The Superintendency of Pensions has opened a public consultation for a new regulation allowing Pension Fund Administrators (AFPs) to subcontract most of their functions, except investment management. This step aims to boost competition in the pension sector and ease entry for new players. AFPs will retain full responsibility for outsourced services.
The Superintendency of Pensions has launched a public consultation process for a regulatory project that updates rules on service contracting by AFPs. The proposal enables these entities to outsource all operations in their line of business, except for managing investments in pension funds. Activities that could be subcontracted include handling mandatory savings accounts, selling pension products, delivering benefits, and serving affiliates.
The regulatory body states that this outsourcing enhances efficiency and opens opportunities for investment-specialized entities lacking expertise in other operational areas. 'Subcontracting services is a mechanism that facilitates entry into the pension industry by new investment-specialized entities,' reads a statement from the Superintendency. This effort is part of the ongoing pension reform, which includes measures to increase competition and attract new market participants.
Furthermore, the regulation permits the Social Security Institute (IPS) to provide support services to AFPs, excluding investment management, with rates set by decree from the Ministries of Labor and Finance. The project also bolsters protections for affiliates' personal data, banning its use or sharing without consent, and requires regional offices for AFPs winning affiliate tenders.
Other updates cover service channels like video calls, improved service standards, and differentiated exams for staff. The comment period ends on December 29.
