The Superintendence of Private Insurance (SUSEP) published Public Consultation Notice No. 43/2021, presenting a draft of the Circular that establishes conditions for optional and mandatory registration of open supplementary pension operations with risk coverage in registration systems approved and managed by registration entities accredited by SUSEP.
The proposal aims to continue the “Operations Registration System – SRO” and lays out, in its Attachment I, the basic core information for all pension operations with risk coverage, similar to SUSEP Circular No. 624/2021.
As an initial measure, considering that there are no insurance line groups for pension operations, SUSEP chose to organize the draft Circular in attachments, divided according to the financial regime adopted for the operations. This Public Consultation only regulates the Attachments I and II, while the other attachments will be discussed in specific public consultations. Accordingly, the proposed division is as follows:
- Attachment I: basic core information for pension operations with risk coverage;
- Attachment II: supplementary information for pension operations with risk coverage structured in simple sharing financial regime;
- Attachment III: supplementary information for pension operations with risk coverage structured in a coverage capital sharing financial regime;
- Attachment IV: basic core information for pension operations with risk coverage structured in a capitalization financial regime.
In relation to Attachments I and II, the draft Circular presents the following proposals:
- Setting the date of August 1, 2022 for the start of mandatory registration for pension operations with risk coverage structured in the simple sharing financial regime whose coverage period commenced from that date (new contracts);
- Granting of an additional term, after August 1, 2022, for collective agreements and participant certificates to be registered with the registration entities, of (i) 30 business days, if they were previously issued and still in force on the mandatory registration date, (ii) 10 business days after the first financial transaction, if the validity period ended prior to the mandatory registration date and (ii) 20 business days in the case that events were reported and not yet paid or contributions not paid on August 1, 2022;
- In the case that supervised entities have any difficulty recovering the history of transactions related to older contracts, as regards collective agreements and participant certificates whose coverage period ended before January 1, 2019, open pension entities (EAPCs) may omit some of the information required in Attachment I and in specific attachments, provided that they are justified and are not related to financial transactions.
The full draft of the Circular can be accessed at this link and interested parties can send comments or suggestions regarding the text through an electronic message addressed to the email email@example.com, until February 04, 2022, using the specific standardized table provided by SUSEP.
Demarest´s Insurance and Reinsurance team will closely monitor the development of this public consultation until the publication of its final version. The team is available to provide any clarifications on the subject.