SAFJP

Lic. Francisco AstelarraSuperintendent

March 2001

SAFJP

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Otros

Disponibilidad

Fondos mutuos yde inversiónExtranjeros

Acciones

Instituciones nofinancierasInstitucionesFinancierasDeuda Pública

Others

Structure of the Portfolio of the FJP- December 2000 -

Information provided by the different member countries

SAFJP

MEMBER COUNTRIES FJP (million of U$S) % OVER GNP

Argentina 20.381 7.0

Bolivia 841 9.8

Chile 35.886 47.0

Colombia 3.590 5.1

Costa Rica 350 2.3

El Salvador 350 3.4

Mexico 17.216 3.2

Peru 2.753 5.1

Uruguay 811 3.9

Value of the FJP and relation with the GNP

- through 12-31-2000 -Information provided by the different member countries

SAFJP

MEMBER COUNTRIES % OVER PUBLIC DEBT

Argentina 9.5

Bolivia 53.1

Chile 61.1

Colombia 7.6

El Salvador 16.3

Mexico 11.2

Peru 1.2

Uruguay 11.0

Relation of the FJP and Public Debt- December 2000 -

Information provided by the different member countries

SAFJP

COMPLIANCE TO TRANSPARENCY NORMS IN THE MAIN MARKETS

• good = 10, bad = 0

5,395,32

5,30

5,29

5,22

5,19

5,10

5,05

4,99

4,91

4,76

4,76

4,51

4,41

4,33

4,14

4,12

4,10

5,30

4,65

•Ireland

•Sweden

•New Zeland

•Singapoore

•Luxemburg

•Switzerland

•U. Kingdom

•Germany•U.S.A.

•Holland

•Iceland•France

•Belgium

•Norway

•Hong Kong

•Israel

•Denmark•1.

•Finland•2.

•Australia•3.

•Canada•4.

•5.

•6.

•7.

•8.

•9.•10

.•11

.•12

.•13

.•14

.•15

.•16

.•17

.•18

.•19

.•20

.

•8.56•7.97•7.80

•7.47•7.43•7.36•7.16•7.16•6.85

•6.78•6.76•6.75•6.63

•6.36•6.17

•6.04•5.95•5.87•5.74•5.73

•5.39•5.32•5.30

Source: Mc Kinsey / The World Competitiveness Yearbook 1999

•Japan

•Hungary

•Chile•South Africa

•Poland

•Corea

•Italy•Malaysia

•Brazil

•Indonesia

•Colombia•China•Argentina•Mexico•Greece•India

•Turkey

•24.

•25.•26

.•27.

•28.•29.•30.

•31.•32.

•33.

•34.•35.

•36.•37.•38.•39.

•40.

•Spain

•Austria

•Portugal•23.

•22.

•21.

SAFJP

IssuedAmount of

issuers IssuedQuantity of

issuersArgentina 96 32 125 52 128

Bolivia 4 1 7 2 27

Chile 98 93 260

Peru 11 26 15 7 211Uruguay 9 2 8 4 21

does not discriminate between financial and

non financial

Emisions of year 2000 and shares that are quoted in stock markets

SAFJP

Problem Observed in the Legal Frame

• Public Offer Law

Absence of:

– Transparency regulations

– POL Regulation with legal range

– Tipify fraudulent practices

SAFJP

Problems Observed in the Legal Frame

•Protection to minority investors–Insufficient requirements of information to control groups–Right to accounting value recess

•Regulatory and Impositive Arbitrations–Lack of coordination between regulators–Need of neutral impositive treatment

SAFJP

Incorporation of international standards

• Chile (sanctioned POS Law)

• Argentina (project to be presented to Congress)

• Peru (project underway of being sanctioned)

• Mexico (Better practice Code in the Mexican Stock Market)

• Colombia (Value Superintendence Resolution)

SAFJP

Benefits of adopting better practices•Higher transparency and access to the Board of Directors decisions•Higher number of counterparts for the operations•Better affiliate interests protection mechanisms.

SAFJP

Brief description of the Argentinean case

SAFJP

Law of Better Practices for the Societies Governing and Defense of the Minority Shareholder Rights

• Transparency– Creation of Figure and Regulation of the Financial

Services Consumer Rights– Elevates with Rank of Law Transparency Requirements

in Public Offer. Penalization by law of the use of priviledged information offense

– POS Regulation (inexistent in current law)– Regulates Participation of Locators and Practices of

Market Stabilization– Modernizes Legislation in defense of Minority Rights– Creation of the Special Guarantee Fund for entrustees

protection

SAFJP

Law of Better Practices for the Societies Governing and Defense of the Minority Shareholder Rights

• Government of the Societies-Instaurates a Diferentiated Regime for Open

Societies-Make flexible Capital Structure for Stock

Companies-Improve Conflict Resolution Mechanisms-Instaurate a minimum of External Directors-Regulation of recess rights (Instaurate equitable

price)

SAFJP

End of the presentation. Thank You.