/ Requirements to prove suitability for the performance of functionsFebruary 9, 2024
The Financial Market Commission (CMF) issued General Applicability Rule No. 503 (NCG) which establishes requirements to prove the suitability for the performance of functions of stockbrokers, securities brokers, commodities brokers, general fund managers, fund share trading agents, portfolio managers registered in the Register of Portfolio Managers maintained by this Commission and those who provide investment advisory services, hereinafter “the entities”.
- Persons performing functions defined for the entities must have the suitability and knowledge required by law.
- The stock exchanges or a non-profit entity must establish an accreditation mechanism, with equitable corporate governance.
- The accreditation mechanism shall be responsible for, among other functions; the definition of particular functional categories that must be approved in the accreditation exam, creation, maintenance and administration of a set of questions and answers; management of the examination process; and the management of the design, elaboration and implementation process of a continuous training program.
- A temporary exception is provided for individuals with significant supervision or experience.
- The mechanism must pass initial examinations and ongoing training programs, with a focus on ethical and technical standards.
- The substitution of the examination by international quality accreditations is contemplated.
- An updated public registry of accredited persons is required.
- If the functions are defined by algorithms, an accredited person is required to verify their proper functioning.
General Applicability Rule No. 412 is repealed.
The provisions contained in the NCG shall become effective as of January 1°, 2025.
To access the text of the published NCG click here.
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Felipe Cosuiño Partner Francisca Donoso Associate Attorney The Financial Market Commission (CMF) issued General Applicability Rule No. 503 (NCG) which establishes requirements to prove the suitability for the performance of […]