On July 25, 2024, the Financial Market Commission (hereinafter, "CMF" or the "Commission") published General Rule No. 515, which establishes a new communication channel between the CMF and supervised entities, and General Rule No. 516, which establishes common criteria for reporting material and confidential facts, amending General Rule No. 30.

• General Rule No. 515 ("GR 515" or the "Regulation")
• General Framework

Currently, individuals and entities subject to the Commission's supervision and who submit information to it primarily use two coexisting means: the Online Information Submission System (SEIL) and the Extranet. The coexistence of both systems has generated a duality of information submission systems that directly affects the supervised entities - as the systems operate differently - and the Commission's internal units that use the information, which is received through systems with diverse functionalities.

To address this situation, the CMF created a new and unique communication channel between the supervised entities and the CMF, called "CMF Supervises," which replaces SEIL, the interface for accessing various Extranet modules, and the existing functionalities in CMF Sin Papel for the submission of information by supervised entities.

As a result of issuing GR 515, General Rule No. 314 of 2011 is repealed, and other regulations governing the form of information submission and communication with the Commission are amended, establishing that the CMF will automatically assign credentials to the natural person or the legal representative of the supervised entity to access "CMF Supervises."

Additionally, GR 515 replaces the current structure of administrator users and SEIL users, eliminating the procedure that supervised entities must follow to request their user with the consequent obligation to create or assign a specific user for each type of information submission, and in the case of the Extranet, the need to carry out the activation procedure. Thus, each supervised entity will determine to whom it grants access to the account, being responsible to the Commission for the person assigned the credentials to access CMF Supervises.

• Communications and Notifications

The Regulation provides guidelines for the supervised entities to inform the Commission and keep updated, through CMF Supervises, the email addresses that will serve as official communication channels for notifications, inquiries, or instructions from the Commission.

• Updating Identification Information

GR 515 establishes the general obligation for all supervised entities to keep their identification information updated through the use of CMF Supervises. Such registrational information will require a prior payment before making the change in the system, as established in Article 33 of D.L. No. 3.538.

• Amendments to Other Regulations

The Regulation introduces amendments to various existing regulations that govern registration with the Commission and authorizations of existence, to adapt them to the use of "CMF Supervises." Since "CMF Supervises" will be the official communication channel with the CMF, through which it is understood that the legal representative sends the required information, the Regulation eliminates the current obligation for documentation to be signed by the general manager of the supervised entity.

Additionally, GR 515 replaces the content of Chapter 18-10 of the Updated Compilation of Banking Standards, specifying that banks must follow the provisions in Section II of General Rule No. 30 regarding the submission of material or confidential information.

• Transitional Provisions and Effective Date of the Regulation

Given the impact that the Regulation will have on the Commission's current systems, a transitional provision has been established to clarify the transition process between the current systems and CMF Supervises. This is to ensure the continuity of information submission by the supervised entities and communication with them.

The instructions provided by the Regulation will come into effect on May 1, 2025. SEIL and Extranet users will be automatically recognized on the platform. However, supervised entities and securities issuers have until May 30, 2025, to complete the email address fields for notifications in the module provided in CMF Supervises. Additionally, individuals and entities have until May 30, 2025, to update in the "CMF Supervises" system the identification information they submitted in their registration or authorization request, as applicable, if this information has changed.

• General Rule No. 516 ("GR 516")
• Content

GR 516 makes the following amendments to the existing regulations:

1. Replaces the content of Chapter 18-10 of the Updated Compilation of Standards, making General Rule No. 30 applicable to banks - due to their status as public securities issuers, and solely because they are operational - for the submission of material facts, confidential information, and information of interest.
2. Amends letter b) of number 4. of section I.2.2.A of Section II of General Rule No. 30, adding that in addition to agreements to participate in the formation of subsidiaries or affiliates, the termination of business and the acquisition or sale of participation in such subsidiaries or affiliates are also types of material facts.

• Adds the following types of material facts after letter s) of number 4 of section I.2.2 of Section II of General Rule No. 30:

1. Receipt of payment for the entity's own shares in significant amounts (exceeding 2% of the total issued shares).
2. Appointment of a delegated inspector or provisional administrator.

• Reduction in technical or capital reserves for reasons other than the absorption of losses from the previous year.

1. Regarding banks: (i) significant variations in the actual amounts and conditions of debt of related persons and companies; (ii) recurring for more than fifteen days in the same month to overdrafts or emergency loans from the Central Bank of Chile; and (iii) establishment of additional capital requirements.
2. Finally, GR 516 repeals Circular No. 1,737, which contained instructions on the submission of material and confidential facts.

• Effective Date

GR 516 will come into effect on September 1, 2024.

For additional information on this matter, you can contact Álvaro Caviedes (acaviedes@jdf.cl) or Fernando Valenzuela (fvalenzuela@jdf.cl).