Chile's Superintendence of Pensions has published for comment a draft general rule to refine and harmonise the framework for creating a new pension fund administrator (Administradora de Fondos de Pensiones, AFP), covering incorporation, regulatory authorisation and the conditions to begin operating. The consultation runs until 16 December. The draft implements elements of the pension reform law that broaden who can establish an AFP, including non-bank general fund managers and savings and credit cooperatives supervised by the Financial Market Commission, and family allowance compensation funds supervised by the Superintendence of Social Security, subject to meeting legal requirements and obtaining sectoral authorisation. It also reflects new safeguards, including an explicit limit of one AFP per business group and a requirement for founder shareholders to disclose ultimate beneficial owners with a direct or indirect stake of at least 10% of capital or voting rights, or who exercise effective control. The proposal also sets a minimum start-up capital of 50,000 UF and introduces minimum experience criteria for most board members and key investment roles, tied to experience in third-party asset management at entities managing at least USD 1 billion; these experience requirements are intended to apply to existing AFPs as well, with a transition period running to April 2027. For operational launch, the draft details pre-conditions including an established board, hiring of qualified investment and operational/account administration teams, approved manuals and detailed procedures across core processes, adequate technology infrastructure, formalised critical third-party contracts, and adoption of policies on investments and conflicts of interest, outsourcing, information security and cybersecurity, service, and risk management. The Superintendence also flags that outsourcing rules for AFP functions, including the statutory restriction that investment-related functions cannot be outsourced, will be addressed in a separate draft to be published for comment.
Ministry of Finance (Chile) 2025-12-02
Chile's Superintendence of Pensions consults on new AFP licensing and start-up rules including a 50,000 UF minimum capital
Chile's Superintendence of Pensions has released a draft rule for public comment to refine the framework for establishing new pension fund administrators (AFP), including incorporation and regulatory authorization. The draft expands eligibility to non-bank fund managers and cooperatives, introduces safeguards like a limit of one AFP per business group, and sets requirements for disclosure of beneficial ownership and minimum start-up capital. It also outlines operational pre-conditions and experience criteria for board members, with a transition period for existing AFPs until April 2027.