CHILE

On November 24, the Financial Market Commission (CMF, in Portuguese) published two regulations as part of the process to adopt the Basel III standards, setting minimum requirements and conditions for certain bonds. Access the presentation made by the entity by clicking here, and the two regulations by clicking here and here. Both regulations will come into force on December 1, 2020. 

The standards published define the requirements to be met by hybrid instruments issued by banking companies for the construction of effective equity. This regulation implements the modifications made to the General Banking Law, in line with the latest agreement of the Basel Committee on Banking Supervision (Basel III), allowing best international practices to be incorporated into the banking system. 

Issuers that do not comply with the conditions established in the new regulations may not be accounted for as effective equity.