The Commissioners of the Financial Market Commission (CMF), along with the General Director of Prudential Regulation Luis Figueroa, highlighted the benefits of moving toward a regulated open finance framework by balancing financial competition and inclusion with an adequate protection of personal data. In addition, CMF issued a regulation that improves standards on the treatment and usage of data related to debtor information available in the CMF Registry of Debtors. CMF also published a regulatory report related to the regulation on debtor information management.
CMF Commissioners on open finance framework
The CMF Commissioners Bernardita Piedrabuena and Kevin Cowan spoke before the Senate's Committee on Finance about the bill that promotes competition and financial inclusion through innovation and technology in the provision of financial services, known as the Fintech Act. The CMF Commissioners highlighted that the open finance framework aims to encourage people's access to credit, financial management, and budget administration; to facilitate the comparison of financial products; and to offer new payment alternatives that compete with credit and debit cards. Under the said framework, financial institutions are required to make it easier for their customers, on a voluntary basis and on consent, to share information with third parties. The CMF representatives also stressed the importance of granting additional regulatory powers to CMF due to multiple Fintech companies operating without a specific data regulatory framework. On the recently introduced amendments to the bill, CMF appreciates the parliamentary debate to improve it. However, it expressed concern about some proposed amendments that limit the framework of open finance to aggregate and unnamed information, leaving debt registries as the only personal data. CMF reiterated its full availability on a technical basis to continue contributing to the legislative analysis of the Fintech Act to materialize the benefits of this initiative for individuals and small businesses.
Regulation on management of debtor information
The regulation follows the best international practices and requires entities with access to the CMF Debt Registry to develop an internal policy for the security and management of debtor information, which must include the minimum requirements stated in the proposal. The internal policy for the security and management of debtor information must also be updated, approved, and audited at least once per calendar year to ensure each entity's internal governance is particularly aware of controls over the confidentiality of consolidated debtor information, ensuring full compliance with restrictions on its use and access and remaining in line with international standards. CMF analyzed feedback received from the industry during a public consultation process between April 22 and May 20, 2022, which helped clarify the final version of the text in some cases. The new regulation will become effective as of July 2023 and applies to all financial entities with access to consolidated debtor data managed by CMF.
Related Links (in English and Spanish)
- Press Release on Open Finance Framework
- Press Release on Regulation on Management of Debtor Information
- Regulatory Report on Regulation on Debtor Information (PDF)
Keywords: Americas, Chile, Banking, Open Finance, Credit Risk, Regtech, Fintech, Lending, CMF
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