Flexible Investments Of Mutual Funds And Insurance Companies, Creates Administrator General Of Funds, Facilitates The Internationalization Of Banking, And Perfects Laws Of Corporations And Investment Funds

Original Language Title: FLEXIBILIZA LAS INVERSIONES DE LOS FONDOS MUTUOS Y COMPAÑIAS DE SEGURO, CREA ADMINISTRADORA GENERAL DE FONDOS, FACILITA LA INTERNACIONALIZACION DE LA BANCA, Y PERFECCIONA LEYES DE SOCIEDADES ANONIMAS Y DE FONDOS DE INVERSIONES

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Article 1.-Introducense following amendments to Decree No. 1,019 of 1979 of the Ministry of finance, which set the text revised, coordinated and systematized in Decree Law No. 1.328 1976 on administration of mutual funds: 1. replace the article 1st, by the following: "article 1.-mutual fund is the heritage composed of contributions from natural and legal persons for their investment in values of public offering and property law that manages a corporation for account and risk of holders or contributors, onwards and for the sole purpose of this law, "the administrator.".

2.-amending article 2, in the following sense: to) replace the first paragraph by the following: ' article 2.-the quality of participant is acquired at the time in which the society receives the contribution of the investor, which must be made in cash in national or foreign currency, according to establish the rules of procedure of the Fund; You can also take vale banking view in the case of national currency. However the foregoing, administering society may accept cheques of banks established in the country in payment of subscription fees, but in such a case the quality of participant it will acquire when its value is perceived by the administrator of the RID Bank, to which must be present to collect as soon as receipt time permitted. ".

(b) replace the second paragraph by the following: "contributions shall be expressed in shares of the Fund, may exist different series of assessments for a Fund itself, which must be established in the internal rules of the respective fund. Fees a Fund, or the series in its case, must have equal value and characteristics, values of easy settlement for all legal purposes will be considered and be represented by nominative certificates or mechanisms and alternative instruments authorized by the Superintendency. ".

3 added to subparagraph first of article 3, the following final sentence, becoming the point apart (..) followed dot (.): "Without prejudice to the foregoing, the administrators may be complementary activities that authorize you the Superintendent"..

4. replace article 7 th, by the following: ' article 7.-the administrators, for authorization of its existence, must be satisfied with the Superintendency, a capital paid in cash not less than the equivalent of 10,000 units of promotion. Also, administrators must comply with the provisions in articles 225, 226 and 227 of law No 18,045. ".

5 be inserted below the article 7th, following article 7 bis: "Article 7 bis.-directors and senior executives of the administrator, must prove to the Superintendency, which comply with all the requirements set out in article 229 of law No 18,045.".

6.-modify the final subparagraph of article 11, as follows: a) replace the term: "the preceding paragraph" by "preceding paragraphs", and b) deleted the final sentence: "and the administrator, where appropriate".

7 insert following article 11, the following article 11A, new: "article 11 bis.-the administrators may carry out the merger or division of the funds that manage, in accordance with the requirements and procedures to be determined by the regulations.".

8.-amend article 12 bis, as follows: a) change the individualization of the "article 12 bis", 'Article 12 A' and b) in the first subparagraph, add at the end the following sentence, turning point apart (..), to be followed dot (.): "this limit not governed during the first six months since the adoption of the internal rules of each Fund.".

9 insert following article 12 bis, which has become article 12 A, the following article 12 B, new: ' article 12 B-the administrator shall inform in a truthful way, sufficient and timely to the unit-holders of the funds and the general public, about the characteristics of the funds it manages and any fact or general information regarding itself or for funds that manage in the terms provided in article 234 of the law No 18,045.

Also, the directors of the administrator shall apply to obligations laid down in article 236 of the law No 18,045. ".

10.-Article 13 shall be replaced by the following: ' article 13.-the investment in mutual funds is subject to the following rules: 1) must be made in shares of open joint-stock companies that have stock transaction and other securities that are traded on stock exchange; bonds and other credit or investment securities issued or guaranteed to total extinction, either by the State, the Central Bank of Chile or by entities subject to the supervision of the Superintendency of banks and financial institutions; bonds, debt securities of short term, notes or letters of national issuers, whose emission has been registered in the SVS or any foreign organism similar competition; shares of mutual funds or investment funds constituted in Chile or other values of public offering and goods authorized by the Superintendent; all without prejudice to the amounts that remain in cash box or banks;

(2) must maintain at least 50% of your investment in stock exchange transaction securities, deposits or securities issued or guaranteed until its total extinction by banks or other financial institutions or institutions by the State, in mutual funds, currencies or other assets to be determined by the Superintendent.
Without prejudice to the provisions in the previous issue, the Fund may invest up to 10% of the value of its total assets, in shares of open joint-stock companies which do not meet the conditions to be considered transaction market, according to the regulation, provided that such shares are registered on a stock exchange of the country;

(3) a fund may not invest in mutual funds in Chile, which are administered by its administering society itself, or shares of companies administering mutual funds;

(4) the Fund may not own 25% or more of the shares issued by a society. Investment in bonds, debt holdings of short-term promissory notes, letters, shares or other securities may not exceed 25% of the total of the assets of the issuer. This limitation does not apply in the case of securities issued or guaranteed by the State until its total extinction.

Without limiting the foregoing, the investments of the Fund not may mean, under any circumstances, the direct or indirect control of the respective transmitter.
For the determination of the percentages, it will be the annual accounts or other financial statements that must be the Superintendence submitted the issuing companies, updated, in the form determined by regulation;

(5) you can invest in securities issued or guaranteed by a company that controls directly or through other natural or legal persons, 20% or more of the shares of the respective administering society, or in securities issued or guaranteed by companies belonging to a group of companies that handles at least that percentage.

Without limiting the foregoing, the Fund may invest up to 10% of its assets in representative of debt securities guaranteed by a same issuer, whether driver or business group, when these titles they are classified in category A, N-2 or above these, referred to in the second paragraph of article 88 of the law No 18,045.
For the purposes of this number and the number 7) of this article, shall apply to the business group definition contained in the Act.

(6) will invest more than 10% of the value of the assets of the Fund, in instruments issued or guaranteed by a single entity. This limitation is not governed in the case of instruments issued or guaranteed by the State to total extinction. The Fund may invest up to 25% of the value of its assets in shares of a mutual fund foreign, open or closed, or debt securities from securitization corresponding to a heritage of those referred to in title XVIII of the Act No. 18,045, who meet the requirements to be determined by the Superintendent.
(7) the set of investments in a mutual fund in securities issued or guaranteed by entities belonging to the same corporate group may not exceed 25% of the assets of the Fund.

(8) a mutual fund may purchase instruments classified in the categories of risk B, N-4 or higher than these, referred to in article 88 of the law No 18,045. However, funds aimed at qualified investors may invest in instruments with risk classification minors to the designated or in instruments that have not been subjected to classification, which must be reported to investors, in the form determined by the Superintendent.
In the event that a single title is classified into categories of risk discordant, the lowest category should be considered.
For securities of foreign issuers, the Superintendency be established by rule, the equivalences between the classification that can be made of these titles abroad, and risk categories outlined in this issue.
(9) the Fund may invest in securities issued or guaranteed by the State or the Central Bank of a foreign country by foreign or international banks which are possibly in local or international; markets in debt of public offering and shares of stock exchange transaction securities of companies or foreign corporations; in foreign capital investment funds regulated by law No. 18,657; in other publicly offered securities of foreign issuers authorized by the Superintendent; and foreign currency is also authorized.
The Superintendent may establish general instructions and regarding the investments outlined under this number, conditions of liquidity and information which shall comply with the markets of the countries in which may be carried out such investments and administrative procedures to which they must conform.
In any case, the operations of international changes that you make to the Fund, shall be governed by the provisions contained in the eighth paragraph of title III of law No. 18.840.

(10) the Fund may conclude contracts for the future; purchase instruments with promise of sale; and acquire or dispose of purchase or sale of assets, values and indices options, give in loan values and short on these sales contracts provided that all these operations and investments comply with requirements that the Superintendent set by General instructions, which determined, in addition, ceilings that can engage in these.

(11) the Fund may invest in certificates of deposit securities (CDV) and foreign securities, issued by international bodies concerning the 24TH title of law No 18,045.
For the purposes of this issue, apply the rules of number 9) earlier.
The limit set on the number 4) of this article, in the case of the debt securities of securitization that is the 18th title of law No 18,045, shall apply to each heritage separately.
If excesses of investment be decommitted by effect of fluctuations of the market or other cause unrelated to the Administration, the Superintendency will establish, in each case, the conditions and deadlines that must be to the regularization of investments, without time limit set does not exceed twelve months, counted from the date at causing excess. When the situation afectare to more than one mutual fund and of those mentioned in the seventh paragraph of article 16 of this law, the Superintendency, on the instructions of general application, may extend this period.
If a result of liquidations or deals or for cause unrelated to the Administration, in the sole judgement of the Superintendency, a mutual fund received in payment goods whose investment does not conform to the provisions of this article, the administrator shall communicate this situation to the Superintendency, within the third day that has occurred the fact, so this determines if it is or not to enhance them and if so set the assessment procedure. In any case, these assets must be disposed within 60 days from the date of purchase, or the longer term authorizing the Superintendent for qualified reasons. ".

11.-amending article 13 bis, as follows: to) change the individualization of the "article 13 bis" by "article 13 to.".
((b) replaced, in the first paragraph, the expression "of lower diversification" with the following: "aimed at qualified investors" and delete the phrase: "second paragraph of the", and c) repeal of the final paragraph.

(12 insert following article 13 bis, which has become article 13 A, the following article 13 B, new: "article 13 B-the Fund may incur obligations up to 20% of the Fund's assets, in order to make investments or operations referred to in number 10) article 13; pay fees rescue and other duties necessary for the activities of the Fund that the Superintendent expressly authorizes. ".

(13 article 14, replaced by the following: ' article 14.-in the event that a company manage more than one Fund, managed, altogether investments, may not exceed the limits given in number 4) article 13. Also, in the event that two or more administrators belong to the same corporate group, the investments of the funds administered by them, as a whole, may not exceed the limits given in paragraph 4 referred). ".

14 delete in subparagraph first of article 15, the following sentence: "as in the case of income securities investment funds fixed, variable or mixed.", passing the comma (,) that precedes it, be apart (..).

15.-amending article 16, as follows: to) be inserted in the second paragraph, the word "cash" and "inside", the following sentence: "in the national or foreign currency indicated in the rules of procedure of the Fund,";

(b) replace the third subparagraph by the following subsections third, fourth, fifth and sixth, new, passing the current paragraph fourth to be seventh paragraph: "However, at the time of subscription, may be agreed between the Fund and the Subscriber, a higher maximum period for rescue that laid down in the preceding paragraph.

The administrator and the shareholder may agree that the request for rescue is done at a date after the presentation.
The Fund should provide Covenants on the same terms to all participants who made subscriptions or purchase of similar characteristics.
The case system of rescue and payment of contributions representing daily significant amounts of the total of the Fund's assets, they must be established in the rules of procedure of the Fund. For these purposes means daily significant amounts that determine the rules of procedure.