On April 10, the Financial Market Commission (FMC) presented a plan to apply the International Financial Reporting Standards 17 (IFRS 17) to financial institutions in Chile. In complying with international standards on comparability and exchange of financial information, the FMC seeks to drive national financial-sector development and improve the quality of accounting information in order to underpin the stability of the broader financial system. The implementation of the standards is scheduled for 2021. In addition, CMF chair Kevin Cowan participated in the first meeting of the Latin American Fintech Network held in Panama, where he presented objectives relating to Fintech regulation.
IFRS are international standards of good practice in financial information management. According to the CMF, IFRS 17 will “improve the comparability of financial records”, which will clarify “the liquidity position, profitability and solvency of entities”. Ultimately, this will enhance the stability of the Chilean financial system. The CMF will introduce a regulation to make the standards effective by January 1, 2021. In this process, it will work together with the private sector to identify optimal mechanisms for successful implementation.
Meanwhile, at a meeting of the Latin American Fintech Network held by the Inter-American Development Bank (IDB) on April 9, CMF Chair Kevin Cowan presented the challenges that Chile faces this year in promoting Fintech regulations. Once again he pointed to plans by the FMC in the near term to regulate crowdfunding.