On February 16, 2024, the Amendments and Additions to the General Provisions on Financial Matters of the Retirement Savings Systems (the "Amendments to the CUF" or the "Amendments") were published in the Official Gazette of the Federation ("DOF").
The main aspects of the Amendments include: (i) the incorporation of internal governance rules for the Specialized Investment Companies of Retirement Funds ("SIEFORES") prior to the investment in Structured Instruments; (ii) the strengthening of the parameters for monitoring the profitability and performance of the Structured Instruments; (iii) the incorporation of greater requirements for the Managers of Structured Instruments and the verification of their experience and compliance with standards of conduct.

In this regard, the most important aspects of the Modifications are the following:

A. Structured Instruments.

1. The Amendments establish an obligation that prior to the investment made by the SIEFORES, the Investment Committees of each SIEFORE must express their knowledge for the investment derived from the analysis of the complete history of the results of all the funds that have been managed or are being managed by the Administrator of the Structured Instrument in which the investment is sought. Said analysis shall be made based on all the information available on the date on which the Risk Committee and the Investment Committee make the analysis on the pertinence of investing.

2. The obligation to follow up on the profitability and performance of each underlying fund of the Structured Instrument is established. The aforementioned would become effective 180 business days after the publication of the amendments and additions.

3. The modification to the investment limit of 2% of the Total Assets of the Basic SIEFORES as a whole by the Investment Committee shall consider series or sub-series as independent instruments for the corresponding calculation.

4. It must be observed that the Administrator of the Structured Instrument in question, and the team that defines or supports it in the definition of the investment thesis, must have at least 10 years of experience in a decision-making position in the industry or sectors in which the Structured Instrument intends to invest.

5. The Administrator of the Structured Instrument must provide elements to verify the performance of the Structured Instrument and guarantee the reasonableness of the calculation of costs and expenses, including commissions, for which purpose, at least annually, it must provide the investment partners with access to the cash flows of the Structured Instrument.

6. For Structured Instruments that intend to issue more than 2,000 million Mexican pesos, in order to accredit the experience of the Administrator of the Structured Instrument and its alignment with the risk level of the Retirement Funds Administrator ("AFORE"), the Financial Risk and Investment Committees of the same, shall establish minimum parameters of the evaluation metrics of the performance history that they consider pertinent, as well as eligibility criteria considering at least: (i) economic sector and type of underlying asset; (ii) levels of Called Capital; (iii) levels of Distribution to Paid-in Capital by the manager; (iv) number of Structured Instruments or previous funds raised by the manager; (v) divestments or asset sales carried out; and (vi) compliance with ethical conduct standards.

7. Specific rules are established for the classification of the Certificados Bursátiles Fiduciarios de Proyectos de Inversión ("CERPIS") based on the percentage destined to the investment or financing of activities or projects within the national territory.

8. The Investment Committee of the SIEFORES must identify if the structure of the Structured Instruments, FIBRAS or Real Estate Investment Vehicles corresponds to a Vehicle that invests in underlying funds or if there is more than one figure with functions proper to the Administrator of such Structured Instruments and any of them does not participate in the selection of the investments to be made. In such case, the Investment Committee may establish differentiated policies both for the figure in charge of defining and executing the investment thesis, as well as for any other figure that executes other types of management functions.

9. The AFORES shall establish internal, secure and confidential whistle-blowing vehicles or channels, through which the Board of Directors may be informed of possible irregular behavior in securities brokerage, possible unethical or irregular behavior, possible acts of corruption, or possible non-compliance with any of the Provisions issued by CONSAR.
10. Investments in Structured Instruments that, as of the date of publication of the amendments and additions, are part of the investment portfolios of the SIEFORES, may be kept under the terms that were in effect at the time of their acquisition until their maturity.

This press release is provided for informational purposes only and does not constitute legal advice applicable to any case or situation.
If you have any questions regarding this press release,
please contact Mauricio Basila,

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