/ SP sets deadline until January 16, 2026, to submit comments on the FAPP investment regime proposal.

Felipe Cousiño Prieto
Partner

Francisca Donoso Fernández
Senior Associate

Laura Tressler Iglesias
Associate

On December 30, 2025, the Superintendence of Pensions (SP) published for consultation the proposed regulation (the “Proposal”) that will govern the Investment Regime of the Autonomous Pension Protection Fund (FAPP), created by the recent Law No.21,735 on Pension Reform, with the purpose of financing the benefits of the new Social Security Pension Insurance. The deadline for submitting comments is January 16, 2026.

EXCLUSIVE PURPOSE

The FAPP is established as a segregated fund, whose assets come from the employer’s contributions and transfers from the Pension Reserve Fund, among other sources. Therefore, the Proposal emphasizes that the investment of these assets has the sole purpose of achieving adequate profitability, security, and sustainability. Any deviation from this purpose will be considered a serious breach of the obligations of the Autonomous Pension Protection Fund Manager (AFAPP).

MAIN POINTS OF THE PROPOSAL

1. Investment conditions: Criteria and limits are established for different asset classes:

• 1. Debt instruments from domestic issuers: must have at least two risk ratings equal to or higher than BBB and level N-3, prepared by different private risk rating agencies.
  2. Domestic equities: must have stock market presence and/or first-class rating by at least two private risk rating agencies.
  3. Shares of domestic mutual and investment funds: must be approved by the Comisión Clasificadora de Riesgo (CCR).
  4. Foreign debt instruments: must correspond to conventional instruments valued at market prices.
  5. Foreign equities, ADRs, foreign mutual and investment fund shares, and ETF’s: must be approved by the CCR and subject to valuation at market prices.
  6. Conditions are established for trades with derivative instruments that the FAPP may carry out for hedging purposes.

1. Limit for instruments that do not meet general conditions: Limit of 10% of the FAPP as of July 2028; investing in this asset class is prohibited during the first 24 months.
2. Prohibitions: No direct or indirect investment in securities issued or guaranteed by the entity awarded the management of the FAPP investment portfolio, nor by its affiliates.
3. Investment policy and conflicts of interest: Guidelines are provided regarding the investment policy and the resolution of conflicts of interest that must be established by the AFAPP in relation to the FAPP. This policy must include minimum liquidity limits, target duration, and asset allocation for FAAP investments.
4. Limit scheme:

1. 1. Variable income: maximum 60% of the FAPP.
   2. Limits by domestic and foreign issuer.
   3. Investment limits for instruments that do not meet general conditions.
   4. Alternative assets and derivatives for investment purposes: investment is only permitted after 24 months.

1. Indirect investment (through investment vehicles): Prohibited in instruments, trades, and contracts not authorized by law or regime.
2. Other aspects: Deadlines to regularize excesses and additional conditions for investment abroad.

Interested parties may submit their comments by January 16, 2026. The proposed regime is scheduled to take effect on July 1, 2026, the date on which the management of assets will be transferred from the General Treasury of the Republic to the new managers, in accordance with the schedule of Law No.21,735.

Please note that this Proposal refers to the Investment Regime for the FAPP and does not apply to the Investment Regime for the Generational Funds that will replace the current pension fund types A through E. The proposed Investment Regime applicable to the Generational Funds has not yet been published.

To access the full text of the proposal, click on the following link:
https://spensiones.cl/portal/institucional/594/articles-11315_nt_539_proy.pdf