CHILE Trends and Developments Contributed by: Alvaro Moraga Fritz and Sebastián Moraga Nazar, Moraga & Cía.
Highlights Going into 2025, the banking and financial regu - lation landscape in Chile is marked by significant
• General Regulation No 502 – this regulation establishes the requirements for financial ser - vices governed by the Fintech Law, including: (a) crowdfunding platforms; (b) alternative transaction systems; (c) credit and investment advisory services; (d) financial instrument custody; (e) order routing; and (f) financial instrument brokerage. • General Regulation No 514 – this regulation provides detailed guidelines for the Open Finance System, which is set to be fully operational by 4 July 2026. Banks Versus Fintech? A growing tension between traditional banks and the fintech industry has recently taken cen - tre stage in Chile’s financial landscape. Tradi - tional banks have been lobbying the CMF to restrict new entrants from engaging in activities they consider exclusive to banking institutions. Meanwhile, fintech companies advocate for a regulatory framework that is flexible and propor - tional, and that fosters fair competition. Traditional banks emphasise the importance of maintaining solvency, liquidity and reserve requirements to protect consumers and prevent systemic risks. In contrast, advocates of fintech companies highlight the critical role of innova - tion and competition, noting that approximately 71% of fintech solutions cater to individuals and small businesses that are often excluded from traditional banking services. Dispute Over the Receipts of Funds and Deposit-Taking Currently, traditional banks assert their interpre - tation that only they are authorised to accept deposits. Fintech companies dispute this claim however, arguing that receiving public funds
trends and advancements. Basel III implementation
Chilean banks are on track to complete the adoption of Basel III standards, bringing their operations into alignment with international best practices for capital adequacy and risk manage - ment. The Financial Resilience Law The Financial Market Commission (CMF) has announced the Financial Resilience Law. This initiative is designed to strengthen the ability of financial institutions to manage crises effectively, thereby safeguarding the stability of the financial system. Parametric insurance regulation The CMF plans to introduce specific regulations for parametric insurance, which offers payouts based on predefined indices rather than actual losses. This innovative framework aims to drive advancements in the insurance market while expanding coverage options for consumers. Enhanced standards of conduct To ensure consumer protection and foster responsible practices, the CMF intends to issue updated conduct standards for banks, insurance companies and fund managers. These stand - ards will focus on promoting transparency and ethical behaviour across the financial sector. Implementation of the Fintech Law The CMF will continue executing its 2024–2025 roadmap to fully implement the Fintech Law, with two cornerstone regulations standing out.
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