On Jan. 20, 2025, CHL CMF published Resolution 641 to approve General Rule 531, which amends General Rule 529 and modifies the entry into force as of Jul. 1, 2025.
CHL CMF issued proposals on corporate governance, comprehensive risk management and minimum equity requirements applicable to various financial service providers.
Legal Background
Article 12 of the Fintech Law establishes that the entities in the Registry of Providers of Financial Services must implement policies, procedures and controls with set objective.
Objective of managing the risks derived from the development of their activities.
All of this, for the purposes of safeguarding the information and interests of its clients.
Also for the purposes of ensuring their financial and operational continuity.
Including providers of intermediation and custody services for financial instruments.
CHL CMF will use regulatory standards to evaluate the quality of corporate governance and management of risks of said providers, including re the minimum assets required.
Determining the percentage of risk-weighted assets (RWA) and amount of guarantees.
Proposals Overview
The first set of proposals establishes corporate governance, risk management requirements for securities intermediaries and commodity stock brokers.
First set of proposals also adds provisions on the evaluation of the quality of risk management that the CHL CMF will carry out for intermediaries and custodians of financial instruments under the Fintech Law, and for general fund administrators-GFAs.
The second sets minimum capital requirements for stock exchanges, general fund managers and portfolio managers, securities intermediaries and commodity brokers.
In addition, establishes collateral requirements for intermediaries and managers.
Also would amend General Standard 510 (NCG 510) on operational risk management for securities intermediaries and commodity brokers; NCG 502 regulating registration, authorization and obligations of financial service providers of the Fintech Law.
NCG 507 on corporate governance and risk management general fund administrators.
Proposals Highlights
Consultations address standard establishing the minimum equity requirements for stock exchanges, and minimum equity for GFAs and portfolio administrators.
Guarantee requirements these entities must hold for the benefit of the managed funds.
The minimum equity and guarantee requirement may be increased in response to deficiencies identified in the CMF evaluation of the quality of risk management.
Regulation establishing the minimum equity, guarantee, liquidity and debt conditions that securities intermediaries and commodity stock brokers must satisfy.
Repealing general Resolution 18, Circular No. 632 as well as Circular No. 695.
The minimum equity, guarantee, debt and liquidity requirement may be increased in response to deficiencies identified in the risk management quality assessment.
Consultation
Comments on regulatory project are due on or before Aug. 22, 2024.
Dec. 2024 CHL CMF Final Regulations
On Dec. 27, 2024, CHL CMF issued final regulations on corporate governance and comprehensive risk management for securities intermediaries and commodity brokers.
The first regulation, issued through General Order 528, is a standard that provides instructions on corporate governance and comprehensive risk management.
The second regulation, issued through General Rule 529, modifies General Standard 510 (NCG 510) in regards to adequate operational risk management frameworks.
Updates the comprehensive risk management framework for securities intermediaries and extends it to commodity stock brokers, within risk-based supervision methodology.
NCG 510 on operational risk management of securities market entities is amended, s o that these entities carry out actions for management of incidents and loss recording.
Jan. 20, 2025 CHL CMF Effective Date Change
On Jan. 20, 2025, CHL CMF modified entry into force for operational risk management obligations to securities intermediaries and commodity stockbrokers to Jul. 1, 2025.
Thus, corporate governance and comprehensive risk management rules, operational risk instructions for said entities will begin to take effect as of the same date.
Jan. 20, 2025 CHL CMF Approval
On Jan. 20, 2025, CHL CMF published Resolution 641 to approve General Rule 531, which amends General Rule 529 and modifies the entry into force as of Jul. 1, 2025.
Regulators
CHL CMF
Entity Types
B/D; Depo; Exch; FCM; IA; Inv Co
Reference
PR, NCG 531, 1/20/2025; Res 641, 1/15/2025; PR, Res 12701, Res 12698, Rp, RF NCG 528, NCG 529, 12/27/2024; PR, CP, 7/8/2024; Fintech; NCG 510;
