Chilean Economic and Regulatory Shiftsactive

With the new government of President José Antonio Kast, which took office on March 11th, the Commission for the Financial Market (CMF) underwent a change in its leadership on the same day: Solange Berstein stepped down, and Catherine Tornel assumed the position, having previously served as a commissioner. In the two months that Tornel has been in office, the CMF has implemented a series of measures aimed at promoting market development. However, Tornel has also made internal adjustments within the institution: she first removed the heads of three general directorates, and later this week, she proposed a change in the structure of the regulatory body to the board, which, among other things, integrated the general directorates of market conduct regulation and prudential regulation into a single directorate. Despite the differences that arose in the board when three senior executives were removed in March, the structural change that Tornel proposed to the other commissioners this week was unanimously approved. "We are working very well as a board, in a very harmonious manner, and everyone is very committed to fulfilling our three mandates. I have felt very supported by them. This does not mean that we will not have disagreements now or in the future, because that is part of the richness of having five different perspectives. We make such complex and diverse decisions that it is to be expected that in some of those discussions, especially the most important ones, we will not always…."

The Commission for Financial Markets (CMF) announced this Thursday that its board unanimously approved a series of adjustments to its internal structure, which will take effect starting this Friday, May 8th, and were proposed by the institution's president, Catherine Tornel. Firstly, the CMF announced that two general directorates will be integrated: the Directorate for Market Conduct Regulation, previously headed by Patricio Valenzuela, and the Directorate for Prudential Regulation, previously led by Francisco Cabezón. These will now be combined into a single Directorate for Regulation, which will be headed by Francisco Cabezón. Furthermore, the CMF president has already appointed a replacement for Daniel García: Patricio Valenzuela has been appointed as the head of the Directorate for Market Conduct Supervision. In addition, the CMF reported that the directorates for prudential licensing and market conduct licensing, which were part of the respective general directorates for regulation, will be unified into a licensing area that will report directly to the board. Similarly, the CMF reported that a Directorate for Prudential Regulation of Insurance will be created, which will report directly to the General Director for Regulation. Meanwhile, the international affairs department, which previously reported directly to the board, will now report to the General Directorate for Studies. "The objective of these changes is to provide the institution with greater agility and to have a structure that facilitates..."

Informal employment in Chile continued to rise at the beginning of 2026. In the January-March quarter, the informal employment rate reached 26.5%, representing an increase of 0.7 percentage points (pp.) over twelve months, according to the National Statistics Institute (INE). Behind this percentage are 2,498,665 people working in informal conditions, 78,632 more than a year ago. The rate at which this segment is growing (-3.2%) contrasts sharply with the overall performance of employment, which expanded by only 0.5% during the same period. The driving force behind the increase: salaried employees, not self-employed The breakdown by occupational category reveals a phenomenon that reverses the usual logic: the increase in informality did not come from self-employed workers – which actually decreased by 2.3% – but from the salaried segment. According to the INE, the number of salaried employees in the private sector in informal conditions increased by 10.7%, while the number of salaried employees in the public sector increased by 12.5%. This data is concerning to some experts. "What is most alarming is the 10.7% increase in informal private sector employees. These are dependent workers, with set hours and supervisors, but without social security. This highlights an erosion of the employment contract, caused by the high costs of hiring and the perverse incentive to maintain informality in order to avoid losing state benefits," said Guillermo Riquelme, an expert in the labor market and a professor at…

The economy did not start 2026 on a positive note. The results from various sectors had already indicated a weak performance, which was confirmed on Monday by the Central Bank: the Monthly Economic Activity Index (IMACE) fell by 0.1% in March compared to the same month of the previous year. The seasonally adjusted series increased by 0.3%, both compared to the previous month and over a twelve-month period. The month in question had one more working day than March 2025. The decline in the IMACE was attributed to a decrease in the production of goods, which contracted by 5.2%. Mining performed the worst, with a decline of 6.5%, followed by other goods with a decrease of 4.8%, and the manufacturing industry, which fell by 2.6%. According to the Central Bank, the decrease in mining was due to lower copper extraction, while the decline in other goods was explained by the agricultural, forestry, and fishing sectors. "In mining, there was lower copper extraction, while the decline in other goods was explained by the agricultural, forestry, and fishing sectors. Meanwhile, the manufacturing industry decreased in line with lower processing of fish products." In seasonally adjusted terms, the production of goods decreased by 0.6% compared to the previous month, a decline attributed to both mining and manufacturing. The manufacturing industry, in turn, decreased in line with lower processing of fish products. In seasonally adjusted terms, the…

The launch of the 2026 Heritage Day took place on Wednesday, the 29th, at the entrance of the National Museum of Natural History, amidst a series of announcements that place the Ministry of Culture, Arts, and Heritage at the center of the debate. On Friday, April 24th, the Comptroller's Office submitted document 351, outlining modifications and cuts to the 2026 budget for the ministry. In total, the document proposes a reduction of 51.75 billion pesos, and eliminates funding for programs such as "Somos Barrio" from the Sub-Secretariat for Crime Prevention, and the "Artistas del Acero" Cultural Corporation. Furthermore, it reduces funding for cultural infrastructure to private institutions by 80%. According to the Observatory of Cultural Policies, the total reduction amounts to 9.8%, and the programs most affected would be the "Promotion and Strengthening of Cultural Work" program (95.7%), the "Comprehensive Improvement Fund for Museums" (65.6%), and the "Promotion and Development of Creative Ecosystems" program (62.8%). The Minister of Culture, Francisco Undurraga, prefers to use the term "adjustments" rather than "cuts" when referring to the budget. Following the launch of Heritage Day, from an office at the Museum of Natural History, he responds to questions about the cuts and the future of the ministry. "I believe that in the situation we are facing as a state and as a government, the Ministry of Culture, Arts, and Heritage cannot remain detached and be part of the problem, but rather we must..."

Big Four accountancy balks at high cost of medication it says has become ‘cultural phenomenon’

The National Economic Prosecutor's Office (FNE) has just published the preliminary report of a market study on e-commerce. The report concluded that e-commerce has gained increasing importance in economic activity, with sales expected to reach nearly US$10 billion in 2025 – approximately 2.9% of Chile's nominal GDP. In its study, the FNE found that, at the platform level, the market structure is concentrated, with a limited number of key players. The report also noted that e-commerce is gaining ground over traditional brick-and-mortar formats, and that prices between the online and offline channels may differ in large retailers, as they are sometimes determined based on specific variables for each channel and point of sale. In this context, the report stated that the Chilean market maintains "significant areas of competition," particularly on the consumer side, who exhibit high price sensitivity and actively compare different platforms. Overall, these findings suggest that the market is not currently closed or free from competitive pressure, but it does exhibit structural characteristics that could lead to "potential risks." Among the risks identified by the National Economic Prosecutor's Office regarding the e-commerce market is: "the coexistence of relatively mobile consumers and sellers..."

The Chilean economy is starting 2026 on a negative note. Following the negative Imacec figures for January (-0.5%) and February (-0.3%), another contraction is expected in March. This is the expectation of economists after the National Statistics Institute (INE) released sector activity figures this morning. This scenario adds to the poor labor market data released this Thursday, which showed an increase in unemployment to 8.9% and the first decline in formal job creation since the pandemic. Industrial production declined in the third month of the year, recording an annual decrease of 3.4%. This result was explained by the negative performance of mining and manufacturing, which more than offset the increase recorded in electricity, gas, and water. The Industrial Production Index (IPI) decreased by 3.4% over twelve months, primarily due to the Manufacturing Production Index, which reduced the index by 2.075 percentage points, and the Mining Production Index, which negatively impacted the index by 1.480 percentage points. In contrast, the Electricity, Gas, and Water Production Index contributed positively with 0.197 percentage points. With these figures, economists anticipate a low Imacec, and some even expect it to be negative. Projections range from -0.8% to a slight growth of 0.5%. However, there is agreement that the Gross Domestic Product (GDP) for the first quarter will be negative. It's…

The President of the Commission for the Financial Market (CMF), Catherine Tornel, presented the public accounts corresponding to the institution's activities in 2025 on Wednesday, detailing the main challenges facing the financial market. In particular, she addressed the opportunities and risks associated with artificial intelligence (AI) and the potential impact it could have on other relevant risk areas, such as cybersecurity. "The applications and developments of AI could reshape the existing risk landscape, and we must continuously monitor its effects on the financial market," she stated. In line with the global context, Tornel also highlighted the challenges arising from climate change, armed conflicts, geopolitical risks, a more unstable macroeconomic environment, and the development of more complex business and asset models. "These dynamic scenarios require us to work closely to ensure compliance and balance across our three core mandates – prudential regulation, market conduct, and market development – with a regulatory framework that is simple, efficient, dynamic, proportional, and that, in turn, provides legal certainty," emphasized the President of the CMF. During her presentation, which took place at the CMF's headquarters and was attended by authorities, representatives from the public and private sectors, civil society organizations, and CMF officials, she further discussed…

The ongoing conflict in the Middle East continues to generate significant volatility in the price of oil, and indeed, this Wednesday, Brent crude, a benchmark for Chile, rose to US$112. This, in turn, will continue to impact inflation in the country. The increase in the price of a barrel of oil at the end of March, which persisted in April, led to a drastic increase in the price of gasoline across the country during the last week of March. On March 26th, the government decided to neutralize the operation of the Fuel Price Stabilization Mechanism (Mepco), which resulted in a historic increase of $372.2 per liter for 93 octane gasoline, $391.5 per liter for 97 octane gasoline, and $580.3 per liter for diesel. This increase was followed by another on April 16th: the price of 93 octane gasoline rose by $20 per liter, and the price of 97 octane gasoline rose by $22.3 per liter. Consequently, the price of 95 octane gasoline, which is the average of the two previous grades, increased by $21.3 per liter. Meanwhile, the price of diesel increased by $36.4 per liter. As a result, the Consumer Price Index (CPI) for March already experienced a significant increase of 1%, which caused inflation over 12 months to rise from 2.4% to 2.8%. However, the impact is not limited to that month, and it will also be reflected in the inflation figures for April, which the INE (National Statistics Institute) will publish next Friday, May 8th. According to various experts consulted, the CPI for the current month is expected to be between…

Following its ratification by the Senate in mid-April, Osvaldo Adasme joined the Commission for Financial Markets (CMF) as a new commissioner, serving until October 2029. The business engineer from the University of Chile, who previously served as the General Director of Prudential Supervision at the CMF, was chosen by the government of José Antonio Kast to fill the vacancy left by Catherine Tornel on the board of the regulatory body. Tornel was promoted to the presidency after the legal term of her predecessor, Solange Berstein, ended. In this way, the board of the institution now consists of the president, Catherine Tornel; the vice president, Augusto Iglesias; and the commissioners Bernardita Piedrabuena, Beltrán de Ramón, and Osvaldo Adasme. Background The new commissioner has 35 years of experience in the financial market, with specialized studies in project evaluation at the Faculty of Physical and Mathematical Sciences at the University of Chile, and a Master's degree in Business Administration from the IEDE Business School. Adasme joined the former Superintendency of Banks and Financial Institutions (now the CMF) as a Risk Analyst in 1990, and later served as the head of the Analysts Group. From 1993 to 1997, he was the head of Risk and Deputy Manager of Credit at a financial institution, and at the end of 1997, he returned to the Superintendency as the head of the Supervision Department...

The board of the Commission for Financial Markets (CMF) has fined Deloitte Auditores y Consultores Limitada UF 2,000 (approximately US$60,000) and its partner, Roberto Leiva Casas-Cordero, UF 1,000 (approximately US$30,000), for violations related to the Primus case. In March 2023, an internal fraud was detected in this case, resulting in an estimated loss of US$100 million. Regarding the consulting firm's involvement in this case, the CMF pointed to "violations of the Securities Market Law and Generally Accepted Auditing Standards (GAAS)." "It was determined that the auditing firm and Roberto Leiva Casas-Cordero failed to comply with these standards, particularly in relation to the acquisition and evaluation of audit evidence, the proper documentation of the work performed, and the application of professional skepticism in the audit of Primus Capital S.A.'s financial statements for the period ending December 2022," the CMF stated. In a statement, the regulatory body explained that "the audit team did not obtain sufficient evidence regarding the most significant items in Primus's financial statements, and failures were detected in the application of audit procedures, as well as weaknesses in the supervision of the work. These deficiencies affected the quality of the financial information available to the market." The CMF also emphasized that the sanctions were issued in the context of the fact that "the work of external auditing firms is fundamental to ensuring reliability..."

Reaching old age without any savings is difficult: one becomes a burden, first on their family, then on friends, and eventually on the government. Therefore, it is reasonable for the state to require workers to allocate a percentage of their income to a pension fund. It is also reasonable for the regulator to establish prudent investment rules, but without imposing restrictions that limit the options available to contributors. Unfortunately, the current investment regime for multi-fund portfolios is based on a series of absurd assumptions: (1) that investing outside of Chile is dangerous; (2) that diversification through foreign currencies is not advisable; (3) that the real estate sector should be avoided; and (4) that alternative assets are harmful. And to these absurdities, we must add the so-called "bidding processes." As is well known, those entering the labor market are forced to enroll in the AFP (pension fund administrator) that offers the lowest commission, i.e., the cheapest one. Obviously, the implicit assumption behind this mechanism is that all AFPs are the same (or very similar), or that the cheapest one is the best. Therefore, the only relevant variable when selecting an AFP is the price. A recent study by Clapes UC, conducted by myself and the researcher Antonia Cabrera, and based on the performance of the multi-fund portfolios since their inception (October 2002), revealed some interesting results. The first is that there is no…

The newly appointed president of the Commission for Financial Markets (CMF), Catherine Tornel, made her public debut this Tuesday at a seminar organized by Clapes UC, titled "Capital Markets: Major Challenges 2026-2030." During a 40-minute presentation at the UC Central Building, Tornel announced something that the banking sector had been eagerly awaiting: this year, the CMF will recruit a specialized team to validate internal models developed by banks for measuring credit risk. "Within the framework of Basel III, we, as a system, need to make progress in internal models," she commented. This means that each bank, based on its own specific circumstances, will be able to present its risk assessment methodology to the CMF. After obtaining approval from the regulator, it will no longer be mandatory for banks to adhere solely to the standard criteria already defined by the CMF under Basel III, which is currently the framework under which all banks operate to meet capital requirements. Tornel projected that this measure would allow the industry to free up approximately US$10 billion in capital, which would give banks greater capacity to grant loans in the future. However, the effect will not be immediate, as it will take several years for this capital savings to materialize. "Internal models impact the entire asset base of a bank. Therefore, these savings could effectively lead to increased capacity..."

The Financial Market Commission (CMF) announced on Monday that it has published a regulation that simplifies and reduces regulatory burdens in the repurchase agreement (repo) and securitization markets. "This regulation is part of the market development agenda outlined by the CMF's board and aims to generate incentives to increase the liquidity and depth of the Chilean fixed-income market," the regulator commented. Regarding repo transactions, the regulation, which refines the Basel III standards in Chile, significantly simplifies "the regulatory treatment for determining capital requirements based on credit risk," according to the CMF. The CMF added that "in practice, this means that transactions carried out under a framework agreement recognized by the Central Bank of Chile could have credit risk weights of only 10%, which could even reach 0% when dealing with certain key counterparties or when transactions are cleared and settled through Central Counterparty entities recognized by the CMF. Furthermore, the calculation of the individual credit limit is adjusted, recognizing the transfer of ownership in the purchase." In the case of securitizations, the CMF's regulation introduces, for the first time, the concept of "significant risk transfer," which establishes clear criteria for determining when capital requirements should be calculated based on the underlying assets or on...

The Cencosud retail holding company, controlled by the Paulmann family, issued bonds worth approximately US$540 million in the local market this Thursday. According to a report filed with the Securities and Markets Commission (CMF), the company placed Series V bonds for UF7,000,000 (approximately US$303 million), with an interest rate of 2.75%, an annual coupon rate of 3%, and a maturity date of March 15, 2033. In addition, the company placed Series X bonds for UF5,500,000 (approximately US$238 million), with an interest rate of 2.99%, an annual coupon rate of 3.30%, and a maturity date of March 15, 2055. Cencosud stated that the funds raised from the bond issuance will be used to refinance the company's liabilities.

DEAR EDITOR, An initiative that could add a new chapter to "environmental permitting" is quietly advancing in Congress. It is a bill – currently in its third constitutional review – that modifies the legal remedies available against rulings issued by environmental courts. Essentially, it expands the cases in which appeals can be made to the Supreme Court, allowing for the challenge of a wide range of judicial decisions. The Supreme Court has already expressed its opposition to the initiative. In a letter sent to Congress, the highest court explained that bringing all environmental disputes to that level would render our robust environmental institutions irrelevant, which is incompatible with the concept of specialized justice. Furthermore, the initiative encourages increased litigation, which could increase the uncertainty and delays caused by the judicial review of projects subject to environmental impact assessments. If the goal is to provide greater certainty for investment, the approach should be the opposite: to simplify and streamline the mechanisms for challenging decisions, not to expand them. It is urgent that the new government place this issue on its economic agenda to avoid its efforts to expedite investments being bogged down in the judicial system. Tomás Espinosa Pivotes

When a bank grants a loan, it has access to information about all other loans that the individual holds with other institutions supervised by the Financial Market Commission (CMF), primarily banks and cooperatives under the regulator's oversight. Based on the borrower's financial situation and compliance profile, the financial institution decides whether or not to approve a loan, using the available information. However, there has always been a blind spot in this process, as some companies offer loans but are not required to report them anywhere. This has led some of these companies, such as finance companies or automotive loan providers, to promote their brands by stating that borrowers will not be included in the financial system's debt registry when taking out a loan with them. The need to eliminate information asymmetries has been a topic that the Central Bank has been advocating for legislation on for nearly two decades. This has now come to an end, as in June 2024, the Congress approved a law that created a Consolidated Debt Registry (Redec), which came into effect this Wednesday, along with the start of the month of April, and promises to improve debt information in the country. "This resolves a lengthy legislative effort that spanned more than a decade," the CMF acknowledged in its 2024 debt report. This law extends to…

The Commission for the Financial Market (CMF) announced that its president, Catherine Tornel, has issued a resolution to suspend the trading and quotation of shares and bonds of Clínica Las Condes (CLC). According to a statement released by the CMF, this suspension will remain in effect "until April 15, 2026, or until the company submits its audited financial statements for the period ending December 31, 2025." The resolution is based on the fact that, "as of the date of this announcement, and according to information provided by the company to the CMF on March 26, 2026, Clínica Las Condes S. A. has not submitted its financial information for December 31, 2025, for which the submission deadline was March 31, 2026," the agency stated. "Given the above, investors, shareholders, and the market in general do not have access to accurate, sufficient, and timely information about the financial situation of this company, and therefore, about its value," it added.

He is a highly technical person. This is the first thing everyone who knows Osvaldo Adasme (60 years old) says when describing his main characteristics. The commercial engineer from the University of Chile, who currently serves as the Director General of Prudential Supervision at the Commission for the Financial Market (CMF), was chosen by the government of José Antonio Kast to fill the vacancy left by Catherine Tornel on the CMF board, after she was promoted to the presidency, following the end of the legal term of her predecessor, Solange Berstein. In any case, the Senate must approve his nomination, which requires a quorum of four-sevenths. The big question in the market is how Adasme will fit into the power dynamics of the CMF. In other words, where will he position himself on a board that, in recent times, has been divided, not on everything, but on decisions that are considered important. On one side is Tornel; and on the other, the rest of the commissioners: Beltrán de Ramón, Augusto Iglesias, and Bernardita Piedrabuena. However, the last two will complete their respective terms in October. Most of those consulted believe that Adasme will not align himself with either side. To support this, they point to his profile and career. Former regulators, colleagues, and industry players describe him as a highly technical person who has built a career…

Last Thursday, March 19th, something unprecedented happened at the Commission for the Financial Market (CMF). Three senior executives were dismissed from the organization. This is the first time something like this has happened since the institution was created in 2017, replacing the former Superintendency of Securities and Insurance (SVS), which two years later was integrated with the former Superintendency of Banks and Financial Institutions (Sbif). Daniel García has left his position as General Director of Market Conduct Supervision, Nancy Silva has been removed from her role as General Director of Studies, and José Antonio Gaspar is no longer serving as General Director of Legal Affairs. Currently, all three are using their legally mandated vacation days. However, once those days are over, they will not return to the regulatory body. The decision was made by Catherine Tornel and occurred just eight days after she assumed the presidency of the institution, having been appointed to the position by the government of José Antonio Kast, following the end of the previous president, Solange Berstein's, term. Therefore, this was the first major decision taken by the new president at the helm of the organization that oversees more than 8,000 entities with assets totaling US$604 billion, more than twice the GDP of Chile in 2024, with half of that amount represented by banks. Council Opposition The senior management of the CMF is comprised of a collegial body of five members, but today there are only four. In addition to Tornel, there is…

The world’s largest stablecoin issuer also brings on PwC to ready internal systems

This Tuesday, Santander Chile marked the end of an era: Claudio Melandri will step down from the presidency after more than a decade in the role, and after 37 years with the Spanish-owned group. This was announced by Banco Santander Chile through a material event notification sent to the Financial Market Commission (CMF), where they stated that during the board meeting held this Tuesday, they "took note of the resignation of the board member and president." The reason given was "personal reasons." The bank announced that economist Rodrigo Vergara will take over the position. "After thanking Mr. Melandri for dedicating 37 years of his professional life to our Group, having held various leadership roles throughout his career, the board appointed Mr. Rodrigo Vergara Montes as its president, who will immediately assume the position," the material event notification stated. At the next ordinary shareholders' meeting, the bank will decide who will fill the position of board member that Melandri is leaving vacant. Melandri joined the Group in 1990. He spent almost his entire career at the bank, holding positions such as regional manager, manager of the branch network, later as manager of human resources, and manager of commercial banking. In 2010, the certified public accountant, commercial engineer with an MBA, became the general manager of Santander Chile, a position he held until 2018. He was also appointed country head in 2011, when Mauricio Larraín...

Last week, the Minister of Finance, Jorge Quiroz, provided more details about the government's national reconstruction bill, which, among other things, includes measures to reactivate the construction sector. On this matter, he revealed that one of the areas Catherine Tornel, the newly appointed president of the Commission for the Financial Market (CMF), would be working on. She has been leading the regulatory body since March 11th. "Regarding credit, one of the things the new CMF commissioner will be doing is reviewing some banking regulations to see if we are up-to-date, or if, in some cases, we are imposing excessive burdens on the granting of credit, particularly mortgage loans," Quiroz stated. He added, "In the medium term, we would like this credit subsidy to no longer be necessary, and for the market itself to better calibrate the terms of credit, which we believe could be more favorable than they are today." What banking regulations could the CMF potentially review? According to Ernesto Guzmán, a partner in the audit department and head of the financial services office at KPMG Chile, "the review announced by the Ministry of Finance and the CMF primarily targets prudential regulations that affect mortgage lending, specifically capital requirements and risk weights under the Basel III framework, which were implemented by the CMF in accordance with the General Law..."

The announcement made this Monday by the Minister of Finance, Jorge Quiroz, regarding a $370 increase per liter for 93-octane gasoline, will have a significant impact on inflation in March and April. In the Consumer Price Index (CPI) basket, gasoline is one of the products with the highest weighting, accounting for 3.39 percentage points of the total indicator. Therefore, any change in the price of this product is relevant for the monthly data. Considering that 93-octane gasoline currently costs around $1,200 per liter, the anticipated increase announced by the Secretary of State represents an increase of approximately 30% in the final price. This is a drastic change compared to what has been observed recently. According to the INE (National Statistics Institute), gasoline prices had been decreasing, with a 4.3% drop year-on-year and a 10.5% decrease over 12 months. Patricio Rojas, an economist at Rojas y Asociado, stated that with an increase of this magnitude, "the greatest impact will be seen during the month of April. I would say that the inflation in April, solely due to the effect of gasoline, could reach 0.7%, plus the normal inflation in April, which could be 0.2% or 0.3%. Therefore, we are talking about a potential inflation rate of 1% in April, and we will also see secondary effects in May, so May will also be a month with relatively high inflation. In the case of March, there might be a slight impact because of this announcement, but..."