New draft decree expands entities to manage resources of the pension system in Colombia

by times news cr

2024-09-27 02:29:55

According to the project, additional resources that exceed this limit may be managed by a greater variety of entities, as long as they comply with the requirements established in the regulations.

The Ministry of Finance, together with the Regulatory Projection and Financial Regulation Studies Unit (URF), has issued a new draft decree that seeks to regulate the administration of the resources of the pension system in Colombia. This initiative arises after the recent approval of the pension reform and proposes the inclusion of more entities in charge of managing these resources, which could diversify management and increase competition in the sector.

According to the project, Colpensiones will continue to be the main administrator of the contributions of contributors who are in the range of between 1 and 2.3 minimum wages. However, additional resources that exceed this limit may be managed by a greater variety of entities, as long as they comply with the requirements established in the regulations.

Among the entities that will be able to manage these resources, the most notable are the pension fund management companies of the Individual Savings Regime with Solidarity, the trust companies, the life insurance companies, the stock brokerage companies, Colpensiones or the entity that makes its times, and non-profit entities supervised by the Financial Superintendence of Colombia.

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Requirements for administrative entities

The document establishes that entities that wish to manage the resources must have a minimum capital of $20,217 million and comply with the appropriate solvency levels and minimum equity ratio, as provided in Decree 2555 of 2010. These requirements seek to guarantee the soundness financial situation of the entities involved in the management of pension funds.

In addition, entities are required to have a Board of Directors that includes a representative of the members of the Complementary Individual Savings Component of the Contributory Pillar, with voice and vote in decisions related to the administration of the funds. It must also include a representative of the Premium Media Component affiliates and independent members, of which at least 25% must meet this characteristic.

Assembly of affiliates and conflicts of interest

Another important point of the project is the creation of an ordinary assembly of members, which will meet for the first time in March 2026 and, from then on, at least once a year. In these meetings, members will be able to elect their representatives, evaluate the fund management report and appoint a fiscal auditor.

The decree also establishes measures for the identification, management and disclosure of conflicts of interest, as well as clear policies on the duties of managing entities.

The project will be available for public and market comments until October 10, and its validity will begin upon its official publication, subject to the transitional provisions contemplated in the document.

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