Technical Standards for the Authorization and Registration of Pension Service Agents for Pension Fund Administrators

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

THE COMMITTEE OF NORMS OF THE CENTRAL BANK OF RESERVE OF EL SALVADOR, CONSIDERING:

I. That by Legislative Decree No. 614, of December 20, 2022, published in the Official Diary No. 241, Volume No. 437 of the 21st of the same month and year, the Comprehensive Law of the Pension System was issued.
II. That Article 70 of the Comprehensive Law of the Pension System establishes that Administrators may carry out promotion and affiliation activities through Pension Service Agents, which must be authorized by the Superintendency of the Financial System, prior to approval of the requirements established for such effect and be registered in the corresponding Public Registry.
III. That Article 159 of the Comprehensive Law of the Pension System establishes that the Central Bank of Reserve of El Salvador will issue the Technical Standards necessary to allow the development of what is established in the referred Law.
IV. That Article 7, third paragraph, of the Law of Supervision and Regulation of the Financial System, establishes that pension service agents will also be supervised.
V. That Article 15, letter m) of the Law of Supervision and Regulation of the Financial System, establishes that it is the faculty of the Board of Directors of the Superintendency of the Financial System: to authorize, modify, suspend or cancel the registry entries in the Registries that the Superintendency keeps of the persons, institutions and operations that are subject to said requirement, in accordance with the laws on the matter, when such acts are not the result of a sanction.
VI. That Article 78, letter g), of the Law of Supervision and Regulation of the Financial System, establishes that the Superintendency will organize and keep updated the Registries that the laws entrust to it, among these, the one related to pension service agents.
VII. That Article 79, fourth paragraph, of the Law of Supervision and Regulation of the Financial System, establishes that pension service agents must provide the Superintendency of the Financial System with the following information: names of the agents and their general data, unique code assigned to the agent and a copy of the contract signed between the pension fund administrator and the agent. The Superintendency may incorporate other information to the Registry based on the authorization granted to pension service agents, in accordance with the Pension Savings System Law, its regulations and corresponding norms.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

VIII. That Article 99, letter a), of the Law of Supervision and Regulation of the Financial System, establishes, that it corresponds to the Central Bank of Reserve of El Salvador in its capacity as regulator, to approve the technical norms, that the laws that regulate the supervised establish that must be issued to facilitate their application, especially what relates to good corporate governance practices.

THEREFORE, by virtue of the regulatory powers conferred upon it by Article 99 of the Law of Supervision and Regulation of the Financial System, AGREES, to issue the following:

PENSION SERVICES FOR PENSION FUND ADMINISTRATORS

CHAPTER I
OBJECT, SUBJECTS AND TERMS

Object
Art. 1.- These norms have as their object to regulate the process of Authorization and Registration of pension service agents before the Superintendency of the Financial System, as well as the generalities of said function and the minimum content of the contract to be celebrated between said agents and a Pension Fund Administrator.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Norms are:
a) Pension Fund Administrators; and b) Natural persons interested in being authorized and registered in the Registry of the Superintendency of the Financial System as pension service agents.

Terms
Art. 3.- For the purposes of these Norms, the terms indicated below have the following meaning:
a) Affiliate: any person who maintains a relationship with a Pension Fund Administrator, through the signing of an affiliation contract; b) AFP: Pension Fund Administrator; c) Agents: pension service agents; d) Central Bank: Central Bank of Reserve of El Salvador;

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

e) CUA: Agent Unique Code; f) DUI: Unique Identity Document; g) Ordinary evaluation: knowledge test required to be registered in the Agents Registry; h) Extraordinary exam: knowledge test that is carried out when the applicant fails the ordinary evaluation or when for justified reasons it was not possible to submit to said evaluation; i) SP Law: Comprehensive Law of the Pension System; j) Applicant: person who undergoes the process to be authorized as an Agent; k) Registry: Public Registry of Pension Service Agents; l) SP: Pension System; and m) Superintendency: Superintendency of the Financial System.

CHAPTER II
PROCESS OF AUTHORIZATION AND REGISTRATION OF AGENTS

Content of the authorization and registration request Art. 4.- The AFPs that request that their applicants be authorized and registered in the Registry as Agents must present the following documentation:
a) Written request signed by the legal representative or attorney-in-fact of the AFP; and b) List of personnel aspiring to be Agents, which must contain the information established in Annex No. 1 of these Norms and must be sent by the means and file formats that the Superintendency establishes for such purposes.

Documents attached to the request for the registration of Agents in the Registry Art. 5.- In addition to what is established in Article 4 of these Norms, the AFPs must attach to the applicants' request the following personal information:
a) Legible copy of the DUI, in the case of Salvadorans; b) Copy of the Residence Card, Passport or other legal document that accredits their identity in the case of foreigners, duly authenticated or certified by a notary or foreign official, as the case may be, following the respective procedure for legalization of signatures or apostille; c) Curriculum vitae; d) Certificates of criminal records and of the National Civil Police; e) Legible copy of the contract celebrated with the AFP, when applicable; and f) Copy of the title of the highest academic degree obtained.

Each AFP will be responsible for verifying, prior to the processing of the authorization request for its Agents, compliance with what is established in this article.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

The request and documentation may be presented through the means made available by the Superintendency, which may be electronic. In any case, the deadline referred to in the first paragraph of Article 6 of these Norms will begin to run from the next business day after the request has been presented.

Procedure for authorization of registration in the Registry Art. 6.- Upon receipt of the corresponding authorization request, in accordance with what is established in Articles 4 and 5 of these Norms, the Superintendency will proceed to verify that the presented documentation is complete, having a maximum period of thirty business days for the authorization or denial of registration in the corresponding Registry.

If the request is not accompanied by the complete and duly formatted information detailed in Articles 4 and 5 of these Norms, the Superintendency, due to the lack of necessary requirements, may require the AFP to present the missing documents within a period of ten business days counted from the day following the notification, a period that may be extended at the request of the applicants, when there are reasons justifying it.

The Superintendency in the same notice will indicate to the applicants that if they do not complete the information within the aforementioned period, it will proceed without further procedure to archive the request, leaving them free to present a new request.

If after the analysis of the presented documentation, in accordance with what is established in Articles 4 and 5 of these Norms, the Superintendency has observations or when the documentation or information presented is not sufficient to establish the facts or information that is intended to be accredited, the Superintendency may notify the AFP once to remedy the deficiencies communicated or present additional documentation or information requested.

The AFP will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or present the information required by the Superintendency.

The Superintendency may, through a reasoned resolution, extend by up to another ten business days the period indicated in the previous paragraph, when the nature of the observations or deficiencies notified so requires.

Once the request is presented with complete and duly formatted information, in accordance with what is established in these Norms, the Superintendency will schedule the evaluation of the applicants establishing the day and time to attend the same, within the period established in the first paragraph of this article.

Extension period
Art. 7.- The AFP may present to the Superintendency a request for extension of the period indicated in the fifth paragraph of Article 6 of these Norms, before the expiration of said period, expressing the grounds on which it is based and proposing, if applicable, the relevant proof.

The extension period may not exceed ten business days and will begin from the next business day following the expiration date of the original period.

Suspension of the period
Art. 8.- The thirty-day period indicated in the first paragraph of Article 6 of these Norms, will be suspended for the days that elapse between the notification of the request to complete information or documentation referred to in the second and fifth paragraphs of Article 6 of these Norms, until the interested parties remedy the observations required by the Superintendency.

Of the evaluation of the applicant
Art. 9.- The applicant must appear at the place, day and time scheduled for the evaluation, for which they must identify themselves with their DUI in the case of Salvadorans, or with their Residence Card, Passport or other document that accredits their identity in the case of foreigners.

The minimum passing grade for the exam will be seventy out of one hundred (70/100).

Extraordinary exam
Art. 10.- In the case of applicants who did not pass the ordinary evaluation, they may submit to an extraordinary exam, at the request of the AFP, complying with what is established in Article 9 of these Norms. Applicants who do not pass the extraordinary exam may submit to another ordinary evaluation, after the period of sixty business days has elapsed after the last exam.

Absence from the evaluation
Art. 11.- If any applicant cannot appear for the evaluation, they must communicate this situation to the AFP, who in turn will inform the Superintendency. The AFP must request a new evaluation, being able to include the applicants who were absent.

Multiplicity of AFPs for an applicant
Art. 12.- In the event that multiple AFPs present the same person as an applicant, the Superintendency will consider the first notification of application received valid, communicating to the remaining AFPs in writing of this situation.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

Communication of results
Art. 13.- The Superintendency will communicate to the AFPs the results obtained by each of the applicants included in the list sent, which will contain the information described in Annex No. 2 of these Norms.

The AFPs within a maximum period of ten business days following the notification, will send to the Superintendency the list of applicants who passed the exam and who will act as Agents, which will contain the information described in Annex No. 3 of these Norms.

In the event that the AFPs do not send the list within the established period, the processing of the request will expire.

Communication of the resolution
Art. 14.- Once the documentation referred to in the second paragraph of Article 13 of these Norms is received, the Superintendency will proceed to notify the resolution of the Authorization and Registration request of the Pension Service Agent within a maximum period of three business days from the date the resolution is issued, sending to the AFPs the information described in Annex No. 4 of these Norms.

Validity of the authorization
Art. 15.- The authorization issued by the Superintendency will be for an indefinite period while the employment relationship with the AFP that requested the Authorization and Registration of the Agent remains in force.

Identification of the Agents
Art. 16.- For the identification of the Agents, the Superintendency will assign a CUA, which will remain invariable while they perform duties in the System, regardless of the AFP for which they provide their services. For any activity that the Agent develops as such, they must identify themselves through the CUA.

Issuance of card or credential
Art. 17.- The AFP must issue a card or credential for its authorized Agents, who must carry it visibly to the public. Said card or credential will contain the following data:
a) CUA; b) Name of the authorized person; c) Name of the AFP for which they work; d) Date of authorization by the Superintendency; and e) Date of issuance of the credential.

Inactive Agents contracted by the AFPs
Art. 18.- In the event that the AFPs hire Agents with inactive status for more than six months, they must request the corresponding evaluation, which must comply with the process established in these Norms and must present the updated information established in Article 5 of these Norms.

In the event that the exam is approved, the Superintendency, within the period provided in Article 5 of these Norms, will proceed to activate the corresponding registry.

If the period of inactivity is less than six months, the AFP will request the corresponding activation without the need to perform the evaluation, but must update the information required in Article 5 of these Norms.

Publicity of Agents registered in the Registry Art. 19.- The Superintendency will publish on its Website the Registry of Pension Service Agents, detailing as a minimum the following information:
a) Registration number; b) Full name; c) DUI; d) Session Number and the date of authorization by the Board of Directors of the Superintendency; e) Name of the entity for which they work; and f) Status of the authorization, declaring that it is active in the case that the Agent is working for an AFP.

CHAPTER III
ON PENSION SERVICE AGENTS

Of the Agents
Art. 20.- Agents are understood to be those natural persons who, with prior authorization of the Superintendency and registration in the corresponding Registry, sign employment contracts with an AFP to participate in the promotion of the AFP's services and incorporation of workers as affiliates to the System.

Agents may be hired by the AFPs, according to the existing labor hiring modalities in the market, always in a direct dependent relationship. AFPs cannot hire persons other than Agents for the incorporation of workers into the System.

Agents may provide their professional services exclusively to one AFP at a time.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

Content of the employment contracts of the Agents Art. 21.- The employment contracts that the AFPs celebrate with their Agents must be previously approved by the Superintendency and must contain as a minimum the following clauses:
a) Declaration by the Agents of knowing and submitting to the Laws, Regulations and Technical Standards that govern the System; b) Declaration by the AFP in which it recognizes that the Agents act on its behalf and, in turn, declaration by the Agents to the effect that their actions bind the AFP whenever they act on its behalf; c) Commitment by the Agents to refrain from making affiliations or transfers of affiliates, offering additional benefits not contemplated in the norms that regulate the System; d) Commitment by the Agents to the AFP to keep confidentiality regarding the affiliate-AFP relationship vis-à-vis other AFPs, even after the employment link has been dissolved; and e) To provide as a cause for termination of the contract, the non-compliance with the declarations and commitments by the Agents, especially those referred to the confidentiality they must keep regarding matters that are within their knowledge.

The text of the contract may not incorporate concepts or clauses that contravene what is established in this article.

Conditions for hiring Agents
Art. 22.- The AFPs must follow a selection process, endeavoring at all times that the Agents meet the conditions of competence, moral solvency and suitability regarding the work they will perform.

Responsibility of the Agents
Art. 23.- The Agents will act in the name and on behalf of the AFP that hires them and under the responsibility of this.

Without prejudice to what is established in the previous paragraph, the Agents are responsible for explaining to the persons they will affiliate to the System, the obligations and rights that arise from the affiliation, as well as regarding the functioning, characteristics and benefits of the affiliation or transfer to the System.

File of the Agents
Art. 24.- The AFP must maintain a file for each Agent it hires, which must contain as a minimum the following:
a) The curriculum vitae; b) Copy of the contract celebrated with the AFP;

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

c) Copy of the DUI, in the case of being Salvadoran; Passport, Residence Card or other document that accredits their nationality in the case of being foreign; as well as work permit in the cases where required by law; d) Copy of the title of the highest academic degree obtained; e) Certificate of the National Civil Police; and f) Certificate of Criminal Records.

Training of the Agents
Art. 25.- The AFP must design and implement each year a training plan directed at its Agents.

It will be the responsibility of the AFPs that the hired Agents accredit at least forty hours of training each year on pension matters.

The training provided to the Agents must be documented, which will be available to the Superintendency at all times.

Dismissals, resignation or death of Agents
Art. 26.- The dismissal, resignation or death of an Agent must be informed by the AFP to the Superintendency within a period not greater than three days from the occurrence of the event, through the means it makes available, providing the information described in Annex No. 5 of these Norms.

The Superintendency with the information sent by the AFP regarding the dismissal, resignation or death of an agent, will cancel or suspend the Registry entry, or revoke the authorization granted to the Agent to operate as such, as applicable, in accordance with what is established in the Law of Supervision and Regulation of the Financial System.

Likewise, in the event of dismissal, when an Agent holds the authorization as an Agent for the Marketing of Voluntary Pension Savings Funds, the cancellation of the registry entry will generate the revocation of the authorization to operate as such.

States of the Agents
Art. 27.- The Superintendency will classify the states of the Agents, according to the values established in Annex No. 6 of these Norms.

Base of Agents for the AFPs
Art. 28.- The Superintendency will share the information described in Annex No. 7 of these Norms, with each of the AFPs after any modification to the Agents registry.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

CHAPTER IV
OTHER PROVISIONS AND VALIDITY

Technical details
Art. 29.- The Superintendency will send to the AFPs, with a copy to the Central Bank, the technical details related to the sending of the information established in the Annexes of these Norms, within a period not greater than thirty business days following the entry into force of these Norms.

The technical details will be limited to the collection of information in accordance with what is regulated in these Norms.

Repeal
Art. 30.- The [Norms for the Authorization and Registration of Pension Service Agents for Pension Fund Administrator Institutions -38), approved on October 4, 2021, by the Committee of Norms of the Central Bank of Reserve of El Salvador] are repealed.

Sanctions
Art. 31.- Non-compliance with the provisions contained in these Norms will be sanctioned in accordance with what is established in the Law of Supervision and Regulation of the Financial System.

Unforeseen aspects
Art. 32.- The unforeseen aspects in regulatory matters in these Norms will be resolved by the Central Bank through its Committee of Norms.

Validity
Art. 33.- These Norms will enter into force as of December 30, 2022.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022

Annex No. 1

FIELDS THAT THE LIST OF APPLICANT PERSONS MUST CONTAIN TO BE AUTHORIZED AS AGENTS

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Field Description Comment
Assigned AFP Code
Code assigned by the Superintendence to each AFP.
First Name
First name of the applicant.
Second Name
Second name of the applicant.
First Surname
First surname of the applicant.
Second Surname
Second surname of the applicant.
Married Surname
Married surname, if applicable.
Sex
Sex of the applicant.
ID Document Type
Describes the type of document used for identification: DUI, Passport, Resident Card.
ID Document Number
Number recorded on the identity document presented.
Tax Identification Number
Applicant's tax identification number.
Date of Birth
Applicant's date of birth.
Application Type
Indicates whether it is a new applicant or Agents who are inactive.
CUA
Field to be filled only in the case of Agents who are inactive.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022
Annex No. 2

FIELDS THAT THE LIST OF APPLICANTS WHO WERE EVALUATED AND COMMUNICATED TO THE AFP BY THE SUPERINTENDENCE MUST CONTAIN

Field Description Comment
Assigned AFP Code
Code assigned by the Superintendence to each AFP.
Applicant Code
Code assigned by the Superintendence to identify the applicant.
First Name
First name of the Applicant.
Second Name
Second name of the Applicant.
First Surname
First surname of the Applicant.
Second Surname
Second surname of the Applicant.
Married Surname
Married surname, if applicable.
Applicant Presence at Exam
Indicates whether the Applicant presented themselves for the evaluation or not.
Score Obtained
Score obtained in the evaluation.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022
Annex No. 3

INFORMATION SENT BY THE AFP OF APPLICANTS WHO PASSED THE EVALUATION AND WHO WILL SERVE AS AGENTS

Field Description Comment
Assigned AFP Code
Code assigned by the Superintendence to each AFP.
Applicant Code
Code assigned by the Superintendence to identify the applicant.
First Name
First name of the Applicant.
Second Name
Second name of the Applicant.
First Surname
First surname of the Applicant.
Second Surname
Second surname of the Applicant.
Married Surname
Married surname, if applicable.
Application Type
Indicates whether it is a new Applicant or Agents who are inactive.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022
Annex No. 4

INFORMATION SENT BY THE SUPERINTENDENCE OF AGENTS WHO HAVE BEEN AUTHORIZED AND REGISTERED IN THE REGISTRY

Field Description Comment
Assigned AFP Code
Code assigned by the Superintendence to each AFP.
CUA
Unique code assigned to the Agent.
Registry Entry Number
Assigned registry entry number.
First Name
First name of the Applicant.
Second Name
Second name of the Applicant.
First Surname
First surname of the Applicant.
Second Surname
Second surname of the Applicant.
Married Surname
Married surname, if applicable.
Application Type
Indicates whether it is a new Applicant or Agents who are inactive.
Agent Authorization Start Date
Date on which the Agent's authorization begins.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022
Annex No. 5

INFORMATION THAT THE AFP MUST NOTIFY IN CASES OF DISMISSAL, RESIGNATION, OR DEATH OF AGENTS

Field Description Comment
Assigned AFP Code
Code assigned by the Superintendence to each AFP.
CUA
Unique code assigned to the Agent.
Registry Entry Number
Assigned registry entry number.
First Name
First name of the Agent.
Second Name
Second name of the Agent.
First Surname
First surname of the Agent.
Second Surname
Second surname of the Agent.
Married Surname
Married surname, if applicable.
Separation Date
Date from which the separation from the AFP becomes effective.
Exit Category [(R=Resignation), (D=Dismissal), (F=Death)] Dismissal Cause As established in the Corporate Management Regulations for Pension Fund Administrators, when applicable.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022
Annex No. 6

AGENT STATUSES

Code Meaning Causes of Status
AC Active
Agents who are providing labor services at an AFP.
IN Inactive
Agents who are inactive in the development of their activities as Pension Service Agents.
CA Cancelled
Agents whose registry entry has been cancelled in accordance with the Law on Supervision and Regulation of the Financial System.

NSP-72
PENSION SERVICES FOR PENSION FUND ADMINISTRATORS Approval:
30/12/2022
Validity:
30/12/2022
Annex No. 7

INFORMATION TO BE SHARED BY THE SUPERINTENDENCE WITH THE AFP

Field Description Comment
Assigned AFP Code
Code assigned by the Superintendence to each AFP.
CUA
Unique code assigned to the Agent.
Registry Entry Number
Assigned registry entry number.
First Name
First name of the Agent.
Second Name
Second name of the Agent.
First Surname
First surname of the Agent.
Second Surname
Second surname of the Agent.
Married Surname
Married surname in the case of women.
Agent Authorization Start Date
Date on which the Agent's authorization begins.
Current Agent Status
Agent status according to the values established in Annex No. 6 of these Standards.