The Chile Financial Market Commission (CMF) published for consultation a proposal to create an Updated Compilation of Rules for Funds and Fund Managers, intended to modernise and systematise the regulatory framework for funds governed by the Single Fund Act (Law 20,712). The draft would consolidate around 80 existing fund-related regulations into a single updated rule set aligned with international standards and practices. The proposed compilation is structured into five chapters covering definitions and general concepts, rules for general fund managers (GFMs), rules for supervised funds, rules for private fund managers, and information GFMs must keep. It would raise standards for marketing mutual and investment funds by requiring the use of the CFA Institute’s Global Investment Performance Standards for historical return disclosures or fund comparisons, and would replace the current information brochure with a concise summary sheet including costs, returns and a five-level risk scale from Very Low to Very High. The proposal also introduces stronger valuation process requirements, particularly for alternative assets, and prioritises the use of independent valuation experts with verifiable experience and technical skills. On transparency, it would standardise disclosures of “essential facts” under Article 18, requiring GFMs to classify facts by relevance and rate their potential impact on assets or liabilities and results as High, Medium or Low, and it would require publication on GFM websites of specified fund information including historical share values, effective annual expense ratios, fees, collateral provided in favour of the funds, and trading hours. For funds using ESG-related terms, the proposal introduces requirements aimed at preventing greenwashing, including an 80% minimum investment threshold, directly or indirectly, in assets aligned to one of three sustainability objectives (mitigating negative impacts, generating or supporting positive impacts, or improving resilience of investee companies or projects). The CMF invited market participants, particularly GFMs, to comment on the proposed exception for institutional-investor-only funds on the frequency of financial statement submissions, possible additional proportionality measures for GFMs, and any compliance difficulties with limits on fund names.
Chile Financial Market Commission2025-11-26
Chile Financial Market Commission launches consultation on consolidated rulebook for funds and fund managers with tougher sales, valuation and ESG standards
The Chile Financial Market Commission (CMF) is consulting on a proposal to consolidate around 80 existing regulations into an Updated Compilation of Rules for Funds and Fund Managers, aligned with international standards. Key changes include enhanced marketing standards, stronger valuation requirements, and standardized transparency measures. The proposal also addresses ESG-related terms to prevent greenwashing and invites feedback on specific exceptions and compliance challenges.