Aggregated News From Investment Management Regulators

Chile

CMF sanctions BancoEstado for not restituting funds to users affected by theft, robbery, loss, or fraud in use of payment cards and electronic transactions

The Board fined the bank UF 4,000 for failing to cancel charges or promptly return funds to users affected by theft, robbery, loss or fraud in payment cards or electronic transactions in accordance with the provisions of Law No. 20,009. The Board of the Financial Market Commission (CMF) sanctioned Banco del Estado de Chile with a fine of UF 4,000 for violating Article 5 of Law No. 20,009 and failing to comply with instructions issued by the Commission on this matter. Said Law establishes a liability limitation regime for holders or users of payment cards and electronic transactions in case of...

CMF issues regulations on enrollment in the Registry of Financial Service Providers and procedure to obtain authorization for investment advisory services

The former Registry of Investment Advisors, regulated by the Market Agents Act, is transferred to the Registry of Financial Service Providers created by the Fintech Act. The Financial Market Commission (CMF) issued today General Rules No. 493 and 494. The former deals with enrollment in the Registry of Financial Service Providers, while the latter covers the procedure to obtain authorization for investment advisory services, respectively. Said General Rules are part of the Commission's work plan to implement Law No. 21,521, also known as the Fintech Act. These regulations were subject to a public consultation process between January 16 and 27, 2023. The Commission...

CMF reports on the performance of supervised banks and cooperatives as of December 2022

Loans in the banking system fell 2.86 percent over 12 months due to a steep contraction of the commercial portfolio, less dynamism in the housing portfolio, and a decline in the consumer portfolio. Loans in the banking system fell 2.86 percent over 12 months, a worse result than both the 1.45-percent decline posted in November and the 4.14-percent increase recorded in December 2021. This was due to a steep contraction of commercial loans, a fall in consumer loans, and less dynamism in housing loans. Commercial loans decreased by 5.86 percent over 12 months versus a 3.80-percent fall in November. Consumer loans...

CMF advances in its implementation of the Fintech Act

The Commission adjusts requirements for enrollment in the Securities Registry to comply with amendments introduced by the Fintech Act. It also reports on the Articles that become effective alongside the Act.  The Financial Market Commission (CMF) issued today General Rule No. 492, which amends General Rule No. 30 to adapt it to the new dispositions introduced by Law No. 21,521, also known as the Fintech Act. The new regulation states that only publicly offered securities must be enrolled in the Securities Registry, eliminating the requirement to also register their issuers. Following its publication in the Official Gazette, the Fintech Act becomes effective on...

CMF publishes for consultation updates to Circular Letter No. 1 for Payment Card Operators and amendments to File C81

This Regulatory File is amended to improve information reported by PCOs. Circular Letter No. 1 is also updated to reflect regulatory changes by the Central Bank of Chile. The Financial Market Commission (CMF) has published for consultation a series of updates to Circular Letter No. 1 for Payment Card Operators (PCOs), as well as amendments to Regulatory File C81. The purpose of this update is to increase available data on Payment Service Processors (PSPs); increase its frequency to monitor the exceeding of prudential thresholds; and include some clarifications on how information about payment terms to merchants and currency convertibility must...

CMF publishes document titled "Guidelines for a new bank resolution and deposit insurance framework in Chile"

The document aims to contribute to the public policy debate; describes the main legal and regulatory gaps in the framework for managing troubled banks; and develops a proposal for closing gaps to be addressed in future legal amendments. The Financial Market Commission (CMF) published today "Guidelines for a new bank resolution and deposit insurance framework in Chile," a summary of internal discussion and analysis conducted between 2020 and 2022 as part of its strategic initiatives. It responds to the recommendations of the Financial System Assessment Program (FSAP) conducted by the IMF and World Bank during 2020 and 2021. The white paper...

CMF to file charges against entities offering loans on their websites for alleged fraud

The Financial Market Commission (CMF) alerts the public about six entities offering loans that are neither supervised by it nor registered in its rolls. According to information gathered by the CMF's Investigation Unit, these entities offer loans through their websites while requesting advance payments from applicants. After making said advance payments, applicants do not receive the agreed funds. Therefore, the CMF will file charges against any responsible parties before the Public Prosecutor's Office for alleged fraud. The identified entities are: Cooperativa Conecta (cooperativaconecta dot com) Progreso ServiFinanPro (servifinanpro dot com) Cooperativa de Talca (cooperativadetalca dot com) Cooperativa El Rosario (cooprosariochile dot com) CoopCopelec (impersonator of Servicios...

CMF announces results of its call for research projects

The Financial Market Commission (CMF) announces the results of its latest call for research projects to conduct joint studies on topics of interest to the Commission. Between November 14 and December 12, 2022 the CMF issued a public call to the academic community to submit project proposals, and six were received. The Commission's Editorial Committee accepted three based on the relevance of the topic for the CMF, institutional priorities, and available resources. "Efficiency in Financial Product Indebtedness: Evidence from Chile", by Jacelly Céspedes (University of Minnesota), Borja Larraín (Pontificia Universidad Católica de Chile), and Carlos Parra (Pontificia Universidad Católica de...

CMF begins implementation of Fintech Act

Law No. 21,521 becomes effective as of February 3, 2023 The Financial Market Commission (CMF) informs that the implementation of Law No. 21,521, known as the Fintech Act, and which introduces one of the most relevant reforms of the last decade to the capital market, begins today. The process will require the issuance of over 70 regulations over the next 18 months and begins when the law becomes effective on February 3, 2022. The Fintech Act will expand the Commission's regulatory perimeter to include crowdfunding platforms; alternative transaction systems; investment and loan advisory services; custody of financial instruments; order routing;...

CMF issues regulation on assessment of banks' liquidity position adequacy

Circular Letter No. 2,330 sets a general framework to assess banks’ liquidity adequacy and the possibility of determining additional requirements for high-quality liquid assets. The Financial Market Commission (CMF) issued today Circular Letter No. 2,330, which implements additional liquidity requirements as a result of the supervisory process. It is based on principles related to liquidity risk management and the Internal Capital Adequacy Assessment Process arising from the latest Basel Committee Accords. This is in addition to the Internal Liquidity Adequacy Assessment Process (ILAAP) proposed by the European Banking Authority and the guidelines published on the matter by the European Central Bank. The new...

CMF sanctions Alvaro Izquierdo for infringement of ban on trading an issuer's securities in the thirty days prior to disclosure of its financial statements

The board fined Izquierdo UF 100 for breaching the ban stated on Article 16, Section 5 of the Law on the Securities Market. The Board of the Financial Market Commission (CMF) sanctioned Echeverría Izquierdo S.A. director Alvaro Izquierdo Wachholtz for infringing the ban on trading an issuer's securities in the thirty days prior to disclosure of its financial statements. This is pursuant to the Market Agents Act of 2021, which added a new subsection to Article 16 of Law No. 18,045 on the Securities Market. Section 5 of said Article bans directors, managers, administrators, and main executives of an issuer of...

CMF announces Current Interest Rates to be released on Saturday, January 14

Conventional Current and Maximum Interest Rates The Financial Market Commission (CMF) announces that the certificate corresponding to the Conventional Current and Maximum Interest Rates will be published this Saturday, January 14, in the Official Gazette. These rates will enter into force upon that publication. According to Law No. 18.010, the Commission must publish this information both on its website and in the Official Gazette during the first fortnight of each month. Continuing with the policy of transparency and timeliness in the delivery of this information to the community, the respective certificate is published in advance on the CMF website . This news item was originally...

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