SBS Resolution No. 12877-2009: Substitutes Article 5 of Title X of the SPP Norms Compendium Regarding the Procedure for Classifying Investment Instruments Issued via Public Offering

Lima, September 10, 2009

S.B.S. Resolution
No. 12877-2009

The Superintendent of Banks, Insurance, and Private Pension Fund Administrators

CONSIDERING:

That, subsections a), e), and i) 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 its amendments, hereinafter referred to as the Law, establish that it is the responsibility and obligation of the Superintendence to ensure the safety and adequate profitability of the investments made by the AFPs with the resources of the Funds they administer, to supervise the AFPs in compliance with the legal and administrative provisions governing them, and to supervise the investment of the resources of the Funds they administer;

That, through Supreme Decree No. 182-2003-EF, the Regulations of the Law of the Private System for the Administration of Pension Funds (SPP), hereinafter referred to as the Regulations of the Law, approved by Supreme Decree No. 004-98-EF, were modified;

That, likewise, the Third Final and Transitional Provision of the aforementioned Regulations of the Law, empowers the Superintendence to issue the necessary regulatory norms for the proper functioning of the Private System for the Administration of Pension Funds;

That, through Resolution No. 724-2001, and its corresponding amendments, Title X of the Compendium of Regulatory Supervisory Norms of the Private System for the Administration of Pension Funds, referred to the Qualification and Risk Classification of Investments, was approved;

That, it is convenient to adapt the current regulations to perfect the procedure for granting equivalent risk category to investment instruments, with the aim that they may be eligible for investment in the Managed Portfolios, which requires modifying Title X of the aforementioned Compendium;

Being in accordance with the opinion of the Deputy Superintendencies of Private Pension Fund Administrators, Legal Advice, Risks, and Economic Studies; and,

In exercise of the powers conferred by the General Law of the Financial System and the Insurance System and the Organic Law of the Superintendence of Banks and Insurance, Law No. 26702 and its amendments, the Single Text of the Law, and the Regulations of the Single Text of the Law;

RESOLVES:

Article First.- Substitute Article 5 of Title X of the Compendium of Regulatory Supervisory Norms of the Private System for the Administration of Pension Funds, approved by SBS Resolution No. 724-2001, with the following text:

Classification Procedures

Article 5º.-

For the purposes of classifying investment instruments issued under the public offering modality, the following procedure shall be followed:

a) The issuer, placement agent, or an AFP shall request the Superintendence to grant the equivalent risk category of the investment instruments, for which it must attach the classification reports issued by two (2) risk classification companies registered in the Superintendence's registry. The financial and accounting information contained in both classification reports must not be older than four (4) months. The ratings granted by risk classification companies established abroad must comply with the provisions established in the Regulations for the Investment of Pension Funds Abroad.

b) The Superintendence, when it deems necessary, may request information from the issuer to analyze the scope of the classification.

c) The equivalent risk category shall be granted within a maximum period of ten (10) business days once the information required as specified in this article has been submitted.

d) The Superintendence shall publish the equivalent risk categories via its website once they have been granted.

In the case of investment instruments issued under the private offering modality, with the exception of those instruments considered within the scope of Subchapter X of Chapter III of Title VI of the Compendium referred to investment instruments intended for project financing, the same procedure shall be followed, and the issuer must attach at least one classification report issued by a risk classification company. Without prejudice to the foregoing, the Superintendence may request the submission of an additional risk classification report prepared by another classification company, if it deems it necessary.

Article Second.- This Resolution shall enter into force the day following its publication in the Official Gazette El Peruano.

Register, communicate, and publish.

FELIPE TAM FOX
Superintendent of Banks, Insurance, and Private Pension Fund Administrators