NCG 524: Amendments to NCG 502 under the Fintech Law

What is NCG 524?

NCG 524 is the General Standard issued by the CMF on 2 December 2024. It is not a standalone rule: its formal object is to amend NCG 502 of 2024, the instrument that operationalises the Fintech Law (Law No. 21.521). The CMF grounds the norm in numerals 1, 4, 12 and 18 of article 5 and numeral 3 of article 20 of Decree Law No. 3.538, and in article 2 of Law No. 18.045, following the agreement of its Council in Ordinary Session No. 420 of 28 November 2024. It was signed by Solange Berstein Jáuregui, then chair of the Commission.

The norm works section by section: it replaces paragraphs, inserts new ones, drops phrases from existing headings and appends a new Title G. Nothing in NCG 524 stands on its own \u2014 each change has to be read back into the corresponding Title of NCG 502 to see its effect. That is why this page follows the provisions that do the actual work, rather than the numbering of the amending norm.

The narrowing of “prior intent of intermediation”

The substantive change that draws the most attention is the new final paragraph added to Section II.F (Intermediation and Custody of Financial Instruments). The CMF\u2019s own wording is:

\u201CPara efectos de lo establecido en la Ley N°21.521, no se considerará como ánimo previo para la intermediación de instrumentos financieros la intención anterior de enajenar los instrumentos cuando esta enajenación tiene la sola finalidad de entregar en prenda, garantía, custodia o cobranza el instrumento financiero que será adquirido.\u201D

The norm therefore does not deal with factoring by name, nor does it draw a line between \u201ctraditional\u201d and \u201ctechnology-enabled\u201d factoring. What the CMF does is define a specific finality test: if the only reason to later assign an instrument that will be acquired is to pledge it, guarantee an obligation, place it into custody or send it to collection, that subsequent intention is not the \u201cprior intent\u201d that triggers the financial-instrument intermediation service of the Fintech Law. Whether a given business model falls inside or outside the intermediation perimeter therefore depends on the finality of the foreseen transfer, not on the vintage or the channel of the operation.

New Title G: authorisation carve-out

NCG 524 adds a new Title G to Section II under the heading \u201cExcepción a la Solicitud de Autorización y Cumplimiento de las Disposiciones Contenidas en esta Normativa\u201D. Relying on article 4 of Law No. 21.521, the CMF exempts certain registered providers from both the authorisation request and compliance with the NCG 502 obligations for five specific services \u2014 investment advisory, credit advisory, crowdfunding platform, order routing and alternative trading system \u2014 provided two cumulative conditions are met:

• No sanctions or formal charges for the serious infringements of article 14 of Law 21.521 (or equivalent conduct abroad) in the ten years preceding the filing, including in respect of the entity\u2019s business group under article 96 of Law 18.045 and of its controllers, majority shareholders, directors, managers and executives as of the date of the request.
• The regulated services must be provided in Chile only to qualified investors in the sense of article 4 Bis(f) of Law 18.045.

To avail itself of the carve-out, the applicant files a declaration, through the CMF\u2019s electronic application, stating that it meets both conditions and that it will cease providing the regulated services if the circumstances change until it obtains the relevant authorisation. The declaration must be updated annually. Intermediation and custody of financial instruments sit outside Title G and remain subject to the full authorisation regime.

Exclusive purpose and Chilean domicile

NCG 524 rewrites the two existing Section I exceptions. In Title C.2 it drops \u201CY AUTORIZACIÓN DE SERVICIOS\u201D from the heading \u2014 which is now simply \u201CDel Giro Exclusivo\u201D \u2014 and brings order routers (enrutadores de órdenes) into the list of services for which the exclusive-purpose requirement may be relaxed. A new second paragraph provides that providers who have availed themselves of the Chilean-domicile exception of Title C.3 are also released from the exclusive-purpose requirement.

Title C.3, on the Chilean-domicile exception, is similarly renamed \u2014 the \u201Cy Autorización de Servicios\u201D tail is removed \u2014 and its first paragraph is replaced by a version that spells out two cumulative conditions for foreign entities seeking exemption from the domicile requirement: a ten-year clean record in respect of the serious infringements of article 14 of the Fintech Law and operation in Chile only with qualified investors. The overall architecture is therefore: foreign qualified-investor firms can register without a Chilean domicile and, in doing so, also free themselves of the exclusive-purpose rule; the evidentiary and annual-declaration obligations move with them.

Entry into force

NCG 524 enters into force on the date of its issuance, 2 December 2024. The amendment itself, however, deliberately defers the effective date of specific provisions of the NCG 502 that it rewrites: paragraphs 2 and 3 of Title E.7.3 of Section IV, Title E of Section V and numeral 5 of Section IX, which take effect on 1 July 2027. The deferral is deliberately narrow: everything else \u2014 the narrowing of \u201cprior intent\u201D, the new Title G, and the amendments to Titles C.2 and C.3 \u2014 is in force from 2 December 2024.

Further reading

• NCG 502: Registration and authorisation under the Fintech Law
• NCG 454: Operational risk and cybersecurity
• Cybersecurity in the Chilean financial sector
• CMF NCG 524 (official text, PDF)