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Mexico: Pension funds (AFORE) fail to pay regulator fines

 |  May 21, 2018


One year after four Mexican Afores (retirement fund managers) were fined by the Federal Commission for Economic Competition Commission (Cofece), two of them have not yet complied with the sanction.

In 2017, Cofece imposed a historical fine of 1.1 billion Mexican pesos (US$ 57.4 million at the time) to retirement fund managers Sura, XXI Banorte, Principal, Profuturo GNP and 11 people), after determining that between November 2012 and June 2014, executives of the aforementioned Afores entered into agreements to discourage the transfer of accounts, by establishing maximum transfer amounts.

Principal Afore and Profuturo GNP, who were fined more than 75 million and almost 326 million Mexican pesos (US$3.7 million and US$16.4 million respectively), paid the penalties. However, GNP decided to challenge the process. For its part, XXI Banorte adhered to Cofece’s leniency program, which decreased its fine of almost 429 million Mexican pesos (US$21.5 million) to just over 300 million Mexican pesos (US$15.2 million); Sura also opted for legal challenges. The administrator filed an appeal over “the severity of the fine”, with all these processes still ongoing.

Full Content: El Financiero

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