On November 15, the Superintendency of Banking, Insurance and Pension Funding (Superintendencia de Banca y Seguros – SBS) opened a public consultation on a draft amendment to the investment regulations of insurance companies, with regard to mutual funds and investment funds. It proposes to raise the investment commitment of the investment fund management company to 2 per cent. The text will be available on the SBS website for general public opinion until December 15, 2018.

Through this amendment, the Superintendency seeks to modify the eligibility requirements applicable to funds and incorporate new types of funds or trusts, aligning them with market practices and the requirements demanded by international regulation, with the objective of increasing investment opportunities for insurance companies. As such, the text of the draft amendment stipulates raising the investment commitment of the investment fund management company from 1% to 2%, in order to achieve a better alignment of incentives.

The text will be in consultation until December 15. In order to facilitate the process of sending comments and/or opinions, an electronic form has been set up on the SBS website.