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Insurance Alert – February 2021

ALERT - INSURANCE

Resolution SBS No. 00211-2021 was published in the Official Gazette “El Peruano” adopting the Regulation for Authorization of Companies and Representatives of the Financial and Insurance Systems (the “Regulation“). This regulation seeks to clarify, improve and streamline the regulatory framework of various authorizations, including, among others, the organization, operation and reorganization of supervised companies. It also applies to subsidiaries, branches, and representatives of companies not established in the country.

The following are some important aspects of the regulation:

1. Validity: The Regulation enters into force on February 1, 2021. In addition, the Regulation for the Incorporation, Reorganization and Establishment of Companies and Representatives of the Financial and Insurance Systems, adopted by Resolution SBS No. 10440-2008, is hereby repealed.

2. Previous meeting: It is intended that stakeholders have greater clarity on the requirements and evaluation criteria, therefore, the possibility of meeting with SBS officials prior to the organization stage has been regulated, where they may submit business plans to receive comments from the SBS.

3. Directors, managers and senior officials: It is provided that persons holding these positions must comply with the moral and technical suitability requirements established by the Regulations (without prejudice of not incurring in the impediments established in Article 81 of the General Law of the Financial and Insurance System, Law 26072 (the “General Law”)). In addition, it is stipulated that the following information from the aforementioned officials must be submitted with the organization request:

(a) The “Informative Questionnaire” signed by the director, manager or principal official, in accordance with the format of Annex I of the Regulations.

b) The “Curriculum Vitae” signed by the director, manager or principal official, in accordance with the format of Annex II of the Regulations.

4. Suitability: the Corporate Governance and Comprehensive Risk Management Regulation, adopted by Resolution SBS No. 272-2017 is amended in order for the supervised companies to determine the policies and processes for compliance with the suitability requirements for shareholders, directors and principal officials, being the board of directors who must approve such policies and supervise the implementation thereof. On this point, the SBS has set a 120-day term for supervised companies to submit an adaptation plan. Such a plan must be approved by the board of directors and must include: (i) a preliminary diagnosis of the existing situation in the company; (ii) actions foreseen for total adaptation; and, (iii) an adaptation schedule. This adaptation period expires on November 1, 2021.

5. Subsidiaries of insurance companies: It is stated that the subsidiaries of insurance companies must submit the list of risks in which such subsidiaries shall operate, in addition to the authorization and operation procedures they must follow. It is also specified that, with regard to the subsidiaries of insurance companies, which are not included in Article 16 of the General Law (i.e., which are not supervised by the SBS), authorization shall be required in accordance with the rules established by the SBS.

6. Representation of companies not established in the country: It is stated that the SBS shall carry out a comprehensive evaluation of these requests, being able to call meetings and evaluate the technical and moral suitability, experience, among others, of the representatives. Likewise, it shall verify that they are not subject to the impediments set forth in the Regulations.

For further information, please contact Guillermo Puelles (gpueslles@estudiordodrigo.com) and/or Sabrina Montoya (smontoya@estudiorodrigo.com).