SBS Resolution No. 007-2002: Modifies Various Articles of Title III of the SPP Norms Compendium

Lima, January 7, 2002 SBS Resolution No. 007 – 2002 The Superintendent of Banking and Insurance CONSIDERING: That, in accordance with Article 96 of D.S. No. 004-98-EF, the Regulations of the Law on the Private System for the Administration of Pension Funds, the sale of AFP services may be carried out through subordinate and exclusive sales promoters; That, Title III of the Compendium of Regulatory Supervision Norms of the Private System for the Administration of Pension Funds (SPP), approved by Resolution No. 053-98-EF/SAFP, contains in its Subchapter I of Chapter II the general provisions regarding Sales Promoters in the SPP; That the aforementioned Subchapter establishes the guidelines to which AFPs must adhere to carry out the processes of hiring, training, evaluation, and selection of sales promoters, as well as their corresponding registration in the Superintendent's Registry; That, based on the evaluations carried out, it is necessary to relax the regulatory procedures regarding the recruitment and selection of promoters by AFPs, in order to provide them with a greater degree of autonomy and responsibility that, supported by prudent internal control practices of the activities carried out as administrators of pension funds, allow maintaining standards of adequate protection of information for SPP affiliates whose incorporation and transfer processes require the assistance of sales promoters; Being in the opinion of the Adjunct Superintendencies of Private Pension Fund Administrators and 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 Organic Law of the Superintendency of Banking and Insurance, Law No. 26702 and its amendments, subsection d) of Article 57 of the Single Text of the Law of the Private System for the Administration of Pension Funds, approved by Supreme Decree No. 054-97-EF and SBS Resolution No. 1028-2001 of December 27, 2001; RESOLVES: Article 1°:- Substitute Articles 33, 34, 35, 36, and 40 of Title III of the Compendium of Regulatory Supervision Norms of the SPP, approved by Resolution No. 053-98-EF/SAFP, with the following texts:

“Hiring Article 33.- The hiring of sales promoters by AFPs must follow a process of call, training, evaluation, and selection of full responsibility of the AFPs, ensuring that the selected promoters meet the conditions of competence, moral solvency, and suitability required for the work to be developed in the SPP. To this end, AFPs must have a prospectus for the selection of promoters, which must be submitted to this Superintendency for its knowledge prior to this. Said prospectus must contain, at least, the following aspects: a) Commitment letter by which the AFP sets out the general guidelines, as well as its rights and obligations regarding its participation in the process of training, evaluation, and selection of AFP promoters, subject to the provisions on the matter established by the Superintendency. b) Description of the training modules of the general topics that comprise the aforementioned prospectus, as well as the instructional hours of duration of the training program. c) Types of evaluation to be carried out. d) Standards and minimum numerical scores for the approval of the training program. e) Training and updating programs for their active promoters, as well as the periodicity in which they will be carried out. f) Declaration of principles and code of ethics to which the sales promoter must adhere. The approval of the training program carried out by the AFP makes the registration of the promoter in the Superintendent's Registry available, as stated in Article 35 of this Title. Impediments Article 34.- Those who are impeded from serving as sales promoters are: a) Those who have been dismissed for serious misconduct in a similar position at an AFP; b) Those who, being promoters, have provided services at another AFP, within three (3) months following the date of termination of the labor relationship; c) Those convicted of intentional crime, even if they have been rehabilitated; d) The incapacitated; e) Officials and workers of public bodies that regulate or supervise the activities of AFPs, up to one (1) year after the termination of the labor relationship. f) Those who have registered protests of documents in the last five (5) years, in a considerable number and amount, not clarified to the satisfaction of the Superintendency. Registration in the Superintendent's Registry Article 35.- Sales promoters who carry out tasks of incorporation into the SPP or of transfer of affiliates from one AFP to another must necessarily be registered in the AFP Promoters Registry and have the corresponding code provided by the Superintendency. Persons who are not registered in said Registry are prohibited from carrying out the tasks of promotion or sale of pension services, regardless of the civil liability that may correspond to the AFP for the damages that might arise regarding workers supposedly incorporated. The AFP will be responsible, for all effects, in case of processing affiliation contracts of workers incorporated into the SPP by a promoter who did not have such status or who was disqualified at the date of affiliation. This circumstance does not authorize the AFP to disaffiliate the said worker. Information to the Superintendency and filing Article 36.- The hiring of sales promoters by the AFP must be reported to the Superintendency, for the purpose of granting the code and its corresponding registration in the AFP Promoters Registry. The contract will enter into force from the day following the registration in the Registry. For the purposes of its registration in the Registry, the AFP must communicate to the Superintendency the information that it disposes of via network as well as keep updated the following documentation referred to each sales promoter: a) Personal data sheet; b) Contract signed between the AFP and the sales promoter; c) Certificate of having approved the training program for sales promoter referred to in Article 33. Periodic Supervisions Article 40.- The Superintendency may dispose the carrying out of periodic supervision plans regarding the training programs of promoters that the AFP carries out, in order to verify their suitability and sufficiency, making the recommendations and/or corrections as appropriate. FINAL AND TRANSITORY PROVISIONS First.- When, due to the entry into force of this resolution, AFPs reinstate the hiring of new sales promoters, they must submit to this Superintendency a copy of the selection prospectus referred to in Article 33 of Title III of the Compendium of Regulatory Supervision Norms of the SPP. Second.- AFPs must keep their promoter selection prospectuses updated, informing this Superintendency of any changes they make. Third.- AFPs, within a maximum period of one hundred twenty (120) calendar days from the entry into force of this resolution, and in accordance with what is established in subsection e) of Article 33 of Title III, must implement training and updating programs directed at the sales promoters who provide services in their company and who, at the date of entry into force of this resolution, have an active provisional or permanent promoter code in the SPP. To this end, the approval of a sufficiency exam will be required, as a necessary condition for said promoters, at the end of the referred period, to continue providing their services within the scope of the SPP. In such circumstances, AFPs must submit to this Superintendency a sworn declaration stating the list of promoters who have approved said evaluation. Fourth.- From the entry into force of this resolution, the hiring of promoters by AFPs of personnel who had a deactivated promoter code must be subject to the procedure described in Article 33 of Title III of the Compendium of Regulatory Supervision Norms of the SPP. In case the AFP hires sales promoters who have a code granted by the Superintendency under the procedure described in this resolution, the information of updating their incorporation to the AFP will be given under the P5 communication process contained in the Annex System of Institutions – Information Exchange referred to in Circular Letter No. 007-93-EF/SAFP. In such circumstances, the AFP is responsible for issuing the training and updating programs to the sales promoters it hires. Fifth.- Repeal Annex 5 of Circular Letter No. 003-98-EF/SAFP as well as the processes of Registration of Applicants (P1) and Registration of Applicant Evaluations (P2) contained in the Annex System of Institutions – Information Exchange, referred to in Circular Letter No. 007-93-EF/SAFP. Sixth.- Repeal subsections a.3 to a.6 of Article 32, Chapter IX of the Promoters Registry, belonging to Title VIII of the Compendium of Regulatory Supervision Norms of the SPP, approved by Resolution No. 115-98-EF/SAFP. Seventh.- Substitute Article 9 of Title V of the Compendium of Regulatory Supervision Norms of the SPP, approved by Resolution No. 080-98-EF/SAFP, with the following text: “Identification of the affiliate Article 9.- For the purposes of its processing, a simple copy of the identity document of the affiliate who signs the contract must be attached, as appropriate and under the responsibility of the AFP, as well as, in the case of dependent workers, copies of the pay stubs corresponding to the two (2) months preceding the month in which the contract was signed, except in the case of workers who start work for the first time. Likewise, regarding workers who, at the date of signing the corresponding affiliation contract, are over fifty (50) years of age, the AFP must attach a declaration in which it is expressly stated that it has provided all the necessary information to decide on their incorporation into the SPP and that affiliation to the SPP is irreversible. This declaration must mention that the SPP guarantees the worker a pension based on the contributions they make to their individual capitalization account, the profitability these contributions generate, and the amount of the recognition bonus and that for this reason, the pension could be different from that of the National Pension System. This declaration must be signed in original and copy by the worker, as a sign of agreement. The list of valid identification documents for the signing of the affiliation contract will be established by the Superintendency through circular.” Eighth.- This Resolution will enter into force on February 1, 2002. Register, communicate, and publish SOCORRO HEYSEN ZEGARRA Superintendent of Banking and Insurance (e)