Lima, 9 December 2010

S.B.S. Resolution No. 17011-2010

The Superintendent of Banking, Insurance and
Private Administrators of Pension Funds

WHEREAS:

That, in accordance with article 318 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, hereinafter the General Law, insurance and/or reinsurance companies are empowered to carry out all operations, acts and contracts to extend risk coverage;

That, by SBS Resolution No. 514-2009, the Regulation for the negotiation and accounting of financial derivative products in insurance companies was approved, with the purpose of regulating operations with such instruments and guaranteeing adequate management of the risks they generate in the companies;

That, it is necessary to include a transitional procedure to allow insurance companies to request authorization to carry out specific operations with financial derivative instruments, especially for acquisitions of structured instruments that include financial derivative products;

That, in order to gather the opinions of the general public regarding the proposed amendments to the regulations of the insurance system, the pre-publication of the draft resolution amending provisions for operations with financial derivative products was ordered on the Superintendency's electronic portal, under the provisions of Supreme Decree No. 001-2009-JUS;

In accordance with the opinion of the Deputy Superintendencies of Insurance, of Risks and of Legal Advice; and,

In use of the powers conferred by numerals 7, 9 and 13 of article 349 of the General Law;

RESOLVES:

Article One.- Amend article 11 and the title of article
10 and approve the fifth final and transitional provision, of the Regulation for the negotiation and accounting of financial derivative products in insurance companies, approved by SBS Resolution No. 514-2009, according to the following text:

"Article 10.- Authorization to take positions in derivatives embedded in hybrid or structured instruments"

"Article 11.- Authorization term Within a maximum term of sixty (60) business days counted from the submission of the complete documentation indicated in article 9, the Superintendency, if it deems it appropriate, issues the respective authorization."

"Fifth.- Authorization of specific operations. In the case of operations with hybrid or structured instruments that incorporate embedded derivatives, to which Article 10 of the Regulation refers, companies may request specific authorization from the Superintendency, provided they comply with the documentation required in Article 9, within the authorization term established in Article 11."

Article Two.- 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 Banking, Insurance and
Private Administrators of Pension Funds