Comisión para el Mercado Financiero (CMF)

Overview

The Comisión para el Mercado Financiero (CMF) is Chile's primary unified financial market regulator, responsible for supervising and regulating entities and activities in the securities, insurance, and banking markets. The CMF is a public, technical entity headed by a Council of five Commissioners.

Establishment and Integration Timeline

The CMF was established through Law No. 21,000, published February 23, 2017, replacing the Superintendencia de Valores y Seguros (SVS). The CMF began operations on January 16, 2018, initially regulating securities and insurance markets.

On June 1, 2019, following Law No. 21,130 (January 12, 2019), the CMF formally integrated the banking regulatory functions of the Superintendencia de Bancos e Instituciones Financieras (SBIF), creating a unified regulator governing Chile's entire integrated financial system. This integration occurred through DFL No. 2 of the Ministry of Finance.

Current Leadership

Solange Berstein Jáuregui serves as President of the CMF, a position she holds through March 2026. Berstein holds a Ph.D. in Economics from Boston University and a Master's degree from the Ilades/Georgetown program.

Supervised Entities and Market Coverage

As of April 2025, the CMF oversees more than 8,000 supervised entities, managing 76.5% of Chile's financial market assets, representing approximately USD 604 billion — more than double Chile's GDP. The CMF directly supervises:

• Banking sector (commercial banks, development banks, financial cooperatives)
• Securities market (brokers, dealers, fund managers, custodians)
• Insurance industry (insurers, reinsurers, insurance agents)
• Fintech and financial service providers (under Ley Fintec framework)

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

The CMF exercises comprehensive prudential and conduct supervision over all deposit-taking institutions and financial intermediaries. Supervisory functions include:

Prudential Supervision

• Capital adequacy requirements — Implementation of Basel III framework with counter-cyclical capital buffers
• Liquidity management — Monitoring loan-to-deposit ratios and funding diversification
• Credit risk assessment — Stress testing and loan loss provisions
• Interest rate and foreign exchange risk — Market risk exposure monitoring
• Operational risk — Business continuity, cybersecurity, and operational resilience
• Consolidated supervision — Oversight of financial conglomerate activities

Conduct Regulation

• Consumer protection standards — Disclosure requirements, transparency in fee structures
• Anti-discriminatory practices — Fair lending requirements
• Complaint handling mechanisms — Dispute resolution procedures
• Market conduct standards — Prohibition of unfair or deceptive practices

Supervisory Tools

The CMF employs on-site examinations, off-site monitoring through regulatory reporting, and stress testing to assess institutional soundness. In 2024-2025, the CMF intensified scrutiny of banking profitability, capital allocation, and compliance with new regulatory requirements.

Securities Market Regulation

The CMF oversees Chile's capital markets, including stock exchanges, over-the-counter markets, and derivative trading platforms. Primary regulatory activities include:

Stock Exchange Oversight

The CMF regulates Chile's two main stock exchanges:

1. Bolsa de Comercio de Santiago (BCS) — The Santiago Stock Exchange, the primary venue for listed equity and debt securities
2. Bolsa Electrónica de Chile (BEC) — The Chilean Electronic Stock Exchange

Regulatory supervision covers exchange governance, listing standards, trading systems, and market abuse prevention.

Securities Market Participants

• Brokers and dealers — Authorization, capitalization, operational requirements
• Investment funds — Mutual funds, pension fund managers (SPAs), private equity managers
• Custodians and clearers — Central securities depositories and settlement operators
• Credit rating agencies — Regulation and oversight of rating activities
• Issuers — Continuous disclosure obligations, prospectus requirements

Market Integrity

The CMF enforces prohibitions against:

• Insider trading and market manipulation
• Fraudulent and deceptive practices
• Conflicts of interest in distribution of securities
• Abuse of market dominance by large issuers

IPO and Capital-Raising Framework

The CMF regulates public offerings through prospectus requirements, suitability standards for retail investors, and underwriter liability provisions. Chile's capital market development is a stated regulatory objective.

The CMF regulates insurers, reinsurers, insurance brokers, and other insurance intermediaries. Supervisory scope includes:

Insurer Regulation

• Solvency and capital requirements — Risk-based capital standards reflecting underwriting risk
• Investment limitations — Asset allocation restrictions to protect policyholders
• Technical reserves — Adequacy of claims reserves and premium deficiency testing
• Reinsurance requirements — Ceded reinsurance minimums and counterparty credit quality

Insurance Contract Regulation

• Policy terms and conditions — Standardized minimum coverage requirements
• Consumer disclosure — Clear communication of coverage, exclusions, and premiums
• Claims handling — Timely payment obligations and dispute resolution

Insurance Market Participants

• Property and casualty insurers — Motor, property, liability, professional indemnity
• Life and health insurers — Individual and group life, health insurance
• Reinsurers — Local and foreign reinsurance operations
• Brokers and agents — Intermediary authorization and conduct standards

AML/CFT Framework

The CMF operates within Chile's national AML/CFT strategy, coordinating with:

• Unidad de Análisis Financiero (UAF) — Financial intelligence unit responsible for money laundering investigations
• Superintendencia de Bancos e Instituciones Financieras (legacy SBIF functions) — Now consolidated within CMF
• Law Enforcement Agencies — Carabineros and investigative police

CMF's AML Responsibilities

• Customer Due Diligence (CDD) — Know-Your-Customer (KYC) standards and beneficial ownership verification
• Suspicious Activity Reporting (SAR) — Mandatory reporting to UAF of transactions indicating money laundering or terrorist financing
• Sanctions Screening — Compliance with UNSC sanctions lists and international designations
• Record Keeping — Transaction documentation for AML audit trails
• AML Program Supervision — Oversight of financial institutions' internal compliance programs, training, and independent audit

International Standards Compliance

Chile is a member of GAFILAT (FATF-style mutual evaluation body for Latin America), subject to periodic peer review. Chile does not appear on the FATF list of jurisdictions with strategic AML/CFT deficiencies. The CMF coordinates international AML efforts through IOSCO and bilateral information-sharing arrangements.

Regulatory Priorities (2024-2026)

The CMF's regulatory roadmap prioritizes:

1. Open Finance implementation — Gradual rollout of SFA with API standardization
2. Basel III completion — Full implementation of capital and liquidity standards
3. Fintech regulatory framework — Proportional risk-based supervision of new entrants
4. Climate risk disclosure — Environmental, social, governance (ESG) transparency requirements
5. Consumer protection standards — Conduct rules for banking and insurance relationships
6. Financial inclusion — Expansion of credit access for underserved populations

The CMF's mission remains ensuring that Chile's integrated financial market operates soundly, safely, and inclusively in service of economic development and consumer protection.

Regulatory Powers

The CMF wields extensive investigative and sanctioning authority:

Investigative Powers

Under the CMF's organic law, the Commission may:

• Demand information regarding banking operations, even when subject to secrecy or confidentiality provisions
• Conduct on-site examinations without prior notice
• Access private property — Entry by force with law enforcement assistance if necessary
• Seize documents and records — Authority to secure all materials relevant to investigations
• Intercept communications — Obtain copies of communications from telecom providers (subject to judicial authorization in sensitive cases)
• Request government data — Compel other agencies to provide background information, even when classified
• Subpoena witnesses — Compel testimony before the CMF

These investigative measures are subject to judicial oversight and must be authorized by competent courts when involving fundamental rights.

Sanctioning Authority

The CMF Council retains authority to impose the following sanctions for violations of law:

1. Written reprimand — Public or private censure of conduct
2. Administrative fines — Monetary penalties calibrated to violation severity
3. License suspension — Temporary halt to regulated activities
4. License revocation — Permanent withdrawal of authorization
5. Asset seizure — Confiscation of ill-gotten gains

Penalty Calibration

The CMF applies sanctions considering:

• Severity and nature of the infraction
• Economic benefit obtained from violation
• Damage to financial system or investors
• Recidivism and pattern of conduct
• Economic capacity of the offender
• Cooperation in investigation

Criminal Referrals and Law 21,314

Law No. 21,314 (April 2021) increased criminal penalties for securities market violations, including:

• Fraud against investors
• False financial reporting
• Insider trading
• Manipulation of securities prices

These criminal provisions extend to individuals and corporations, with enhanced penalties for recidivist conduct.

Regulatory Role and Function

Legal Foundation

Primary Legal Framework

The CMF's authority is established through:

1. Decreto Ley (DL) No. 3,538 — Organic Law of the CMF, as replaced by Law No. 21,000 (Feb 23, 2017), establishing the CMF's basic institutional structure and powers.
2. Law No. 21,130 (Jan 12, 2019) — Modernized banking legislation that transferred SBIF's supervisory functions to the CMF effective June 1, 2019.
3. General Banking Law — Consolidated regulatory framework governing banking operations, prudential requirements, and credit operations.
4. Law No. 18,045 — Securities Market Law, establishing the regulatory framework for capital markets activities.
5. Law No. 18,046 — Insurance Code, governing insurance industry regulation and supervision.

Constitutional and Institutional Status

The CMF operates as an autonomous technical public service with statutory independence. It is governed by a Council of five Commissioners appointed by the President of the Republic, with representation from the Ministry of Finance, the Central Bank of Chile, and independent experts. This structure ensures both political accountability and technical independence.

Licensing and Authorization Relevance

Ley Fintec (Law No. 21,521)

Enacted in January 2023, the Fintech Act fundamentally expanded financial sector innovation while preserving prudential stability. Key features:

Financial Service Providers Registry

• Registry of Financial Service Providers (RFSP) — New authorization pathway for fintechs and non-traditional financial companies
• Lower capitalization thresholds — Reduced requirements vs. traditional bank licensing
• Proportional regulation — Risk-based supervisory approach based on activity and scale
• Digital enablement — Regulatory sandbox provisions for testing new business models

Open Finance System (SFA)

The CMF issued comprehensive regulation (published July 3, 2024) governing the Sistema de Finanzas Abiertas (SFA) under Title III of Ley Fintec:

• Data sharing standards — Secure protocols for sharing customer financial data
• API specifications — Technical standards for third-party integration
• Customer consent framework — User control over data access and usage
• Participant roles — Banks (data holders), fintechs (data requestors), consumers (data subjects)
• Phased implementation — Stage 1 effective 24 months post-publication; subsequent stages based on market readiness

The SFA targets financial inclusion by enabling underserved populations and MSMEs to access better credit terms through shared data visibility.

Crypto and Digital Assets

The CMF has oversight of crypto platforms and digital asset service providers, though crypto regulation remains nascent. The CMF coordinates with the Central Bank on digital assets used as payment methods.

Payment System Regulation

While the Central Bank holds primary payment systems authority, the CMF regulates:

• Payment service providers under Ley Fintec — Digital payment platforms, money transfer services
• Third-party payment processors — Technology platforms enabling digital transactions
• Financial settlement services — Clearing and settlement operators not under BCCh jurisdiction

Payments and Money Movement Relevance

The Comisión para el Mercado Financiero (CMF) — Chile's Integrated Financial Regulator has the following relevance to payments and money movement in Chile:

Payment Systems Governed or Overseen

The Comisión para el Mercado Financiero (CMF) — Chile's Integrated Financial Regulator has oversight responsibilities across multiple financial sectors in Chile, including payment services:

The entity regulates payment service providers, e-money issuers, and related financial intermediaries within its integrated supervisory mandate.

Relationship to Other Regulators

IOSCO Membership

The CMF is a founding member of IOSCO (International Organization of Securities Commissions) since 1983 and serves on the Inter-American Regional Committee (IARC) and Growth and Emerging Markets Committee (GEMC).

Multilateral Memorandum of Understanding (MMoU)

The CMF is signatory to IOSCO's MMoU (effective November 2018), enabling:

• Bilateral information sharing with >100 securities regulators
• Joint investigations of cross-border fraud and market abuse
• Witness testimony exchange and document production
• Coordinated supervisory action against rogue market participants

Basel Committee and Capital Standards

The CMF participates in capital standards development through coordination with:

• Basel Committee on Banking Supervision — Implementation of Basel III framework
• International Monetary Fund (IMF) — Technical assistance on regulatory modernization, Financial Sector Assessment Program (FSAP) recommendations
• World Bank — Financial market infrastructure standards

The CMF and Central Bank have successfully deployed Basel III capital and liquidity standards, including counter-cyclical capital buffer (CCyB) frameworks.

Financial Stability Board (FSB)

While not a formal member, the CMF participates in international financial stability initiatives through the Central Bank (permanent advisor to FSB) and IMF coordination on regulatory reform priorities.

Bilateral Cooperation

The CMF maintains memoranda of understanding with securities regulators in the United States (SEC), Mexico, Peru, Colombia, and other jurisdictions, facilitating cross-border investigations and supervisory cooperation.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

CMF Headquarters

• Address: Teatinos 120, Santiago, Chile
• Telephone: +56-2-2887-9200 (Main)
• Website: https://www.cmfchile.cl/
• Email: Institutional inquiries available through website

Current Leadership

• President: Solange Berstein Jáuregui
• Council of Commissioners: Five members (composition available on CMF website)

CMF Departments and Specialized Units

• Superintendencia de Bancos — Banking supervision division
• Superintendencia de Valores — Securities market supervision
• Superintendencia de Seguros — Insurance supervision
• Unidad de Fintechs y Sistemas de Pago — Fintech and payment systems oversight
• Unidad de Cumplimiento Normativo — Compliance and enforcement
• Unidad de Regulación Prudencial — Capital and risk management standards

Regulatory Consultations

The CMF maintains public consultation processes for draft regulations:

• Regulatory Plan 2024-2025 — Published April 2024, detailing upcoming rulemaking
• Notice and comment periods — Public comment solicitation on proposed rules
• Technical working groups — Industry stakeholder engagement on complex rulemaking

Official Gazette (Diario Oficial)

CMF regulations, decisions, and enforcement actions are published in the Diario Oficial de la República de Chile, the official government gazette.

Notes on Naming and Language