CHILE Law and Practice Contributed by: Felipe Díaz Toro, Victor Riadi and Ignacio Ruiz Rodríguez, EDN Abogados
assets, as mentioned in 2.2.3 Restrictions on Investors . 2.3.8 Marketing Authorisation/Notification Process No specific authorisation or notification is required for alternative investment funds per se, except those mentioned in 2.3.6 Rules Con- cerning Marketing of Alternative Funds . 2.3.9 Post-Marketing Ongoing Requirements Fund managers are required to comply with ongoing disclosure and reporting requirements to the CMF regardless of the type of asset class, strategy or investments made by the investment funds under their management. These obliga - tions include the updating of all marketing mate - rials related to the funds under management, as outlined in 2.3.6 Rules Concerning Marketing of Alternative Funds . AFIs are subject to a lesser degree of oversight by the CMF; therefore, the ongoing marketing requirements for FIPs must adhere to the pro - visions mentioned in 2.3.5 Rules Concerning Pre-marketing of Alternative Funds regarding the private offering of FIP units. Conversely, AGFs are subject to significantly higher regulatory requirements, which include the reporting of information regarding the fund, including an updated version of the fund’s by- laws and its respective informative brochure. These reporting obligations must be fulfilled at least quarterly in accordance with the deadlines and requirements set forth in NCG No 30 of the CMF. 2.3.10 Investor Protection Rules An offer subject to NCG 336 has to be exclu - sively and privately targeted to eligible inves - tors in Chile, which corresponds to institutional
Any type of communication or information issued regarding a FIP must necessarily disclose that these funds are not regulated or supervised by the CMF. FIPs are subject to significantly less strict CMF oversight than FIs, as mentioned in 2.1.4 Dis- closure Requirements . Accordingly, AFIs man - aging such funds are subject to less stringent oversight by the CMF, and the private offering of their units must comply with NCG 336, as men - tioned in 2.3.5 Rules Concerning Pre-marketing of Alternative Funds . Rules regarding the marketing of securities apply to FFMMs and FIs, as their units must be previ - ously registered with the CMF. Pursuant to NCG 365, the fund manager must then provide target investors with the following information: • the fund’s by-laws (as previously deposited in the CMF Register of Fund By-laws); • the general subscription agreement of the fund manager; • the specific subscription agreement for the marketed fund; • the informative brochure of the fund, issued in accordance with CMF guidelines (allowing for an informed investment decision based on its historical revenues, the fund’s investment thesis, the fund’s particular risks, the portfolio composition, etc); and • financial statements sent by the fund man - ager to the CMF. 2.3.7 Marketing of Alternative Funds Alternative funds can be marketed to any type of local or foreign investor, except for those gov - erned by the pension fund investment regime, which imposes stringent controls on the per - centage of investments allowed in alternative
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