Strategic Infrastructure for Pension Reform

A new milestone was achieved in October as part of Chile’s pension reform: the Central Securities Depository (DCV) expanded the scope of its traditional role and adapted its services to securely and automatically store and process pension system contributions. As part of this effort, DCV received into custody more than 5.6 million Pension Security Bonds (Bonos de Seguridad Previsional, BSP) issued by the Autonomous Pension Protection Fund (FAPP), corresponding to the Protected Return Contribution (CRP) of individuals currently enrolled in the pension system.

These new bonds will be issued monthly by the Fondo Autónomo de Protección Previsional (FAPP) and held in custody by DCV in accordance with the provisions established under the pension reform.

To fulfill this mandate, DCV deployed a new technological infrastructure to store and process the monthly contributions associated with BSPs, as well as future Amortizing Bonds (BA), for all participants in the pension system.

DCV carried out the required adaptations and technological enhancements to meet the project’s demands on schedule,” said Rodrigo Roblero, CEO of DCV. He added that “this strengthens our role as a strategic partner and reflects our commitment to providing robust solutions that support the development of the financial market and its evolving requirements.”

Sergio Soto, Executive Director of FAPP, emphasized that “the custody of Pension Security Bonds at DCV is a key component in ensuring that the Protected Return Contribution operates as originally designed. Each contribution is backed by an instrument held in independent custody, with strong security standards, the guarantee of the Chilean State, and international-level traceability. This joint effort provides workers with certainty regarding the protection of this new component of their pension.”

He also noted that the Protected Return Contribution is the property of the worker, cannot be seized, is inheritable, and will receive a guaranteed return equivalent to that of inflation-indexed Chilean Treasury bonds (UF-denominated). “When an individual reaches the legal retirement age or retires early, all of these contributions will be integrated with the rest of their savings for pension calculation purposes,” Soto added.

Enabling Critical Market Infrastructure

The implementation and activation of this infrastructure required several adaptations by DCV. Among the most significant was the deployment of a fully automated system for operational processes between DCV and theFondo Autónomo de Protección Previsional (FAPP), eliminating manual intervention in transaction processing.

To strengthen this framework, integrated testing was also conducted with key market participants and regulators, including the Pensions Superintendency, to validate service continuity and operational readiness.

In addition, DCV developed a Register of FAPP Bondholders to securely and transparently manage the large volumes of information that will be received monthly for custody purposes, in compliance with Personal Data Protection Law requirements and international security standards.

This initiative confirms DCV’s ability to respond effectively to major regulatory changes in Chile and reinforces its commitment to the ongoing modernization of the country’s financial market infrastructure.