Conditions for registration of information for open supplementary pension operations with risk coverage structured in the coverage capital distribution and capitalization financial regimes
The Superintendence of Private Insurance (“SUSEP”) placed for public consultation Notice No. 01/2022, which introduces a draft Circular proposing new rules for open supplementary pension operations with risk coverage structured in coverage capital distribution and capitalization financial models.
According to the normative addition set out by SUSEP within the scope of registration of insurance operations and introduced by CNSP Resolution No. 383/2020, the purpose of the Draft is to proceed with the regularization of the “Operations Registration System” (“SRO”) and to establish the informational content for optional and mandatory registrations of those pension operations that include risk coverage, adding Annexes III and IV to SUSEP Circular No. 655/2022 as well as proposing changes in Annex XIII of SUSEP Circular No. 624/2021, as detailed below:
SUSEP Circular No. 655/2022
Annex III: complementary information for pension operations with risk coverage structured in a coverage capital distribution financial model;
Annex IV: basic core information for pension operations with risk coverage structured in a capitalization financial model;
- October 3, 2022 was established as the date on which mandatory registration of open supplementary pension operations with risk coverage structured in coverage capital distribution and capitalization financial models would be initiated, with the coverage period commencing as of such date (new contracts);
- Granting of an additional term, after October 3, 2022, for open supplementary pension operations with risk coverage structured in coverage capital distribution and capitalization financial models, of (i) 30 working days, if previously issued and still in force on the date that registration is required, and (ii) 10 working days after the first financial transaction, if the date of entering into effect is prior to the registration date;
- In contracts with collective bargaining and/or participant certificates, the Open Supplementary Pension Fund Entities: (i) may opt not to register some of the information required in Annex I (SUSEP Circular No. 655/2022) and in the suggested Annex, for contracts with a coverage period ended before January 1, 2019, provided that they are justified and not related to financial transactions; and (ii) will have a period of 20 working days to register contracts that contain notified events not yet paid or contributions not paid on October 3, 2022.
SUSEP Circular No. 624/2021
Annex XIII: complementary information for insurance of groups of personal lines (collective and individual) structured in the simple distribution financial model.
- Changes intended for merging with the model proposed in Annex III (above) as suggested for SUSEP Circular No. 655/2022 and with the concepts pertaining to simple distribution life insurance products that pay indemnity in the form of an annuity when opted for by the beneficiary.
The complete draft of the Circular can be accessed through this link and interested parties may send comments or suggestions on the text by email addressed to firstname.lastname@example.org, in accordance with the specific standardized chart, duly filled out, by April 19, 2022.
Demarest’s Insurance and Reinsurance team will monitor the development of this public consultation until the publication of the final text, and is available to provide any clarification on the subject.