CHILE Law and Practice Contributed by: Alberto Alcalde, María Catalina Zegers García-Huidobro and Pía Robledo, Puga Ortiz
Puga Ortiz Av Presidente Riesco 5561, Piso 8 Las Condes Santiago de Chile Santiago Chile
Tel: +56 2 2337 7000 Email: aa@pugaortiz.cl Web: www.pugaortiz.cl
1. Fintech Market 1.1 Evolution of the Fintech Market
2.2 Regulatory Regime Chile’s fintech framework under the Fintech Law establishes a centralised regime for regulated activi - ties, requiring registration in the Financial Services Providers Register (FSPR) and prior authorisation from the CMF. Non-compliance prevents entities from pro - viding regulated services. All verticals are subject to governance, risk manage - ment, disclosure and cybersecurity requirements. In general, entities must ensure transparency, manage conflicts of interest and implement adequate opera - tional and security standards. Specific requirements apply depending on the activity: • crowdfunding and trading platforms must ensure transparent and secure operations; • advisory services must meet technical competence and conflict-of-interest standards (including certifi - cation requirements under NCG No 503 for invest - ment advisers); and • custodians and intermediaries must comply with safeguarding, capital and guarantee requirements. Exemptions apply to entities already regulated under other legal frameworks, including banks, brokers, stock exchanges, fund administrators and credit rat - ing agencies. The CMF oversees compliance and may issue sec - ondary regulation, conduct audits and impose sanc - tions. Entities must also comply with data protection, AML and cybersecurity regulations.
Law No 21,521 (the “Fintech Law”) is in the full imple - mentation phase. Financial Market Commission ( Comisión para el Mercado Financiero – CMF) Gen - eral Rule ( Norma de Carácter General – NCG) No 514 establishes the open finance system (OFS) framework. Regulated activities include crowdfunding, alternative trading, credit/investment advisory, custody and order routing. Entities must register in the Financial Services Providers Register (FSPR) and comply with CMF gov - ernance, capital and risk standards. The Framework Law on Cybersecurity (Law No 21,663) is also active, focusing on vital importance operators ( operadores de importancia vital – OIV). The Fintech Law regulates several business models, including crowdfunding platforms, alternative trading systems, credit and investment advisory, custody, and order routing and intermediation. Traditional financial institutions are increasingly adopt - ing fintech models, particularly in digital banking, pay - ment solutions and investment platforms. Fintech start-ups focus on technology-driven services, including crypto-asset trading and custody, AI-based solutions (eg, credit scoring and fraud detection), and interoperable services enabled by the OFS. 2. Fintech Business Models and Regulation in General 2.1 Predominant Business Models
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