After incorporating industry feedback, the Chilean regulator has broadened portfolio bands and tracking-error limits, giving AFPs greater flexibility in implementing generational investment strategies.

International partnerships and integrated wealth-management services are at the heart of their new strategies.

The new regulatory framework allows these firms to offer investment advisory and portfolio management services, subject to regulatory requirements.

AFPs are calling for wider deviation bands and greater flexibility in the selection of benchmarks to ensure that performance incentives do not ultimately push managers toward overly similar investment strategies.

The voluntary measure could give approximately 1.8 million members who entered the system before 2013 and did not take advantage of the original switching window the opportunity to migrate to the new fee structure.