SBS Resolution No. 2755-2018: Regulations on Infractions and Sanctions of the Superintendency of Banking, Insurance and Private Pension Fund Administrators

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511) 6309000 Fax: (511) 6309239 Lima, July 16, 2018 S.B.S. Resolution No. 2755-2018

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators

WHEREAS:
By Legislative Decree N° 1272, Law N° 27444, General Administrative Procedure Law, is modified and Law N° 29060, Administrative Silence Law, is repealed, optimizing the regulation of the principles of administrative procedure, in order to protect the rights of the administered, as well as improving the framework for the regulation of administrative sanctioning procedures, among other measures;

Also, by the First and Second Final Complementary Provisions of Legislative Decree N° 1349, specific provisions were established regarding the sanctioning regime of the Superintendency of Banking, Insurance and Private Pension Fund Administrators, hereinafter the Superintendency;

By SBS Resolution N° 816-2005, the Sanctions Regulations applicable to companies of the Financial System, the Insurance System, Private Pension Fund Administrators, Mutual Aid Funds and Benefit Funds and to natural and legal persons who, in accordance with 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 modifications, and other special laws, are included under the regulation and supervision of the Superintendency as well as insurance intermediaries and auxiliaries, auditing firms, risk rating companies and appraisal experts, were approved;

It is necessary to approve new regulations in accordance with current regulatory provisions, as well as to make clarifications that allow the Superintendency to have effective mechanisms for a better exercise of its sanctioning power;

In order to gather opinions from the general public regarding the proposed modification, the draft resolution on the matter was pre-published on the Superintendency's electronic portal, under the provisions of Supreme Decree N° 001-2009-JUS and its modifying norms;

With the approval of the Deputy Superintendencies of Banking and Microfinance, Private Pension Fund Administrators, Insurance, Risks, Market Conduct and Financial Inclusion, Financial Intelligence Unit of Peru, Economic Studies and Legal Advisory; and,

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511) 6309000 Fax: (511) 6309239 2/17 In use of the powers conferred by numerals 7 and 9 of article 349, consistent with articles 356 and 361 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 modifying norms;

RESOLVES:
Article First.- Approve the Regulations on Infractions and Sanctions of the Superintendency of Banking, Insurance and Private Pension Fund Administrators, which includes the annexes with the classification of infractions, the text of which is as follows:

REGULATIONS ON INFRACTIONS AND SANCTIONS OF THE SUPERINTENDENCY OF BANKING, INSURANCE AND PRIVATE PENSION FUND ADMINISTRATORS

TITLE I
GENERAL PROVISIONS

Article 1. Purpose
These Regulations govern the exercise of the sanctioning power attributed to the Superintendency in accordance with articles 356 and 361 of the General Law, consistent with article 345 of the same law; as well as by numeral j) of article 57 of the Consolidated Text of the Law of the Private Pension Fund Administration System approved by Supreme Decree Nº 054-97-EF, paragraph 6 of the Twenty-Fourth Final and Complementary Provision of the General Law and other norms that grant sanctioning powers to the Superintendency, which involve both the determination of administrative infractions and the application of corresponding sanctions.

Article 2. Definitions
For the purposes of these Regulations, understand by:
a. COOPAC: savings and credit cooperatives that only operate with their members and are not authorized to capture resources from the public or operate with third parties. b. Days: business days.
c. Directors: includes the directors of companies, as well as the executives of COOPAC.
d. Supervised companies: entities supervised by the Superintendency, including COOPAC. e. Continuous infraction: one that comprises different conducts or a plurality of acts that, although they would constitute independent infractions, are considered as a single infraction, provided that they form part of a unitary process in which there is homogeneity of the violated norm and the active subject. f. Instantaneous infraction: an infraction that is consummated at a specific moment and does not have a lasting effect. g. Instantaneous infraction with permanent effects: an infraction that is consummated at a specific moment, but maintains its effects over time. h. Permanent infraction: an infraction that comprises a single conduct that is maintained over time. 1 Article modified by SBS Resolution No. 1310-2019 published on March 29, 2019. 2 Article modified by SBS Resolution No. 1310-2019 published on March 29, 2019.

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i. General Law: 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 modifying norms.
j. Principal officers: those established by SBS Resolution N° 1913-2004 and Circular G-119-2004 or those that replace them. k. Regulations: Regulations on Infractions and Sanctions applicable to companies regulated and supervised by the Superintendency.
l. SPP: Private Pension Fund Administration System.
m. Superintendency: Superintendency of Banking, Insurance and Private Pension Fund Administrators. n. Superintendent: Superintendent of Banking, Insurance and Private Pension Fund Administrators. o. TUO of the General Administrative Procedure Law: Consolidated Text of Law N° 27444, General Administrative Procedure Law. p. TUO of the SPP Law: Consolidated Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree Nº 054-97-EF q. UIT: Tax Unit.

Article 3. Scope of Application
3.1 These Regulations are applicable to natural and legal persons who carry out activities under the scope of regulation, control and/or supervision of the Superintendency, as well as to all those persons who by express legal provision are incorporated under the supervision of the Superintendency and may be sanctioned by it.
3.2 Sanctions are applied to one or more of the following persons, taking into account the degree of participation in the commission of an infraction and the criteria indicated in article 14 of these Regulations:
a. Natural or legal persons supervised by the Superintendency; and, savings and credit cooperatives not authorized to capture public savings. b. Shareholders or partners, directors, managers and principal officers of the legal persons indicated in literal a) above. Responsibility in these cases may be additional to that corresponding to the legal person.
c. Natural and legal persons not included in literals a) and b) above, provided that they incur in any infraction typified in the applicable laws and/or in the annexes of these Regulations.
3.3 The shareholders or partners, directors, managers and principal officers referred to in literal b. are considered responsible for the infractions typified in these Regulations, taking into account the seriousness and nature of the infraction, except when: i) they have duly and expressly expressed their vote or contrary opinion in writing or, without having participated in said vote and knowing of the possible infraction, have communicated their opposition to the legal person and to the Superintendency through a document of certain date; and, ii) there are no facts that directly involve them in the commission of the infraction, as appropriate.

TITLE II
ON INFRACTIONS AND CRITERIA FOR DETERMINING RESPONSIBILITY

Article 4. Infractions
An administrative infraction is an action or omission that is typified as such in the applicable laws and/or in the annexes of these Regulations, which violates the regulatory framework governing activities regulated and/or supervised by the Superintendency, as well as general or special regulations whose compliance the Superintendency is responsible for controlling and sanctioning non-observance. Infractions are classified as minor, serious, or very serious.

Article 5. Classification of Infractions
Infractions are those detailed in the annexes of these Regulations:
Annex 1: Common infractions
.
Annex 2: Specific infractions of the Financial System and of Complementary and Related Services Companies.
Annex 3: Specific infractions of the Insurance System.
Annex 4: Specific infractions of the Private Pension Fund Administration System.
Annex 5: Infractions applicable to Mutual Aid Funds, Benefit Funds, Other Funds that Receive Resources from their Affiliates and Grant Severance, Retirement and Similar Pensions, Factoring Companies Not Included in the Scope of the General Law and Other Supervised Entities not considered in the other annexes
.
Annex 6: Specific infractions of Savings and Credit Cooperatives not authorized to operate with public resources and Savings and Credit Centers.

Article 6. Plurality of Infractors
6.1 The commission of an infraction by a plurality of infractors leads to the application of sanctions to each of the natural or legal persons involved in the infraction.
6.2 When the fulfillment of the obligations provided in a regulatory provision corresponds to several persons jointly, they are jointly and severally liable for the infractions that, where appropriate, are committed and for the sanctions that are imposed.

Article 7. Concurrence of Infractions
If, by the realization of the same conduct, the infractor incurs in more than one infraction, the sanction provided for the most serious infraction and other responsibilities established by the regulatory framework shall apply.

Article 8. Continuation of Infractions
8.1 When the alleged infractor incurs in acts or omissions constituting an infraction continuously, they shall be subject to the corresponding administrative sanctions, in accordance with the provisions of literal 7) of article 246 of the TUO of the General Administrative Procedure Law.
8.2 In the event that the conduct persists after thirty (30) days of the last sanction being imposed, and provided that it is proven that a request was made to demonstrate the cessation of the infraction within said period, the competent office of the Superintendency may successively impose another sanction as if it were new acts or omissions, until the infraction ceases, provided that the provisions of the following numeral are complied with.
8.3 The Superintendency must send, prior to the imposition of the sanction, a written communication requesting that it be proven, within a maximum period of five (5) calendar days, that the infraction has ceased within the period indicated in the previous paragraph. Once the granted period has expired without the cessation of the infraction being proven, the new sanction will be imposed. For accreditation purposes, in case the nature of the facts has not allowed the cessation of the infraction within the period indicated in numeral 8.2, the infractor must justify the reasons and explain the measures being carried out for the cessation of the infraction, and must request the Superintendency's conformity to be able to have an additional specific period for the cessation of the infraction, to the satisfaction of the Superintendency, which will be exceptional, without possibility of extension. In case this last period is not complied with again, the sanction will be applied as indicated in the preceding numeral..
3 Errata published on July 22, 2018.
4 Errata published on July 22, 2018.
5 Article modified by SBS Resolution No. 1310-2019 published on March 29, 2019.

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Article 9. Statute of Limitations
9.1 The power of the Superintendency to determine the existence of administrative infractions prescribes after four (4) years, computed in accordance with the provisions of article 250 of the TUO of the General Administrative Procedure Law.
9.2 The computation of the statute of limitations begins from the day the infraction was committed in the case of instantaneous infractions or instantaneous infractions with permanent effects; from the day the last action constituting the infraction was carried out in the case of continuous infractions, or from the day the action ceased in the case of permanent infractions.
9.3 The statute of limitations is suspended with the initiation of the sanctioning procedure, through the notification of the facts imputed as an infraction. The computation of the statute of limitations resumes immediately if the processing of the sanctioning procedure remains paralyzed for more than twenty-five (25) days due to a cause not attributable to the alleged infractor. The paralysis of the procedure occurs when the internal actions required for the continuation of the procedure are not carried out.
9.4 The Superintendency declares the statute of limitations ex officio and concludes the procedure when it notices that the period for determining the existence of infractions has expired. Likewise, the administered parties may raise the statute of limitations as a defense, and the competent body must resolve it without further processing than the verification of the deadlines.

Article 10. Expiration
10.1 The period for resolving sanctioning procedures is nine (9) months counted from the date of notification of the statement of charges. This period may be exceptionally extended, for a maximum of three (3) months. For this purpose, the Superintendency must issue a duly substantiated resolution, justifying the extension of the period, prior to its expiration. Expiration does not apply to administrative appeals filed against the resolution issued in the sanctioning procedure.
10.2 Once the maximum period for resolution has elapsed, without the respective resolution being notified, the procedure is automatically understood to have expired and is filed. Expiration is declared ex officio by the competent body. The alleged infractor is entitled to request the expiration of the procedure in case the competent body has not declared it ex officio.

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10.3 In the event that the infraction has not prescribed, the Superintendency may evaluate the initiation of a new sanctioning procedure. The expired procedure does not interrupt the statute of limitations.

Article 11. Rules for Determining Administrative Responsibility
In sanctioning procedures initiated by the Superintendency, the following rules apply:
a. For infractions classified as minor, administrative responsibility is subjective, requiring an analysis of intent or fault in the infringing conduct. b. For infractions classified as serious and very serious, administrative responsibility is objective, for which the configuration of the conduct typified as an infraction must be considered, regardless of intent or fault.

TITLE III
SANCTIONS

Chapter I
CRITERIA FOR SANCTIONING

Article 12. Sanctions
The Superintendency imposes the sanctions provided in these Regulations, in accordance with the competence attributed by the General Law, the norms issued by the Superintendency and other norms that grant it sanctioning powers.

Article 13. Cessation of Infringing Conduct
The fulfillment of the sanction by the infractor does not imply or mean the validation of the irregular situation, nor does it exempt them from complying with the infringed obligations. The infractor must immediately cease the conduct or omission that gave rise to the sanction, otherwise, the provisions on continuation of infractions referred to in article 8 of these Regulations shall apply.

Article 14. Criteria for the Graduation and Application of Sanctions
14.1 The sanctions applied must be proportional to the infraction committed so that the commission of the infraction does not result more advantageous for the infractor than complying with the infringed norms or assuming the sanction. Notwithstanding this, sanctions are graduated taking into consideration the following criteria:
a. Illicit benefit that the commission of the infraction generates in favor of the infractor or third parties.- When the infractor has obtained illicit benefits for themselves or for third parties as a result of the commission of the infraction. b. Probability of detection of the infraction.- Refers to the conduct adopted by the alleged infractor in the face of the possibility that the Superintendency detects the committed infraction (obstruction or collaboration with supervision or control actions, delivery of information or any other form of collaborating or obstructing the detection of the infraction).
c. The seriousness of the damage to public interest and/or protected legal asset and the economic damage caused.- Refers to the effects generated by the committed infraction on supervised companies and/or users of the financial or insurance system or users affiliated with the private pension system and/or other supervised entities and/or the Anti-Money Laundering and Counter-Terrorist Financing System, including the impact on public confidence in the area in which the infractor carries out their activities. It is not required to prove the amount of the damage or negative effect, but its existence.
d. Recidivism in the commission of the infraction.- Recidivism is considered to exist when a person who has been sanctioned by a firm resolution of the Superintendency incurs in new acts or omissions that constitute the same sanctioned infraction, within a period of one (1) year from the date the resolution sanctioning the first infraction became firm. In this case, the Superintendency sanctions the subsequent infraction with a greater sanction, as follows :

• If the company reoffends in the commission of a very serious infraction, it will be sanctioned up to the maximum amount of the scale corresponding to the very serious infraction.
• If the company reoffends in the commission of a serious infraction, it will be sanctioned up to the maximum amount of the scale corresponding to the very serious infraction.
• If the company reoffends in the commission of a minor infraction, it will be sanctioned up to the maximum amount of the scale corresponding to the serious infraction.
  e. Circumstances of the commission of the infraction.- Refers to the behavior and context in which the infraction was committed. It is evaluated whether the infractor involved or used one or more persons operating in the supervised systems to commit the infraction or persons operating in the financial, insurance or private pension systems of other countries. f. Existence of intentionality in the infractor's conduct. Refers to the existence or not of intent or fault on the part of the infractor, in accordance with the provisions of article 11.
  14.2 At the request of the infractor during the sanctioning procedure, the competent body to resolve at the instance in which the procedure is located, under responsibility, may - exceptionally - reduce the corresponding fine when there is a risk to the financial stability of the infringing natural or legal person, in terms of their solvency. The reduction only proceeds if no illicit benefit has been obtained in the commission of the infraction nor has damage been generated as a consequence of said conduct or omission; and, a favorable report from the competent body to resolve is required, in which the reasons justifying such exceptional treatment are substantiated.

Article 15.- Mitigating Factors
In sanctioning procedures initiated by the Superintendency, the following mitigating factors apply:
a. If, before the initiation of the sanctioning procedure, the alleged infractor expressly and in writing acknowledges responsibility before the statement of charges and: i) remedies the committed infraction to the satisfaction of the Superintendency or ii) presents a compliance plan consistent with the aspects that need to be remedied, indicating a proposed date 6 Errata published on July 22, 2018.

Los Laureles No. 214 - Lima 27 - Peru Tel. : (511) 6309000 Fax: (511) 6309239 8/17 maximum for its completion, to the satisfaction of the Superintendency. In cases where the applicable sanction is a fine, it is reduced by a maximum of two-thirds (2/3) of its amount. b. If a sanctioning procedure has been initiated, the alleged infringer expressly and in writing recognizes their responsibility and, before the first instance resolution: i) remedies the committed infraction to the satisfaction of the Superintendency or ii) presents a compliance plan consistent with the aspects that need to be remedied, indicating a proposed maximum date for its completion, to the satisfaction of the Superintendency. In cases where the applicable sanction is a fine, it is reduced by a maximum of half of its amount.
c. If a sanctioning procedure has been initiated and before the resolution imposing the sanction, the COOPACs, directors or workers expressly and in writing recognize their responsibility, the corresponding instance, based on graduation criteria, may reduce the sanction even below the minimums indicated in Article 19. 7
d. Others established by special regulation
Only, in case of mitigating circumstances, the Superintendency may apply the minimum sanction corresponding to the sanctions provided for the type of infraction in question, whether minor, serious or very serious, as appropriate.
Article 16. Exemptions from liability
The following assumptions are considered exemptions from liability:
a. Error induced by the administration or by a confusing or illegal administrative provision. b. Fortuitous event or duly proven force majeure.
c. Acting in compliance with a legal duty or the legitimate exercise of the right of defense.
d. Mental incapacity duly proven by the competent authority, provided that it affects the ability to understand the infraction. e. The mandatory order of a competent authority, issued in the exercise of its functions. f. Voluntary correction of the infraction.- This exemption is configured when the infringing conduct or omission is expressly and in writing recognized and fully voluntarily corrected, prior to the notification of the imputation of charges. Voluntary correction is not considered when the conduct is corrected as a consequence of an order or mandate from the Superintendency issued in the exercise of its supervisory and/or oversight power. This exemption only applies to minor and immaterial infractions that do not cause concrete and significant harm to users or the market. The immateriality of the committed infraction must be understood as a situation in which the facts have little significance. Voluntary correction is not applicable as an exemption in the case of repeat infractions.
Article 17. Materiality of conduct in minor infractions
The Superintendency may refrain from initiating the sanctioning procedure in cases of minor infractions, when it considers that the infraction lacks materiality by not generating a concrete and significant repercussion for users or the market.
Article 18. Graduation Methodology
By Resolution of the Superintendent, the applicable ranges for fines and the methodology for the determination and graduation of sanctions provided for in these Regulations will be defined.
7 Article modified by SBS Resolution No. 1310-2019 published on March 29, 2019.

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Chapter II
APPLICABLE SANCTIONS
Article 19. Types of Sanctions
Except in those cases where a specific sanction is indicated, the sanctions applicable to each category of infraction are those indicated below:

1. For the commission of minor infractions, the following sanctions apply, as appropriate:
   a. Warning. b. Fine
   c. Fine to the COOPAC not less than 0.50 UIT nor greater than 50 UIT.
   d. Fine to the directors of COOPACs, members of commissions or responsible workers not less than 0.30 UIT nor greater than 3 UIT.
2. For the commission of serious infractions, the following sanctions apply, as appropriate:
   a. Fine b. Fine to the COOPAC not less than 50 UIT nor greater than 100 UIT.
   c. Fine to the directors of COOPACs, members of commissions or responsible workers not less than 3 UIT nor greater than 5 UIT
   d. Temporary suspension of registration in the Register managed by the Superintendency where the infringer is registered, for up to 6 months. e. Suspension of the director, manager or any other responsible worker for a period not less than three (3) nor greater than ten (10) days. f. Suspension of the directors of COOPACs, members of commissions or responsible workers for a period not less than 3 nor greater than 10 business days. g. Suspension of functions of the medical members of COMAFP and/or its president, for a period not less than fifteen (15) nor greater than sixty (60) days.
3. For the commission of very serious infractions, the following sanctions apply, as appropriate:
   a. Fine. b. Fine to the COOPAC not less than 100 UIT nor greater than 150 UIT.
   c. Fine to the directors of COOPACs, members of commissions or responsible workers, not less than 5 UIT nor greater than 10 UIT.
   d. Suspension of operating authorization. e. Temporary suspension of registration in the Register managed by the Superintendency where the infringer is registered, for a period greater than 6 and up to 12 months. f. Suspension of the director, manager or any other responsible worker for a period not less than eleven (11) nor greater than fifteen (15) days. g. Suspension of the directors of COOPACs, members of commissions or responsible workers for a period not less than 10 nor greater than 15 business days h. Cancellation of operating authorization.
   i. Exclusion from the Register managed by the Superintendency where the infringer is registered, by canceling their registration.
   j. Dismissal of the director, manager, members of COOPAC commissions or any responsible worker, being prevented from re-occupying one of those positions for a period of ten (10) years. k. Disqualification of the director, manager or any other responsible worker for a period not greater than five (5) years.

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l. Permanent disqualification of the director, manager or any other responsible worker.
m. Disqualification of the directors of COOPACs, members of commissions or workers, in case of being responsible for the intervention or dissolution and liquidation of the COOPAC. n. Suspension of functions of the medical members of the AFP Medical Committee - COMAFP and/or its president, for a period not less than ninety (90) nor greater than one hundred eighty (180) days. o. Disqualification of the medical members of the AFP Medical Committee - COMAFP, of the Superintendency Medical Committee - COMEC and/or their presidents, as appropriate, for a period not greater than five (5) years. p. Removal of the directors of COOPACs, members of commissions or responsible workers, in case of recidivism. 8 Article modified by SBS Resolution No. 1310-2019 published on March 29, 2019.
Article 20. Fine
The amount of fines is set based on the UIT in force on the date the resolution ending the administrative instance was notified, except in those cases where specific fines have been set, in accordance with these regulations and their complementary norms.
TITLE IV
SANCTIONING PROCEDURE
Article 21. Initiation
21.1 The sanctioning procedure is always initiated ex officio, upon the presumption of the commission of an administrative infraction, detected by the Superintendency by virtue of its supervision actions or through the review of information provided by other entities and/or complaints filed by third parties, in accordance with the provisions of Article 26.
21.2 This procedure does not lead to the resolution of particular disputes between natural or legal persons who contract the services of companies operating in the supervised systems.
Article 22. Parties to the Procedure
There are two parties in the sanctioning procedure: the Superintendency and the legal and/or natural persons accused of committing an administrative infraction. The person who reports an act considered contrary to the legal system is not part of the sanctioning procedure and should only be notified of the outcome of the procedure.
Article 23. Processing of Complaints
23.1 The Superintendency evaluates the complaints it receives in order to determine if there are sufficient elements of judgment to presume the commission of an infraction. In this case, the competent organic unit remits the information on the alleged conducts detected to the instructing body so that pertinent supervision actions may be taken; informing the complainant thereof. When acts referring to an alleged infraction that are subject to a preliminary investigation or a sanctioning procedure are reported or detected, such acts are evaluated by the corresponding instructing body, within the investigations or in the ongoing procedure as appropriate, and do not give rise to independent processing as they concern the same infraction.

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23.2 The treatment described for the processing of complaints does not affect the Superintendency's competence to resolve claims presented regarding disputes within the framework of the Consolidated Text of the SPP Law and its modifying and complementary norms, which have a different nature and procedure for their processing.
Article 24. Precautionary Measures
The Superintendency, by means of a duly reasoned resolution, may issue precautionary measures at the beginning or during the sanctioning procedure, specifying the scope of the measure and the deadline for its compliance, as appropriate. Non-compliance with precautionary measures constitutes an infraction in accordance with the provisions of the annexes of infractions.
Article 25. Corrective Measures
25.1 Corrective measures issued within the framework of a sanctioning procedure aim to order the restoration or repair of the situation altered by the infraction to its previous state. These measures are imposed without prejudice to any administrative sanction that may apply and respond to a nature and objectives different from those of a sanction. Corrective measures are imposed through a duly reasoned resolution of the competent body.
25.2 Among the corrective measures that the Superintendency may order, in exercise of the powers conferred, are the following:
a. Orders to do or not to do to restore or repair the situation altered by the infraction. b. Order the publication of informative notices in the manner determined by the Superintendency, taking into account the appropriate means to reverse the effects of non-compliance.
c. Other measures directly related to compliance with the infringed norms.
25.3 Non-compliance with these measures constitutes an infraction in accordance with the provisions of the annexes of infractions.
Article 26. Phases of the Procedure
26.1 Prior to the formal initiation of the procedure, the competent body may conduct a preliminary investigation or inquiry, with the purpose of preliminarily determining if there are sufficient indications of alleged administrative infractions and to determine if a sanctioning procedure should be initiated.
26.2 The decision to initiate a sanctioning procedure is recorded in a report based on working documents, visit reports, information submitted by supervised entities, or other documents collected during supervision processes and complaint handling. If it has been determined that there are insufficient indications of the commission of an infraction, the file containing the investigation or inquiry must be archived with respect to conducts that do not constitute an infraction; otherwise, the report forms part of the sanctioning procedure file.

1. Instruction Phase
   1.1 The instruction phase begins with the imputation of charges by the instructing body, initiating the sanctioning procedure. The instructing body may be

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1.2 When the instructing body determines that the detected facts warrant initiating a sanctioning procedure, it prepares an official letter indicating the facts that presumably constitute sanctionable infractions, the norm that typifies them as an administrative infraction, the possible sanctions that could be imposed, as well as the competent body to impose the sanction and the norm that attributes such competence to it, so that the alleged infringer submits written defenses within fifteen (15) days counted from the business day following the notification of the official letter. The sanctioning procedure begins with the notification of said official letter.
1.3 Once the period granted to the alleged infringer has expired, with or without the respective defense, the instructing body ex officio carries out the necessary actions for the examination of the facts, evaluating the defenses presented by the alleged infringer, if applicable, gathering the necessary information and requesting additional information or opinion it deems pertinent, as well as the performance of tests, in order to determine the existence or non-existence of a sanctionable infraction.
With the information obtained, the instructing body analyzes the case to determine whether the imputed facts or conducts constitute infractions or not.
1.4 The instructing body formulates a final instruction report in which it determines, in a reasoned manner, the conducts considered proven to constitute an infraction, the norm that provides for the imposition of a sanction, the proposed sanction and corrective measures, if applicable, or the declaration of non-existence of an infraction, as appropriate.
1.5 The instructing body may impose the precautionary measures required to guarantee the effectiveness of the final resolution to be issued in the case, respectively; without prejudice to other measures that may be dictated by the competent body in the exercise of the Superintendency's supervision.
1.6 The instructing body remits the final instruction report to the procedure resolution body.
2. Resolution Phase
2.1 The resolution phase is in charge of the competent Deputy Superintendency, in its capacity as the resolution body of the sanctioning procedure, and begins upon receiving the final report from the instructing body.
2.2 The body that resolves the procedure has a period of five (5) days counted from the business day following the receipt of the final report from the instructing body, to notify this report to the alleged infringer, so that the latter submits their written defenses, within a period of not less than five (5) days. The resolution body is empowered to do the following:

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2.2.1. Before notifying the final report of the instructing body, it may order the performance of complementary actions that are indispensable to resolve the procedure; for which it must notify the alleged infringer. In this case, the instructing body has a period of no more than five (5) additional days counted from the notification to the alleged infringer regarding the granting of the additional period for the performance of complementary actions, and to issue the final instruction report. In exceptional cases, supported by the instructing body, the aforementioned period for complementary actions may be extended.
2.2.2. When it is an oral report hearing, this may be ex officio or at the request of a party; and, in the latter case, the resolution body may deny the request by means of a reasoned decision.
2.3 Once the collection and evaluation of evidence has concluded, if applicable, the resolution body of the procedure concludes by determining the existence of an infraction and, therefore, the imposition of a sanction or the non-existence of an infraction. The resolution issued for this purpose must be duly reasoned, specifying the committed infraction, the norm that typifies it as such, the graduation criteria applied, the sanctions and the corresponding corrective measures.
When new facts are involved or it is required to vary the infringing type or the legal basis on which the alleged infractions are based, the imputation of charges may be expanded and varied, which must be notified to the alleged infringer. In this case, an additional period of five (5) days is granted for the alleged infringer to present their defenses. Said period is counted from the day following the notification.
Article 27. Accumulation of Procedures
Through an administrative act, the instructing body, on its own initiative or at the request of the administered parties, irrevocably orders the accumulation of ongoing sanctioning procedures that are connected by the identity of infractions or subjects, without this meaning the consolidation of the applicable sanctions.
Article 28. Competent Bodies
Sanctions are imposed in the first instance by the Deputy Superintendents or by officials authorized by the Superintendent by resolution. The Superintendent's decision constitutes the second and final administrative instance.
Article 29. Deadlines
29.1 Inquiries carried out by this Superintendency, before the initiation of the sanctioning procedure, are not subject to a determined deadline, which depends on the complexity of each case.
29.2 To the calculation of the deadlines established in the sanctioning procedure, the term of distance between the domicile of the administered party within the national territory and the domicile of this Superintendency is added.
29.3 The deadlines established in the Regulations are non-extendable, unless expressly provided otherwise, and are counted from the day following their notification or the publication of the act,

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TITLE V
ADMINISTRATIVE APPEALS
Article 30. Challenge
30.1 The sanctioned party may file administrative appeals for reconsideration and/or appeal provided for in the Consolidated Text of the General Administrative Procedure Law, within fifteen (15) days of the sanction being notified. Once said period has elapsed without administrative appeals being filed, the resolution imposing the sanction becomes final.
30.2 Appeals are submitted to the reception desk and are addressed to the procedure resolution body for it to resolve or elevate it to the hierarchical superior, depending on whether it is a reconsideration appeal or an appeal, respectively.
30.3 In cases where an error in the qualification of an administrative appeal is detected, the appeal is reclassified.
30.4

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32.1 Sanctions applied to companies supervised by the Superintendency, as well as those applied to their shareholders, directors, managers, and principal officers, must be communicated to the board of directors or equivalent body of said companies, recording such communication in the minutes of the first session held by said body after receiving the respective notification or within thirty (30) calendar days after its receipt, whichever occurs first. In the case of COOPACs, sanctions are communicated to the Board of Administration and the Supervisory Board, recording such communication in the minutes of the first session held by said body after receiving the respective notification or within thirty (30) days after its receipt, whichever occurs first. If deemed necessary, the Superintendency may order a special session of the board of directors or equivalent body to be convened for compliance with the provisions of this paragraph.
32.2 The board of directors or equivalent body of companies supervised by the Superintendency is responsible for informing the general meeting of shareholders or equivalent body, at the next session, of the sanctions imposed by the Superintendency on said companies, their shareholders, directors, managers, and principal officers for the commission of serious and very serious infractions, recording such communication in the minutes corresponding to the aforementioned session. The board of directors or equivalent body is responsible for ensuring that the sanctions imposed by the Superintendency are complied with and that supervised companies implement the sanctions imposed on their officers, as appropriate.
Article 33. Registration and publicity of sanctions
33.1 Sanctions imposed must be notified to the infractors and recorded in the register established by the Superintendency for this purpose, in accordance with the rules governing it.
33.2 The Superintendency may publish, through its website, information on the sanctions it imposes, indicating the infraction committed and the fine imposed, once they have become final.
Article 34. Disqualification or dismissal
The sanctions referred to in the laws applicable to supervised systems, regarding shareholders, directors, managers or principal officers of supervised companies, are those related to disqualification or dismissal originating from infractions considered very serious, as provided by these Regulations. FINAL AND TRANSITORY COMPLEMENTARY PROVISIONS First.- Applicable rules The Consolidated Text of the General Administrative Procedure Law (TUO de la Ley del Procedimiento Administrativo General) applies subsidiarily to the sanctioning procedures regulated by these Regulations. In the case of Regional or Provincial Accident Funds Associations - AFOCAT, the provisions established in their special rules are applicable, with the provisions of these Regulations applying subsidiarily. 9 Article modified by SBS Resolution No. 1310-2019 published on March 29, 2019.

Los Laureles Nº 214 - Lima 27 - Peru Tel. : (511) 6309000 Fax: (511) 6309239 16/17 Second.- Temporary application Sanctioning procedures initiated before the entry into force of these Regulations are governed by the previous regulations until their conclusion. However, the provisions of these Regulations that recognize rights or powers for the administered parties are applicable to ongoing procedures. Infractions classified in other norms issued by the Superintendency with a different level of severity than that established in this norm are reclassified in accordance with these Regulations. Third.- Application of sanctions Until the Superintendent's Resolution referred to in Article 18 of these Regulations, related to the determination and graduation of sanctions, is issued, the sanctions with the ranges established in Article 10 of the Sanctions Regulations approved by SBS Resolution No. 816-2005 are applicable. Fourth.- Other special procedures The regimes for intervention, dissolution, and liquidation of supervised companies and the dismissal or disqualification of directors, managers, and/or any other responsible employee, as administrative measures distinct from the sanctioning procedure, are governed by the special provisions set forth in the General Law, the Consolidated Text of the SPP Law, and their corresponding regulatory norms, as well as other special laws. In accordance with current regulations, exceptionally, intervention, dissolution, and liquidation are ordered directly by the Superintendent, in a single instance. Fifth.- Competence of other bodies Individual cases containing matters covered by other norms are referred to the competent administrative authority. Sixth.- Electronic procedure The Superintendency issues the necessary measures to implement the electronic procedure referred to in Article 30 of the Consolidated Text of the General Administrative Procedure Law, in accordance with the guidelines issued by the Presidency of the Council of Ministers as established in the aforementioned norm. Seventh.- Destination of fines Fines imposed by the Superintendency on financial system companies that are members of the Deposit Insurance Fund constitute income for the latter, while those imposed on other natural or legal persons constitute resources for the Superintendency.
Article Second.- Repeal the Sanctions Regulations approved by SBS Resolution No. 816-2005, as well as those resolutions that modify it, with the exception of the provisions contained in its Article 10 referring to the types and list of sanctions, until the issuance of specific norms on said matter. Any reference to the sanctions regulations is understood to be replaced by the regulations approved by the first article, for legal purposes, as appropriate.
Article Third.- This Resolution enters into force the day after its publication in the Official Gazette El Peruano.

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SOCORRO HEYSEN ZEGARRA
Superintendent of Banking, Insurance and
Private Pension Fund Administrators