The first set of regulatory proposals establishes corporate governance, comprehensive risk management, and operational risk management requirements for securities intermediaries and commodities brokers. It also introduces provisions on the evaluation of risk management quality to be carried out by the Commission for intermediaries and custodians of financial instruments under the Fintech Act, as well as for General Fund Managers.

The second set sets minimum equity requirements for stock exchanges, general fund managers and portfolio managers, securities intermediaries and commodities brokers, along with collateral requirements for intermediaries and managers

July 8, 2024 - The Financial Market Commission (CMF) published for a second consultation its proposed regulation on corporate governance and integral risk management requirements for securities intermediaries and commodities brokers. It also incorporates these entities under the reference framework of General Rule No. 510 on operational risk management.

In addition, the proposal sets out a methodology for assessing risk management quality, which will be part of the Commission's risk-based supervisory process. Deficiencies identified in the entity's evaluation process may imply higher requirements for risk management, minimum equity, guarantees, indebtedness and liquidity. Likewise, a risk management quality assessment methodology is proposed for providers of intermediation and/or custody services of financial instruments of the Fintech Act (proposed amendment to General Rule No. 502) and General Fund Administrators (to General Rule No. 507).

The following proposals are published for consultation:

1. Regulation establishing instructions on corporate governance and integral risk management for stockbrokers, securities agents, and commodity exchange brokers.
2. Amendment to General Rule No. 510, which provides instructions on operational risk management.
3. Amendment to General Rule No. 502, which regulates enrollment, authorization, and obligations for financial services providers under the Fintech Act.
4. Amendment to General Rule No. 507, which provides instructions on corporate governance and integral risk management for General Fund Managers.

In parallel, the consultation includes three regulatory proposals to determine minimum equity requirements based on a financial and operational risk-weighted assets methodology. These shall apply to stock exchanges, general fund managers, securities intermediaries, and commodity exchange brokers.

The following regulations are published for consultation:

1. Regulation establishing minimum equity requirements for Stock Exchanges.
2. Regulation establishing minimum equity requirements for General Fund Managers and Portfolio Managers, as well as collateral requirements these entities must provide for the benefit of the managed funds. The minimum equity and guarantee requirements may be increased in response to deficiencies identified in the quality risk management assessment carried out by the Commission.
3. Regulation establishing minimum equity, guarantees, indebtedness and liquidity requirements for securities intermediaries and commodity exchange brokers; and which repeals General Rule No. 18 and Circular Letters Nos. 632 and 695. These minimum equity and guarantee requirements may be increased in response to deficiencies identified in the quality risk management assessment carried out by the Commission.

Interested parties can submit their feedback until August 22, 2024.