On Dec. 2, MEX GVT amended property regime for retirement funds.
MEX GVT issued amendments to general provisions establishing the property regime.
Regime to which retirement fund administrators, PENSIONISSSTE, and the specialized investment companies for retirement funds and the special reserve will be subject.
Background
Established a reduction in the level of the special reserve and a gradual scheme.
In order to optimize the management of the reserve and strengthen the financial stability of the Retirement Savings System in the face of fluctuations in the market.
The scheme will ensure quality and technical capacity improvements of IT systems.
Highlights
Administrators must maintain a special reserve, whose amount will be determined.
For each of the Basic Investment Companies operated, it must invest in said Investment Company at least the amount equivalent to 0.55 percent of the Net Assets.
For each Additional Investment Company, it must invest at least the amount equivalent to 1.0 percent of the Net Assets corresponding to said Additional Investment Company.
The Administrators must submit the evaluation to the Commission for authorization.
Criteria and methodologies used must be approved by the Risk Analysis Committee.
The Commission will evaluate the operational and financial risks of the Administrators, on an annual basis and prior to the application of the aforementioned reduction.
Board of Directors will periodically evaluate amount and composition of the reserve.
Effectiveness
These amendments will come into force on the first business day of 2025.
With entry into force, all provisions that contravene these amendments are revoked.
Regulators
MEX GVT
Entity Types
Bank; Corp; Inv Co; Pension
Reference
OG, 12/2/2024
Functions
Compliance; Financial; Legal
Countries
Mexico
Category
State
Products
Banking; Fund Mgt; Pensions; Retirement Plan; Securities
