Chile's Superintendence of Pensions issued two new General Rules to complete the operating framework for the new Autonomous Pension Protection Fund (FAPP) and to set governance, accounting and reporting expectations for its administrator, the Administrator of the Autonomous Pension Protection Fund (AFAPP). The measures focus on standardised financial disclosure and audit requirements for the administrator, and on daily accounting controls and supervisory reporting around bank debits and credits affecting the fund’s assets, which are intended to finance benefits under the new Social Security Insurance (SSP). General Rule (NCG) No. 347, issued on 27 August 2025 and effective immediately, sets the regulatory framework for the preparation, submission and audit of AFAPP financial statements. Required statements include a balance sheet, statement of changes in equity, budgetary position statement, income statement and cash flow statement, prepared under Superintendence instructions and, where not covered, aligned with Chilean public sector accounting rules under the Comptroller General’s Resolution No. 16 of 2015 (as amended or replaced). The rule also requires explanatory notes and additional disclosures needed for interpretation, including breakdowns of “significant” balances defined as more than 10% of assets, liabilities, equity, income or expenses, as applicable; a sworn declaration of responsibility for the truthfulness of quarterly and annual reports signed by all board members, the executive director and the responsible accountant; and an independent audit of the December year-end financial statements to be submitted within 60 days of year-end, alongside an interim review report from independent auditors submitted with the 30 June financial statements. General Rule (NCG) No. 348, also issued on 27 August 2025, establishes accounting instructions for the FAPP to reflect the separation of the fund’s assets from its administrator and to ensure all movements are recorded daily, including via a mandatory chart of accounts and account manual. It further sets compulsory procedures for AFAPP on the treatment and recording of improper bank debits and credits and other payment and accounting operations in the fund, including a requirement to clarify any bank debit shown in FAPP account statements that does not match the account manual or has an unknown cause within a maximum of 20 business days from the date it was recorded, and to submit a monthly list to the Superintendence of Pensions of bank debits that remain unclarified or lack supporting documents at the end of the prior month.

Original source View in tracker