Prima Cuts Fees to Win Auction of 90,000 Peruvian Pension Plans

Prima AFP, Peru’s biggest private pension provider, won an auction for the rights to 90,000 customers expected to purchase a retirement plan between Sept. 24 and Dec. 31, the country’s financial regulator said.

Prima offered a commission of 1.6 percent, lower than the country’s three other private providers, known as AFPs, the regulator said in an e-mailed statement. AFP Integra offered a fee of 1.74 percent, AFP Horizonte 1.89 percent and Profuturo AFP 2.1 percent. The four providers must apply the rates they offered at today’s auction to all existing customers.

Peru will invite local and foreign pension providers to bid for about 700,000 new customers at an auction scheduled for mid- December as part of an overhaul of the private pension system designed to lower fees, Daniel Schydlowsky, the country’s chief financial regulator, said Aug. 28.

Lima-based Prima is a unit of Credicorp Ltd. (BAP), Peru’s largest financial services company.

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net