Modifies D.l. No. 3,500 Investment Of Pension Funds

Original Language Title: MODIFICA D.L. Nº 3.500, EN MATERIA DE INVERSION DE LOS FONDOS DE PENSIONES

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"Sole article.-Introducense the following modifications in the Decree Law No. 3,500 of 1980: 1." Disposed of in article 17, in the second sentence of the second paragraph, the phrase "attached to the same type of background,", which is located between the words "Administrator", and "without prejudice".

(Amended 2 the tenth paragraph of article 19 with the following: a) delete, in the first sentence, between the words "Pension" and "all", the following sentence "type 1, or nominal profitability for the last twelve months average of all funds of pension type 2".

(b) replace, in the first sentence, the expression "three", which is located between the words "these" and "rate", "two".

(c) disposed of in the second sentence following the word "Funds" expression "of the same type".

(d) removed at the end of the second sentence, the expression "of the same type" that is located below the word "Funds".

3 amending article 23 of the following way: to) Reemplazanse first and second subparagraphs by the following new subparagraphs, passing current subparagraphs third to fifteenth to be tenth to twenty-second, respectively: "the pension funds, also called in this law administrators, will be corporations that will have as exclusive object manage pension funds and grant and administer benefits and benefits established by this law."
Each administrator shall maintain four funds, called Fund of pension type B, type C Pension Fund, pension fund type D and type E. Pension Fund also, the administrator may maintain an additional fund, called Fund of pension type A. Total balances by compulsory contributions, agreed deposits and voluntary contributions, as well as the voluntary savings account, may remain in different types of funds. At the same time, the savings account of compensation, referred to in Act No. 19.010, must remain in the same kind of background they are compulsory contributions.
Affiliates men up to 55 years of age and women 50 years of age, eligible for any of the funds referred to in the preceding paragraph. At the same time, since 56-year-old members men and women from 51 years of age, not eligible by fund type A, with respect to balances incurred in compulsory contributions and compensation savings account. Retired members for scheduled removal and temporary income and affiliate declared disabled by a first opinion, not eligible by funds type A or B with respect to the aforementioned balances.
If 56 years of age, in the case of affiliated men and 51 years of age, in the case of women, their balance by compulsory contributions and your compensation savings account is found in the background type, they must be transferred to any of the remaining funds, within a period of 90 days. In case that the affiliate not opt for any of the funding type B, C, D or E, in the period before pointed out, the above balances will be assigned to bottom type B gradually, according to the sixth paragraph.
If at the time of joining the system, the worker not opt for any of the types of funds, will be assigned to one of those in the following manner: a. members men and women up to 35 years of age, will be assigned to the background type B.
b. affiliates men from 36 to 55 years of age and women from 36 to 50 years of age, will be assigned to the background type C.
c. members from 56 years men and women from 51 years of age, members declared invalid by a first opinion and pensioners by modalities of programmed retirement or temporary income, they will be assigned to the background type D.

When the Member has been assigned to a Fund and subsequently no demonstration of your choice by any of them, the balances in compulsory contributions, compensation savings account, account of voluntary savings, agreed deposits and voluntary contributions, will be transferred partially to fund that corresponds according to the designated in the preceding paragraph, in the opportunities and amounts listed below : a. when completing the affiliate age to change the age section, a twenty per cent of their total balances must remain at the bottom corresponding to the new section.
b. after a year from the fulfillment of the age in which the affiliate changed section age, forty percent of your total balances must remain at the bottom corresponding to the new section.
c. two years after the fulfillment of the age in which the affiliate changed section age, sixty percent of your total balances must remain at the bottom corresponding to the new section.
d. after three years from enforcement of the age in which the affiliate changed section age, eighty percent of your total balances must remain at the bottom corresponding to the new section.
e after four years from the fulfillment of the age in which the affiliate changed stretch age, a one hundred percent of your total balances must remain at the bottom corresponding to the new section.

However, contributions and deposits after assignments are carried out in the above-mentioned opportunities, should find out in the kind of background that corresponds according to the stretch age to which belong the affiliate, as set out in the fifth paragraph. At the same time, the allocation established in the previous paragraph, will not occur for those balances which the affiliate has chosen expressly some background.
The administrators should send information to its affiliates referred to choice and the allocation between funds, according to what established the Superintendency in a general rule. Such information shall be submitted jointly with the communication to that referred to in the second paragraph of article 31, during the period between the twelve months prior to the first transfer of resources and the twelve months after the last transfer of resources, referred to the sixth.
Members and administrators may agree that each of the balances by compulsory contributions, compensation savings account, account of voluntary savings, agreed deposits and voluntary contributions, are assigned to two types of funds. In addition, be they may agree to future among types of funds transfers, must not the same balance distributed on more than two types of funds. A general rule, issued by the Superintendent, shall regulate the mode of exercising the options referred to in this subsection. Administrators who choose to conclude these agreements, companies must sign them with all their members so request it. "."

(b) Reemplazanse, in sixth and seventh, items that have passed to be 13th and 14th, respectively, references to the "fifth" subsection by "twelfth".

(c) Reemplazanse in the tenth paragraph, which happened to be seventeenth, references to the "fifth" subsection and the "ninth" subsection by "twelfth" and "16th", respectively.

4. replace, in the fifth paragraph of article 23 bis, the expression "and the larger pension fund", by the following sentence: "of the system and the Pension Fund of greater size, whereas in the latter case the sum of all types of funds of an administrator".

5. replace, in the final paragraph of article 24, the expression "fifth, ninth and 13th", "twelfth, sixteenth and twenty".

6 amending the fourth paragraph of article 28 in the following way: to) interlayer, then the first sentence as follows: "also in the mentioned study, the Superintendency should disseminate the profitability of each one of the administrators. These returns must also be submitted NET lace, investments in companies of deposit of securities and investments in companies that complement the rotation of managers, such as subsidiary corporations that manage portfolios of social security resources and subsidiary corporations that provide services or invest abroad, referred to in article 23. Also, these returns will be presented net of other extraordinary income. For this purpose, it shall mean net profitability that excludes both the utility or loss generated by the above mentioned resources as well as investment in these.

(b) replace, in the last sentence, the expression "once a year" for "every six months".

7 removed, in the first paragraph of article 29, the sentence "attached to the same type of background,".

8 modified article 32 in the following way: to) Reemplazanse third and fourth subparagraphs by the following new paragraph, passing the current subsection fifth to be final paragraph:
"In addition, affiliates may transfer the value of their shares to another type of Fund, fulfilling the requirements laid down in the third subparagraph of article 23. Such a transfer between types of funds, both for the individual capitalization account and in the case of the voluntary savings account shall be freely. However the above, members carried out more than two transfers in a calendar year, must pay a fixed charge Commission whenever they carry out such additional transfers. The foregoing shall apply separately to balances by compulsory contributions, agreed upon deposits, voluntary contributions and voluntary savings account. Commission may not be dismissed from the balance of these accounts, or the contributions made by the Member. "."

(b) delete, in the fifth paragraph, which has become final paragraph, the sentence that begins with the expression "and your employer..." and ends with the expression "as appropriate".

(c) Eliminanse current sixth and seventh paragraphs.

9 insert, in article 34, the following third paragraph again, passing his current third subparagraph to be final paragraph: "(A su vez, cesará también la inembargabilidad, para los efectos de dar cumplimiento forzado a las obligaciones emanadas de los contratos de carácter financiero a que se refieren las letras k) and (n) of article 45.".

10 remove the third sentence of the second paragraph of article 35, which begins with the word "Also" and ends with the expression "Pension funds".

11 Reemplazanse, in article 37, first and second subparagraphs by the following: "article 37.-each month, the administrators will be responsible for the real annualized return of the last thirty-six months of each of its funds, not be less than that is lower among: 1. in the case of funds types A and B" ((: a) the annualized real of the last thirty-six months average of all funds of the same type, as appropriate, minus four percentage points, and b) the annualized real of the last thirty-six months average of all funds of the same type, as appropriate, less the absolute of fifty percent of the return value.

2 in the case of the funding types C, D and E: a) the annualized real of the last thirty-six months average of all funds of the same type, as appropriate, less two percentage points, and b) the real annualized for the last thirty-six months average of all funds of the same type, as appropriate , minus the absolute value of fifty percent of the profit.
Without prejudice to the provisions of the preceding paragraph, in the event that a Fund has less than thirty-six months of operation, the aforementioned profitability is calculated for the period in which the Fund is operating. "."

12 Reemplazanse items first and second article 39 by the following: "article 39.-profitability of fluctuation reserve, which will be expressed in the respective pension fund quotas, will be formed with the excesses of real annualized for the last thirty-six months of a Fund, exceeding the amount which is greater in a month between" (((: 1) in the case of the funds types A and B: to) the annualized real of the last thirty-six months average of all funds of the same type, as appropriate, plus four percentage points, and b) the annualized real of the last thirty-six months average of all funds of the same type, as appropriate, most absolute of fifty percent of the return value.

(((2) in the case of the funding types C, D and E: a) the annualized real of the last thirty-six months average of all funds of the same type, as appropriate, plus two percentage points, and b) the real annualized for the last thirty-six months average of all funds of the same type, as appropriate , the absolute value of fifty percent of the profitability.
Without prejudice to the provisions of the preceding paragraph, in the event that a Fund has less than thirty-six months of operation, the fluctuation reserve of profitability be formed with annualized real return of the respective fund excesses, in the months in which it is operating. "."

13 amending article 42 in the following way: to) replace in the third paragraph the expression "of the other Fund' which lies between the expression 'profitability' and the preposition"to"by"other funds".

(b) replaced in the sixth paragraph the expression "third" with "fourth".

(14 amending article 44 in the following way: a) substituted in the fifth paragraph, the phrase "the expression" type 1 "or"Type 2", as appropriate, preceded", which lies between "then" and "name", by "the kind of background that corresponds, preceded".

(b) add the following final new subsection: "(Para efectos deel cumplimiento de la obligación establecida en el inciso primero, se entenderá como valor de un Fondo de Pensiones ael patrimonio definido en la letra a) of article 98, deducted the value of the financial instruments given in loan referred to in the letters k) and (n) of the subsection second item 45" , where applicable. "."

15 amending article 45 as follows: to) Agreganse at the end of the letter k) of the second paragraph, after the semicolon (;), which happens to be dot (.) followed, the following sentences: "at the same time, for the purposes of the foreign investment, the administrators, with the resources of the pension funds, may invest in certificates representing securities indices and short-term deposits , and conclude contracts of loans of assets; all of which shall be made in accordance with the conditions that indicate the regulation. They may also invest in other securities and financial instruments, operations and contracts of a financial nature, authorizing the Superintendent, following a report from the Central Bank of Chile, and under the conditions established the regulations. However, the limits for the sum of investments in securities and financial instruments, operations and contracts mentioned above, where required by its nature, should be established within the investment limits that the Central Bank of Chile is set, in accordance with the above paragraph this article twenty; "."

((b) add the following letter n), new, in the second paragraph: "n) operations or contracts that have as object the loan or mutual financial issuers belonging to the Pension Fund, national instruments, and which comply with the characteristics laid down by standard of general character, which will dictate the Superintendency.".

(c) delete the third paragraph.

(d) replace, in the third sentence of the fifth paragraph, which happened to be fourth, the expression "the letter g)", by "the letters g) e i)".

(e) Reemplazanse tenth and eleventh, subparagraphs which have become ninth and tenth, by following subparagraphs new, passing the current twelfth subparagraph to be 15th: "(El Fondo de Pensiones Tipo A podrá invertir en los instrumentos, efectuar las operaciones y celebrar los contratos señalados en las letras a) n) of the second paragraph of this article." For this pension fund, the ceilings for investments, operations and contracts referred to in the second paragraph, must adhere to the ranges listed below, corresponding to the Central Bank of Chile the determination of those that are defined at the number 1 to the following 8: 1) the limit for the sum of investments in instruments mentioned in the letter to) It may not be less than thirty per cent nor superior to forty per cent of the value of this Fund.
(((2) the limit for the amount of investment in the instruments referred to in b) and (c)), may not be less than thirty per cent nor superior to forty per cent of the value of this Fund.
((3) the limit for the amount of investment in the instruments referred to in point (d)), may not be less than thirty per cent nor superior to forty per cent of the value of this Fund.
(((4) the limit for the sum of investments in instruments mentioned in the letters e) and f), may not be less than twenty per cent nor superior to thirty per cent of the value of this Fund.
(((5) the limit for the sum of investments in instruments indicated in letters g) and h), shall be not less than forty-five per cent nor superior to sixty per cent of the value of this Fund.
((6) the limit for the sum of investments in instruments indicated in the letter i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, may not be less than thirty per cent nor superior to forty per cent of the value of this Fund. However, the limit for the sum of the investments of the Pension Fund in shares of mutual funds, referred to in the letter i), will be five per cent of the value of this Fund.
((7) the limit for the sum of investments in instruments mentioned in the letter j), may not be less than ten per cent nor superior to 20% of the value of this Fund.
((8) limit for the sum of transactions or contracts that target the loan or mutual financial instruments mentioned in the letter n), calculated on the basis of the value of the financial instruments given in loan, may not be less than five per cent nor superior to 20% of the value of this Fund.
9) the limit for the sum of investments in instruments indicated in letters g), h) e i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, as well as the letters k) and l), in the case of instruments representative of capital, shall not exceed eighty per cent of the value of this Fund. Also, the sum of investments in the aforementioned instruments, may not be inferior to forty per cent of the value of this pension fund.
Pension fund types B may invest in instruments, carry out the operations and conclude the contracts mentioned in the letters to) to n) of the second paragraph of this article. For this pension fund, the ceilings for investments, operations and contracts referred to in the second paragraph, must adhere to the ranges listed below, corresponding to the Central Bank of Chile the determination of those that are defined at the number 1 to the following 8: 1) the limit for the sum of investments in instruments mentioned in the letter to) It may not be less than thirty per cent nor superior to forty per cent of the value of this Fund.
(((2) the limit for the amount of investment in the instruments referred to in b) and (c)), may not be less than thirty per cent nor superior to forty per cent of the value of this Fund.
((3) the limit for the amount of investment in the instruments referred to in point (d)), may not be less than thirty per cent nor superior to forty per cent of the value of this Fund.
(((4) the limit for the sum of investments in instruments mentioned in the letters e) and f), may not be less than twenty per cent nor superior to thirty per cent of the value of this Fund.
(((5) the limit for the sum of investments in instruments indicated in letters g) and h), may not be less than the 35 per cent nor superior to fifty percent of the value of this Fund.
((6) the limit for the sum of investments in instruments indicated in the letter i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, may not be less than twenty per cent nor superior to thirty per cent of the value of this Fund. However, the limit for the sum of the investments of the Pension Fund in shares of mutual funds, referred to in the letter i), will be five per cent of the value of this Fund.
((7) the limit for the sum of investments in instruments mentioned in the letter j), may not be less than ten per cent nor superior to 20% of the value of this Fund.
((8) limit for the sum of transactions or contracts that target the loan or mutual financial instruments mentioned in the letter n), calculated on the basis of the value of the financial instruments given in loan, may not be less than five per cent nor superior to 20% of the value of this Fund.
9) the limit for the sum of investments in instruments indicated in letters g), h) e i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, as well as the letters k) and l), in the case of instruments representative of capital, shall not exceed sixty per cent of the value of this Fund. In addition, the sum of investments in the aforementioned instruments, may not be less to twenty-five per cent of the value of this pension fund.
Pension Fund type C can invest in instruments, perform operations, and conclude contracts mentioned in the lyrics to) to n) of the second paragraph of this article. For this pension fund, the ceilings for investments, operations and contracts referred to in the second paragraph should adhere to the ranges listed below, corresponding to the Central Bank of Chile the determination of those that are defined at the number 1 to the following 8: 1) the limit for the sum of investments in instruments mentioned in the letter to) It may not be less than the 35 per cent nor superior to fifty percent of the value of this Fund.
(((2) the limit for the amount of investment in the instruments referred to in b) and (c)), may not be less than the 35 per cent nor superior to fifty percent of the value of this Fund.
((3) the limit for the amount of investment in the instruments referred to in point (d)), may not be less than the 35 per cent nor superior to fifty percent of the value of this Fund.
(((4) the limit for the sum of investments in instruments mentioned in the letters e) and f), may not be less than thirty per cent nor superior to forty per cent of the value of this Fund. However, with respect to the instruments mentioned in (f)), the limit for the sum of investments may not be less than ten per cent nor superior to fifteen per cent of the value of this Fund.
(((5) the limit for the sum of investments in instruments indicated in letters g) and h), may not be less than fifteen per cent nor superior to thirty per cent of the value of this Fund.
((6) the limit for the sum of investments in instruments indicated in the letter i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, may not be less than ten per cent nor superior to 20% of the value of this Fund. However, the limit for the sum of the investments of the Pension Fund in shares of mutual funds, referred to in the letter i), will be five per cent of the value of this Fund.
((7) the limit for the sum of investments in instruments mentioned in the letter j), may not be less than ten per cent nor superior to 20% of the value of this Fund.
((8) limit for the sum of transactions or contracts that target the loan or mutual financial instruments mentioned in the letter n), calculated on the basis of the value of the financial instruments given in loan, may not be less than five per cent nor superior to 20% of the value of this Fund.
9) the limit for the sum of investments in instruments indicated in letters g), h) e i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, as well as the letters k) and l), in the case of instruments representative of capital, may not exceed forty per cent of the value of this Fund. In addition, the sum of investments in the aforementioned instruments, may not be less to fifteen per cent of the value of this pension fund.
((10) the limit for the sum of investments identified in the preceding number 9, more the sum of debt instruments rated BBB category and level N-3 risk and instruments mentioned in the letter f), may not exceed of the forty-five per cent of the value of this Fund.
Pension Fund type D can invest in instruments, perform operations, and conclude contracts mentioned in the lyrics to) to n) of the second paragraph of this article. For this pension fund, the ceilings for investments, operations and contracts referred to in the second paragraph should adhere to the ranges listed below, corresponding to the Central Bank of Chile the determination of those that are defined at the number 1 to the following 8: 1) the limit for the sum of investments in instruments mentioned in the letter to) It may not be less than forty per cent nor superior to seventy per cent of the value of this Fund.
(((2) the limit for the amount of investment in the instruments referred to in b) and (c)), may not be less than forty per cent nor superior to seventy per cent of the value of this Fund.
((3) the limit for the amount of investment in the instruments referred to in point (d)), may not be less than the 35 per cent nor superior to sixty per cent of the value of this Fund.
(((4) the limit for the sum of investments in instruments mentioned in the letters e) and f), may not be less than thirty per cent nor superior to fifty percent of the value of this Fund. However, with respect to the instruments mentioned in (f)), the limit for the sum of investments may not be less than five per cent nor superior to 10% of the value of this Fund.
(((5) the limit for the sum of investments in instruments indicated in letters g) and h), may not be less than five per cent nor superior to fifteen per cent of the value of this Fund.
((6) the limit for the sum of investments in instruments indicated in the letter i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, may not be less than five per cent nor superior to 10% of the value of this Fund. However, the limit for the sum of the investments of the Pension Fund in shares of mutual funds, referred to in the letter i), will be five per cent of the value of this Fund.
((7) the limit for the sum of investments in instruments mentioned in the letter j), may not be less than twenty per cent nor superior to forty per cent of the value of this Fund.
((8) limit for the sum of transactions or contracts that target the loan or mutual financial instruments mentioned in the letter n), calculated on the basis of the value of the financial instruments given in loan, may not be less than five per cent nor superior to 20% of the value of this Fund.
9) the limit for the sum of investments in instruments indicated in letters g), h) e i), plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48, as well as the letters k) and l), in the case of instruments representative of capital, shall not exceed twenty percent of the value of this Fund. In addition, the sum of investments in the aforementioned instruments, will have a minimum limit which may not be inferior to five per cent of the value of this pension fund.
((10) the limit for the sum of investments identified in the preceding number 9, more the sum of debt instruments rated BBB category and level N-3 risk and instruments mentioned in the letter f), may not exceed twenty-two per cent of the value of this Fund.
Resources of the type E Pension Fund, may be invested in instruments, perform the operations, and conclude contracts mentioned in the letters to), b), c), d), e), j), k) and l) in case of debt securities, m) and n), of the second paragraph of this article. For this pension fund, the ceilings for investments, operations and contracts mentioned in the second paragraph, that apply, must adhere to the ranges listed below, corresponding to the Central Bank of Chile the determination of those who are defined in paragraphs 1 to 6 following: 1) the limit for the sum of investments in instruments mentioned in the letter to) It may not be less than fifty per cent nor superior to eighty per cent of the value of this Fund.
(((2) the limit for the sum of investments in instruments mentioned in the letters b) and (c)), may not be less than fifty per cent nor superior to eighty per cent of the value of this Fund.
((3) the limit for the amount of investment in the instruments referred to in point (d)), shall be not less than forty-five per cent nor superior to seventy per cent of the value of this Fund.
((4) the limit for the sum of investments in instruments mentioned in the letter e), may not be less than forty per cent nor superior to sixty per cent of the value of this Fund.
((5) the limit for the sum of investments in instruments mentioned in the letter j), may not be less than thirty per cent nor superior to fifty percent of the value of this Fund.
((6) the limit for the sum of transactions or contracts that target the loan or mutual financial instruments mentioned in the letter n), calculated on the basis of the value of the financial instruments given in loan, may not be less than five per cent nor superior to 20% of the value of this Fund.
Without prejudice to the provisions in the preceding subparagraphs, a fund that has a greater limit on instruments representative of capital, should always have a greater percentage of its portfolio invested in this group of instruments. "."

(f) Eliminanse paragraphs thirteenth and fourteenth, becoming 15th current subparagraphs to vigesimoprimero sixteenth to twenty-second, respectively.

(g) replace the fifteenth paragraph, which happened to be 16th, by the following: "(La suma de los instrumentos señalados en la letra g), having the lowest factor of liquidity referred to in article 47, as determined by the Central Bank of Chile, will have a limit of investment funds types A, B and C, which may not be less than five per cent nor superior to 10% of the value of each one's" them. In the case of the type D funds, this limit may not be less than two per cent nor superior to five per cent of the value of the Fund. "."

(h) replace the sixteenth paragraph, which happened to be seventeenth, by the following: "(El límite máximo de inversión para los instrumentos señalados en las letras g) e i), that do not require the approval of the Commission rating risk Agency, will be three per cent for the funds types A and B and one per cent for funds types C and D.".

(i) replace, seventeenth paragraph, which happened to be eighteenth, the expression "fifth" by "room". Also be replaced at the end of the paragraph, the phrase "of the value of the Fund" by "for the funds types A, B, C and D".

(j) replace, in the 18th paragraph, which has become nineteenth, the expression "the Fund type 1 and the bottom type 2", by the following: "funds types A, B, C, D and E".

(k) replace, in the first sentence of the nineteenth paragraph, which has become a twentieth, the phrase "a pension fund type 1" for "pension funds types A, B, C and D". Also, in the second sentence, replace "Type E" prayer "Type 2".

(l) replace the first sentence of the 20th paragraph, which has become vigesimoprimero, the expression ", k)," "(y k) and l) both" and removed the expression "(, y l)" which is located next to the word "debt". Also replaced the expression "a pension fund type 1" for "pension funds types A, B and C". For his part, replace in the second sentence the expression "a pension fund type 2" for "pension funds types D and E".

(m) replace the first sentence of subsection vigesimoprimero, which happened to be twenty-second, by the following: "However, for each type of Fund A, B, C and D, the sum of the instruments referred to in subparagraphs sixteenth to the twenty-first previous, will be altogether restricted to a maximum of investment which may not be less than ten per cent nor superior to 20% of the value of the Fund.".

(n) replace paragraph twenty-second, which happened to be twenty, by following subparagraphs new, passing the current subsection twenty to be twenty-fifth: "(the upper limit for the sum of the investments of the pension funds types A, B, C, D and E of a same administrator in foreign securities, referred to in the letter k)(, más el monto de la inversión de los Fondos de Pensiones en los instrumentos de los números 17)-28) of the" Article 5 of the law Nº18.815, which occurs through investment funds, over the amount of the investment of pension funds in instruments 9. and 11. Article 13 of Decree Law Nº1.328, of 1976, which is carried out through mutual funds, may not be less than twenty per cent nor superior to 30% of the value of these funds. The investment that is made through the funds referred to in the letter i), shall only be considered in the designated limit, when they have invested abroad in more than fifty percent of their assets.
For each type of risk coverage operations outlined in the letter m), measured on a net basis, shall not exceed the investment of the respective fund in instruments subject to the coverage. The Central Bank will set ceilings for investment in foreign currency without Exchange coverage that will keep the administrators for each type of Fund. These maximum limits shall be within the range from 25% to 40% of the Fund for the Fund type; 15% to 25% of the Fund for the Fund type B; from 10% to 20% of the Fund type C Fund; from 8% to 15% of the Fund the Fund type D, and 6% to 10% of the Fund to the Fund type E. In any case, the maximum limit for Fund type E should be less than of the background type D; This, less of the background type c, which, in turn, must be less than the background type B. These thresholds can be modified every six months to a maximum of two percentage points on the last set percentage for the funding type C, D and E, respectively, and a maximum of three percentage points with respect to the last percentage established for the funding type A and B, respectively. "."

(n) replace paragraph twenty, which happened to be twenty-fifth, by the following: "If as a result of the exercise of an option of conversion of bonds redeemable for shares, the maximum investment limits are exceeded by instrument or existing excess this will increase, the respective fund will have a period of three years to eliminate the amount of the conversion.".

(o) Agreganse, then subsection twenty, happened to be twenty-fifth, the following new subparagraphs: "if as a result of the exercise of an option to subscribe shares of capital increase, the maximum investment limits are exceeded by instrument or existing excess this will increase, the respective fund will have a period of three years to eliminate the amount of the subscription.
If as a result of receiving publicly offered securities, as a result of the alienation of shares of the pension funds in a public offering of shares, the maximum investment limits are exceeded by instrument, or existing excess this will increase, the Fund will have a period of three years to remove the representative operation resulting excess amount. "."
(p) subsection final, becoming the current paragraph twenty-fourth final paragraph to be removed.

16 amended article 45 bis as follows: to) delete the last sentence of the paragraph first.

((((b) replace, in the second paragraph, references to the letters j) and k) by i) and j), respectively.

(c) add the following final paragraph: "(Para efectos de las inversiones con recursos de los Fondos de Pensiones en cuotas de fondos de inversión y fondos mutuos, a que se refieren las letras i) and k) in article 45, the Superintendents of pension funds, banks and financial institutions and securities and insurance will establish annually, through a joint resolution" duly established, and which try to reflect values of market, maximum commissions to be paid with charge to the pension funds, mutual funds and investment. To this effect, be heard previously to the administrators. If paid fees are higher than the established maximum, excesses on the latter will be charge of the administrators. For the determination of such commissions will be considered, at least the kinds of assets, volumes of investment, geographical area, type of company in which to invest mutual funds and investment funds and tax regime which will be applicable. The procedure to determine the commissions actually paid to mutual funds and investment is established in the aforementioned resolution, which will also define the shape and timing of the return to the pension funds of the commissions that you have paid on the maximum established pursuant to this subsection. At the same time, the Superintendency shall biannually commissions actually paid by the administrators in this type of investment and pension funds. "."

17 replace in article 46, in the second sentence of the third subparagraph, the expression "(en los instrumentos señalados en las letras k) and l), where appropriate", the expression "(señaladas en las letras k) and l) when appropriate and other investments that are made in international markets".

18 replaced section 47, by the following: "article 47.-without prejudice to the provisions of article 45, investments with any type of pension fund resources, as well as the sum of the investments with the funds of a same administrator, in in current accounts and time deposits and debt securities issued by a bank or financial institution and its subsidiaries , or guaranteed by them, may not exceed the amount less the product of a multiple unique for all financial institutions set by the Central Bank of Chile and the assets of the Bank or financial institution concerned, and product of ten per cent of the total value of the respective pension fund and the weighted average risk factor. The value of the aforementioned single multiple will vary between 0.5 and 1.5.
The sum of investments carried out with resources from each of the pension funds of a same administrator, where applicable, shares, deposits in current accounts and term and other debt securities issued by a bank or financial institution or guaranteed by them, may not represent more than 7% of the total value of the respective fund.
Investment resources of any type of pension fund, as well as the sum of the investments with the funds of a same administrator in debt securities issued or guaranteed by companies whose turn is to perform leasing operations, may not exceed the lesser amount between the product of a unique to these societies multiple fixed by the Central Bank of Chile and the heritage of the company; and the product of seven per cent of the total value of the respective pension fund and the weighted average risk factor. The value of the aforementioned single multiple will vary between 0.4 and 1.
The sum of investment resources from the pension funds of a same administrator at effects of trade, may not exceed of thirty-five percent of the series.
Similarly, the sum of investments funded by pension funds of a same administrator, in bonds of the same series, may not exceed of thirty-five percent of this.
Investment funded by a pension fund in instruments classified in the BB, B, C, D categories may be made in any case or E levels N-4 or N-5 of risk, within the meaning of article 105.
Investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, in shares in a company of the mentioned in the letter g) article 45, may not exceed the lesser amount between the seven per cent of the total of the subscribed shares of this company; and the product of the concentration factor, five percent of the value of the Fund and the liquidity factor. When shares of a new issue sign-up, the maximum subscription amount shall not exceed twenty per cent of the issue.
Investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, in shares in a company of the mentioned in the letter g) in article 45, that do not require the approval of the sorter Commission of risk, may not exceed the lesser amount between the seven per cent of the total of the subscribed shares of this company; and 0.15 per cent of the value of the Fund. When shares of a new issue sign-up, the above amount to subscribe, shall not exceed twenty per cent of the issue.
Investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, shares of investment funds and mutual funds of a company administrator, indicated in the letter i) in article 45, that do not require the approval of the sorter Commission of risk they may not exceed the amount less the thirty-five per cent of the total number of shares issued or in circulation and 0.15 per cent of the value of the Fund. When shares of a new issue sign-up, sign, maximum amount may not exceed of thirty-five per cent of the issue.
With resources from a fund investment, as well as the sum of the investments of the pension funds of a same administrator, where applicable, in shares in a company of the mentioned in the letter h) article 45, may not exceed the lesser amount between 20% of the total number of subscribed shares in the company; and the product of the concentration factor and the five per cent of the total value of the respective fund. In addition, the limit of investment in shares of a new issue may not exceed twenty per cent of the same.
The sum of investment with a Fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, in shares of a bank or financial company may not exceed the amount less between the two and a half per cent of the total of the subscribed shares of this company; and the product of the concentration factor, two and a half per cent of the value of the Fund and the liquidity factor.
The value of the factor of liquidity that will vary between 0.2 and 1, its maximum value and set to 1, will be determined by the Central Bank of Chile which will establish the corresponding equivalence with the liquidity index. This index will be calculated on a quarterly basis by the Superintendency of securities and insurance, the percentage of working days trading in that stock has been traded on the stock of the country, in the twelve months prior to the date of the calculation, and those amounts traded daily quoted instrument. To this effect, the Superintendency of securities and insurance will determine a minimum daily amount of transaction whose value may not be less than the equivalent of 80 units of promotion not more than the equivalent of 200 units of promotion.
The concentration factor referred to in the preceding subparagraphs, shall be determined according to the degree of concentration maximum ownership permitted by the permanent rules of the statutes of the society in question and the subjection of the society under Title XII of this Act.
In this way, the concentration factor will be: 1 for those societies that no person directly or through other related people can focus more than one thirty-two percent of the capital with right to vote, and subject to the provisions of title XII;
0.8 to those societies in which the maximum permissible concentration is greater than thirty and two per cent and retail to fifty per cent of the capital with voting rights, and are subject to the provisions of title XII;
0.6 to those societies in which the maximum permissible concentration is equal to or greater than 50% and less than or equal to sixty-five percent of the capital with voting rights, and subject to the provisions of title XII;
0.6 to those societies in which no person directly or through other related people focus more than one thirty-two percent of the capital voting, and are not subject to the provisions of title XII;
0.5 to those societies in which the concentration of ownership in a person, directly or through other related persons, exceeding thirty and two per cent and minor to fifty per cent of the voting capital, and are not subject to the provisions of title XII;
0.4 to those societies in which the concentration of ownership in a person, directly or through other related persons, is equal or greater than fifty percent and lower or equal to sixty-five percent of the capital entitled to vote and not be subject to the provisions of title XII, and 0.3 for those societies in which someone directly or through other related people concentrate more than one sixty and five per cent of the voting capital, and are not subject to the provisions of title XII.
In the case of open corporations referred to in the second subparagraph of article 112, the concentration factor shall be determined only on the basis of the concentration allowed the shareholders who are not the Treasury. Investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, shares of an investment fund of those referred to in the letter i) of the second paragraph of article 45, plus any amount of contributions committed under the contracts referred to in the fifth subparagraph of article 48 in cases corresponding they may not exceed the lowest value among the thirty-five per cent of the sum of subscribed shares and quotas which have promised to sign and pay the respective Investment Fund and product from five per cent of the value of the Pension Fund by the factor of diversification. When shares of a new issue sign-up, the above amount to sign may not exceed of thirty-five per cent of the issue. With everything, investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, in shares of a mutual fund referred in the letter i) of the second paragraph of article 45, may not exceed one per cent of the value of the pension fund or to thirty-five per cent of the circulation of the respective mutual fund fees.
The diversification factor shall be determined according to the proportion of the total assets of an investment fund, invested directly and indirectly in instruments issued or guaranteed by the same body. In this way, the diversification factor will be: 1 if the direct and indirect investments in instruments issued or guaranteed by a single entity does not exceed twenty percent of the total assets of the Fund.
0.8 if investment direct and indirect instruments issued or guaranteed by a single entity is superior to 20% and no more than twenty-five percent of the total of the Fund assets.
0.6 If direct and indirect investment in instruments issued or guaranteed by a single entity is superior to 25 percent and no more than one-third of the total assets of the Fund.
0.2 If the direct and indirect investments in instruments issued or guaranteed by a single entity is higher than one third and no more than forty percent of the total assets of the Fund.
0 if the direct and indirect investments in instruments issued or guaranteed by a single entity is equal or superior to forty per cent of the total assets of the Fund.
Investments funded by a pension fund in actions referred to in the letter k) article 45, by the same body, may not exceed the half per cent of the value of the respective fund. In addition, investments funded by a pension fund in debt instruments from those listed in the letter k) article 45, by the same body, may not exceed the product of five per cent of the value of the respective fund and the weighted average risk factor. In the case of investment in shares of participation issued by mutual funds and foreign investment funds, the ceiling already, will be of one per cent of the value of the respective fund. At the same time, the sum of transactions for hedging on foreign assets, carried out with the resources of a pension fund, may not exceed the value of the investment held by this Fund in the active foreign subject coverage.
Investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, in the letter k shares) of article 45 of the same body, that do not require the approval of the sorter Commission of risk and complying with the requirements provided for in the fourth subparagraph of article they may not exceed the amount lower between seven per cent of the subscribed shares of that issuer and 0.15 per cent of the value of the Fund. Investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where applicable, in participation fees issued by mutual funds and funds from the letter k) article 45 of the same body, that do not require the approval of the sorter Commission of risk and complying with the requirements provided for in subsection fourth of that article , may not exceed the lesser amount between thirty-five percent of the shares in circulation or subscribed for the respective mutual fund or investment and 0.15 per cent of the value of the Pension Fund.
Investments funded by a pension fund, as well as the sum of the investments with the funds of a same administrator, bonuses and effects of trade, issued or guaranteed by a society, may not exceed the lesser amount between: a) the product of the weighted average risk factor and the seven per cent of the value of the respective fund (,) and (b) a single multiple to be fixed by the Central Bank of Chile and the value of the assets of the issuer. Multiple unique value vary between 0.08 and 0.12.
Investments funded by a pension fund, as well as the sum of the investments with the funds of a same administrator, in bonuses and effects of trade issued by a parent company and its subsidiaries or guaranteed by them, shall not exceed the lesser amount between: to) the product of the weighted average risk factor and the seven per cent of the value of the respective fund (,) and (b) a single multiple to be fixed by the Central Bank of Chile and the active parent company consolidated net accounting value. The value of this unique multiple will vary between 0.08 and 0.12.
In any case the Central Bank of Chile, you can set a unique multiple lower than the current value at the date of modification, for the cases referred to in this article.
Without prejudice to the provisions in the preceding subparagraphs, investments funded by a pension fund, as well as the sum of the investments with the funds of a same administrator, bonuses and effects of trade issued by joint-stock companies whose sole object is the issuance of bonds or trade effects supported by transferable credits ((, may not exceed the lesser amount between: a) the product of the weighted average risk factor and the seven per cent of the value of the respective fund, and b) thirty-five per cent of the respective series.
Investments funded by a pension fund, as well as the sum of the investments of the pension funds of a same administrator, where appropriate, bonuses and effects of trade, issued or guaranteed by a society that has less than three years of operation, shall not exceed the product of the weighted average risk factor and three percent of the value of the Fund , or of the thirty-five per cent of the respective series. After a society reaches three years of operations, it shall apply other companies issuing bonds and effects of trade limits.
For each Fund pension types A, B, C or D, the sum of investments in stocks, bonds, and effects of trade, issued or guaranteed by a society, may not exceed seven per cent of the value of the Fund.
For each pension fund investment in stocks, bonds, and effects of trade issued or guaranteed by companies belonging to the same corporate group, of those defined in the letter k) article 98, it shall not exceed fifteen per cent of the value of the respective fund.
If as a result of the exercise of an option of conversion of bonds redeemable for shares, the individual investment limits are exceeded in the transmitter, or existing excess this will increase, the Fund will have a period of three years to eliminate the amount of this conversion.
If as a result of the exercise of an option to subscribe shares of capital increase, the individual investment limits are exceeded in the transmitter, or existing excess this will increase, the Fund will have a period of three years to remove the representative of this subscription amount.
If as a result of receiving publicly offered securities, as a result of the alienation of shares of the pension funds in a public offer for acquisition of shares, the individual investment limits are exceeded in the transmitter, or existing excess this will increase, the Fund will have a period of three years to remove the representative of the resulting excess of the transaction amount.
The investment limits by issuer for instruments of the letter l) article 45, correspond to the limits resulting from assimilating the respective instrument to one of those whose boundary is already defined in the law. The respective assimilation and the limit to be applied shall be determined by the Central Bank of Chile for each type of Fund. Also, if there is an instrument of the same characteristics for the purpose of establishing the limits by issuer, the respective limit will be determined by the Central Bank of Chile for each type of Fund.
The sum of financial risk coverage operations funded by a pension fund, calculated in function of the active object of this operation and measure in net terms, may not exceed the value of the investment held by the Fund in the instrument subject to coverage.
(For the purposes of the investment limits laid down in article 45 as in this article, the dedicated financial instruments on loan or mutual, referred to in the letters k) and n) of article 45, shall be considered as an investment of the Pension Fund.
Where, for any reason, an investment made with resources from a pension fund exceeds the limits or ceases to comply with the requirements established for their origin, the excess must be posted in a special on the affected Fund account and the corresponding administrator cannot be new investment for this Fund in the same instruments as long as this situation. Also, if an investment made with the pension funds of a same administrator resources exceed some limit applicable to the sum of these or no longer comply with the requirements established for their origin, the corresponding administrator cannot be new investments for none of the funds in the same instruments, as long as this situation. This will be without prejudice to the designated twenty-fifth, twenty-sixth and twenty-seventh article 45 paragraphs and subparagraphs vigesimoctavo, twenty-seventh and 29th of this article. The foregoing is without prejudice to the Faculty of the Superintendent to apply administrative penalties which may be applicable.
The excesses of investment which together do not exceed five per cent of the value of a pension fund, able to stay so far on the administrator to consider obtaining the maximum recovery of the resources invested. The excesses that exceed 5% of the value of the respective fund, must be disposed of within a period of three years from the date they occurred, can the administrator select freely instruments to dispose. The deficits of investment not exceeding five percent of the value of a pension fund, may maintain so far that the administrator deems to obtain an adequate return for the Fund. The deficits that exceed 5% of the value of the respective fund, must be disposed of within a period of one year from the date that occurred.
When is exceeded a limit of investment by issuer in more than twenty per cent of the maximum limit, the excess above this percentage must be disposed of within a period of three years from the date that occurred.
Investments in instruments acquired with resources from the pension funds who fail to comply with the requirements for their origin, must be disposed of in within three years from the date in which the excess occurred.
The limits laid down in this article shall apply with respect to the value of the pension funds, as appropriate.
The powers conferred by this law to the Central Bank of Chile, shall be exercised by this report of the Superintendent for each particular case.
The Superintendency of banks and financial institutions will provide quarterly to the Superintendency of managers of funds of pension, calculation of total assets, total liabilities, heritage, active consolidated net accounting, number of shares subscribed and the value of the concentration factor of each financial institution or subsidiary thereof, that are under your control. Also, will provide half-yearly payroll of the companies referred to in the letter g) in article 45, that do not require the approval of the sorter Commission of risk.
The Superintendency of securities and insurance must provide on a quarterly basis to the Superintendency of pension funds administrators the calculation of total assets, total liabilities, heritage, active consolidated net accounting, liquidity index, number of shares subscribed, number of subscribed shares of mutual funds and investment funds, as also the amount invested by mutual funds in instruments mentioned in the numbers 9. and 11. ((article 13 of Decree-Law No. 1.328, from 1976, and the amount invested by investment funds in instruments mentioned in numbers 17) 28) of article 5 of the law No. 18.815 and the value of the factor of concentration, diversification factor and the number of shares of each Fund's investment promised subscribe and pay the contracts referred to in the fifth subparagraph of article 48 , information that must be provided by each company issuing bonds or trade effects, as also by each open joint-stock company or mutual fund, whose shares or quotas may be acquired with the resources of the pension funds. (Also, will provide half-yearly payroll companies and funds referred to in the letters g) e i) article 45, that do not require the approval of the sorter Commission of risk. The Superintendency of securities and insurance will also provide to the Superintendency of pension funds, with the same periodicity with which receives the corresponding financial information of foreign issuers, payroll companies and funds referred to in the letters k) and l) in article 45, that do not require the approval of the sorter Commission of risk and complying with the requirements established in the fourth subparagraph of article , and the number of shares subscribed and subscribed shares outstanding of these issuers. Additionally, the Superintendency of securities and insurance shall notify the Superintendency of pension funds, with annual periodicity, the investment in shares through companies, investment funds and mutual funds. "."

19 amending article 47 bis as follows: to) in the third sentence of the paragraph first, add then the expression "Pension fund", the following sentence: ", as well as the sum of the investment of the pension funds of an IT administrator, as appropriate,".

((b) amend the second follows paragraph: i) replace the first sentence with the following: "the pension funds of a same administrator, as a whole, may not own or be committed to subscribe and pay fees representing more than ten percent of the total subscribed shares and of those which have promised to sign and pay for a mutual fund , when it owns securities of an issuer that is a person related to the administrator. "."

(ii) replace the third sentence by the following: "Pension funds of a same administrator, as a whole, nor may own or be committed to subscribe and pay fees which represent more than five per cent of the total number of subscribed shares and of those which have promised to sign and pay for a mutual fund, when the administrator is a person related to the Investment Fund Manager.".

(c) replace, in the second sentence of the third subparagraph, the term "type 1 and type 2", "a same administrator of pension".

(d) delete, in the fifth paragraph, the word "refined accounting", which lies between the word "active" and the conjunction "and".

((e) modify the eighth paragraph in the following way: i) be replaced at the beginning of the first sentence, the phrase "When two or more pension funds are", "in the case of pension funds".

(ii) at the end of the first sentence, replace the word "both" by the expression "all the".

(20 amending article 48 in the following way: a) replace, in the third subparagraph, the expression "background type 1" by the phrase "pension funds types A, B, C and D".

(b) replace, in the first sentence of the fifth paragraph the expression "pension fund type 1", by "the pension funds that matches". Also replaced the expression "in the background", by "the funds".

(c) delete, in the first sentence of the sixth paragraph, the expression "type 1".

(d) remove, at the end of the first sentence of the eighth paragraph, the expression "type 1".

e) add, at the end of the tenth paragraph the following sentence, becoming the point apart (..) followed dot (.): "(A su vez, las operaciones o contratos que tengan como objeto el préstamo o mutuo de instrumentos financieros de emisores nacionales o extranjeros, así como las operaciones señaladas en la letra m) of article 45 conducted with national banks that comply with the requirements established by the Commission risk sorter to be counterparties in these operations" , shall the provision established in subparagraph first of this article. "."
(f) insert in the second sentence of the twelfth paragraph, between the expressions "Funds of pension"and"without prejudice", the following sentence: "and those who carried out the Administrators or persons who, by reason of his position or position, have access to information of the investments of the Fund".

(g) add the following final paragraph: "the administrator may make transfers of instruments among its funds, only for the transfer of the value of the quotas of members among the funds that manages, without resorting to formal markets. In addition, as a result of the transfers mentioned above, you may make transfers of instruments by changes of the value of the quotas of the lace of a fund to another. Both transfers will take place at prices to be determined, as stated in article 35. "."

21 the second sentence of the second paragraph of article 89, replace by the following: "in any case, shall apply the provisions of paragraphs third and fifth article 23.

22 amending article 94, in the following way: to) replaced in numbers 1., 3. and 8., the expression "fifth" by "twelfth". At the same time, replaced at number 6. "Insurance companies, corporations and stock exchanges" by "Valores y Seguros".

(b) replaced into number 11., the expression "in these" by this prayer, preceded by a comma: "Administrators and persons who, by reason of his position or position, have access to information of the investments of the Fund".

23 amending article 98 as follows: to) Eliminanse letters f), n) and n), passing the letters g) to m) to be f) to the l), respectively, and letters or), and the letters p), q), r) and s), added by law No. 19.768 to be letters m) to p), respectively.

((((b) replace the third paragraph of the current letter j), which becomes i), the reference to the letter k) by the letter j).

24 replaced, in the letter to) of the first subparagraph of article 99, the word "fifth", which lies between the word "paragraph" and the expression "of the article 45", "room".

25 modified article 104 as follows: to) replace the first sentence of the second paragraph, the word "fifth", which lies between the word "paragraph" and the expression "of the article 45", "fourth".

(b) replace the third sentence of the third paragraph, the word "fifth", which lies between the word "paragraph" and the expression "of that article", "room".

26 amended article 106 of the following way: to) replace, in its paragraph the word "fifth" by "fourth" first.

(((b) replace, in the ninth subparagraph, the reference to the letter l) by letter k).

27. replace, in article 107, the expression "of the Fund' which lies between the word 'resources' and the preposition"of","of the funds".

28 remove the letter a) of the subsection first article 112, passing the current letters b) to d) to be letters to) to c), respectively.

29. replace, in the first paragraph of article 117, the expression 'i)', which is located between the word "letter" and the article "of the" through "h").

30 replaced, in paragraphs first, second and third article 130, the expression "j"), which is located between the word "letter" and the article "of the", by "i").

31 replaced, at the end of the first subparagraph of article 150, the expression "pension fund type 1 or type 2" by the expression "of the pension fund that matches".

32 disposed of, in article 152 bis, the word "two" that lies between the expressions "between the" and "Pension funds".