July 30, 2024 - The Financial Market Commission (CMF) issued today a regulation that amends Circular Letter No. 1,835 on instructions related to the form and content of information about investments made by insurance companies. After two public consultations carried out in August 2023 and February-March 2024, and having analyzed the feedback received, the new regulation amends Circular Letter No. 1,835 with the following objectives:
- Obtain detailed information on loans granted by insurance companies, strengthening the supervision of provisions constituted for these portfolios.
- Complement information on leased real estate, as well as on arrears of endorsable mortgage loans and leasing contracts, to strengthen the supervision of vacancy and arrears.
- Complement information currently available on collaterals posted and received due to derivative transactions.
- Systematize submissions of information on terms of fixed-income portfolio instruments, which is used to prepare the discount rate vector applicable to technical reserves of life annuities.
- Adjust current information files to complement and improve the information available, e.g., typology of investment and real estate funds.
- Make the incorporation of future changes in the information requested due to legal or regulatory amendments more flexible. Annexes to Circular Letter No. 1,835 will be transferred to a Technical Annex available in the SEIL module of the CMF website.
- Amend the entry into force of this regulation, which shall apply to information as of December 2024 to be submitted on January 15, 2025.
These amendments will strengthen the Commission's supervisory work regarding financial risks that could affect the correct functioning of the insurance market by allowing the CMF to have more and better information to supervise risks related to insurance companies' investment portfolios.
