Alterations to the Basic Financial Regulations of Retirement Benefits Plans
On July 21, 2025, the Mexican government published a decree amending the General Provisions on Financial Matters applicable to the Retirement Savings System ("CUF"). This significant move aims to modernize regulatory oversight, incentivize investment within Mexico, and increase the robustness and transparency of the retirement savings system management.
The decree introduces several key changes that will impact Afores (retirement fund administrators) and Siefores (investment companies). One of the notable changes is the new rules for investment in simplified issuances, enhancing the framework for how investments can be made in these financial instruments.
Another significant shift is the expanded powers for investment committees concerning structured instruments. This change allows them greater control over these types of investments, thereby enhancing risk management and promoting more strategic decision-making.
To further strengthen regulatory oversight, enhanced risk management standards have been introduced. These standards are designed to better oversee and mitigate risks related to retirement savings investments, ensuring the security of funds for the beneficiaries.
In addition, improved corporate governance and transparency measures have been included in the decree. These measures aim at increasing accountability and openness in Afores and Siefores operations, fostering a more trustworthy environment for investors.
The decree also includes specific provisions regarding asset restructurings and indemnity clauses in third-party contracts. These provisions provide clearer guidelines and protections in such transactions, offering more certainty for all parties involved.
Moreover, a new methodology for identifying structured instruments with predominant investment in Mexican territory has been introduced. This methodology aims to incentivize domestic investment and strengthen regulatory oversight, as it promotes investments that benefit the local economy.
The service areas covered by the reform include Capital Markets, Latin America, and Mexico. Experts such as Jorge Reyes Juarez, who specializes in Debt Finance, Jorge Escalante, known for his work in Capital Markets, Investment Funds, and Derivatives, and Carlos Mainero Ruíz, who focuses on Capital Markets, Debt Finance, Financial Institutions, Fintech, and Sustainability & Responsible Business, are among those contributing to the implementation of these changes.
Andrés Mosqueira and Eduardo Flores Herrera, both associated with Capital Markets, are also playing crucial roles in this reform. Mosqueira specializes in Asset Finance, Debt Finance, Financial Institutions, Fintech, Financial Services Regulatory, and Technology Transactions, while Flores Herrera focuses on Capital Markets.
These changes collectively represent a significant step forward in the evolution of Mexico's retirement savings system, promising a more robust, transparent, and locally-focused future for retirement savings management.
- The international associate, Andrés Mosqueira, who specializes in Asset Finance, Debt Finance, Financial Institutions, Fintech, Financial Services Regulatory, and Technology Transactions, is contributing to the implementation of changes in the retirement savings system.
- The new methodology for identifying structured instruments with predominant investment in Mexican territory introduces a way to incentivize local domestic investment and strengthen regulatory oversight.
- The expanded powers for investment committees concerning structured instruments will allow them greater control over these types of investments, thereby enhancing risk management and promoting more strategic decision-making.
- In addition to the improved corporate governance and transparency measures, the decree also includes specific provisions regarding asset restructurings and indemnity clauses in third-party contracts.
- Enhanced risk management standards have been introduced to better oversee and mitigate risks related to retirement savings investments, ensuring the security of funds for the beneficiaries.
- The decree introduces several key changes that will impact Afores (retirement fund administrators) and Siefores (investment companies), including new rules for investment in simplified issuances.
- Experts such as Jorge Reyes Juarez, who specializes in Debt Finance, Jorge Escalante, known for his work in Capital Markets, Investment Funds, and Derivatives, and Carlos Mainero Ruíz, who focuses on Capital Markets, Debt Finance, Financial Institutions, Fintech, and Sustainability & Responsible Business, are among those contributing to the implementation of these changes.
- Improved corporate governance and transparency measures have been included in the decree to increase accountability and openness in Afores and Siefores operations, fostering a more trustworthy environment for investors.
- The service areas covered by the reform include Capital Markets, Latin America, and Mexico, and the legal practice LLP is offering services in these areas to help facilitate a more robust, transparent, and locally-focused future for retirement savings management.
