New AFP For Chile

Chile’s pension fund regulator, SAFP, has given its approval for the establishment of a new pension fund manager (AFP) by Pablo Navarro. This will be the first new AFP set up in Chile in 12 years and has been provisionally called AFP Modelo. It will the first such fund to operate via the internet in a drive to keep costs low and will use technology provided by Sonda, the IT company owned by the Navarro family. The company will have a start-up capital of 1.2 billion pesos ($2.21 million) and hopes to have 60,000 contributors by 2010.