SMV regulations
SMV adopts new deadlines for the submission of information, and other measures in response to a State of Emergency declaration.- Through Superintendent Resolution No. 033-2020-SMV/02 (“SMV Resolution”), published in the Official Gazette “El Peruano”, on March 21, 2020, the Securities Market Superintendence (“SMV”) adopts new deadlines for the submission of information and other measures in relation to the declaration of a State of Emergency, made by the Executive Branch through Supreme Decree No. 044-2020-PCM.
The main provisions adopted by the indicated SMV Resolution are the following:
1. New deadlines for periodic information submission
The SMV approves the extension of the maximum period for the submission of periodic information that is indicated below for issuers with securities registered in the Public Registry of the Stock Market (“RPMV”), legal entities registered in the RPMV and collective fund management companies (jointly, the “Entities“), including the autonomous assets which they manage.
a. Financial information and annual report for the 2019 financial year
The maximum period for the submission of audited individual or separate financial information and annual report for the financial year 2019 of the Entities is extended until June 30, 2020. Previously, the SMV had announced, through a notice that it understood that as a result of the declaration of the State of Emergency, it understood that the companies would not be able to hold their annual mandatory meeting in the first quarter of the year, as established SBS and required by the SMV regulations. In the case of the annual audited consolidated financial information for the financial year 2019 of said Entities, the maximum period of submission is extended until July 31, 2020.
The deadline for Entities, which are obliged, to submit the annual consolidated financial information for fiscal year 2019 of their last parent companies is extended until August 31, 2020
b. Interim financial information as of March 31, 2020.
The deadline for the submission of individual or separate interim financial information of the Entities by March 31, 2020 is extended until July 31, 2020.
In the case of consolidated information, the extension is until August 15, 2020.
c. Update of risk classification reports based on audited financial information for the financial year 2019
The deadline for risk rating companies to periodically update their rating reports, corresponding to the first half of 2020 (which must use the audited annual financial information for the financial year 2019), is extended until August 31, 2020.
d. Economic group
The maximum period for entities to submit the annual update of their economic group information is extended until September 30, 2020.
The SMV Resolution provides that the extension referred to in paragraphs a. and b. above is not applicable to entities under the supervision of the Superintendence of Banking and Insurance and Private Pension Fund Administrators (“SBS”).
2. Significant events and other required information to be submitted by the MVNet System
The SMV Resolution confirms that issuers must continue to submit their significant events through the MVNet system within the period provided in the applicable standard.
The same applies to the daily records of transactions and prudential indicators that the stockbroker companies must send; and to the daily report of quotas of unit holders and of quota value that must be sent by the mutual fund management companies and the fund management companies that manage mutual investment funds.
3. Suspension of procedural deadlines
The suspension, for thirty (30) working days, of the calculation of the deadlines for starting and processing administrative procedures in the SMV is approved. This period shall be counted from March 21, 2020.
4. Suspension of deadlines for the submission of other information
The suspension of the enforceability of all obligations, established by rule or by requirement prior to the declaration of the State of National Emergency, to submit to the SMV of all other information is approved. Upon completion of the State of Emergency, the SMV shall communicate the new delivery opportunity.
5. Services to be maintained during the State of Emergency
It is established that the following services must be kept active:
6. Exceptional powers for mutual fund management companies and price provider companies Mutual fund management companies are empowered, during the period of the National State of Emergency, to amend the starting time of the validity of the quota value or cut-off time, as well as the customer service hours, which must be communicated previously as a fact of importance and disseminated on the company’s website.
Likewise, the companies supplying prices are empowered, during said period, to amend the maximum time for the submission of prices and initial fees, which must be informed to the SMV and disseminated on the entity’s website.
7. Suspension of SMV contribution for issuers of the Alternative Stock Market – MAV
Issuers participating in said market shall not pay SMV contribution for the months of March, April and May 2020.
SBS regulations
SBS adopts exceptional measures in relation to investment management in the insurance system.- Through Multiple Official Letter No. 11163-2020-SBS (“Multiple Official Letter”), dated March 30, 2020, the SBS, due to the State of Emergency declaration above mentioned, adopts temporary measures regarding the investment regime of insurance companies, established in the Investment Regulation of Insurance Companies, approved by SBS Resolution No. 1041-2016, and in the Regulation of Classification and Valuation of Investments of Insurance Companies, approved by SBS Resolution No. 7034-2012. These measures include the following: 1. Temporary increase of the individual investment limit per counterparty for financial institutions; 2. Temporary suspension of the accounting record of the impairment of financial instruments; 3. Temporary derogation from restrictions on accounting reclassifications and sales of instruments classified to maturity; and, 4. Temporary suspension of the accounting update of the valuation of investments in real estate valued under the discounted cash flow methodology (DCF). Finally, the indicated multiple official letter indicates that, at a later time, the end of the indicated measures shall be announced.
SBS suspends deadlines for administrative procedures and submission of information.- Through SBS Resolution No. 1259-2020, published in the Official Gazette “El Peruano”, dated March 20, 2020, the SBS, in relation to the aforementioned statement of a State of Emergency, adopts the suspension for 15 calendar days of:
5. The calculation of the administrative deadlines related to the functions and powers that correspond to said Institution; 6. The legally established deadlines for the delivery of information required to said Institution in a virtual basis; and, 7. The limitation periods to determine the existence of infringements and the enforceability of the fines imposed, referred to in articles 252 and 253 of the Single Ordered Text of Act No. 27444 – Act on General Administrative Procedure, approved by Decree Supreme No. 004-2019-JUS.
SBS approves clarifications regarding the holding of general meetings of shareholders of supervised entities.- Through Multiple Official Letter No. 11163-2020-SBS, dated March 17, 2020, the SBS, in relation to the aforementioned State of Emergency declaration, states that: 1. Given the impossibility of meeting in a timely manner, the entities supervised by said Institution may hold the annual mandatory meeting after March 31, 2020. 2. While the State of Emergency lasts, the aforementioned entities may hold the annual mandatory meeting, by alternative means to the face-to-face, as long as the right to information and participation of all shareholders is guaranteed within the framework of the legislation in force.
