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Chile: New CMF on Information requirements for Investors and the General Public

Felipe Cousiño - Francisca Donoso,  February 12, 2024

Alessandri Law - On January 12, 2024, the Chilean Financial Market Commission (CMF) issued the General Applicability Rule No. 504 (NCG) which regulates the provisions of the third paragraph of Article 65 of the Securities Market Law.

Third paragraph of Article 65 of the Securities Market Law

All those who provide recommendations to acquire, maintain or dispose of publicly offered securities, or that imply the definition of target prices, must comply with the following information disclosure requirements detailed below.

- To state the names of the evaluators or those making the recommendation, together with the technical basis for the evaluations or recommendations. In cases of services based on computer systems or algorithms, this fact must be explicitly mentioned, indicating who developed the system or algorithm and describing its operation in a general manner.

- For recommendations addressed to undetermined or massively disseminated persons, any potential conflict of interest of those making the recommendation must be disclosed.

In order to comply with these obligations, it is permitted to indicate the location where the information can be accessed, which must be remotely accessible and free of charge.

Those responsible for these disclosures must take the necessary measures to demonstrate compliance with these obligations.

This NCG is effective as of February 3, 2024.

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