Following this announcement, the regulation represents a milestone for the Chilean financial market, as well as a central stage in the implementation procedure of the Fintec Law (No. 21,521), which was approved in early 2023. Its main objective is to promote competition, optimisation, and inclusion in the financial system.
The law, which is expected to come into force 24 months from today, regulates the general operation of the Open Finance System. This will allow people, individuals, and companies to share their information in the financial system, as well as access improved conditions or new products and solutions that meet the needs, preferences, and demands of clients and partners.
The SFA represents a system defined by law, which is expected to allow customers of the financial system to share their data safely to obtain improved benefits and optimised conditions in the contracting of financial solutions. The Commission also hopes that with the issuance of this regulation the benefits expected by the Fintech Law will be realised, including improved competition and financial inclusion.
Title III of the Fintech Law will also regulate institutions that voluntarily decide to register with the SFA in order to offer financial solutions to customers, mainly of two types. This includes those solutions that use the information of clients of financial institutions, which are called Information-Based Service Providers (ISPs), as well as payment initiation tools that allow direct transfers from users’ accounts to third parties, which are called Payment Initiation Service Providers (PSIP).
The regulation applies to entities currently supervised by the CMF, as well as others that will be incorporated into the regulatory perimeter as SFA participants. In addition, it is important to note that the preparation of the standard had several instances of participation and discussion of the proposals, alongside the public consultation carried out between April 15 and May 15, 2024.
Furthermore, Title III of the Fintech Law regulates the SFA and establishes the matters in order to be regulated by the CMF. The decision of this Commission was to issue a single standard that would compile all these matters, while also being structured in the following sections. Section I will include Perimeter of the Open Finance System, Section II Operation of the System, Section III System Security and Safeguards, Section IV System Information, and Section V Other Provisions.
The incorporation period of the Open Finance System is set to be gradual, depending on the role played by each participant within it. The first stage defined by this regulation has a period of 24 months for its entry into force. This period will be leveraged for the adaptations required for the implementation by each of the participants of the SFA, while also including the CMF and will provide Directory solutions for the operation of the System.
After this period, the regulation will contain an implementation schedule that will start with the progressive delivery of information that must be shared by financial institutions and payment card issuers within the next 18 months.
The regulation of the SFA was defined in three levels, with the first two establishing general guidelines and safeguards that are required of participants, as well as technical definitions in terms of standards to be used for the operation of the system. In addition, the foregoing will be complemented with the technical specifications or Level 3 regulations that will be issued by the CMF within the first 24 months. This will achieve an adequate implementation of the regulation of levels 1 and 2 which will support the interoperability of the SFA.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now