We continue our series on the types of business activities regulated under Fintech Law No. 21.521. Today we analyze Investment Advisory services.

Regulatory Framework

• Fintech Law No. 21.521: General framework regulating technology-based financial services in Chile

• General Rule No. 524 (NCG N°524): Regulation detailing the requirements for registration and authorization

Checklist: Are You an Investment Advisor?

According to Fintech Law No. 21.521, your company may qualify as an Investment Advisor if it performs the following activities:

1. Evaluation Services

Does your company perform...?

• Assessments on the suitability of investments

• Recommendations regarding publicly offered securities

• Analysis of financial instruments

• Advisory on investment projects

Example:

If you provide personalized recommendations to clients about which stocks to buy or which mutual funds to invest in, your company likely qualifies under this category.

2. Scope of Advice

Do you offer...?

• Personalized recommendations based on the investor’s risk profile

• Analysis of specific instruments (bonds, stocks, etc.)

• Evaluation of financial risks

• Advisory for buy/sell decision-making

3. Methodology

Do you use...?

• Quantitative analysis models

• Economic projections

• Advanced financial analysis tools

• Evaluation of investment profiles

Key Obligations

If you identified your company as an Investment Advisor, you must:

• Implement conflict of interest management policies

• Ensure transparency in your recommendations

• Establish risk assessment procedures

• Ensure the suitability and technical basis of the advice provided

Important Note

The CMF (Commission for the Financial Market) has set February 2, 2025, as the deadline for registration in the Financial Services Providers Registry.

Next post: Intermediation of Financial Instruments