Chilean Financial Market Commission Opens Public Consultation on Authorization of Existence of Special Stock Corporations and initiation of operations…
On January 3rd, 2022, the Chilean Financial Market Commission (FMC) opened a public consultation process (the "Regulatory Proposal") on new regulations regarding the procedure to authorize the existence of certain special stock corporations (SSCs) and to authorize the commencement of operations of general fund managers (GFMs).
The Regulatory Proposal is addressed to (I) entities that are required to be incorporated as a special stock corporation, subject to FMC oversight, that currently do not have regulations governing this matter (i.e., entities that are not banks, issuers of non-banking payment cards, payment card operators, managers of clearing and settlement systems for financial instrument and insurance companies, for which regulations on the authorization of existence are already in place) and (II) GFMs, which, pursuant to the provisions of Law No. 20,712, may only initiate operations upon providing satisfactory evidence to the FMC that they meet the applicable legal requirements and that they have the policies, procedures and controls required by a general rule.
The public consultation process will be open until January 28th, 2022 and the text of the Regulatory Proposal can be found at the following link.
I. Application for the authorization of existence of SSCs
The Regulatory Proposal establishes that the request for authorization of existence of SSCs subject to FMC supervision must be submitted by one of the future partners of the entity through the FMC's website, together with the following information:
Further information on each of the documents and other information that must be submitted with the application is contained in the Regulatory Proposal.
The Regulatory Proposal also regulates the ongoing requirement of communicating to the FMC any modification to the information submitted as part of the application process, regardless of whether such modification takes place during the authorization process or after the authorization has been granted, which must be satisfied through the FMC’s Online Information Delivery System (Sistema de Envío de Información en Línea – SEIL).
Finally, as indicated in the Regulatory Proposal, the regulations on the process of requesting authorization of the existence of SSCs will enter into force as from the date of its enactment and will not be applicable to requests for authorization of existence previously initiated, unless the applicant expressly states so in writing.
II. Application for the initiation of operations of GFMs
According to the Regulatory Proposal, in order for GFMs to obtain the authorization to initiate operations, allowing them to deliver to the registry kept by the FMC the first internal regulations of any mutual or investment fund, they must submit a request to the FMC, together with the following information:
More information on each of the documents and other information that must be submitted with the application may be found in the Regulatory Proposal.
Finally, as indicated in the Regulatory Proposal, the regulations on the application for commencement of operations of GFMs will enter in force as of the date of its enactment.
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