Mexico: Regulator to look into retirement fund managers

Mexican competition regulators COFECE have released the findings of an investigation, which sought to confirm suspicions of absolute monopolistic practices being employed by various players in the Retirement fund management sector, known in Mexico as AFORE.

The probe has found that there are enough elements to conclude that various companies have indeed engaged in anticompetitive agreements. While the specific companies involved have not been yet named, the Technical Secretary at COFECE has already begun trial proceedings, inviting Banorte, Profuturo, GNP, Dura and Principal to offer their testimonies and arguments. The National Commission for the Retirement Savings System (CONSAR) has said that it will work alongside COFECE during this process, as one of their priorities is to promote healthy competition.

Mexico’s Federal Economic Competition Law is clear on the consequences of engaging in monopolistic practices, which may include an economic sanction for all companies involved, as well as a 5-year ban from serving in the Board of any company and even possible jail time.

Full Content: Economía Hoy

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