translated from Spanish: Government withdrew indication seeking to restrict changes in VET funds

09:53
The debate, in which The Minister of Finance, Ignacio Briones, participated was focused on an indication presented by the Executive seeking to restrict changes in funds in AFPs, setting a period of up to 30 days for managers to make such a change, and that these could only be made between adjacent funds.

The Finance Commission generally approved, by 8 votes in favour and 4 against, the Executive’s bill establishing new demands for transparency and accountability of market players, with amendments to Laws No. 18.045, on the Securities Market and No. 18,046 on Anónimas.La Companies, with immediate discussion, seeks to strengthen confidence in the markets , in order to achieve the proper functioning of these, within a framework of fair and ethical competence, where there are no abuses of their participants. The debate, in which The Minister of Finance, Ignacio Briones, participated was focused on an indication presented by the Executive seeking to restrict changes in funds in AFPs, setting a period of up to 30 days for managers to make such a change, and that these could only be made between adjacent funds. Opposition parliamentarians asked the Treasury to withdraw the indication, to limit the ability of workers to change funds and to be considered unconstitutional. In that regard, the treasury holder argued that the restriction of freedom is justified because the changes between funds are not uncommon for the construction of the pension in the long term. However, the Secretary of State decided to withdraw the indication, after the secretariat of the committee declared it inadmissible for going against the project’s parent ideas. Following the general vote, the instance initiated the particular discussion of the initiative, which will continue until its full dispatch at this Wednesday’s meeting on 7 October.

Original source in Spanish