CHILE LAW AND PRACTICE Contributed by: Fernando Lathrop Aubert, Francisco Cárcamo Valdés, Jimena Illanes Diez, Joyce Jankelevich Mayer, Macarena Jaramillo Solís, Michelle Niedbalski Ramírez, Nicolás Maldonado Leyton and María Fernanda Heusser Errázuriz, Lathrop Mujica Herrera & Diez Abogado
(SERCOTEC) provide funds and subsidies to pro - mote innovation and entrepreneurship, especially for small and medium-sized enterprises; • private equity and venture capital – angel investors and venture capital funds are crucial for start-ups and growing companies with high potential; • capital markets – available to public limited liability companies (S.A.) that issue publicly traded stocks, suitable for more developed companies; and • fintech – microfinance institutions and fintech platforms offer fast and flexible financing solutions, especially for small businesses and underserved sectors. In 2023, Chile enacted Law No 21,521 of 2023 (the “Fintech Law”), modernising the financial system, promoting competition and financial inclu - sion, and facilitating transparent customer informa - tion exchange among service providers. 5.2 Securities Regulation Securities in Chile are primarily governed by the Secu - rities Market Law, establishing the foundations upon which the Chilean capital market operates, including: • regulations related to publicly traded companies; • the management of third-party funds (such as investment funds, mutual funds, pension funds, and others); • the deposit and custody of securities; and • how various intermediaries are regulated. The main supervisory entity of the Chilean capital market is the CMF. It regulates and supervises the securities, insurance and banking markets in Chile, and contributes to strengthening the regulatory frame - work of securities through the issuance of administra - tive regulations, the most important of which are the General Character Norms ( Norma de Carácter General or NCG) and Circulars. These provide instructions or interpretations of the applicable binding regulations for supervised entities. As set out in 1.2 Regulatory Framework for FDI , for- eign investors are not subject to any particular require - ments to operate in the Chilean capital market other than those that also apply to local investors. To make a public offering of securities in the Chilean market, issuers must be registered in the securities
registry maintained by the CMF. For a public offering of foreign securities, they must be registered in the foreign securities registry, which is also maintained by the CMF. NCG No 30 of 1989 and NCG No 352 of 2013 establish the registration requirements for Chil - ean public offering securities in the securities registry and the regulations for the public offering of foreign securities in Chile, respectively. 5.3 Investment Funds Foreign investors structured as investment funds in Chile are primarily regulated by Law No 20,712 of 2014 (the “Unified Funds Law”), which provides a unified and modernised framework for domestic and foreign investment funds, distinguishing between: • investment funds, which can be private or public; and • mutual funds. Under this framework, foreign investment funds are not subject to a specific regulatory review solely based on their status as FDI. They must comply with the same establishment and operational requirements as domestic funds. However, certain regulatory requirements and over - sight mechanisms may apply depending on the sec - tor of investment, the nature of the activities, and the entities involved. These requirements apply equally to both foreign and domestic investment funds. In sec - tors considered critical to national interest, such as mining, energy, telecommunications or financial mar - kets, additional sector-specific regulatory reviews may be necessary. It is important to note that the Foreign Investment Promotion Law outlines what qualifies as FDI in Chile. 6. Antitrust/Competition 6.1 Applicable Regulator and Process Overview Chile enforces a stringent pre-merger notification regime, governed by Title IV of Decree of Force of Law No 1 of 2004, the consolidated version of Decree Law No 211 (the “Competition Law”), and Supreme Decree No 41 of 2021. The FNE, referred to in 3.2
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