New requirements for organizations to establish themselves as Pension Fund Administrators (AFPs) were approved by the Superintendence of Pensions on July 31, 2009. The resolution aims to protect benefits by ensuring only financially viable AFPs are established.
Following the new regulation, to be recognized as an AFP, organizations must:
- Identify shareholders who own more than 1 percent of the fund’s market capitalization, as well as pension managers and directors. Additionally, detailed background for each key executive must be provided.
- Provide authorizing certificates issued by the Assets and Insurance Superintendence, the Bank and Financial Institutions Superintendence and the Bankruptcy Superintendence.
- Conduct a feasibility study that includes the owner’s financial statements dating back to the last two years, a description of organizational structure with estimations of the required human resources and job descriptions, and a financial sustainability analysis with projected financial statements for 10 years.