Overview

• The SBS proposal would allow banks, municipal and rural cajas, financieras, investment banks and insurers to manage retirement savings if they hold at least a B+ financial strength rating.
• Under the threshold, about 46 of 59 potential firms could qualify, and applicants must obtain an additional line-of-business authorization with an SBS decision due within 40 working days.
• New administrators could also enter via the auction of new affiliates, and the draft is open for public comments until October 16.
• SBS chief Sergio Espinosa also launched an internal technical team to produce a comprehensive study of Peru’s pension systems for the BCRP, Congress and the MEF.
• BCRP president Julio Velarde called for a mandatory, individually managed system and warned that demographic aging and continued withdrawals threaten future pensions.