Regulatory Alerts2022-12-30 | NSP-53Added · Updated
Technical Standards for Pension Fund Investments
The Committee of Standards of the Central Reserve Bank of El Salvador issued Technical Standards NBCR-11/2022, effective December 30, 2022, regulating the investment activities of Pension Fund Administrators (AFPs). The document establishes specific investment limits, including a maximum of ten percent of fund assets in checking accounts and fixed-term deposits, and mandates that the Risk Committee set limits for high-risk instruments between zero and fifteen percent of fund assets. It prohibits investments in securities issued by state entities, insurance companies, and related parties, while requiring AFPs to maintain public Investment Policies and report transaction data to the Superintendent of the Financial System.
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