Wednesday August 3 2016

News Source: Global Exchanges

Focus: Trading Rules

Type: General




The Superintendency of Securities and Insurance (SVS) has issued the General Rule (NCG) No. 410, which states that individuals or entities in the securities market will be considered as institutional investors, according to the provisions of Law 18,045 Market Values.

In accordance with Law No. 18.045 the following persons or entities shall be considered as institutional investors:

a)      Those foreign institutions whose Principal is subject to applicable regulations relating to banking, insurance or reinsurance companies according to the legal framework applicable in the country of origin;

b)      The funds or other types of collective investment vehicles, being foreign nationals who comply with at least one of the following conditions:

  1. Where the body in charge of investment decision of the fund or its own administrators are subject to audit by a public or private competent body similar to the SVS or the Superintendency of Pensions (SP)
  2. Is subject in its capacity as a fund or collective investment vehicle to the control by an agency of the similar competency to the SVS or Superintendency of Pensions

c)       A private fund administered by the law that governs the administration of funds of third parties and individual portfolios adopted pursuant to Law No. 20.712 (Single Fund Act) which meets at least one of the following conditions:

  1. That during 12 of the past 18 months have had at least four contributors that are not related to each other, where each one of them has contributed 10% of the assets of the fund;
  2. That during 12 of the past 18 months has been a contributor to one or more funds supervised by the SVS, provided that the total contribution during that period is equal to or greater than 50% of the fund.

d)      Those entities in the Register of Portfolio Managers maintained by the SVS and which meet at least one of the following conditions:

  1. Manage portfolios of 50 or more contributors not belonging to the same family with a total amount equal to or higher that the equivalent of UF500, 00 (c. USD19.7mln)
  2. Manage one or more portfolios with a total amount equal to or higher that UF 1mln (c. USD39.5mln)

e)      The multilateral agencies, supranational or entities created by several states agencies whose goal is to promote the development of capital markets.

The new standard came into force on 27 July 2016, amending certain aspects of the current NCG No. 291

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