Amendments To The General Provisions For The SIEFORES' Investment Regime

The investment companies specialized in retirement funds ("SIEFORES" as per its initials in Spanish) will be able to invest in stock certificates of investment projects ("CERPIS" as per its initials in Spanish) investing outside of Mexico if at least 10% is invested in Mexico.

On January 5th, 2018, amendments to the General Provisions for the SIEFORES' Investment Regime (Circular del Régimen de Inversión de las SIEFORES) were published in the Official Journal of the Federation, abrogating the previous amendments published on September 19th, 2017. It establishes, among others, the adjustment of the diversification criteria to be observed by SIEFORES, where SIEFORES will only be able to acquire those stock certificates of investment projects ("CERPIS" as per its initials in Spanish) which allocate at least 10% of the maximum authorized total amount of the emission, to the investment or the financing, of activities or projects within the national territory, of one or more companies. In case an investment allocated within the national territory is below the minimum percentage required, it will be abided by the General Provisions for Financial Matters ("CUF" as per its initials in Spanish), which are expected to be modified in the following days to make them consistent with the amendments.

Basic SIEFORES may invest up to 20% of the SIEFORES' Total Assets, in foreign securities and CERPIS, investing or financing...