Resolution SBS No. 2448-2020: Amending the Rules for Coverage, Resources, and Payment of Covered Deposits of the Deposit Insurance Fund, the Internal Audit Regulation, and the Accounting Manual for Financial System Companies

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 Fax: (511) 6309239 Lima, October 08, 2020 Resolution S.B.S.
No. 2448-2020
The Superintendent of Banks, Insurance, and Private Pension Fund Administrators:

CONSIDERING:

That, Chapter III of Title I of Section Two of the General Law of the Financial System and of the Insurance System and Organic Law of the Superintendence of Banks and Insurance - Law No. 26702 and its modifying norms, hereinafter General Law, establishes provisions regarding the Deposit Insurance Fund;

That, by Resolution SBS No. 657-99, the Rules for the coverage, resources, and payment of covered deposits of the Deposit Insurance Fund were approved, which establish the regulation of the operation and activities of said Fund;

That, it is necessary to modify the current regulatory framework regarding the method of calculating the premiums payable to the Deposit Insurance Fund, differences in the determination of premiums and defaults, database for the calculation of said premiums, transparency of information, among other aspects;

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

That, it is necessary to modify Annex No. 17-A “Control of Covered Deposits by the Deposit Insurance Fund” and its methodological notes, and Annex No. 17-B “Premium Payment Control Sheet for the Deposit Insurance Fund”, in order to incorporate the aforementioned modifications;

That, by Resolution SBS No. 11699-2008 and its modifying norms, the Internal Audit Regulation was approved, which establishes minimum criteria for its exercise in accordance with international standards and best practices;

That, it is convenient to establish that the Internal Audit Unit annually evaluates the procedures that the company has established and uses in the calculation of the amounts of deposits subject to coverage and the premium paid to the Deposit Insurance Fund;

That, in order to collect the opinions of the general public regarding the proposals for modification of the regulations applicable to supervised companies, the prepublication of this norm was ordered under the provisions of the Thirty-Second Final and Complementary Provision of the General Law and Supreme Decree No. 001-2009-JUS;

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 Fax: (511) 6309239 Having obtained the approval of the Adjunct Superintendencies of Banks and Microfinance, Risks, Economic Studies, Market Conduct and Financial Inclusion, and Legal Advice; and,

In the exercise of the powers conferred by paragraphs 7, 9, and 13 of Article 349 of the General Law.

RESOLVES:

Article First.- Modify the Rules for the coverage, resources, and payment of covered deposits of the Deposit Insurance Fund approved by Resolution SBS No. 657-99 and its modifying norms, as follows:

1. Update paragraph g) of Article 2°, according to the following text:
   “Article 2°.- DEFINITIONS
   (...) g) Superintendence: Superintendence of Banks, Insurance, and Private Pension Fund Administrators.
   (...)”

2. Incorporate as the second paragraph of Article 3°, the following text:
   “Article 3°.- NEW MEMBERS
   (...)
   Said companies must clearly and precisely indicate, both in advertising and in contractual information and through all channels of dissemination and/or commercialization of said operations, that until the aforementioned twenty-four (24) month period has elapsed, the operations are not covered by the Fund, as well as the date from which they will begin to be backed.”

3. Substitute Article 9°, with the following text:
   “Article 9°.- CALCULATION OF PREMIUMS
   Premiums are calculated by multiplying the quarterly rate applicable to the company, according to the preceding article, by the quarterly average of covered deposits and interests by the Fund from the closures of each month that integrates the quarters ending in March, June, September, and December. In the case of covered deposits made in national currency or US dollars, the payment of the premium must necessarily be made in the same currency as the covered deposit. If the covered deposits are made in a foreign currency other than the US dollar, to pay the premium, the amount of the covered deposit must be converted to US dollars. For this purpose, the aforementioned deposit must first be converted from the foreign currency to soles, and then from soles to US dollars, using for both conversions the accounting exchange rates published by the Superintendence at the end of each month.

In cases where risk rating agencies assign different categories to companies, the category of higher risk will be considered for the determination of the premium rate to the Fund.

In cases where the member company decides to terminate the contract with the risk rating agency after being classified in a higher risk category, the member company must consider said risk category for the calculation and payment of the corresponding premium until the quarter following the termination of the contract, in accordance with the preceding paragraph.”

4. Substitute Article 10°, with the following text:
   “Article 10°.- ANNEXES
   Member companies must simultaneously submit to the Superintendence and the Fund, Annex No. 17-A “Control of Covered Deposits by the Deposit Insurance Fund” and Annex No. 17-B “Premium Payment Control Sheet for the Deposit Insurance Fund” from Chapter V of the Accounting Manual for Financial System Companies, approved by Resolution SBS No. 895-98 and its modifying norms, according to the following schedule and method of submission:

Annex Name Frequency Method of Submission
Annex No. 17-A
Control of Covered Deposits by the Deposit Insurance Fund Monthly (within five business days following the closure of the respective month) Deposits and interest balances corresponding to the end of the month Via SUCAVE
Annex No. 17-B
Premium Payment Control Sheet for the Deposit Insurance Fund Quarterly (within ten business days following the closure of the respective quarter) Simple average of balances recorded in Annex No. 17-A of the corresponding quarter Via SUCAVE

For the purpose of the aforementioned annexes, the following must be taken into account:
a) Foreign currency deposits are expressed in national currency at the accounting exchange rate published by the Superintendence. b) The averages of deposits subject to Fund coverage, as well as the amount of the corresponding premiums, must be presented by type of currency (national or foreign currency), considering what is stated in paragraph a). c) The information submitted has the character of a sworn declaration, with the board of directors and management being responsible for its truthfulness and timeliness, in accordance with Articles 87° and 92° of the General Law.”

5. Substitute Article 11°, with the following text:
   “Article 11°.- DIFFERENCES IN THE DETERMINATION OF PREMIUMS AND DEFAULTS If the Superintendence or the Fund determines that a member company has paid premiums for an amount less than what was due according to the provisions of this Regulation, or when it has not complied with the corresponding payment of premiums within the time limit indicated in this Regulation, it must pay the missing amount plus a penalty on said amount equivalent to 1.25 times the average monthly active interest rate in the national currency (TAMN) or foreign currency (TAMEX) published by the Superintendence, according to the type of currency involved, from the day the premium should have been paid until the day prior to the payment being made. For the calculation of the penalty, the accumulated factors of the TAMN and TAMEX, which are published on the Superintendence's website, must be considered.

If balances in favor of a member company arise due to overpayment, these will be assigned to cover future payments for premiums to the Fund, without interest being recognized.”

6. Substitute Article 12°, with the following text:
   “Article 12°.- DATABASE
   Companies must have an updated database, monthly, containing the supporting data used to determine the amount covered by the Fund, as well as the associated premium payments, in accordance with the data structures defined in Annex A attached to this resolution.

The Superintendence may request the periodic submission of reports on the information contained in the aforementioned database. The board of directors and management are responsible for the truthfulness and timeliness of the information contained in said database, as well as for the reports requested on said information, as provided in Articles 87° and 92° of the General Law.”

7. Incorporate as Article 12-A°, the following text:
   “Article 12-A°.- VERIFICATION OF PAID PREMIUM AND DEPOSITS SUBJECT TO FUND COVERAGE The company must verify that the calculation of the amounts of deposits subject to coverage and the premium paid to the Fund is in accordance with current legal and regulatory provisions. This review, for each quarter, must be carried out through input and output data controls that mitigate the risk of error in the calculation of the Fund's premium and preserve the reconciliations and validations performed regarding the data specified in Annex A attached to this resolution. Furthermore, there must be an annual review of the procedures that the company has established and uses for this purpose, which must be carried out by the Internal Audit Unit, regardless of whether the company has authorization to perform a Risk-Based Audit Plan.

The verification referred to in Article 148 of the General Law is carried out through the analysis of a sample at the time determined by the Superintendence. For this effect, the companies generate the information referred to in the preceding paragraph, as of the cutoff date specified, without prejudice to keeping the complete information referred to available to the Superintendence.

The board of directors and management are responsible for the truthfulness and timeliness of the information submitted in response to such requests, as provided in Articles 87° and 92° of the General Law.”

8. Incorporate as the last paragraph of paragraph 1) of Article 14° the following text:
   “Article 14°.- TRANSFER PROCEDURE
   (...)
   In the case of assets whose value exceeds one Tax Unit (UIT) or its equivalent in dollars, in addition to the publication of the notice indicated in this paragraph, companies must contact the holder or beneficiary and inform them about the upcoming transfer, in order for them to carry out the withdrawal or cancellation. For this, companies must use direct communication means that allow for a record of its completion, such as: written communications to the client's address, which must be validated with the address information of the holder or beneficiary registered in the National Registry of Identification and Civil Status, emails, text messages, instant messaging, and/or telephone communications, in line with the provisions of the Market Conduct Management Regulation of the Financial System, approved by Resolution SBS No. 3274-2017 and its modifications. The aforementioned record must be available to the Superintendence and/or the Fund. The provisions of this paragraph must be carried out before the start of the period of (10) business days referred to in the first paragraph of this section. (...)”

9. Incorporate as paragraph 4) of Article 14° the following text:
   “Article 14°.- TRANSFER PROCEDURE
   (...)

4. The Fund may return the transferred asset at the request of the depositor or holder, or their representative or heirs, duly accredited. The return may be made without the Fund being obligated to recognize any interest in favor of the requester.”

10. Substitute Article 18°, with the following text:
    “Article 18°.- COVERAGE IN FOREIGN CURRENCY
    In the case of insured deposits in foreign currency, the amount of coverage assumed by the Fund will be the equivalent in national currency. When the payment of insured deposits is made during the intervention process of the fund member, the conversion will be carried out at the accounting exchange rate published by the Superintendence on the date of intervention of the Fund member.

When the payment of insured deposits is made during the dissolution and liquidation process of the Fund member, the conversion will be carried out at the accounting exchange rate published by the Superintendence on the start date of the dissolution and liquidation process of the Fund member.”

11. Incorporate as the Fourth Final and Transitional Provision, the following:
    “FOURTH.- Exceptionally, fund members who have paid premiums for an amount less than what was due, according to reviews conducted by the Superintendence or by the Internal Audit Units, for the calculation of the corresponding penalty, may apply the rate of return of the Fund's resources, which must be requested directly from the Fund.

The deadline to benefit from this provision expires thirty (30) calendar days after the publication of Resolution SBS No. 2448-2020.”

12. Incorporate “Annex A” to the Rules for the coverage, resources, and payment of covered deposits of the Deposit Insurance Fund (Resolution SBS No. 657-99 and its modifying norms), in accordance with Annex I attached to this Resolution and published on the Institutional Portal (www.sbs.gob.pe), as provided in Supreme Decree No. 001-2009-JUS.

Los Laureles Nº 214 - Lima 27 - Perú Telf.: (511) 6309000 Fax: (511) 6309239

Article Second.- Modify the Internal Audit Regulation, approved by Resolution SBS No. 11699-2008 and its modifying norms, in accordance with the following:

1. Incorporate paragraph 17A) in section I. of the Annex “Planned Activities” of the Internal Audit Regulation, according to the following text:
   “I.- COMPANIES INDICATED IN PARAGRAPHS A, B, AND C OF ARTICLE 16° OF THE GENERAL LAW (EXCEPT GUARANTOR AND GUARANTEE COMPANIES), BANCO DE LA NACIÓN, BANCO AGROPECUARIO, MIVIVIENDA FUND, AND DEVELOPMENT FINANCIAL CORPORATION (COFIDE) (...)
   17A) Annual evaluation of the procedures that the company has established and uses in the calculation of the amounts of deposits subject to coverage and the premium paid to the Deposit Insurance Fund. The auditor must evaluate at least two of the quarters included in the last twelve months, counted from the date the review begins.”

Article Third.- Modify the Accounting Manual for Financial System Companies, approved by Resolution SBS No. 895-98 and its modifying norms, in accordance with Annex II attached to this Resolution and published on the Institutional Portal (www.sbs.gob.pe), as provided in Supreme Decree No. 001-2009-JUS.

Article Fourth.- This Resolution enters into force the day following its publication; except for what is provided in paragraphs 3, 4, 6, 7, and 12 of Article First, and in Article Third, which enter into force on January 1, 2022. The provisions of Article Second must be included in the 2022 Annual Work Plan to be submitted to this Superintendence no later than December 31, 2021, as established in the Internal Audit Regulation, approved by Resolution SBS No. 11699-2008 and its modifying norms.

Register, communicate, and publish.