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Mexico's Cofece probe finds anti-competitive practices at some Afores

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Mexico's Cofece probe finds anti-competitive practices at some Afores

Mexicanfederal competition commission Cofece has found that some local pension fund managers,or Afores, have engaged in anti-competitive practices, the agency said April 5 withoutnaming the firms.

Aftercompleting an investigation, Cofece said there is sufficient evidence to show thatthe Afores used monopolistic practices; it plans to take these fund managers tocourt.

WhenCofece launched its investigation in July 2015, the regulator had noted that thenumber of Afores had dropped to 11 as of that time from 21 in 2007, adding thatthe decreased competition had allowed those remaining to charge higher prices andcommissions.

A previousCofece report said the commissions charged by the Afores are not in line with thereturns they offer, since they allegedly use more resources in marketing than inimproving the performance of their funds.