Within the framework of its mandate for the development of financial markets, the Financial Markets Commission (FMC) reports on recent advances in the implementation of the “Funds Passport.”

This financial integration initiative seeks to promote the marketing of mutual and investment funds between the countries of the Pacific Alliance (PA) – Colombia, Mexico, Peru and Chile – in order to facilitate access by investors in the region to these investment vehicles and promote the export of financial services.

In accordance with the regulations in force in Chile, and by virtue of the collaboration agreements signed between the securities market regulators of the PA countries, the public offering of fund shares managed in Mexico, Peru and Colombia is allowed in our country, pursuant to Exempt Resolution No. 246 of 2014, which exempted these foreign securities from local registration requirements.

Due to the recent regulatory changes in the PA, the CMF updated the aforementioned resolution last July 30, announcing that the securities registered in the Colombian Securities and Issuers Registry, mutual funds, or families of mutual funds authorized by the Colombian Financial Commission, the Mexican National Securities Registry and the securities registered in the Public Registry of the Peruvian Stock Market, are exempt from registration in the foreign securities registry.

It is worth mentioning the recent approval by the Peruvian Securities Market Commission (SMV) of regulatory changes that will allow greater marketing of Chilean funds in that country, and the regulatory changes recently introduced by the Colombian Financial Commission in this matter.

The Peruvian SMV specifically approved two regulations, the first aimed at the recognition of foreign funds, exempting them from the obligation to register in the Peruvian registry to be offered on the market. The second regulation establishes the relationship of countries whose foreign funds may be authorized for distribution in Peru, which includes the PA countries. The above facilitates the registration and marketing of Chilean funds in the Peruvian market.

The Colombian Financial Commission(SFC) in turn, issued a Circular setting out the instructions regarding the distribution of foreign funds (including Chilean funds), the main purpose of which is to regulate the obligations of the specialized distributors of these funds, and the duty of providing special advisory services in the distribution of mutual funds.

The set of measures described are a step in the right direction in the integration of the Pacific Alliance Securities markets and the development of a deeper regional market. These measures are part of the commitments assumed by the financial regulators of the PA countries in Washington DC in October last year, in terms of advancing to the mutual recognition of their investment funds (Funds Passport).

Source: http://www.cmfchile.cl

Date: 13.08.2018