Through SBS Resolution No. 02451-2021, the Superintendence of Banking, Insurance, and Private Pension Fund Administrators established the minimum procedures for the management, classification, reporting, and constitution of provisions for controversies.
1. Rule scope
The regulation states that it will apply to the companies of the Insurance System and the Organic Law of the Superintendence of Banking and Insurance, Law No. 26702 and its amendments, to the Private Pension Fund Administrators, as well as to Banco de la Nación (National Bank), Banco Agropecuario (Agricultural Bank), COFIDE (Corporación Financiera de Desarrollo – Development Finance Corporation), Fondo MIVIVIENDA S.A., Derramas y Cajas de Beneficios (Assessment and Benefit Funds) under the control of the Superintendence, and FOCMAC (Fondo de Cajas Municipales de Ahorro y Crédito – Municipal Savings and Loan Associations Fund).
2. Controversy Management
As indicated, companies must have a manual of policies and procedures for the controversy management approved by the Board of Directors or the body with powers delegated by it, including the following aspects, at least:
- The list of the areas and other participants in the controversy management process along with the controversy manager, if applicable. This process includes the receipt of complaints, claims, or initiation communications of administrative actions, even the completion and final filing of controversies.
- The procedure for handling ongoing disputes, considering the maximum terms for action by each participant identified under a).
- The obligation to inform the Risk Committee through the periodic reports on operational risk management of the controversy status under the detailed information set out in article 5.
- The procedure for monitoring the management of external legal advisors to whom disputes have been assigned. Minimally, the frequency with which such advisors will file their written progress reports to the companies, as well as the mechanisms verified by the companies and evaluate the performance of such external advisors, should be specified.
- The filing procedure and preservation of the main proceedings pertaining to each controversy.
- The obligation to keep an updated record of all its controversies, considering at least the following information: Description of the case, amount of the petition, amount of the ruling, amount of the accumulated provision at the close of each reporting month and the classification thereof under the categories indicated in paragraph c) of Article 4.
3. Controversy information
Controversy Reports should be prepared under Annexes 1 and 2, which contain the following information;
- Annex 1:
- Section A – General Controversy Report: Information regarding the total number of controversies against the company as of the reporting date.
- Section B – Individual report of adverse and probable controversies: Information on controversies having an adverse judgment, resolution, award, or ruling, as the case may be, from any stage or instance for amounts exceeding 0.1% of the company’s capital stock (as of December 31 of the previous year) or exceeding two hundred and fifty thousand soles (S/ 250,000.00), whichever is less. Likewise, controversies classified as probable must be reported, even without an adverse pronouncement.
- Annex 2: Individual report of controversies with adverse rulings not classified as probable: Information on all controversies with a judgment, resolution, award, or adverse ruling, as appropriate, as of the reporting date, exceed the threshold set forth in Section B of Annex 1 mentioned in the previous paragraph, but not classified as probable under the exception set forth in Article 4(e).
Source: El Peruano 24/08/21
