Peru's Superintendency of Banking, Insurance and Pension Funds Administrators updates insurers’ investment rules and lifts the notification and authorisation cap to 35% of technical provisions

Peru's Superintendency of Banking, Insurance and Pension Funds Administrators amended the investment regulation for insurance companies, expanding eligible investment options while aligning the framework with recent international regulatory changes and, where applicable, with investment rules for the private pension system. The changes add new eligible instruments and investment operations, including co-investments and private debt funds, and permit investments in sovereign exchange traded funds, while excluding investments in corporate debt of firms in bankruptcy proceedings (including Chapter 11 equivalents), distressed debt and high yield debt. The limit for eligible investments that can be made under the notification and authorisation process increases to 35% from 30% of technical provisions, alongside a new 5% sublimit for private equity funds (including mezzanine financing), private debt and co-investments. Eligibility requirements for certain asset classes, including debt, equities, funds and real estate, were updated; documentation requirements for notification and authorisation were revised; minimum content requirements for the Investment Policy and Annual Investment Plan were enhanced; and risk ratings from rating agencies registered with the US Securities and Exchange Commission, the European Securities and Markets Authority or G10 market regulators are recognised as valid.