Which Activities Does the Fintech Law Regulate? The 7 Services of Law 21.521
The perimeter of the Fintec Law is a closed list of defined services. Whether a business model falls inside one of them decides whether CMF registration is a condition to operate. This guide examines each legal definition and its boundary cases.
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Law 21.521 regulates seven services: crowdfunding platforms, alternative transaction systems, credit advisory, investment advisory, custody of financial instruments, order routing and intermediation of financial instruments. Providing any of them requires registration in the Financial Service Providers Registry and CMF authorization.
Each section below gives the legal definition of Article 3, a checklist to test your model against, and the practical note that usually decides the boundary cases. The registration process itself is covered in do I need to register with the CMF.
1. Crowdfunding platforms
Article 3 No. 10 defines them as the physical or virtual place where those with investment projects or financing needs publicize them and connect with those holding available resources, to facilitate the financing operation.
Is this your case?
- Connects projects or financing needs with potential contributors.
- Publicizes, offers or promotes those projects or their characteristics.
- Provides contact information or tools to carry out the investment.
The activity does not require handling payments or holding funds: the showcase-and-contact role is enough. If the platform also collects or holds contributors' money, it may add the custody activity.
2. Alternative transaction systems (ATS)
Under Article 3 No. 13, it is the physical or virtual place allowing participants to quote, offer or trade financial instruments or publicly offered securities, without being authorized as a stock exchange under Law 18.045.
Is this your case?
- Operates a venue where participants quote or offer instruments.
- Allows direct transactions between participants.
- Includes crypto asset exchange platforms.
This is the typical exchange activity. The law treats crypto assets as financial instruments, so a crypto marketplace in Chile operates an ATS and needs authorization.
3. Credit advisory
Article 3 No. 1 defines it as providing third parties with assessments or recommendations on the payment capacity or creditworthiness of persons or entities, or on their identity, to obtain, modify or renegotiate credit or financing.
Is this your case?
- Assesses payment capacity or creditworthiness of individuals or entities.
- Issues scoring, reports or recommendations third parties use to decide on credit.
- Supports processes to obtain or renegotiate financing.
The recipient is a third party: scoring-as-a-service models fall here even without lending their own money. Internal assessment to place your own credit is not advisory to third parties.
4. Investment advisory
Article 3 No. 2 defines it as providing third parties with assessments or recommendations on the suitability of investments or operations in publicly offered securities, financial instruments or investment projects.
Is this your case?
- Recommends instruments or evaluates the suitability of investing.
- Analyzes risk profiles to guide investment decisions.
- Includes robo-advisors and automated recommendations.
The law expressly excludes pension advisory under Decree Law 3.500 and insurance sales agents. Outside those exceptions, habitual paid recommendation requires registration.
5. Custody of financial instruments
Article 3 No. 5 defines it as holding, in one's own name on behalf of third parties or in their name, financial instruments, money or currency coming from their flows or sale, or delivered to acquire instruments or secure operations.
Is this your case?
- Holds securities, contracts or crypto assets on behalf of clients.
- Keeps money delivered to buy instruments or secure operations.
- Manages the keys or access to third-party assets.
This is the activity that most often goes unnoticed: a wallet controlling users' crypto keys, or a platform retaining balances to operate, is a custodian. The CMF demands the strictest asset safeguards here.
6. Order routing
Article 3 No. 6 defines it as the service of channeling orders received from third parties, for the purchase or sale of publicly offered securities or financial instruments, to alternative transaction systems, securities intermediaries or product exchange brokers.
Is this your case?
- Receives buy or sell orders from third parties.
- Channels them to an ATS, an intermediary or a broker.
- Does not decide for the client or execute on its own account.
The router transmits without influencing the order's destination. If it also executes the operations or takes its own positions, the service migrates toward intermediation, with higher requirements.
7. Intermediation of financial instruments
Article 3 No. 9 defines it as buying or selling financial instruments for third parties, whether acquiring or disposing on one's own account with the prior intent of selling or buying them to the third party, or operating in the name of or for that third party.
Is this your case?
- Buys or sells financial instruments on clients' instructions.
- Operates on its own account with the prior intent of passing to the client.
- Manages transactions over invoices, derivatives or crypto assets.
It is the most regulation-intensive activity of the fintec perimeter: counterparty risk adds to operational risk, and the CMF scales capital and guarantees to the volumes intermediated.
Does your company fall within more than one activity?
Real products rarely fit one definition. An exchange that also holds its users' keys performs an ATS plus custody; a platform that recommends and then executes combines advisory with intermediation. Each activity must be declared and authorized on its own, so the classification defines the filing, the capital requirements and the continuing obligations under NCG 502.
Frequently asked questions
How many activities does the Fintech Law regulate and which are they?
Seven: crowdfunding platforms, alternative transaction systems, credit advisory, investment advisory, custody of financial instruments, order routing and intermediation of financial instruments. The definitions are in Article 3 of Law 21.521, and providing any of these services requires registration in the Financial Service Providers Registry.
Can a single product fall within more than one activity?
Yes, and it is frequent. A platform that displays instruments, routes orders and also holds its clients' assets combines up to three different activities. Each service must be declared and authorized separately, so the initial classification of the business model defines the scope of the CMF filing.
Are crypto assets covered by the Fintech Law?
Yes. Article 3 defines virtual financial assets or crypto assets and includes them within the concept of financial instrument. That is why custody, intermediation or operating a transaction system over crypto assets are regulated activities requiring CMF registration and authorization.
What happens if I provide one of these services without registration?
Operating inside the perimeter without registration and authorization is an infraction sanctionable by the CMF, with fines and measures within its supervisory regime. It also closes commercial doors: banks, investors and counterparties often require registration as a condition to contract.
Does investment advisory include pension advisory?
No. Article 3 expressly excludes pension advisory under Decree Law 3.500 and insurance sales agents. Regulated investment advisory refers to recommendations on publicly offered securities, financial instruments or investment projects.
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