U.S., Canadian and Chilean investment management firms will be allowed to manage Mexican individual retirement accounts to be established under the country's new social security law.
Mexico's Chamber of Deputies voted this week to allow firms from those countries to compete with Mexican institutions to manage the individual retirement assets in organizations known as retirement funds administrators, or afores.
Under the social security law passed last December, 11 million salaried employees, their employers and the government will deposit an average of 10% of salary into each employee's account each year. By the end of 1997, the afores could hold assets totaling $4.1 billion. All of the assets will have to be invested within Mexico. Mexican banks, insurance companies, unions and the Mexican Social Security Institute also may manage afores.