Lima, 27 December 2017

S.B.S. Resolution No. 5026-2017

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

WHEREAS:

That, in accordance with article 347° 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, it is incumbent upon the Superintendency to defend the interests of the public, safeguarding the economic and financial soundness of the natural and legal persons subject to its control, for which it is necessary that the supervised companies have a risk control system that allows them to identify, measure, control and report the risks they face in their operations;

That, by SBS Resolution No. 2507-2010, dated 17 March 2010, the “Regulation for the Measurement of Foreign Exchange Risk in Insurance Companies” was approved, which includes provisions for the measurement of the foreign exchange risk to which the companies of the insurance system are exposed, as well as limits on the global overbought and oversold position in foreign currency;

That, as a prudential regulation measure to limit the exposure to foreign exchange risk of insurance companies, it is necessary to amend the limits on the global overbought and oversold positions in United States dollars, contemplated in the Regulation for the Measurement of Foreign Exchange Risk in Insurance Companies, taking into consideration the limits established for the case of companies in the financial system, contemplated in the Regulation for the administration of Foreign Exchange Risk;

That, in order to gather the opinions of the general public regarding the proposed amendment to the regulations of the Insurance System, the prepublication of the draft Resolution was ordered on the electronic portal of this Superintendency, under the provisions of the Thirty-Second Final and Complementary Provision of the General Law and Supreme Decree No. 001-2009-JUS and its amending norms;

With the approval of the Deputy Superintendencies of Insurance, Risks, Economic Studies and 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 the Regulation for the Measurement of
Foreign Exchange Risk in Insurance Companies, approved by SBS Resolution No. 2507-2010, as indicated below:

1. Amend literal a) of article 7°, according to the following text:

“a) Global oversold position in United States dollars may not be greater than ten percent (10%) of effective equity.”

2. Amend literal b) of article 7°, according to the following text:

“b) Global overbought position in United States dollars may not be greater than fifty percent (50%) of effective equity.”

Article Two.- Article seven of SBS Resolution No. 4706-2017 enters into force as of the day following the date of publication of this resolution.

Article Three.- This resolution shall enter into force as of 1 January 2018. Companies whose global position in United States dollars exceeds the limits indicated above may not increase said excess and must submit an adjustment plan to the Superintendency by 15 January 2018.

Register, communicate and publish.

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