Pension Fund Management Companies (AFAPs in Spanish)

AFAPs are entities that manage personal contributions (and voluntary deposits) of individuals  who perform or have performed activities covered by the Social Security Bank, in the percentage corresponding to the pension scheme by individual savings.

These institutions manage a Pension Savings Fund which is an independent equity (separate from the assets of the Management Company) and is composed of two sub-funds, one of Accumulation and one of Retirement.

These entities require authorization to operate for reasons of legality, timeliness and appropriateness by the Executive Power with prior report from the Central Bank of Uruguay. Additionally they require authorization by the Superintendency of Financial Services to start operating in the financial system. See requirements for approval and permission to operate, Art. 1 et seq of the Central Bank of Uruguay Communications Compilation of Financial System Regulation and Control Rules (RNRCSF in Spanish). 

In these cases, supervision is primarily aimed at protecting the stability and solvency of the entities, based on the systematic and regular implementation of different supervisory mechanisms, which seek to promote entities to manage their risks in a professional way, to prepare financial reports in a timely and consistent manner, to operate with caution and  maintain adequate compliance with regulations (in particular that investments made with affiliates' resources comply with current regulations).Through these procedures, it is possible to have early warnings of problems and thus company managers can take appropriate measures to solve them in a timely manner. 

The role of protecting financial users is also performed by responding to inquiries and denouncements.

See List of Pension Fund Management Companies (AFAPs) authorized to operate in the Uruguayan financial system.