CHILE Law and Practice Contributed by: Alberto Alcalde, María Catalina Zegers García-Huidobro and Pía Robledo, Puga Ortiz
2.3 Compensation Models Fintech participants may use various compensation models, including service fees, subscriptions, trans - action-based fees, spreads, third-party commissions, performance fees and reimbursement of incremental costs. All models are subject to CMF oversight and disclosure requirements. Entities must provide clear information on the nature, amount and calculation of fees, disclose conflicts of interest and how they are managed, and explain appli - cable risks and terms. Under the OFS, institutions cannot charge for access to financial data, but may recover objective and non- discriminatory incremental costs as defined by the CMF. 2.4 Variations Between the Regulation of Fintech and Legacy Players Fintech participants are subject to a regulatory frame - work distinct from that of legacy players such as banks, reflecting differences in business models and risk profiles. Fintech entities must register with the CMF and obtain authorisation for each regulated service, operating under a single-purpose model. Banks, by contrast, are authorised under the General Banking Law (GBL) and may provide a broad range of financial services, including fintech activities, without additional registra - tion. Capital requirements for fintech entities follow a pro - portional three-tier system under NCG No 502, while banks are subject to stricter capital and liquidity standards under Basel III. Fintech regulation is generally more flexible, with pro - portionate governance, risk and cybersecurity require - ments. Banks are subject to more stringent standards, including comprehensive controls and supervision. Both fintech entities and banks must comply with data protection, AML and consumer protection rules, including participation in the OFS, although banks may benefit from existing infrastructure and broader regulatory frameworks.
Exemptions apply to legacy players already regulated under other laws, including banks, stock exchanges
and insurance companies. 2.5 Regulatory Sandbox
Chile has a regulatory sandbox (“testing regime”) under Article 68 of the Fintech Law, allowing fintech companies to test innovative products and services under temporary regulatory flexibility. The testing period lasts up to 18 months, renewa - ble once. The CMF grants exemptions or adjusted requirements on a case-by-case basis, applying a risk-based and proportional approach, and supervises participants throughout the process. Applicants must submit a proposal describing the innovation, its benefits and associated risks. Dur - ing the testing phase, participants must comply with reporting, governance and consumer protection requirements. At the end of the testing period, entities must either obtain full authorisation or cease operations. 2.6 Jurisdiction of Regulators The CMF is the primary regulator of fintech activities in Chile, overseeing licensing, supervision and com - pliance with governance, risk, cybersecurity and con - sumer protection requirements, as well as the OFS. Other authorities have jurisdiction over specific areas. The Central Bank of Chile ( Banco Central de Chile – BCCh) regulates monetary policy, payment systems and financial stability, including certain digital pay - ment and currency-related activities. The Financial Analysis Unit ( Unidad de Análisis Financiero – UAF) supervises AML and CTF compliance for entities han - dling financial transactions. Additional oversight includes the tax authority ( Servi- cio de Impuestos Internos – SII) for tax reporting obli - gations. While both the CMF and the BCCh oversee aspects of payment systems, their roles differ, with the CMF focusing on operational compliance and the BCCh on systemic stability.
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