Chile's Superintendence of Pensions issued a new General Rule updating the framework for establishing, authorising and launching a new pension fund administrator (AFP), implementing requirements under the pension reform and tightening standards for pension fund management. The rule sets the authorisation pathway for new AFPs, including applications by non-bank-affiliated general fund managers, savings and credit cooperatives and family allowance compensation funds, provided they meet legal requirements and obtain prior clearance from their sector regulator before applying to the Superintendence of Pensions. It also reflects the reform’s limit of one AFP per business group, updates the minimum capital requirement for forming an AFP to 50,000 UF, and specifies minimum experience standards for investment governance, including at least seven years of asset management experience for the head of investments, at least five years for the investment risk lead and key investment professionals in entities managing at least USD 1 billion, and at least five years for a majority of directors in entities managing at least USD 1 billion. Operational readiness expectations are expanded, covering feasibility study requirements, net worth and eligible assets, organisational design and role profiles, a detailed implementation Gantt chart showing in-house versus outsourced functions, documented procedures across core processes, technology infrastructure, executed third-party contracts, and policies on outsourcing, risk management, investments and conflicts of interest, and information security and cybersecurity. While the General Rule is effective immediately, the new experience requirements, the 50,000 UF minimum capital threshold and new encaje requirements take effect in April 2027, and existing AFPs have until that date to meet the experience standards.

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