Canada    FinTech Guide    Chapter 3    Chile


3. Consulting and Broking Services / Robo-Advisory / Auto-Trading
Chile  Chile

With regard to the social and political climate, we are not aware of any noteworthy discussions on the subject.



Legal Affairs


The lack of regulation proves specially sensitive due to the fact that portfolio management is regulated in Law N°20,712 (known as the Single Funds Law), and that technology has blurred the limits between rendering financial advise and portfolio management (since, for instance, certain applications may automatically recommend investments and allow the customer to chose by clicking on his/her device).

If the scope of the consulting, broking and auto-trading services extends to intermediation of securities, the entity shall establish itself in Chile either as a securities broker and/or securities agent under the oversight of the CMF and shall fulfill certain specific requirements such as minimum capital and solvency requirements.

The White Paper warns that Robo Advisory Services may involve public interest, since if the algorithm used for client profiling or the investment suggestion, has not been tested or adequately designed, it could have a negative impact on the market if a relevant number of investors are affected.



Economic Conditions


Information regarding revenues and customers is not readily available.



Miscellaneous


The scope of the services should be carefully analyzed on a case by case basis in order to assess any potential risks relating to compliance with consumer protection, data privacy and other laws generally applicable to service providers.



Contributing Authors

Urenda, Rencoret, Orrego y Dörr

Rodrigo De Alencar
Santiago, Chile


Nicholas Mocarquer
Santiago, Chile

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 August 2019