes of the submission of the transfer request, the following must be taken into account: i. When the sales promoter of the destination AFP participates, they are responsible for verifying the information registered in the transfer requests. ii. The AFP must deliver to the affiliate a copy or its equivalent in digital format of the transfer request once presented; alternatively, communicate to them at least the date and number of the request, the type of fund chosen, the destination AFP, and that a copy of the request is available in the private zone on the AFP’s website.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 3/8 “Article 28A.- Transfer Procedure - Procedure. The AFP must develop a procedure that, at a minimum, considers the following stages: a) Submission: The AFP determines the in-person or remote means through which affiliates can present the transfer request. b) Identification and verification: The AFP is responsible for validating the identity of the affiliate through the identification mechanisms it determines. In case digital channels are used, the validation of identity or authentication must be subject to what is established in the Regulation for the Management of Information Security and Cybersecurity, approved by SBS Resolution No. 504-2021, or the norm that replaces it. c) Confirmation and signing: The AFP must implement the mechanism to confirm the affiliate’s will to transfer their CIC and the signing of the transfer request. After the signing of the aforementioned request, the destination AFP must inform the affiliate, through the channel they indicated, that their transfer request has been presented, as well as the start date of accrual of their contributions in case their request is deemed procedent. The implementation of operations through digital channels also requires that the AFP present to the Superintendency the risk assessment report for significant changes in the business, operational, or IT environment, as indicated in Circular No. G-165-2012 or the norm that replaces it. The AFP must implement the transfer procedure considering, at a minimum, the following: i) That it has mechanisms that allow identifying errors or operations that do not have the affiliate’s authorization; ii) That it establishes and delimits the responsibility of each agent involved in the process; iii) That it allows the reversal of an operation that was carried out without the affiliate’s consent or without observing the transfer process defined by the AFP; being the responsibility of the AFP to restore, at the time of regularizing the irregular transfer, to the affiliate’s CIC, in addition to the transferred amount, the negative differences that may result from the comparison of the affiliate’s CIC balance versus what they would have in the AFP where they should have remained; iv) That it allows the affiliate to follow up on their transfer request and send communications to the AFP at any time during the process; v) That it guarantees the provision of complementary comparative information on the SPP, regarding the profitability of funds and administration commissions, as referred to in Article 104A, prior to the signing of the transfer request. The procedure for the transfer of mandatory contributions implemented by AFPs must have security mechanisms, information preservation, and operation records, as provided for in the applicable regulations, and may require complementary labor information from the affiliate.”

4. Replace subsection a) of Article 33, with the following text:

“a) Send the individual file of the affiliate to the destination AFP. In this file, the following must additionally be included: i. A copy of the Statement of Accounts - detailed version, whose information matches the funds sent to the destination AFP. The aforementioned statement of accounts must cover the period of the affiliate’s stay in said AFP. This information may be sent by electronic means; and,

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 4/8 ii. A report sent by electronic means that identifies:

• The months with contributions in collection status in the administrative or judicial channel;
• The months with contributions that are in a debt installment program; and,
• The months in which the AFP does not record the payment of contributions.”

5. Replace the second paragraph of Article 37-A, with the following text:

“The affiliate may carry out the relocation by in-person or remote means. When carried out by in-person means, the relocation process is carried out in the AFP’s premises; when carried out by remote means, it is done at a distance. In both cases, the assistance of the sales promoter is optional; likewise, the use of digital means and pre-printed formats is allowed. The AFP informs affiliates and the general public about the relocation means, through its communication platforms.”

6. Replace the first paragraph of Article 37-C, with the following text:

“Article 37-C.- Relocation Procedure. For the purposes of initiating the relocation procedure, the affiliate must fill out a form for the request for relocation of voluntary contributions that is determined by the AFP, which must contain identification and contact data of the affiliate, through the channels it makes available to them.”

Article Second.- Modify the Operational Procedure applicable to origin and destination AFPs in the process of transfer of an affiliate in the SPP by in-person or remote means, approved by Circular No. AFP-049-2004, according to the following:

1. Replace the first paragraph of numeral 1, with the following text:

“This norm applies to Private Pension Fund Administrators, hereinafter AFP, with respect to transfer requests for the balance of the CIC of mandatory contributions from one AFP to another presented, whether by in-person or remote means, by affiliates of the Private Pension Fund Administration System, hereinafter SPP.”

2. Modify numeral 2, with the following text:

“2. Minimum Information in Transfer Requests and Support of Relevant Information (SIR) For the purposes of presenting a transfer request, regardless of the channel, a minimum set of information must be available that serves as support for the registration of transfer requests, such as: i) data on the identification of the affiliate, ii) contact information of the affiliate, iii) the type of fund to which they wish their funds to be transferred. The destination AFP, based on its processes for authenticating the identity of the affiliate, as referred to in Article 28A of Title V, determines the complementary support information to that indicated in the previous paragraph, for the registration of transfer requests.”

3. Modify subsection a. of numeral 3, with the following text:

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 5/8 “a. Submitted Request (SP): that which registers the receipt, by the destination AFP, of a transfer request, whether by in-person or remote means, which occurs with the confirmation and signing of the transfer request by the affiliate, as referred to in subsection c) of Article 28-A of Title V.”

4. Replace numeral 4, with the following texts:

“4. Operational Procedure Once the transfer request is entered, the following procedure is followed: Requests submitted during the first 23 days of month “z” 4.1. The destination AFP, within the day following the end of the first submission deadline for requests of month “z”, communicates to the Superintendency via network, the list of affiliates who have presented the transfer request during the first twenty-three (23) days of month “z”. At the same time, the status of the request changes from SP to SC; 4.2. The day following that referred to in the preceding numeral, the Superintendency notifies via network to the origin AFP the list of affiliates who have requested transfer, so that it verifies the following: i) That the requirement or cause corresponding to Articles 17PP and 27 of Title V is met; and, ii) That the affiliate is not included under any of the circumstances provided for in Article 29 of said Title; 4.3. The origin AFP has one (1) day to inform the Superintendency about the result of the verification carried out, mentioning the applicable cause in case of rejection, which is made known to the destination AFP through the Superintendency, under a reconciliation process via network; 4.4. The day following said information, the Superintendency notifies via network to the origin AFP and the destination AFP the acceptance or rejection of the transfer. In case of rejection, the procedure described in numeral 7 of this circular is followed; 4.5. AFPs may exchange information on accepted transfer requests, through the means and within the deadlines they agree upon; 4.6. The destination AFP, within three (3) business days following the expiration of the deadline established in numeral 4.4., communicates to the affiliate the change of status of the submitted transfer request, which changes to status SA, as well as the first month of accrual in the destination AFP. Requests submitted after the first 23 days of month “z” 4.7. The destination AFP, within the first day of month “z+1”, communicates to the Superintendency via network, the list of affiliates who have presented the transfer request after the first twenty-three (23) days of month “z”. At the same time, the status of the request changes from SP to SC; 4.8. The day following that referred to in the preceding numeral, the Superintendency notifies via network to the origin AFP the list of affiliates who have requested transfer, so that it verifies the following:

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 6/8 i) That the requirement or cause corresponding to Articles 17PP and 27 of Title V is met; and, ii) That the affiliate is not included under any of the circumstances provided for in Article 29 of said Title; 4.9. The origin AFP has one (1) day to inform the Superintendency about the result of the verification carried out, mentioning the applicable cause in case of rejection, which is made known to the destination AFP through the Superintendency, under a reconciliation process via network; 4.10. The day following said information, the Superintendency notifies via network to the origin AFP and the destination AFP the acceptance or rejection of the transfer. In case of rejection, the procedure described in numeral 7 of this circular is followed; 4.11. Within three (3) business days following the expiration of said deadline, the destination AFP sends to the origin AFP the information of the accepted transfer requests, through the means they agree upon; 4.12. The destination AFP, within the same deadline and opportunity as established in numeral 4.11., communicates to the affiliate the change of status of the submitted transfer request, which changes to status SA, as well as the first month of accrual in the destination AFP.”

4. Modify numeral 6, with the following text:

“6. Procedure for Rejected Transfers In case the transfer request is rejected as improcedent, the destination AFP within three (3) days following the expiration of the deadline indicated in numeral 4.4. or 4.10., depending on the period in which the transfer request was presented, enters the status of the request under status SR, declaring its improcedence and registering the reasons supporting it in the support information referred to in numeral 2, and must communicate to the affiliate, at a minimum, through the channel they indicated, the status of the request, which must contain the term “improcedent request”, as well as the documents received, if applicable.”

Article Third.- Modify Circular No. AFP-064-2005 which establishes clarifications to the operational procedure for the transfer, relocation, choice and change of a type of pension fund in the SPP, according to the following:

1. Repeal numeral 6.

2. Replace numeral 7, with the following texts:

“7. Operational Procedure for Relocations In the case that an affiliate presents a request for relocation of contributions, the requirements established in numerals 2 (Support of Relevant Information) and 3 (status of procedures) of Circular No. AFP-49-2004 are extended. For the purposes of processing a relocation request, the following will be taken into account: Requests submitted during the first 23 days of month “z”

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511) 6309000 7/8 7.1. The destination AFP, within the first day following the end of the first submission deadline for requests of month “z”, communicates to the Superintendency via network, the list of affiliates who have presented the relocation request during the first 23 days of month “z”. At the same time, the status of the request changes from SP to SC; 7.2. The day following that referred to in the preceding numeral, the Superintendency notifies via network to the origin AFP the list of affiliates who have requested relocation, so that it verifies the following: i) That the admission requirement referred to in Article 37-B of Title V is met; and, ii) That the affiliate is not included under any of the circumstances provided for in Article 37-E of said Title; 7.3. The origin AFP has one (1) day to inform the Superintendency about the result of the verification carried out, mentioning the applicable cause in case of rejection, which is made known to the destination AFP through the Superintendency, under a reconciliation process via network; 7.4. The day following said information, the Superintendency notifies via network to the origin AFP and the destination AFP the acceptance or rejection of the relocation. In case of rejection, the procedure is similar to that described in numeral 7 of Circular No. AFP-49-2004; 7.5. Within three (3) days following the expiration of said deadline, the destination AFP sends to the origin AFP the corresponding copies or records of the accepted relocation requests, attaching the corresponding consolidated index of the documentation sent; 7.6. The destination AFP, within the same deadline and opportunity as established in numeral 7.5., communicates to the affiliate the change of status of the submitted relocation request, which changes to status SA, as well as the first month of accrual for voluntary contributions in the destination AFP. Requests submitted after the first 23 days of month “z” 7.7. The destination AFP, within the first day of month “z+1”, communicates to the Superintendency via network, the list of affiliates who have presented the relocation request after the first 23 days of month “z”. At the same time, the status of the request changes from SP to SC; 7.8. The day following that referred to in the preceding numeral, the Superintendency notifies via network to the origin AFP the list of affiliates who have requested relocation, so that it verifies the following: i) That the admission requirement referred to in Article 37-B of Title V is met; and, ii) That the affiliate is not included under any of the circumstances provided for in Article 37-E of said Title; 7.9. The origin AFP has one (1) day to inform the Superintendency about the result of the verification carried out, mentioning the applicable cause in case of rejection, which is made known to the destination AFP through the Superintendency, under a reconciliation process via network; 7.10. The day following said information, the Superintendency notifies via network to the origin AFP and the destination AFP the acceptance or rejection of the relocation. In case of rejection, the procedure is similar to that described in numeral 7 of Circular No. AFP-49-2004;

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 8/8 7.11. Within three (3) days following the expiration of the aforementioned deadline, the destination AFP sends to the origin AFP the corresponding copies or records of the accepted transfer requests, attaching the corresponding consolidated index of the documentation sent; 7.12. The destination AFP, within the same deadline and opportunity established in item 7.11., notifies the affiliate of the change in the status of the submitted transfer request, which moves to status SA, as well as the first month of accrual for voluntary contributions in the destination AFP.” Article Fourth.- Repeal Article 28B and the Seventy-Second Final and Transitional Provision of Title V of the Compendium of Regulatory Norms of the Superintendence of the Private Pension System (SPP), approved by Resolution No. 080-98-EF/SAFP and its amendments; Circulars No. AFP-048-2004 and No. AFP-052-2004. Article Fifth.- This resolution enters into force the day after its publication in the Official Gazette “El Peruano,” having a maximum adaptation period of ninety (90) calendar days, counted from its entry into force. Register, communicate, and publish. MARIA DEL SOCORRO HEYSEN ZEGARRA Superintendent of Banking, Insurance, and AFP