Regulator plans quality ranking for AFPs

Thursday, September 15, 2005

Chile's pensions regulator SAFP has proposed a new standard to measure product quality and levels of service provided by local pension fund managers, or AFPs.

The draft paper was published on the SAFP website September 14, and the agency has issued an invitation to AFPs to comment on the proposals. The regulator plans to issue the first ranking in March 2006.

The SAFP will measure efficiency and efficacy in customer service, bureaucracy and asset management among local AFPs in April, August and December.

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The ranking will boost competition and transparency among AFPs, local daily Diario Financiero quoted SAFP head Guillermo Larraín as saying.

"We know that people do not think much [initially] about price or profitability, nor are they informed," Larraín reportedly said.

Larraín reportedly said the SAFP wants to keep the AFP system simple, "making it look more like the market for bread than for a sophisticated financial product".

Chile's six AFPs reported assets up 13.3% to US$69.4bn during the 12-month period ending in August.