Partner
Associate Attorney
On January 12, 2024, the 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.
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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To access a summary of the key aspects of the NCG click here and to access the text of the published NCG click here.
For more information regarding the NCG, please contact Felipe Cousiño Prieto (fcousiñ[email protected]) or Francisca Donoso Fernández ([email protected]).
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