On January 15, the Senate Finance Committee approved every article of a bill introduced by the Executive branch, which amends Laws 18,045 on Capital Markets and 18,046 on Corporations. The measure establishes new transparency requirements and strengthens the responsibilities of market agents (Bulletin No. 10,162-05). The bill is set to be discussed by the members of the Senate. The debate of the initiative is expected to resume after the legislative recess finishes in February.

The bill complements the Banking Modernization Law because it strengthens the regime of transparency in the management of businesses and the mechanisms that limit conflicts of interest within the administration of companies. The amendments to Law 18.045 of the Securities Market include provisions to facilitate the actions of the so-called “market makers”, the deepening of the responsibility of the companies’ administrative agencies when market or investors are affected, the delivery of information to investors and the responsibility of external audit companies.

During the discussion, a series of modification proposals introduced both by the Executive branch and by the legislators themselves were considered, referring, among other issues, to the interconnection of stock exchanges and the security conditions that must be met for that purpose. Minister of Finance Felipe Larraín stressed the importance of this part of the bill and said that the Financial Market Commission will have the power to oversee the interconnection of exchanges. The provision of services and offer of products to the public related to investment in financial instruments will also be subject to the supervision of the CMF. To access the modification proposals considered, click here.