Lima, 7 November 2012.

S.B.S. Resolution No. 8513-2012

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators

WHEREAS:

That, in the Single Ordered Text of the Law of the Private Pension Fund Administration System, approved by Supreme Decree No. 054-97-EF and its amending norms, the operations that private pension fund administrators may carry out are set forth;

That, an adequate accounting record of said operations allows reflecting the real economic and financial situation of the private pension fund administrators and of the portfolios they manage, facilitating the supervision work of this control body;

That, by means of Law No. 29903 of 17 July 2012 published on 19 July 2012, hereinafter Private Pension System Reform Law, the Single Ordered Text of the Law of the Private Pension Fund Administration System was amended;

That, by means of article 1 of the Private Pension System Reform Law, article 30 of the Single Ordered Text of the Law of the Private Pension Fund Administration System was amended;

That, the third paragraph of the aforementioned article 30 of the Single Ordered Text of the Law of the Private Pension Fund Administration System states that when the AFP charge the remuneration commission on the insurable remuneration from the day following the publication of the Private Pension System Reform Law, they must make a provision corresponding to the remuneration for the administration of the new contributions, in accordance with International Accounting Standard (IAS) 18 "Revenue from Ordinary Activities". Likewise, the aforementioned provision states that by regulatory norms of the Superintendency, with prior opinion of the Ministry of Economy and Finance, the conditions for gradual implementation of IAS 18 shall be established;

That, by means of SBS Resolution No. 7035-2012 of 19 September 2012 published on 22 September, the amendments to the Accounting Manual of the Private Pension Fund Administrators were approved in order to adapt the pertinent aspects to the International Financial Reporting Standards (IFRS);

That, according to the third article of SBS Resolution No. 7035-2012, this Superintendency, on the occasion of the regulation of Law No. 29903, shall issue

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

the accounting provisions referred to in article 30 of the Single Ordered Text of the Law of the Single Ordered Text of the Law of the Private Pension Fund Administration System;

That, it is appropriate to establish the necessary amendments in the Accounting Manual of the Private Pension Fund Administrators in order to adapt the accounting treatment of the remuneration commission on the insurable remuneration to IAS 18, on the basis of the provisions of article 30 of the Single Ordered Text of the Law of the Private Pension Fund Administration System;

That, having had the opinion of the Ministry of Economy and Finance on the matter;

In accordance with the opinion of the Deputy Superintendencies of Private Pension Fund Administrators and Insurance, of Economic Studies and of Legal Advice; and,

In use of the powers conferred by numerals 9 and 13 of article 349 of the General Law of the Financial System and of the Insurance System and Organic Law of the Superintendency of Banking and Insurance - Law No. 26702 and its amending norms, and subsection d) of article 57 of the Single Ordered Text of the Law of the Private Pension Fund Administration System, and on the basis of the exception conditions set forth in numeral 3.2 of article 14 of Supreme Decree No. 001-2009-JUS;

RESOLVES:

Article One.- Amend the Accounting Manual for Private Pension Fund Administrators and the Accounting Manual for Managed Portfolios, in accordance with the provisions set forth in Annexes 1 and 2 attached, which are published on the Institutional Portal (www.sbs.gob.pe) in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Two.- This resolution shall enter into force on the day following its publication in the Official Gazette El Peruano. Likewise, any provision that opposes this norm is repealed.

FINAL AND TRANSITORY PROVISIONS

First.- First application of the accounting treatment of revenue recognition

The accounting record of the impact of the change in the accounting treatment of revenues referred to in section I of Annex 1 that forms part of this resolution, shall be made in the month following the completion of the process of choosing the commission collection modality (flow versus balance) established in SBS Resolution No. 8514-2012, with retroactive application to 20 July 2012.

The cumulative effect as of 20 July 2012, as well as the variations corresponding to the year 2012, shall be recognized in accumulated results (undistributed profits). Subsequently, the positive or negative variations in the provision shall be recognized in the revenue account, as a debit or credit, as appropriate.

Second.- Disclosure in notes to the financial statements The private pension fund administrators must disclose in notes to the financial statements the impact of the application of the new accounting policy of revenue recognition.

Third.- Evidence of the calculation of the provision for revenue recognition The result of the calculation of the provision for revenues as well as the methodology and variables used, must be reflected in a Report, which must be brought to the knowledge of the Risk Committee of the AFP and be available to this Superintendency. Said report must be updated quarterly or in a shorter period when there is a relevant change, in the judgment of the AFP.

For fiscal year 2013, the report referred to in the preceding paragraph must be sent to this Superintendency within the deadline for submitting the financial statements as of 31 July 2013. Subsequently, the presentation of the aforementioned report shall be made together with the presentation of the financial statements at the close of the annual fiscal year.1

Fourth.- Prudential measures
When, as a result of the periodic reviews carried out by the Superintendency and without prejudice to the administrative measures that may be applicable, any degree of distortion is identified in the calculation of the provision for the recognition of income from commissions on mandatory contributions, to which section I of Annex 1 that forms part of this resolution refers, at the discretion of the Superintendency, the company shall be required to justify the calculations made and/or proceed to constitute complementary provisions to those constituted.

Fifth.- Distribution of profits
For purposes of the distribution of profits, companies must deduct the accumulated results arising from the adjustments for the constitution of the provision referred to in the First Final and Transitory Provision.

Sixth.- Complementary provisions
This Superintendency may subsequently issue the complementary provisions for the application of the provisions set forth in section I of Annex 1 that forms part of this resolution.

Register, communicate and publish.

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance and
Private Administrators of Pension Funds

[1] Paragraph amended by SBS Resolution No. 771-2013, of 30-01-2013 and by SBS Resolution No. 2936-2013 of 15-05-2013.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX 1

AMENDMENTS TO THE ACCOUNTING MANUAL OF THE PRIVATE ADMINISTRATORS OF PENSION FUNDS

I. In the Conceptual Accounting Framework, replace the section entitled “Recognition for Commissions on Mandatory Contributions”, in accordance with the following text:

“RECOGNITION OF INCOME FROM COMMISSIONS ON MANDATORY CONTRIBUTIONS

The recognition of income from commissions, in accordance with IAS 18 “Revenue from ordinary activities” and with the provisions of the TUO of the SPP Law, must be made in accordance with the following guidelines:

1. Commissions for remuneration on remuneration The commissions on remuneration charged to members shall be recognized as accrued income during the period of the member's permanence in the AFP, being recognized once the mandatory contribution paid by the members in the respective individual capitalization accounts has been credited..

In the case of members for whom the AFP does not receive income from commissions, but continues to provide services, the treatment of income recognition shall follow the following guidelines:

a) A provision for deferred income shall be established, debiting income account 50706 named “Adjustment for provision” and crediting account 20501 named “Provisions for Deferred Income”.

b) For the purpose of determining the provision mentioned above, the following shall be taken into account, at a minimum:

i) Provision for pensioners whose pension is administered by the AFP

    (a) A time horizon of not less than 20 years.

    (b) Number of pensioners, which shall take into account the initial number of pensioners as well as the estimated number of contributing and non-contributing affiliates who would become pensioners within the period indicated in (a), according to the assumptions adopted.

    (c) Costs directly related to the investment process of the pension funds.

    (d) Costs directly related to the provision of services to pensioners, other than those indicated in item (c).

    (e) Discount rate, which must correspond to the long-term zero-coupon rate (the term must correspond to the time horizon indicated in (a)), from the yield curve of bonds issued by the Central Government in nuevos soles, plus a risk premium of up to 1,5%.

    (f) Based on the foregoing, the present value of the estimated expenses that would be incurred in providing services to pensioners shall be calculated.

    (g) The estimated expenses shall incorporate a profit margin.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239

ii) Provision for non-contributors

(a) A time horizon of not less than 20 years.

(b) Number of non-contributors, which shall take into account their initial number as well as the estimated number of contributing affiliates who would become non-contributors within the period indicated in (a), according to the assumptions adopted.

(c) Costs directly related to the investment process of the pension funds.

(d) Costs directly related to the provision of services to non-contributors, other than those indicated in item (c).

(e) Discount rate, which must correspond to the long-term zero-coupon rate (the term must correspond to the time horizon indicated in (a)), from the yield curve of bonds issued by the Central Government in nuevos soles, plus a risk premium of up to 1,5%.

(f) Based on the foregoing, the present value of the estimated expenses that would be incurred in providing services to non-contributors shall be calculated.

(g) The estimated expenses shall incorporate a profit margin.

c) The deferral calculation made on the basis of present value must be calculated on a monthly basis.

d) The costs referred to in items (c) and (d) of subsections i) and ii) shall be supported by the cost structure per service provided by each AFP.

e) Companies shall, on a quarterly basis, update the variables and corresponding calculations indicated in i) and ii) of this item b).

2. Commission on balances

The balance commission, as well as the component of the mixed commission explained by the balance commission charged to affiliates, shall be recognized as income at the same time that it is charged to the managed fund.

3. Commission on flows within the mixed commission

The flow component of the mixed commission determined based on the insurable remuneration shall be recognized under the received basis, that is, it shall be recognized once the mandatory contribution contributed by affiliates in the respective individual capitalization accounts has been credited.

II. Amend Chapter II “Financial Statements, Periodicity and Deadlines for Submission” regarding the grouping rules of Form A “Statement of Financial Position of the AFP” as follows:

In Form A, under Non-Current Liabilities:

Other Provisions
204892+2050

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

III. Amend the following in Chapters III “Chart of Accounts” and IV “Description and Dynamics of Accounts”:

1. Incorporate item 2050 “Provisions for receivables”, as well as account 20501 “Provision for Deferred Income”. Likewise, incorporate the description and dynamics as follows:

ITEM 2050 PROVISIONS FOR RECEIVABLES

DESCRIPTION: This item records the provision for deferred income corresponding to commissions on remuneration charged to affiliates for which the AFP does not receive commission income but continues to provide services, in accordance with the guidelines established in the Conceptual Framework.

ACCOUNTS:

20501 Provision for Deferred Income for commissions on remuneration

DYNAMICS

DEBITS: - For adjustments to provisions for deferred income in accordance with IAS 18 and the SPP Law.

CREDITS: - For the initial recognition of the provision in accordance with IAS 18 and the SPP Law, established in the Conceptual Framework. - For the recognition of supplementary provisions to those previously established. - For adjustments to provisions in accordance with IAS 18 and the SPP Law.

2. Replace the name of item 5070 with “Commission Income”. Likewise, replace the first paragraph of the description as follows:

“The recognition of commission income, in accordance with IAS 18 “Revenue from Ordinary Activities” and with the provisions of the Single Ordered Text of the SPP Law, must be carried out in accordance with the criteria established in the section entitled “Recognition of commission income on mandatory contributions” of the Conceptual Framework. Likewise, income resulting from debt installment regimes for pension provisions is recorded.”

3. Incorporate into item 5070 the sub-account 507024 named “Commission on balance of mandatory contributions administered”.

4. Incorporate into item 5070 the account 50706 named “Adjustment for provision”. Likewise, incorporate its description as follows:

In account 50706, the adjustments to the provision for deferred income from commissions are recognized, pursuant to the application of IAS 18 and the provisions of the Single Ordered Text of the SPP Law, in accordance with the guidelines set out in the Conceptual Framework.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

5. The following shall be incorporated into the dynamics of item 5070 "Income from Commissions":

• DEBITS: - For the adjustment of income pursuant to the application of IAS 18 and the Single Ordered Text of the SPP Law, in accordance with the guidelines set out in the Conceptual Framework.

• CREDITS: - The commission on the managed balance of mandatory contributions.

• For the adjustment of income pursuant to the application of IAS 18 and the Single Ordered Text of the SPP Law, in accordance with the guidelines set out in the Conceptual Framework.

ANNEX 2
AMENDMENTS TO THE ACCOUNTING MANUAL FOR MANAGED PORTFOLIOS

The following shall be amended in Chapters III "Chart of Accounts" and IV "Description and Dynamics of Accounts":

1. In item 20042 "Accounts Payable", the designation of account 200427 shall be replaced with "Withdrawals of Voluntary Contributions and Commissions on Contributions".

2. Subaccount 2004275, designated "Commissions on Mandatory Contributions", shall be incorporated into item 20042 "Accounts Payable". Likewise, the following shall be incorporated into the dynamics: CREDITS: - The commissions payable to the AFP for the managed balance of mandatory contributions.

3. Subaccount 3005019, designated "Charges for the administration of the balance of mandatory contributions", shall be incorporated into item 30050 "Individual Capitalization Accounts". Likewise, the following shall be incorporated into the dynamics: DEBITS: - The commissions payable to the AFP for the managed balance of mandatory contributions.