CMF Advances Fintech Law Implementation: Investment Advisors at the Center of the Regulatory Discussion
At a key seminar hosted by KPMG, Ried Fabres, and Altafid—with the collaboration of the CMF—financial sector experts addressed the progress, benefits, and challenges brought by the new Fintech regulation, especially for investment advisors.
A Call to Action to Start
Andrés Martínez, lead partner of legal and tax consulting at KPMG, opened the event by emphasizing the urgency of understanding the practical implications of the Fintech Law, in effect since 2023, and its direct impact on investment advisors. “Discussing this regulation is essential to understand how it will reshape the financial market,” he stated.
The New Fintech Regulation: From Law to Execution
Claudia Sotelo, Head of the CMF's Financial Innovation Center, traced the origins of the regulation in an ecosystem that already includes more than 450 fintech entities. She explained that while the Fintech Law sets general principles, specific regulations like NCG 502 and NCG 530 translate those into practical requirements for advisors.
Notable measures include the requirement to register in the Financial Services Providers Registry (RPSF) for advisors with more than 100 active clients, documentation related to risk profiles and portfolio changes, and an upcoming CMF guide to standardize information submission.
NCG 502 in Practice: Requirements and Opportunities
Ricardo Abogabir and Matías Valenzuela from Ried Fabres delved into the technical aspects of NCG 502. They clarified who must register and the reporting obligations to both clients and the CMF. They noted that requirements vary depending on the advisor's size and public exposure.
Key topics included the definition of a "financial advisor," transparency obligations, risk management protocols, and penalties for non-compliance. It was emphasized that providing services without registration is considered a serious offense.
Corporate Governance and Risk Management: New Standards for Advisors
María Soledad Rodríguez, partner of Financial Risk Management at KPMG, presented operational obligations under NCG 502, outlining the “Full” and “Simplified” compliance models based on the advisor’s complexity.
She recommended implementing risk committees, internal audits, training programs, risk maps, and monitoring systems with key risk indicators (KRIs). She also stressed the importance of contingency plans to ensure business continuity in the event of technological issues or advisor unavailability.
A Panel to Clarify Doubts
The seminar concluded with a panel moderated by Patricio Eskenazi of Altafid, where experts answered audience questions. The CMF reaffirmed its commitment to advisor regulation, explaining concepts like "active client" (one with contact in the past three months) and the application of the most restrictive risk profile in case of conflict between custodian and advisor.
It was also clarified that an advisor placing orders over the phone may be legally classified as a "router," underscoring the importance of understanding and complying with current regulations.
Conclusion
The event highlighted the regulatory effort to professionalize and bring transparency to Chile’s financial advisory sector. Public-private collaboration, ongoing education, and robust risk management were underscored as essential pillars for successfully implementing the Fintech Law.
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