Country _ Name
Financial advisory and broking services including robo advisory and auto-trading
FinTechs belonging to this category offer advisory and broking services for investments usually via an internet platform.

Robo advisory services usually offer an investment proposition following a series of questions concerning the personal financial background and the risk-bearing capacity of the user. Sometimes the respective platform also enables the user to directly execute the proposed investment. 

Auto-trading concerns all services which automatically trade on behalf of the customer according to his or her specifications.

Apart from that some FinTechs collect and offer merely or as an ancillary service market information or operate comparison portals to increase the transparency of the capital markets and to help the investor with his decision-making. 

There are also FinTech-advertising-services which advertise various financial services or products.


Attitude of the country towards modern financial advisory and broking services

With regard to the social and political climate, we are not aware of any noteworthy discussions on the subject. However, we note that these types of services are becoming increasingly common and banks and other financial agents have incorporated them into their platforms and systems.  

Legal affairs

Obligations and requirements to provide financial advisory and broking services, or ancillary services described above

The lack of regulation proves especially sensitive since portfolio management (in the case of investment funds) is regulated in Law No. 20,712 (known as the Single Funds Law), and that technology has blurred the limits between rendering financial advice and portfolio management (since, for instance, certain applications may automatically recommend investments and allow the customer to choose by clicking on his or 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 fulfil certain specific requirements such as minimum capital and solvency requirements.

In this way, Law No. 21,314 (that establishes new transparency requirements and strengthens the responsibilities of market players, regulates pension advice, and other matters it indicates), provides under Article 3 that the provision of investment advisory services in Chile shall be subject to the supervision of the CMF, obliging them to be registered in a register which will be kept by the CMF in accordance with requirements to be established by a General Rule (Norma de Caracter General or NCG) issued by the CMF and may provide services only as long as it is registered in it.

Notwithstanding the above, banks, insurance and reinsurance companies, public offering securities intermediaries, fund managers authorised by law and portfolio managers supervised by the CMF shall be excluded from the obligation to register in the aforementioned register.

Without prejudice to the foregoing, such providers will have to register themselves in the CMF register and comply with solvency, risk management, suitability and conduct of business requirements in accordance with the NCG issued for this purpose.

However, the CMF shall be empowered to issue differentiated rules according to the nature of the investment services or products they offer to the public, as well as the number of clients that may be affected.

(*) Please note that Article 3 will enter into force 90 days after the issuance of the said NCG, for which the law gave the CMF a period of 12 months to do so (counting from the publication of this law – i.e. 13 April 2021).

Additional comments regarding the legal situation fo

r financial advisory and broking services, or adjacent services or what FinTech’s must be aware of in this business area Once Article 3 of Law 21,314 enters into effect, the provision of investment advice on a regular basis without being previously registered in the above-mentioned register, shall constitute a crime. 

Economic conditions

Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area

Information regarding revenues and customers is not readily available.

Additional comments regarding the economic situation for financial advisory and broking services as well as adjacent services or what FinTech’s must be aware of in this business area

The scope of the services should be carefully analysed 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.



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