CHILE Law and Practice Contributed by: Alberto Alcalde, María Catalina Zegers García-Huidobro and Pía Robledo, Puga Ortiz
vices directed exclusively to qualified investors. In such cases, certain regulatory requirements may be relaxed, subject to compliance with applicable condi - tions. The law does not explicitly provide exemptions for reverse solicitation, where a client in Chile initiates contact with a foreign provider to access regulated services without triggering domestic regulations. Certain entities already regulated under other laws (eg, banks, insurance companies, brokers) may pro - vide services provided they comply with their existing regulatory frameworks. In a small number of cases, this could enable the provision of cross-border ser - vices without triggering additional domestic regula - tions, but only for entities that are already recognised and regulated in Chile. 3. Robo-Advisers 3.1 Requirement for Different Business Models Different asset classes, such as security tokens and cryptocurrencies, require distinct business models due to their specific regulatory and operational char - acteristics. Law No 21.521 adopts a technology-neu - tral and activity-based approach, defining and regulat - ing these asset classes according to their legal nature and the services provided in connection with them. Security tokens fall within the category of financial instruments where they represent titles, contracts or assets designed to generate monetary returns or evidence credit rights. As such, they are subject to the general securities and capital markets frame - work, including registration requirements, governance standards, risk management obligations and transpar - ency duties applicable to regulated services. Cryptocurrencies are classified as virtual financial assets, representing digital units of value that can be transferred, stored or exchanged electronically, excluding legal tender in national or foreign currency. Under Law No 21.521, virtual financial assets consti - tute a specific subcategory of financial instruments. They are expressly incorporated into the regulatory
perimeter and are subject to a differentiated super - visory regime when used in regulated services, par - ticularly in activities such as custody, intermediation or trading platform operation. Where advisory services are provided in connection with these asset classes, investment advisers must also comply with professional suitability requirements. In this regard, General Rule No 503 establishes knowl - edge certification requirements – ie, Securities Mar - ket Knowledge Accreditation Committee ( Comité de Acreditación de Conocimientos en el Mercado de Valores – CAMV) examination – applicable to invest - ment advisers and other market participants perform - ing advisory functions, ensuring minimum standards of technical competence. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers The law adopts a technology-neutral approach and does not distinguish between traditional and auto - mated advisory models. Robo-advisers are treated as investment advisory services and are subject to the same regulatory framework. Entities must comply with suitability, technical com - petence, governance and risk management require - ments, regardless of whether advice is provided by humans or automated systems. They must also dis - close methodologies, risks and conflicts of interest. NCG No 504 imposes additional disclosure obliga - tions on recommendations involving publicly offered securities, which may apply to robo-advisory models. Legacy players may integrate robo-advisory solutions, provided they comply with the applicable regulatory requirements. 3.3 Issues Relating to Best Execution of Customer Trades Key issues relating to best execution include the fol - lowing. Transparency and Fairness Best execution requires promoting adequate price formation and enabling the optimal execution of cus - tomer orders.
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