/ Fintech

Technology has taken center stage in many sectors, especially finance. The term fintech is derived from Finance and Technology and refers to all activities that involve innovation and technological development, such as online platforms, mobile applications, and advanced algorithms for the design, offering, and delivery of financial products and services.

Fintech activities are carried out by both established financial institutions and startups operating at various points along the financial services value chain, who introduce innovation, enhanced user experiences, and mobility. It’s also common for these new players to collaborate with or even be acquired by traditional financial entities.

The Fintech Law (Law No. 21,521) came into effect on February 3, 2023. The Financial Market Commission (CMF) has been implementing the law since January 2023, a process that will involve the issuance of over 70 regulations.

This legislation expands the CMF’s regulatory scope to include the following services:

1. Crowdfunding platforms
2. Alternative trading systems
3. Investment advisory services
4. Credit advisory services
5. Custody of financial instruments
6. Order routing
7. Brokerage of financial instruments