SBS Resolution No. 02664-2025: New Regulation on the Classification and Valuation of Investments of Financial System Companies

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Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Lima, July 30, 2025 Resolution S.B.S.
No. 02664-2025

The Superintendent of Banking, Insurance, and Private Pension Fund Administrators CONSIDERING:
That Section 13 of Article 349 of the General Law on the Financial System and Insurance System and Organic Law of the Banking and Securities Superintendence, Ley No. 26702 and its amendments, hereinafter the General Law, stipulates that the Superintendence has the authority to issue general regulations to specify the preparation, presentation, and publicity of financial statements, and any other complementary information, ensuring that they reflect the actual economic-financial situation of the companies under its supervision; That, Section 1 of Article 354 of the General Law provides that the Superintendence may require supervised entities to establish provisions and reserves for assets and contingencies involving credit and market risk, in accordance with the general regulations issued on this matter; That, Section 2 of Article 354 of the General Law provides that the Superintendence has the power to establish the methodology that allows adjusting investments made by companies to market value; That, through Resolution SBS No. 7033-2012 and its amendments, the Regulation on the Classification and Valuation of Investments of Financial System Companies was approved; That, one of the Superintendence's mandates is to preserve the financial stability of the financial system, ensuring that participating entities are solid, solvent, and sustainable over time; As part of the cited mandates, the Superintendence seeks to ensure its local regulations adapt to international standards; That, the Superintendence has considered harmonizing its accounting regulations regarding investments with International Financial Reporting Standards (IFRS), which determines the need to adjust the applicable accounting provisions for investments; That the application of harmonized accounting regulations aligned with international standards will align accounting with risk management, contributing to providing useful information and fostering greater transparency and reliability in financial information; That, in order to gather public opinions regarding the proposed modifications to the financial system regulations, through Resolution SBS No. 004-2025 it was decided to publish the draft regulation on the Superintendence's digital platform, under Section 32 of the Final and Complementary Provisions of the General Law, as well as Supreme Decree No. 009-2024-JUS; Having obtained the approval of the Adjacent Superintendences for Banking and Microfinance, and for Regulation and Legal Affairs, as well as the Risk Management and Economic Studies Directorates; and, In exercise of the powers conferred by Sections 7, 9, and 13 of Article 349 of the General Law; RESOLVES:
Article One. Approve the new Regulation on the Classification and Valuation of Investments of Financial System Companies, as indicated below:
“REGULATION ON THE CLASSIFICATION AND VALUATION OF INVESTMENTS OF FINANCIAL SYSTEM COMPANIES
CHAPTER I
GENERAL ASPECTS
Article 1. Scope
This Regulation applies to companies included in letters A, B, and C of Article 16 of the General Law on the Financial System and Insurance System and Organic Law of the Banking and Securities Superintendence, Ley No. 26702 and its amendments, to the Development Financial Corporation (COFIDE), to the National Bank, to the Agricultural Bank, and to MIVIVIENDA S.A. Fund.
Article 2. Definitions
For the application of this Regulation, the following definitions and/or references must be considered:
a) Financial asset is any asset that is:

• Cash
• An equity instrument of another entity
• A contractual right:
  i) To receive cash or another financial asset from another entity; or, ii) To exchange financial assets or financial liabilities with another entity under potentially favorable conditions.
• A contract that may be settled using the company's own equity instruments and is:
  i) A non-derivative instrument, under which the company may be obligated to receive a variable amount of its own equity instruments; or ii) A derivative financial instrument that may be settled in a manner other than the exchange of a fixed amount of cash or another financial asset, for a fixed quantity of the company's own equity instruments. b) Associate: Entity over which the investor has significant influence, meaning the power to participate in financial and operating policy decisions of the investee without having control, in accordance with IAS 28 "Investments in Associates". c) Debtor credit classification: Corresponds to the regulatory classification assigned to debtors according to the type of contracted loan, in compliance with the Regulation for the Evaluation and Classification of Debtors and Provision Requirements approved by Resolution SBS No. 11356-2008 and its amendments, or the regulation that replaces it. d) Commodities: Primary or basic goods consisting of physical products, which can be exchanged in a secondary market, including precious metals, but excluding gold, which is treated as a currency. e) Contract: Agreement between two or more parties that produces clear economic consequences they have little or no ability to avoid, as compliance with the agreement is legally enforceable. Contracts, and therefore associated financial instruments, may adopt a wide variety of forms and do not need to be in writing. f) Amortized cost: Amount at which a financial asset or financial liability was initially measured, less any principal repayments that may have occurred, plus or minus, as applicable, the portion recognized in profit or loss using the effective interest method, of any difference between the initial amount and the maturity amount. Additionally, for financial assets, adjusted by any recognized impairment loss. g) Transaction costs: Incremental costs directly attributable to the purchase, issue, or disposal of a financial asset or financial liability, i.e., they arise directly from the transaction and are an essential part of it. An incremental cost is one that would not have been incurred if the company had not acquired, issued, or disposed of the financial instrument. They include fees and commissions paid to agents (including employees acting as sales agents), advisors, brokers, and intermediaries, rates established by regulatory agencies and stock exchanges, as well as non-recoverable taxes and other rights. Transaction costs do not include premiums or discounts on debt, financial costs, internal administrative costs, or maintenance costs. h) Custody: Service provided by specialized institutions that includes physical storage, correct allocation of investment instruments, verification of settlements and compensations, collection of benefits, valuation of the referenced instruments in custody, payment of taxes, and other related services. i) Delivery versus payment: Modality by which the settlement of traded investment
  instruments is carried out through their delivery in exchange for the receipt of cash according to the terms agreed upon in the transaction. j) Days: Calendar days. k) Days past due: Days elapsed since the date when the counterparty ceased to make a payment when contractually required. l) Local risk classification companies: Companies authorized to classify investment instruments as provided by the Securities Market Law. m) Exposure at default (EAD): The best estimate of exposure when the default event occurs. n) Contract or negotiation date: Date on which an entity commits to buying or selling an asset. Trade date accounting refers to a) recognition at the trade date of the asset to be received and the liability to be paid, and b) derecognition of the asset sold, recognition of any gain or loss on disposal, and recognition of an account receivable from the buyer at the trade date. o) Settlement day: Date on which an asset is delivered to or by an entity. p) Reporting date: Date of closing financial information. q) Free-access price sources: Those provided through Bloomberg, Reuters, Datatec information systems or others of similar characteristics that provide services in the country, as well as supervised and regulated stock exchanges by the corresponding authorities. r) Economic group: Set of national or foreign legal entities, consisting of at least two legal entities, when any of them exercises control over the others, or when control over the legal entities corresponds to one or more natural persons acting as a decision-making unit, in accordance with the Special Regulations on Linkage and Economic Group approved by Resolution SBS No. 5780-2015. s) Recoverable amount: The higher of fair value less costs to sell and value in use. t) Intermediaries: Institutions duly authorized by the regulatory authorities of the securities and/or financial markets to provide investment instrument intermediation services on their own account or for third parties, by meeting the respective registration requirements in the corresponding registries and minimum capital requirements. u) Custody institutions: Institutions duly authorized by the regulatory authorities of the financial and/or securities markets to provide custody services. v) Depositary institutions: Institutions authorized by the regulatory authorities of the securities and/or financial markets to provide centralized deposit services for investment instruments. These services include the registration of investment instruments issued through book entries, physical storage activities of investment instruments, settlement and compensation of operations, and collection and payment of benefits, on a scale involving an important portion of assets in circulation in the securities markets. w) Financial instrument: A contract that gives rise to a financial asset in one entity and, at the same time, to a financial liability or an equity instrument in another entity. x) Investment instruments (investments):
  Debt instruments, equity instruments, certificates of participation in mutual funds and investment funds; and other instruments determined by the Superintendence. y) Debt instruments: Value representing a financial liability of the issuer, has nominal value and may be amortizable. The yield of these values is associated with an interest rate, another value, basket of values, or index of values representing debt. z) Equity instrument: Any contract that demonstrates a residual interest in the assets of an entity, after deducting all its liabilities. They are instruments with equity rights. Includes instruments where the magnitude of their expected partial or total return is not certain, fixed, or determinable at the time of acquisition. aa) Hybrid financial instrument: Combination of a non-derivative main contract (host contract) and a derivative financial instrument, referred to as an "implicit derivative", which cannot be transferred independently or has a distinct counterparty, and whose effect is that some of the cash flows of the hybrid instrument vary similarly to the cash flows of the derivative considered independently. bb) General Law: General Law on the Financial System and Insurance System and Organic Law of the Banking and Securities Superintendence, Ley No. 26702 and its amendments. cc) Securities Market Law: Consolidated Text of the Securities Market Law, approved by Supreme Decree No. 093-2002-EF and its amendments. dd) Settlement: The settlement and compensation resulting from the negotiation of an investment instrument that is carried out within generally pre-established timeframes. The successful conclusion of settlement and compensation determines the transfer of ownership of such instruments among negotiation participants. ee) Accounting Manual: Accounting Manual for Financial System Companies approved by Resolution SBS No. 895-98 and its amendments. ff) Active market: A market in which transactions of the asset or liability take place with sufficient frequency and volume to provide price information on a continuous basis. gg) Most advantageous market: The market that maximizes the amount to be received for selling the asset or minimizes the amount to be paid for transferring the liability, after taking into account transaction costs. hh) Principal market: The market with the highest traded volume and level of activity for the asset or liability. ii) Effective interest method: A method for calculating the amortized cost of a financial asset or liability and allocating financial income or expense over the relevant period. jj) Equity method: Accounting method according to which the investment is initially recorded at cost, and is subsequently adjusted based on changes experienced after acquisition by the portion of net assets of the investee entity corresponding to the investor. The investor's period result includes the portion corresponding to the investee's results. kk) IAS: International Accounting Standard. ll) IFRS:
  International Financial Reporting Standards. mm) Financial liability is any liability that is: a) A contractual obligation: (i) to deliver cash or another financial asset to another entity; or, (ii) to exchange financial assets or financial liabilities with another entity, under conditions that are potentially unfavorable for the entity; or, b) A contract that may be settled using the entity's own equity instruments, and is: i) A non-derivative instrument, under which the entity may be obligated to deliver a variable amount of its own equity instruments; or, ii) A derivative financial instrument that may be settled in a manner other than the exchange of a fixed amount of cash, or another financial asset, for a fixed quantity of the entity's own equity instruments. nn) Credit loss (CL): The difference between all contractual cash flows due to an entity according to the contract and all cash flows that the entity expects to receive (i.e., all cash shortfalls) discounted at the original effective interest rate (or adjusted effective interest rate for credit-impaired financial assets purchased or originated). An entity must estimate cash flows considering all contractual terms of the financial asset (e.g., prepayments, duration, call options, and similar) over the expected life of that financial asset. Cash flows considered will include those from the sale of maintained collateral or other credit enhancements that are an integral part of the contractual terms. The expected life of a financial asset is presumed to be reliably estimable. However, in exceptional cases where the expected life of a financial asset cannot be reliably estimated, the entity will use the remaining contractual term of said financial asset. oo) Expected credit loss (ECL): The weighted average of credit losses with respective default risk probabilities as weights. It results from multiplying PD by LGD by EAD. pp) Lifetime expected credit losses (Lifetime ECL): Expected credit losses arising from all possible default events over the expected life of a financial asset. qq) 12-month expected credit loss (12-month ECL): The portion of lifetime expected credit losses that represent expected credit losses arising from default events on a financial asset that are possible within 12 months after the reporting date. rr) Loss given default (LGD): Corresponds to the percentage of exposure at default that will not be recovered upon the occurrence of the default event. It is the complement of the recovery rate of contractual cash flows. ss) Transaction price: Price paid to acquire an asset or received to assume a liability (entry price), which may differ from fair value at initial recognition, for example, if the market in which the transaction takes place is different from the principal market. tt) Probability of Default (PD): The probability of occurrence of the default event in a specific time period (e.g., over 12 months or while the contract is in effect). uu) Backtesting: Consists of
  comparing, for a given period, the estimated results with the actually generated results as stated in the Model Risk Management Regulation, approved by Resolution SBS No. 053-2023. vv) Market Risk Regulation: Regulation for the Management of Market Risks, approved by Resolution SBS No. 4906-2017 and amendments. ww) SPPI: Cash flows that are solely payments of principal and interest on the outstanding principal amount. xx) Superintendence: Banking, Insurance, and Private Pension Fund Administrators Superintendence. yy) Effective interest rate: Discount rate that exactly equates the estimated cash flows to be received or paid over the expected life of the financial instrument with the gross book value of the financial asset or amortized cost of a financial liability. For this calculation, the entity estimates cash flows considering all contractual conditions of the financial instrument, not considering expected credit losses. The effective interest rate calculation will include all commissions and interest paid or received by the parties to the contract, which integrate the effective interest rate, as well as transaction costs and any other premium or discount. zz) Validation: In accordance with the Model Risk Management Regulation, approved by Resolution SBS No. 053-2023 and amendments. aaa) Value in use: Present value of estimated future cash flows expected to be obtained from an asset or cash-generating unit. bbb) Fair value: Price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal (or most advantageous in the absence of a principal) market on the measurement date, and under current market conditions regardless of whether that price is directly observable or estimated using another valuation technique. ccc) Time value of money: The time value of money is the interest element that provides consideration solely for the passage of time. The time value of money does not provide consideration for other risks or costs associated with holding the financial asset.
  Article 3. Information on investments
  Companies must keep available for the Superintendence the following information regarding their investments:
  a) Differentiated investment policy for each business model, establishing guidelines on the management of the business model that must include at minimum: description of the business model, management strategy, objectives, associated KPIs, manager remuneration, sales evaluation and conclusions; b) Accounting policies, as well as updated procedures; c) Models, assumptions, formulas, and others used to determine fair value; d) Operational register of the valuation at fair value of investments; e) Investment instrument custody contracts, as well as reports and information that custody companies send them; f) Account statements and contracts related to their investments; g) Other information that the Superintendence considers necessary.
  CHAPTER II
  INVESTMENT CLASSIFICATION
  Article 4. Accounting categories
  4.1 Investments made by companies in accordance with the guidelines established in their investment policy must be classified into the following categories:

1. Investments at Amortized Cost;
2. Investments at Fair Value with Changes in Other Comprehensive Income;
3. Investments at Fair Value with Changes in Profit or Loss:
   3.1 Investments at Fair Value Held for Trading with Changes in Profit or Loss
   3.2 Investments Designated at Fair Value with Changes in Profit or Loss
   3.3 Investments Mandatorily Measured at Fair Value with Changes in Profit or Loss
4. Investments in Subsidiaries, Associates, and Joint Ventures.
   4.2 Unless investments are classified in the Designated at Fair Value with Changes in Profit or Loss category or in the Subsidiaries, Associates, and Joint Ventures category, they must be classified in categories 1, 2, 3.1, and 3.3 based on two criteria:
   a) The company's business model for managing investments; and, b) The characteristics of the contractual cash flows of the investment.
   Article 5. Business model test
   5.1 A company's business model should be understood as the manner in which it manages its investments to generate cash flows. The business model may cons...