Chile’s Financial Market Commission (CMF) has opened an administrative sanctioning procedure and filed charges against Sartor Administradora General de Fondos S.A. (Sartor AGF), currently in liquidation, and former directors and executives. Although sanctioning procedures are generally confidential under the CMF Act, the CMF Board decided to make the existence of the case and the charges public to safeguard public trust and investors’ interests. The charges against Sartor AGF include serious and repeated breaches of duties of due care and diligence in managing funds in the exclusive interests of contributors, including manifest negligence in administering fund resources. A separate charge alleges the provision of false information to the market, the public and the CMF because the financial statements of the Sartor Leasing and Sartor Táctico Investment Funds for 31 December 2023 and for March, June and September 2024 did not reflect the funds’ real economic, equity and financial position; similar duty-of-care and disclosure charges were also filed against relevant former directors and the general manager. Additional allegations include failures to keep fund administration and investment management separate and independent from other activities linked to securities intermediation, financial advisory services, and loan management and granting, as well as an alleged incompatibility arising from one director simultaneously holding a management role at Sartor AGF. The Investigation Unit will now conduct the procedure, and the parties charged have up to 20 business days to submit information to exonerate themselves from, or mitigate, responsibility. The information gathered in the investigation and the formal statement of charges will remain confidential, and the alleged conduct relates to events prior to the CMF’s intervention in Sartor AGF in late 2024.

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