Pension fund administrators face regulatory and structural changes

In the Dominican Republic, the Commission for Risk Classification and Investment Limits (CCRyLI) clarified that pension fund administrators (AFPs) do not own the pension funds, which belong exclusively to the affiliates. The entity emphasized that while the Commission determines eligible investment instruments to promote diversification, approving an instrument does not mandate that AFPs invest in it. The decision-making process involves multiple regulatory bodies, including the Central Bank and various superintendencies, to ensure oversight.

In Chile, discussions are underway regarding a major pension reform scheduled for April 2027. The current five multi-funds will be replaced by ten generational funds based on affiliates' birth years. During a recent forum, experts and representatives from AFP Habitat discussed the implications of the reform, specifically warning about potential penalties for fund profitability. Industry representatives noted that such penalties could be “commercially catastrophic” for the sector.