General Standard No. 505 was issued, which regulates the information that certain entities must provide on their business groups, specifying the format for sending and publishing the information received.
On monday, february 12, the Financial Market Commission (CMF) published the rule that aims to improve the current regulation on the information received by this institution on the business groups to which regulated companies belong.
The new regulation establishes that regulated entities must submit to the CMF, and keep duly updated, the information regarding the corporate group to which they belong, according to the terms established in Article 96 of Law No. 18,045.
It is important to note that a “corporate group” is defined as a group of entities that have links, either in their ownership, management or credit responsibility, that lead to the presumption that the actions of its members are guided by the interests of the group, or that there are common financial risks in the loans they grant or in the acquisition of securities they issue.
The entities required to provide such information are the following:
- Issuers of securities registered in the Securities Registry.
- General fund managers.
- Portfolio managers registered in the Registry of Portfolio Managers.
- Pension fund management companies that have securities registered in the Securities Registry.
- Insurance companies.
- Stock brokers.
- Securities brokers.
- Commodities brokers.
- Banks.
- Mortgage brokers and mortgage brokers.
In the case of parent or controlling companies, they must create their corporate group and identify those entities that are part of it, whether or not they are audited by the commission. In the case of parent or controlling companies that are not audited by this commission, the aforementioned entities shall be responsible for the creation of the respective group and identification of those companies that are part of it.
The CMF will make available to the public on its institutional website the information received by the audited entities regarding their business group, putting all the business groups and the entities belonging to each one.
Regarding its effectiveness, the regulation will be in force as of may 1, 2024. The entities governed by these regulations will have a period of 20 business days from the entry into force of the regulations to update the initial list that the commission will make available on its website.
Details of the regulation are available on the CMF website (www.cmfchile.cl); and to discuss the implications of the regulation, please contact our Corporate and Business team:
Álvaro Rosenblut | Partner | arosenblut@az.cl
Vicente Martínez | Senior Associate | vmartinezw@az.cl
Raimundo Busquet | Associate | rbusquet@az.cl
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