CMF has finalized its strategic plan for 2020-2022. The plan is to implement 32 initiatives in the areas of regulation, prudential and market conduct supervision, sanctioning procedures, and institutional development. The key initiatives in the plan involve the implementation of Basel III standards, a bill to strengthen the legal framework for bank resolution, and a definitive bill for fintech regulation in securities.
The strategic plan is intended to strengthen the regulatory and supervisory capacities of CMF to safeguard the solvency of institutions, propagate adequate market conduct and protection of financial customers, and address the challenges and opportunities resulting from technological breakthroughs in the financial markets. The following are the key highlights of the plan:
- Strengthening the solvency of financial institutions—The plan includes the development of nine initiatives that strengthen the regulations of CMF for the prudential supervision of solvency of banks, insurance companies, and financial intermediaries. These initiatives include implementation of Basel III standards for the banking system, design and presentation of a bank resolution bill, preparation of a bill proposal on financial conglomerates, and strengthening the regulatory framework for risk-based financial supervision in the insurance market. The plan also includes initiatives related to the generation of an integrated supervision policy and model, implementation of a macro-prudential risk management process, and development of a supervision scheme to support the implementation of Basel III standards.
- Safeguarding Market Conduct and Protecting Financial Customers—The plan provides for the development of nine initiatives that strengthen the regulations of CMF to promote proper market conduct and protect financial customers.
- Addressing Technological Challenges and Opportunities—The plan addresses opportunities and challenges of technological development in the financial system. The plan includes initiatives on a legal proposal to close gaps in capital markets in areas such as fintech and crowdfunding; implementation of an action plan to close gaps in the area of operational risks and cyber security; and the deployment of a data governance system.
Related Links (in Spanish)
Keywords: Americas, Chile, Banking, Basel, Strategic Plan, Fintech, Operational Risk, Governance, Cyber Risk, CMF
Previous ArticleRBI Consults on Variation Margin Requirements for OTC Derivatives
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.