CHILE Law and Practice Contributed by: Felipe Díaz Toro, Victor Riadi and Ignacio Ruiz Rodríguez, EDN Abogados
Pursuant to paragraph 3 of the LUF and NCG No 386 and NCG No 461 of the CMF, fund manag - ers are required to disclose information concern - ing their managed funds. The extent and scope of such disclosure depend on the type of fund manager, as outlined in 2.2.2 Legal Structures Used by Fund Managers . For FIs, the Administradora General de Fondos (AGF, which in Chile corresponds to a certain type of fund manager) must ensure the truth - ful, sufficient and timely disclosure of informa - tion regarding the fund’s main characteristics (as set forth in its by-laws), financial statements, investor registry and corporate governance. All specific details concerning the disclosure of dif - ferent series of units pertaining to a fund must be provided. Recently, the fulfilment of certain environmental, social and governance (ESG) standards has also been included within the disclosure requirements for AGFs. From a procedural perspective, such disclosure is initially provided to the CMF through the SEIL web portal. The CMF then makes it accessible to the general public. The fund manager must also provide access to the documents submitted to the CMF through its own website and maintain printed copies of some of these documents in their offices, which shall be available to FI inves - tors. None of these disclosure requirements are mandatory for FIPs. However, Administradoras de Fondos de Inver - sión (AFI, which in Chile corresponds to private investment fund managers; together with AGFs, “fund managers”) are still required to comply with the obligation to register in the CMF’s Spe - cial Registry of Reporting Entities. This status as a reporting entity imposes fewer reporting obli - gations compared to those applicable to AGFs. In addition to providing their corporate informa -
tion and supporting legal documents, AFIs must fulfil the obligation to submit updated informa - tion to the CMF regarding the FIPs under their administration on a quarterly basis. The back - ground information included in this submission encompasses the name and valid tax identifi - cation number of each fund, a detailed list of its investors and the valuation of its assets and liabilities, including a description of the account - ing methods used in such valuation. 2.2 Fund Investment 2.2.1 Types of Investors in Alternative Funds The majority of the active FIs within the Chil - ean industry target alternative assets. According to an April 2024 press release from the ACAFI, more than 70% of the investment funds man - aged by these companies invest in alterna - tive assets, and more than 50% of them go to national assets. This year’s reform of the Chil - ean Pensions Regulations will only increase said appetite; see 4.1 Recent Developments and Proposals for Reform . 2.2.2 Legal Structures Used by Fund Managers There is no specific legal structure imposed on fund managers by local regulations based solely on the management of alternative assets through investment funds. The legal structure is determined exclusively by whether the fund manager will oversee the management of an FI or an FIP, as described in 2.1.2 Common Pro- cess for Setting Up Investment Funds . In both instances, the fund manager must be domiciled in Chile. FIs must be managed by a particular type of regulated, closely held stock corporation ( Sociedad Anónima Especial ) that requires prior authorisation from the CMF and is subject to ongoing supervision. These are special cor -
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