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After an inquiry that spanned two years, the Superintendency of Pensions (SP) reported this Friday that it determined sanction six of the seven Pension Fund Administrators (AFP) that operate in Chile.
In detail, the foregoing occurred within the framework of an investigation of irregularities committed by pension advisers and sales agents of insurance companies in operations carried out in the System of Consultations and Offers of Pension Amounts (SCOMP), as well as the responsibility of the AFPs and insurers in said process.
SCOMP is the system through which members who are ready to retire obtain comparable information regarding life annuity and programmed retirement offers.
The SP finally sanctioned them “for a total of 13,000 development units “
The AFP Capital and Habitat were fined 2,500 UF each ($ 71,725,000 approximately).
Meanwhile, the administrators Cuprum, Modelo, Planvital and Provida were fined 2,000 UF each (approximately $ 57,380,000).
The regulator explained that the six AFPs sanctioned they did not act diligently in compliance with current regulations regarding the control they must exercise to ensure the authenticity of the certificates of offers and pension amounts issued by SCOMP, together with receiving acceptance of the offer without the presentation, by the applicant, of the original offer certificate .
“In addition, in the case of two administrators it was aggravating not having the backups of the documentation in the respective pension files in some of the investigated cases, ”said the SP.
The sanctions are entirely of fiscal benefit and they were notified to regulators earlier this week.
Each AFP has a term of five working days in case of opting for an administrative appeal before the Superintendency of Pensions and / or 15 working days if it decides to file a claim with the Santiago Court of Appeals.
“If they do not opt for any of these actions, each administrator must cancel the fines issued no later than the following five business days the end of the previous term, “added the regulator.
Joint investigation
In June 2018, the SP and the Financial Market Commission (CMF) initiated a joint investigation after detecting irregular practices by pension advisers and life annuity sales agents of insurance companies, who provided information related to their clients, without their authorization, to transform the copy of the Certificate of Pension Offers -which the advisor or agent receives- into a adulterated “original” certificate.
The foregoing was intended to advance the acceptance of offers and selection of pension modalities by the affiliate, with the aim of ensuring the closing of the business and, with it, the right to collect the respective commission and fee.
The audit confirmed that the adulterated certificates did not show changes in the amounts and ranking of the pension offers.
However, in April 2019 the SP and the CMF sanctioned 16 pension advisers with fines and suspension of their operations within the framework of the same investigation.
After the start of the joint investigation in 2018, the Superintendency and the CMF instructed a series of measures to strengthen SCOMP that were immediately implemented by the system administration.
The AFPs and life insurance companies were also instructed to reinforce the control procedures applied to verify that the Certificate of Offers that the member has to accept a pension is the original certificate.
Additionally, on January 4, 2019, the Superintendency of Pensions and the CMF issued a joint regulation that perfected the operation of SCOMP to facilitate the affiliate’s analysis and decision process when retiring.
* Source: Superintendency of Pensions
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