Procedure for the Approval of Foreign Instruments

Agreement N° 32

Here you can access the specific procedures established by the CCR for the approval of foreign capital instruments, which are regulated by Agreement N° 32. Likewise, the equivalencies between the classifications of the foreign debt titles and the domestic risk ratings. In addition, you can access the procedures for the approval of instruments, operations and contracts representative of alternative assets, established in letters n.1), n.2) and n.3) of numeral II.1 of the Investment Regime of Pension Funds, as well as the approval procedures for counterpart entities for operations with derivative instruments are established.

This regulation was issued by the CCR in compliance with the legal mandate provided for in Articles 99 and 106 of Decree Law Nº 3,500, which provides that the CCR shall establish these specific approval procedures and the aforementioned equivalencies.

Article 106 of Decree Law N° 3,500 provides that foreign capital instruments will be approved in compliance with the procedures established by the CCR, taking into consideration at least the following factors: country risk, the existence of institutional regulatory systems and control over the issuer and its instruments in the respective country and the liquidity of the instrument in the relevant secondary markets.

With respect to alternative assets, letter c) of numeral II.2.6 of the Investment Regime of Pension Funds establishes that the CCR must approve the investment vehicles, as well as the co-investment operations, referred to in letters n.1), n.2) and n.3), considering at least the characteristics of the manager. For these purposes, the manager shall be understood as the management entity involved in the previous investments, such as advisor, sponsor or general partner of the investment vehicles, or its parent organization.

Regarding the equivalences of the foreign titles ratings and local ratings, Decree Law N° 3,500 provides that the ratings shall be given by internationally acknowledged Risk Rating entities, provided that they are accepted by The Central Bank of Chile for the investment of its resources. Currently these institutions are: Dominion Bond Rating Services Ltd. (DBRS), Fitch Rating Service (Fitch), Moody’s Investor Services (Moody’s) y Standard & Poor’s (S&P).

Counterparties to operations with derivative instruments may be domestic or foreign banks and clearing houses, both types of institutions must be approved by the CCR.

Agreement N°32:

Application Form for Approval of Shares of Foreign Funds and ETFs:

Application Form for Approval of Physical Gold Exchange-Traded Products:

Application Form for Approval of Managers of Foreign Specific Alternative Assets:

Annual Update Form: Registration of Alternative Asset Managers in Specific Assets: