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The central bank (BC) delivered this Wednesday its Financial Stability Report for the first semester of 2020, which gives rise to various topics of interest, such as the request for regulation to pension consultancies.
“It is an issue that we have been following up on from the perspective of financial stability“, said Solange Berstein, financial policy manager of the BC, in Economic Agenda.
Along these lines, he added that in this report “we realize that the massive movements of funds that have been observed in recent months are motivated by recommendations of unregulated pension advisers“
These same would be generating social security damage to people who follow their recommendations: “From the point of view of financial stability, we have the impact on future pensions of the same affiliates that move their funds from one investment alternative to another with relative frequency in search of higher profitability ”.
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On the other hand, added Berstein, frequent movement from one fund to another generates operational costs to the AFPs, which would ultimately translate into another impact on people’s retirement.
For example, organizations such as Felices y Forrados could be subject to registering with the relevant body, meet the suitability and knowledge requirements, as well as declaring eventual conflicts of interest. All this added to a possible inspection by the authority.
Delivery of “COVID-19 Credits”
On the other hand, the BC’s financial policy manager detailed what was reported in relation to loans with a state guarantee or “COVID-19 credits”, delivery to companies of different types and types. To date there are already 13,398 loans that have been completed.
“It is to smaller companies that a large part of the resources of this Fogape line of credit has been allocated. That also speaks positively to us where are the resources being channeled which are precisely those companies that are more dependent on bank credit, ”he said.
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