Chile: Updated application form for foreign funds

Chile: Updated application form for foreign funds

The “Comisión Clasificadora de Riesgo” (CCR) released an updated version of its application form that must be completed for marketing a fund under the pension fund regime in Chile.

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Among the changes made to the CCR form are the following:

  • Certain documents must be signed electronically such as the application form, the Administradora de Fondos de Pensiones (AFP) letter, the preliminary information, the statement, and the updating commitment.
  • The assets under management of the holding company, the management company, the investment manager, and the sub-investment manager must be indicated in U.S. dollars. For the investment manager and the sub-investment manager, there are no longer any exclusions.
  • In Appendix N° 4 (Depository/Custodian), the “applicable legislation” section has been removed, and assets under custody must be listed in U.S. dollars.
  • In Appendix N° 5 (Investment Objectives and Policies), in the “investment policies” section, asset classes must be considered when regarding “investment restrictions and criteria or diversification strategies.”
  • In Appendix N° 6 (Use of Financial Derivatives Policy), the wording of the “leverage” section has been modified.
  • In Appendix N° 7 (Borrowing Policy), the “borrowing” and “legal limits” sections have been modified.
  • In Appendix N° 10 (Liquidity of the Shares), it has been specified that this concerns open-ended mutual funds. In the “suspension and restriction” section, mechanisms that protect shareholders from the impact of dilution or transaction costs caused by shareholder activity must be mentioned.
  • Appendixes N° 11-A and 11-B (Liquidity of the Instruments) have been reworked.     
  • In Appendix N° 13 (Property Participation of the Fund), it has been specified that this concerns open-ended mutual funds.
  • In Appendix N° 14 (Asset Allocation), the requirement to indicate a benchmark has been removed.
  • In Appendix N° 15 (Conflicts of Interest), previous indications of what items to be mentioned here have been removed or reduced.

Read an October 2020 report prepared by the KPMG member firm in Luxembourg

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