Chile's Financial Market Commission chair outlines principles-based regulatory simplification and ex-post impact assessments

Chile's Financial Market Commission published remarks by Chairwoman Catherine Tornel from a University of the Andes seminar on regulatory simplification, setting out an approach that calls for continuous review of regulation so it keeps pace with financial market changes while maintaining stable, principles-based foundations. Her remarks linked this to the need to preserve an appropriate balance across the CMF’s prudential, market conduct and market development mandates. Tornel argued that the regulatory framework should be simple and clear, proportionate to each entity’s risk, supported by cost-benefit analysis, and aligned with international standards while reflecting local market characteristics, alongside stronger coordination and coherence between regulatory institutions. She also pointed to the CMF’s collegial governance model with five Commissioners and referenced the Senate’s ratification of Osvaldo Adasme, the General Director of Prudential Supervision, as a Commissioner. Tornel highlighted moving forward with ex-post impact studies once regulations are implemented as a CMF priority, citing in-house research capacity and cooperation with universities and research centres, subject to information security and privacy safeguards.