Aggregated News From Investment Management Regulators

CMF releases regulatory proposal to expand financial instruments that can be safeguarded in securities deposits

Report/Flag

Please complete the required fields.



January 22, 2019.- With the aim of contributing to the development of the financial market, the Financial Market Commission (CMF) informs that it has published a regulatory proposal for comments that allows broadening the financial instruments that can be safeguarded in securities deposit companies governed by Law No. 18,876.

Through this regulatory proposal, securities deposit companies that are currently able to hold securities, whether or not they are offered to the public, may also store other assets, documents, and contracts defined by the regulations of the CMF.

In this regard, it is proposed that financial instruments suitable for custody in securities deposits should include:

  • Invoices.
  • Representative titles of products that can be traded in commodity exchanges governed by Law No. 19,220.
  • Aquaculture, mining or other concessions; environmental permits and certificates attesting ownership of the rights arising from such concessions or permits.
  • Certificates of demand deposits or deposits up to 360 days.
  • Standby letters of credit issued by banks with a risk rating of at least A or equivalent.
  • Bank receipts issued by local or foreign banks, and derivative contracts.

This regulatory proposal is expected to contribute to extending the benefits of the centralized custody model to other types of financial operations. In particular, the facilitation of the custody of invoices is intended to strengthen the mechanisms for negotiating them on commodity exchanges, thereby contributing access to financing for small and medium-sized enterprises.

The regulatory proposal, and its respective report, will be in consultation for comments from the market and the public, until February 15, on the CMF website.

Source link

Regulator Information

Recent Articles

Feedback Statement on Funding Financial Regulation and Designated Business Oversight

Published on: 14 May 2021 The Isle of Man Financial Services Authority has today published a Read more

Solid Invest

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Vision Introducer Ltd t/a Money Bonds Market (Clone of former Appointed Representative firm)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

CSA and IIROC issue reminder of the implementation date for mandatory transparency requirements related to debt securities

The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) remind banks of mandatory transparency requirements that take effect on...

Get the latest from Regulatory.News in your inbox!

×