The standards we operate under.
Markets IQ applies the following frameworks as primary analytical references that shape our work from inception. Our models, opinions, and monitoring outputs are built to satisfy these standards. The Mexican regulators below are shown as a worked example; the same analytical depth extends to pension, banking, and securities regulators across Latin America.
CONSAR
Comisión Nacional del Sistema de Ahorro para el Retiro
CONSAR governs the investment and operational conduct of Mexico's pension fund system (SIEFOREs). Our portfolio monitoring and valuation services for AFORE clients are built directly to satisfy CONSAR's most demanding analytical requirements, particularly the look-through transparency mandate for alternative assets.
Régimen de Inversión
CONSAR defines strict investment limits by asset class, risk category, and geographic exposure. Our monitoring infrastructure tracks each SIEFORE's portfolio against every applicable limit in real time.
- Concentration limits by issuer and asset class
- Credit quality floor requirements
- Liquidity buffer rules by SIEFORE generation
- Real-time headroom calculations against each limit
Transparencia de Activos Alternativos
CONSAR requires AFOREs to analytically pierce through CKDs, CERPIs, and Fibras E to the underlying project level — attributing sector, geography, and risk class at the sub-asset layer. This is the most technically demanding requirement in the Circular.
- Project-level sector and geography attribution
- CONSAR risk classification at underlying asset level
- Aggregated look-through to SIEFORE portfolio level
- Quarterly audit trail documentation
Metodología VaR CONSAR
CONSAR mandates a specific Value at Risk methodology for SIEFOREs. Our risk analytics incorporate this prescribed approach, ensuring all portfolio risk metrics are directly comparable to the regulator's own calculations.
- VaR calculation under CONSAR prescribed methodology
- Conditional VaR (CVaR) supplemental metrics
- Stress testing under CONSAR-defined scenarios
Valuación de Instrumentos
CONSAR establishes specific valuation conventions for CKDs, CERPIs, and alternative investments held by SIEFOREs, including the role of independent valuators and the documentation required for regulatory examination.
- Independent valuator requirements
- NAV certification documentation
- Valuation opinion letter standards
CNBV
Comisión Nacional Bancaria y de Valores
The CNBV governs credit risk management for Mexican banking institutions and regulates capital markets participants. Our credit modeling and DCM analytics are calibrated to satisfy CNBV examination requirements at the model documentation and methodology level.
Calificación de Cartera Crediticia
B-2155 defines Mexico's credit portfolio classification methodology — the staging framework (A1 through E), the ECL calculation requirements, and the documentation standard for credit models submitted to regulatory examination.
- A1–E stage classification criteria
- Probability of Default (PD) calibration requirements
- Loss Given Default (LGD) estimation standards
- ECL calculation and documentation
Circular Única de Emisoras
The CNBV's issuance rules govern prospectus requirements, ongoing disclosure obligations, and the standards for independent opinions submitted to the regulator in connection with structured capital markets transactions.
- CKD and CERPI prospectus requirements
- Independent credit opinion standards
- Ongoing disclosure obligations post-issuance
- Related-party transaction valuation rules
IFRS Standards
International Financial Reporting Standards — IASB
IFRS governs the financial reporting of most LATAM institutional investors and public companies. Our valuation and credit risk deliverables are structured to satisfy IFRS requirements directly, reducing the burden on client finance and audit teams to re-interpret our outputs.
Financial Instruments — ECL
IFRS 9 replaces the incurred loss model with a forward-looking Expected Credit Loss framework. Our credit models incorporate the three-stage classification, lifetime ECL for stage 2 and 3 assets, and the forward-looking macroeconomic overlay IFRS 9 explicitly requires.
- Three-stage classification (12-month and lifetime ECL)
- Significant increase in credit risk (SICR) criteria
- Forward-looking macroeconomic scenarios
- Effective interest rate and modification accounting
Fair Value Measurement
IFRS 13 establishes the framework for all fair value measurements in financial reporting. Our valuation opinions explicitly identify the applicable level of the IFRS 13 hierarchy and document the inputs, assumptions, and techniques used at each level.
- Level 1, 2, and 3 hierarchy classification
- Valuation technique documentation
- Unobservable input justification (Level 3)
- Sensitivity analysis for significant Level 3 inputs
Business Combinations — PPA
IFRS 3 requires acquirers to identify and measure acquired assets and liabilities at fair value on the acquisition date. Our purchase price allocation engagements deliver fully documented, audit-ready IFRS 3 analyses.
- Identification of intangible assets and contingent liabilities
- Customer relationship and technology asset valuation
- Useful life determination and amortization schedules
- Goodwill and bargain purchase assessment
ASC 820 · ASC 805 · CECL
For US-based clients and cross-border engagements, we apply the corresponding US GAAP standards — ASC 820 for fair value, ASC 805 for business combinations, and CECL (ASC 326) for credit losses.
- ASC 820: Fair value hierarchy and disclosure
- ASC 805: Purchase price allocation
- ASC 326: Current Expected Credit Loss (CECL)
- ILPA reporting standards for fund-level reporting
Data Residency & Privacy Standards
Financial institutions entrust Markets IQ with sensitive portfolio data, client information, and proprietary analytical inputs. Our data governance framework is designed to satisfy the requirements of both major LATAM data protection regimes and the institutional policies of US-based clients.
LFPDPPP
The Ley Federal de Protección de Datos Personales en Posesión de los Particulares governs how we handle personal and institutional data from Mexican clients. Our privacy notice (Aviso de Privacidad) is maintained in full compliance with INAI requirements.
- Explicit consent and purpose limitation
- ARCO rights (access, rectification, cancellation, opposition)
- Data transfer restrictions and third-party agreements
- Designated Privacy Officer and response protocols
LGPD
Brazil's Lei Geral de Proteção de Dados governs the processing of personal data for Brazilian institutional clients. Our Brazilian engagement protocols are structured to comply with LGPD's legitimate basis requirements and data residency provisions.
- Lawful basis determination for each data processing activity
- Data subject rights and response timelines
- Data residency: Brazilian client data remains in LATAM infrastructure
- Processor and sub-processor agreements
Data Residency Architecture
Client portfolio data and analytical outputs are processed and stored in LATAM-regional cloud infrastructure. Client-specific data remains within LATAM-regional servers and moves elsewhere solely with explicit client authorization.
- LATAM-region cloud hosting for all client data
- TLS 1.3 encryption for all data in transit
- Encrypted storage for all data at rest
- Audit log of all data access events
Complete Data Lineage
Every valuation output, credit model result, and monitoring report produced by Markets IQ is accompanied by complete data lineage documentation — from raw input source through each analytical step to final deliverable.
- Input source citation for every data point used
- Methodology version control with change log
- Analyst sign-off and review trail
- Reproducible outputs from documented assumptions
Analytical independence as structural policy.
Independence is the foundation of every opinion, valuation, and assessment Markets IQ produces. We maintain independence as a structural feature of how the firm is organized and engaged, well beyond a marketing claim.
Markets IQ has no ownership, revenue-sharing, or referral arrangements with fund managers, portfolio companies, structuring arrangers, or data vendors whose instruments or transactions we are engaged to value or assess. This structural independence is maintained as a firm policy and disclosed to clients at engagement initiation.
Vendor Independence
Markets IQ acts solely as an independent analyst, free of any agent, reseller, or distribution relationship with pricing vendors, data providers, or financial platforms. Our data-sourcing decisions rest solely on analytical merit.
Independence of Judgment
We decline fees, commissions, or economic participation from transaction counterparties in any engagement where we provide an independent credit or valuation opinion.
Documented Methodology
Every engagement deliverable is supported by a written methodology document that discloses all material assumptions, data sources, and analytical choices — reviewable by external auditors.
Version-Controlled Models
All analytical models are version-controlled. Prior versions are retained and accessible, ensuring that historical deliverables can be reproduced and examined for any reporting period.
Reproducible Outputs
Any output delivered to a client can be fully reproduced from documented inputs and methodology. There are no "black box" calculations or undisclosed parameter choices.
Peer Review Protocol
All final deliverables — valuation opinions, credit assessments, regulatory reports — pass through a structured internal review before delivery, with reviewer sign-off documented.