This Thursday, Principal Financial Group sent a letter to the Minister of Foreign Affairs, Andrés Allamand, notifying the formal start of the consultation process established in the Free Trade Agreements with the United Kingdom and the United States.

In the letter it is argued that said process seeks to solve the problems that could be generated as a result of the eventual advances of life annuities, included in the fourth withdrawal of ten percent that is processed in Parliament. According to the company, these transfers could be harmful, as “it will cause irreparable damage to insurance companies, including Principal.”

“More importantly, the project could cause companies to be unable to fulfill their contractual (with their pensioners) and regulatory obligations,” reads the text issued by Principal.

Given this, the insurer has decided to begin a negotiation process with the Government before the withdrawal of ten percent is approved by the Legislature, “since this may cause serious damage to Principal and exposes Chile to substantial financial responsibility. under the treaties ”.

A consultation process, such as the one initiated by Principal, is a mechanism established in the FTAs ​​to resolve disputes between companies and States in a negotiated manner. If this process is unsuccessful, the transnational company can file a formal claim with an international arbitration body.

If approved in Congress, insurers as Principal would be obliged a second time to deliver 10 percent of the savings they have in their accounts.

This Thursday, Principal Financial Group sent a letter to the Minister of Foreign Affairs, Andrés Allamand, notifying the formal start of the consultation process established in the Free Trade Agreements with the United Kingdom and the United States.

In the letter it is argued that said process seeks to solve the problems that could be generated as a result of the eventual advances of life annuities, included in the fourth withdrawal of ten percent that is processed in Parliament. According to the company, these transfers could be harmful, as “it will cause irreparable damage to insurance companies, including Principal.”

“More importantly, the project could cause companies to be unable to fulfill their contractual (with their pensioners) and regulatory obligations,” reads the text issued by Principal.

Given this, the insurer has decided to begin a negotiation process with the Government before the withdrawal of ten percent is approved by the Legislature, “since this may cause serious damage to Principal and exposes Chile to substantial financial responsibility. under the treaties ”.

A consultation process, such as the one initiated by Principal, is a mechanism established in the FTAs ​​to resolve disputes between companies and States in a negotiated manner. If this process is unsuccessful, the transnational company can file a formal claim with an international arbitration body.

If approved in Congress, insurers as Principal would be obliged a second time to deliver 10 percent of the savings they have in their accounts.

This Thursday, Principal Financial Group sent a letter to the Minister of Foreign Affairs, Andrés Allamand, notifying the formal start of the consultation process established in the Free Trade Agreements with the United Kingdom and the United States.

In the letter it is argued that said process seeks to solve the problems that could be generated as a result of the eventual advances of life annuities, included in the fourth withdrawal of ten percent that is processed in Parliament. According to the company, these transfers could be harmful, as “it will cause irreparable damage to insurance companies, including Principal.”

“More importantly, the project could cause companies to be unable to fulfill their contractual (with their pensioners) and regulatory obligations,” reads the text issued by Principal.

Given this, the insurer has decided to begin a negotiation process with the Government before the withdrawal of ten percent is approved by the Legislature, “since this may cause serious damage to Principal and exposes Chile to substantial financial responsibility. under the treaties ”.

A consultation process, such as the one initiated by Principal, is a mechanism established in the FTAs ​​to resolve disputes between companies and States in a negotiated manner. If this process is unsuccessful, the transnational company can file a formal claim with an international arbitration body.

If approved in Congress, insurers as Principal would be obliged a second time to deliver 10 percent of the savings they have in their accounts.

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