SBS Resolution No. 1089-2005: Establishing deadlines for banking and insurance companies to comply with Resolution SBS No. 114-2005 and amending its Second Final and Complementary Provision

Lima, July 22, 2005

S.B.S. Resolution
No. 1089-2005

THE SUPERINTENDENT OF BANKING, INSURANCE AND PRIVATE PENSION FUND ADMINISTRATORS:

WHEREAS:

Numbers 3 and 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, hereinafter the General Law, provide that the powers of the Superintendent include, among others, in addition to those already established in that law, exercising comprehensive supervision of the companies of the Financial System and the Insurance System, those incorporated by special laws under its supervision, as well as those that carry out complementary operations, and issuing the rules necessary for the conduct of financial and insurance operations and services complementary to the business of the companies and for their supervision, as well as for the application of this law, respectively;

Numbers (a), (e) and (i) of Article 57 of the Single Ordered Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 054-97-EF, hereinafter the Law, establish that the powers and duties of the Superintendency include overseeing the security and adequate profitability of the investments made by the AFPs with the resources of the Portfolios they manage, supervising the Administrators' compliance with the legal and administrative provisions governing them, and supervising the investment of the resources of the Funds they manage, respectively;

The Third Final and Transitory Provision of the Regulation of the Single Ordered Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 004-98-EF, empowers the Superintendency to issue the regulatory rules necessary for the proper functioning of the Private Pension Fund Administration System;

On January 25, 2005, SBS Resolution No. 114-2005 was published, approving the "Requirements regarding the Ethical Conduct and Professional Capacity of Persons involved in the Investment Process of Banking and Insurance Companies and of the Portfolios Managed by AFPs", for the purpose of promoting the use of standards and best practices in the management of investments of the financial resources of the aforementioned supervised companies and of the Portfolios Managed by the AFPs;

For the purpose of regulating the correct implementation by the companies referred to in the preceding recital of the provisions contained in SBS Resolution No. 114-2005, it is necessary to establish certain deadlines for adaptation and to amend the Second Final and Complementary Provision of the aforementioned rule;

Having regard to the opinion of the Deputy Superintendencies of Banking and Microfinance, Insurance, Private Pension Fund Administrators, Risks and Legal Advice, and the Economic Studies Management; and,

In exercise of the powers conferred by 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, the Single Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 054-97-EF and its amendments, and its Regulation, approved by Supreme Decree No. 004-98-EF and its amendments;

RESOLVES:

Article One.- Banking and insurance companies shall have until January 25, 2008 for at least 10% of their personnel who participate in the decision-making process of the activities described in Article 2 of SBS Resolution No. 114-2005 and work in the investment areas or equivalent and risk areas of the aforementioned companies, who have less than five (05) years of experience, as of the date of publication of the aforementioned rule, in the specific work they perform in said process, to pass at least the examination corresponding to the initial level of an internationally recognized certification, as established in Article 4 of SBS Resolution No. 114-2005. In those companies where the aforementioned personnel represent fewer than twenty (20) workers, passing the aforementioned examination shall be mandatory for at least two (2) workers who participate in the aforementioned investment process.

Article Two.- Replace the Second Final and Complementary Provision of SBS Resolution No. 114-2005 with the following text:

"Second.- Deadline for adaptation regarding compliance with professional requirements

Banking and insurance companies shall have a period of three hundred sixty (360) days, counted from the date of publication of this Regulation, to choose the examination leading to the certification or equivalent indicated in Article 4 of this rule. In the case of AFPs, said period shall be one hundred eighty (180) days, counted from the date of publication of this rule.

Additionally, all the aforementioned companies shall have a period of up to two (02) years, from the date on which the period specified in the preceding paragraph expires, to comply with the requirement established in the second paragraph of Article 4."

Article Three.- This rule enters into force on the day following its publication in the Official Gazette El Peruano.

Register, communicate and publish.

JUAN JOSÉ MARTHANS LEÓN
Superintendent of Banking, Insurance and
Private Pension Fund Administrators