Law No. 20,715: On protection to debtors of money loans On December 13, Law No. 20,715 was published in the Official Gazette, after an intense debate in the financial industry and over 2 years of discussion in Parliament. The new law modifies Law No. 18,010 on regulations on money loan transactions, Law No. 19,496 on protection of consumer rights and the Chilean Tax Code. In what refers to money loan transactions, Law No ...
Investors analysing the possibility to acquire a Chilean corporation should carefully consider the specific structure of corporate control governing most of the legal entities in Chile, since it strongly determines the way mergers and acquisitions are carried out in this country ...
FATCA is a United States Act that requires US persons, including individuals who live outside the United States, to report their financial accounts held outside of the US, and requires foreign financial institutions (“FFIs“) to report information regarding their US clients to the US Internal Revenue Service (“US IRS”). FATCA was meant to combat offshore tax evasion and to recoup federal tax revenues ...
On June 2nd, 2014, President Michelle Bachelet entered a bill into Congress which seeks to modify Law N° 19.496 on the Protection of the Rights of Consumers (“CPA”). The message of the bill recognizes that the tools provided by the current legislation to address violations to the rights of consumers are not sufficiently efficient or dissuasive: in several cases it is less expensive for providers to pay a fine for breach of the CPA, than to comply with such regulation ...
1. Introduction In July, 2014 the OECD Secretariat launched a report called “Assessment of Merger Control in Chile”. This report analyzes the Chilean merger control system, identifies its chief problems and makes recommendations in order to overcome such shortcomings. The main conclusion of the report is that the Chilean merger control regime “lacks transparency, legal certainty and predictability”1 ...
During the month of July of the current year, three relevant labor laws have been published in the Official Gazette: 1) Law No. 20,761 that extends the right of feeding children to working fathers and establishes new regulations regarding maternity.On July 22nd, 2014 the Law No. 20,761 was published in the Official Gazette ...
On November 6, 2014, Law No. 20,789 was published in the Official Gazette, granting legal status to theConsejo de Estabilidad Financiera (Financial Stability Council or “CEF”). The CEF is part of the Ministry of Finance, and was originally created in 2011 by means of a ministerial decree.
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On January 15th, Resolution DGA N° 3,438 was published. It contains a list of water rights subject to the payment of a fine for lack of use. The fine must be paid during the month of March, 2015. The term to contest such resolution is 30 days, as counted from the date of publishing. To review the list of water rights affected by the payment of fines for non-use click here ...
On June 6th, 2015, Law No. 20,850, which creates the Financial Protection System for Diagnostics and Treatment of High Costs, and pays posthumous tribute to Luis Ricarte Soto Gallegos, has been published. This law creates a financial protection system for diagnostics and high cost treatments which will be defined by the Ministry of Health by means of a Supreme Decree ...
The amendments to Chapter III.J.3 of the Compendium of Financial Regulations of the Central Bank introduced a new regulation on prepaid cards (Payment Cards with the Provision of Funds), which seeks to achieve greater financial inclusion by strengthening and promoting this payment method, which has not yet achieved the expected market penetration. The first draft of this regulation is from June of last year, which received many comments from both banks and regulators ...
The Trans-Pacific Partnership Agreement is a free trade agreement between Australia, Brunei, Chile, Canada, the United States, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. After 7 years of negotiations, which began in February 2008, an agreement was reached on October 5, 2015, and the text was published in English on November 5, 2015 ...
Decree N° 50/2015, issued by the Ministry of Public Works, has been enacted. This act approves the Regulation that sets the technical conditions to be fulfilled during the design, construction and operation stages of hydraulic works, as defined in Article 294 of the Water Code.Through this Decree, the Ministry of Public Works has set the text for the Regulation of Large Public Hydraulic Works, which had been pending enactment since 1981 ...
On January 1, 2016 Law No. 20,848 which sets forth a new legal framework for foreign direct investment in Chile (the “New Law”) was enacted. The New Law also regulates the effects of contracts entered into during the term of Decree Law No. 600 of 1974 (“DL 600”), in order to guarantee the full validity of the rights and duties acquired by foreign investors under said legal regime ...
Executive Summary On February 5th, 2016, Law N° 20,897 was published in the Official Gazette incorporating 3 new paragraphs into article 34 bis of the Electric Power Services General Law (“LGSE”). By virtue of this modification, article 34 bis of the LGSE, widens its protection to any developer of non conventional renewable energy projects (“NCRE”). This article was originally intended exclusively for electric concessionaires ...
On January 4th, 2016, the President of the Republic introduced a series of amendments to the bill of law that, “modifies the Health Code in order to regulate generic bioequivalent pharmaceutical products and prevent the vertical integration of pharmaceutical laboratories and pharmacies”, – Bill No. 9914-11- (“Pharmaceutical Bill II”) ...
On January 29th, 2016, the Supreme Court issued a ruling (hereinafter the “Ruling”), that changed the criteria regarding the requirements that trigger the entitlement to the statutory benefit known as “full week” (semana corrida) which applies to employees who are remunerated based on a fixed salary and a variable compensation. 1.- Criteria before the Ruling The full week benefit was originally applicable to employees remunerated exclusively on a daily basis or by piecework ...
On March 1st, 2016, Supreme Decree N° 62 of the Ministry of Economy, introduced in 2006 (hereinafter, the “Decree 62”), that regulates capacity transfers among power generation companies entered into force, modifying the methodology used to calculate transfers.IntroductionThe Chilean electric system remunerates power generation companies for two products: energy and capacity ...
Today, Wednesday, June 1st, the Framework Law for the Management of Waste, Extended Liability of the Producer and Promotion of Recycling No. 20,920 (the “Law”) was published.PurposeThe Law seeks to reduce the generation of waste and encourage its reuse, recycling and other types of recovery ...
Today, Wednesday, June 1st, the Framework Law for the Management of Waste, Extended Liability of the Producer and Promotion of Recycling No. 20,920 (the “Law”) was published.PurposeThe Law seeks to reduce the generation of waste and encourage its reuse, recycling and other types of recovery ...
The government recently announced that a bill will be submitted to Congress to modify the Chilean Data Privacy Law N° 19,628 (“DPL”). In connection with the future bill (yet to be presented before Congress), the Ministry of Finance sent to several members of Congress a set of informal minutes outlining the structure and core aspects of the bill.The following is a summary of the minutes, and an initial legal analysis prepared by Carey ...
