Fintech Law Series: Credit Advisory Services
We continue our series on the different business models regulated under Chile’s Fintech Law 21.521. Today we examine Credit Advisory Services.
Regulatory Framework
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Fintech Law 21.521: General framework regulating technology-based financial services
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General Rule No. 524 (NCG N°524): Regulation specifying the requirements for registration and authorization
Checklist: Are You a Credit Advisor?
According to Fintech Law 21.521, your company could be considered a credit advisor if it performs the following activities:
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Evaluations and Recommendations
Does your company analyze…?
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Payment capacity of third parties?
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Payment probability of individuals?
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Payment probability of legal entities?
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Credit history of those evaluated?
Practical Example:
If you offer credit evaluation services to financial institutions to assess the payment capacity of potential clients, you likely fall under this category.
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Specific Services
Do you provide services for…?
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Obtaining loans or financing
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Modifying credit terms
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Renegotiating existing loans
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Verifying the identity of individuals or entities
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Scope of Service
Do your services include…?
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Legal solvency analysis
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Identity verification
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Evaluation of complementary risk factors
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Recommendations to financial institutions
Key Obligations
If you’ve identified your company as a Credit Advisory Service, you must:
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Implement secure data management systems
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Maintain confidentiality of information
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Establish risk management policies
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Ensure objectivity in evaluations
Important Note
The CMF has set February 2, 2025 as the final deadline to register in the Financial Service Providers Registry.