On September 2, 2021, Resolution of the Board of Directors Nº 016-2021-OEFA/CD (the “Resolution”), which amends the Supervision Regulation adopted by Resolution of the Board of Directors Nº 006-2019-OEFA/CD (the “Regulation”), was published in the Official Gazette El Peruano.

Some of the most important aspects of the Resolution are as follows:

– The Resolution amends Articles 7, 29 and 36 of the Regulation.

– In the event that a companydoes not execute the preventive measure, the supervisor carries out the aforementionedsubsidiary execution, by itself or through third parties,at the expense of the company, provided that the following cases occur:

(a) Some enforcement mechanism has been previously applied, except for the preventive measures issued in the field on productive activities and infrastructure and services; and,

b) When the temporary confiscation of the objects, instruments, devices or substances is ordered; or the cessation or restriction of the extractive, productive or service activity; or the temporary, partial or total closure of the premises or establishment where the activity is carried out; or the measures imposed in the framework of the competition on productive activities and infrastructure and services.

In other words, as soon as the Resolution is in force, in the event that a specific company does not execute the preventive measure, the supervisor carries out the aforementioned subsidiary execution, by itself or through third parties, at the expense of the company under the assumptions indicated in the preceding paragraphs.

– Once the breach of the administrative measure has been verified, the company is notified of the results of the supervisory action and is granted a term offive (5) working days to prove compliance. This term is not applicable to the preventive measures orderedwhose execution is immediate, such as those indicated in paragraph b) of Section 29.3 of Article 29 of the Regulation, mentioned in the preceding paragraphs.