translated from Spanish: Executives of the AFP in Paradise

as we have stated on other occasions, executives of the AFP should be subject to very stringent supervision processes so that compliance should be given to the legal mandates which must be met.
The Civil Code, in its article 44, points out that who handles foreign business must do so with equal dedication that if do that for their own account. This is very important. It is obvious that it is incomprehensible for someone expert in investing to do a thing with my money (for example, invest in X) and doing another with which belongs to him (for example, invest in and), as it would imply that difference that for some reason prefers to own one investment other than that recommended for another. This is more serious when we consider that in Chile 6 AFP manage around $180 billion, which means that on average each given half the budget of Chile.
Bargaining power, the ability to change entire industries, is enormous. What happens if an Executive buys shares of a company or a mutual fund with your money and then injected investment of the AFP? It happens that these shares will rise. It is essential that we know at all times what the executives of the AFP are investing and having your banking information at the international level, which should be supervigilada.
A new law, just with the existing law so that they understand that there must be a total surveillance at this point is not necessary for this.
The year 2017 we made a complaint about unfair of the expenses of the AFP uses when we show how an Executive Capital AFP and nearly 80 workers were travelling to the Caribbean celebrating his performances. This meant a new standard and the dismissal of the Executive.
The information comes from the same system, mainly from former executives who know the dangerous power braids and questionable business carried out around the world from the AFP. Themselves have been who have pointed out very clearly since there are executives from AFP that have investments in tax havens and systematically traveling to these countries to manage these investments.
This is not irrelevant. Traveling to these countries to invest their own money or handle money from third parties? Do you buy from outside of Chile international investment instruments that can then be modified behaviorally with decisions from the AFP? If it is their own money, is the money they handle consistent with their income? It is true that they have excellent income, then, as we showed last year, their monthly income reach figures from $30 million to $40 million. And that may be consistent with certain levels of saving a couple of dollars, but we do know that those revenues are tens of millions of dollars is more delicate.
Much we talked about measures of honesty to the public world. But it turns out the money from the AFP, the commissions specific silver, is a mandatory fee. One can switch to cheaper AFP, but can not opt for an AFP that pays according to results, for example. It is simply obliged to pay a tax to the private.
Today we have a history such as the following. An Executive of an AFP during the year 2016 traveled to Panama on 2 May and returned on May 5. That same month traveled to Aruba on 18 May and returned to Chile on 20. Both flights have close to 10 o’clock durations, it is unthinkable that case of leisure. They are countries that, of course, are great places for vacation, but are also tax havens and there in them large markets of investment without much regulation, as Panama Papers denounced worldwide with calls. But we continue.
Travel to Panama had another step when on 10 July of that year this Executive appears embarking towards that country return to Santiago on 14. This person has many other trips, 19 international that year, but it is not the point. And although many of them can perform actions unfair or doubtful, if the Superintendent had this subject in focus, surely you worry especially trips to tax havens and the accounts in dollars that executives. But it seems that it does not occur, that we limit us to know where are the amounts of our pension funds. And the truth is that this is just the tip of the iceberg.
We have not mentioned the Executive because it may well be that in his travels has another explanation of his private life that is incumbent not upon us. But if it is relevant to point out that certain movements of people and resources of senior executives should be supervised. This Executive was then general manager of an important AFP. And there are many trips that are made to the parent company of the AFP and that is an issue that can be considered natural (although still travel that should be counted, because there is a region where there is in the country of origin of the AFP the right to save infor) economic information in secret).
This Executive, as the other two general managers of the system, have own companies, investment firms, with their wives. Is there a surveillance with respect to the investments of these companies? It is not the same as investing in kindergartens to do so in the financial world instruments or which, through their banks, to open accounts in dollars overseas and thence diversify his acting. We must return to insist: are people who manage more funds, and with more flexibility than the Minister of finance. And this commitment not only to executives, but also to enterprises that invest in AFP.
Someone monitors that the selling price of an AFP is an appropriate market price? Do you watch the parent companies in the to avoid believe investment funds on the outside that can then be injected money from Chile? Actually this problem is no joke. The short walk to the Caribbean was something serious, but this is much more important and is callable that requested a history of recent years, because very serious would be that there are crimes that have been committed and that derived from private revenues that certain actors well positioned have succeeded thanks to its task as stewards of our pension funds.

Poured in this op-ed content is the sole responsibility of the author and do not necessarily reflect the editorial line nor the counter position.

Original source in Spanish

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