Overview

• The regulator’s proposal sets a minimum B+ financial strength rating to operate as a pension fund administrator, with 46 of 59 potential firms meeting the bar, including banks, microfinance institutions and insurers.
• Prospective entrants must seek authorization to add a new line of business and submit technical documentation, with the SBS required to respond within 40 business days.
• The draft also allows participation through a tender for new affiliates as an alternative entry route, with public comments on the proposal accepted through October 16.
• The SBS will form an internal technical team to deliver a comprehensive study of Peru’s pension systems to Congress, the BCRP and the MEF.
• Sergio Espinosa announced an open finance committee with World Bank assistance and upcoming regional offices in Tarapoto, Trujillo and Cusco, while BCRP chief Julio Velarde backed mandatory, individual, professionally managed pensions and warned that repeated withdrawals and aging threaten retirement adequacy; the SBS reports pension assets have fallen to 10.3% of GDP from nearly 25% in 2019.