INSURANCE AND OPEN SUPPLEMENTARY SOCIAL SECURITY
1) NOTICE OF Private Insurance Superintendence - SUSEP PUBLIC INQUIRY No. 5/2019
On July 15, 2019, as previously decided, SUSEP Managing Board submitted to public inquiry the draft of a Circular, which, if approved, will regulate how the open supplementary social security entities and insurers will grant financial assistance and will operate as correspondents.
According to the proposed regulation, financial assistance will be granted only to the owners of open supplementary social security plans or personal insurance plans structured within the financial regime of capitalization (art. 1, sole paragraph). It seems to us that there are no legal and practical reasons for this limitation.
Also, concerning innovations, it is the first time that minimum requirements are set for contracts yet to be entered, which will have to contain clauses, lists of documents, information, and rules provided in the draft of the Circular (art. 4).
Two new prohibitions will be added to those currently in effect for the financial assistance to be granted: i) grant financial assistance to the owners with 30% of their monthly gross income compromised (art. 5, item II); and ii) deduct from the amount of the financial assistance any amounts in favor of third parties, including purchase of debts of similar parties or financial institutions so that the amount agreed must be fully deposited into a bank account of the principal (art. 5, item VI).
Concerning the second one, it does not seem that it makes sense from the technical viewpoint, especially because no similar restriction is imposed on the financial institutions.
The proposed regulation also provides that any harmful action or any action by omission or by commission against the law or any non-constitutional rule concerning any conduct in the relationship with the client may subject the supervised entity to suspension or inclusion in the list of pending issues.
According to the final list, harmful action is the commercialization of financial assistance without the required products or upon contracting of non-compulsory products, and grave or repeated commercialization not in compliance the rules (art. 16, sole paragraph).
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