Chilean pension regulator SP has fined locally owned pension fund manager AFP Cuprum 1,500 UF inflation-linked units (some 33mn pesos, or US$70,686) for breaching the investment cap on troubled retailer La Polar.
SP had informed AFP Cuprum in May that it had surpassed the 35% investment cap for La Polar bonds, ordering the company to divest. But the company failed to do so, and on June 24 SP filed charges against it for investment cap infringement.
The charges were filed after La Polar's announcement that it might have to set aside as much as 540bn pesos (US$1.17bn) in provisions for bad loans in its credit card portfolio, after discovering that management had unilaterally refinanced debts from hundreds of thousands of clients with overdue accounts to artificially inflate the company's bottom line.
In a press release, AFP Cuprum said it would file an appeal - known as a recurso de reposición - trying to reverse the regulator's fine.
To read more about the fine, in Spanish, go to this link