In Chile, firms that are not regulated by the Financial Market Commission (CMF) may participate as intermediaries as long as they are authorized, as is the case with factoring and Fintech, as reported by Diario Financiero on June 8.
According to the article published by the economic newspaper “the regulations of the Crece Fund would enter this Monday to be reviewed by the General Comptroller of the Republic” according to the statements of the Minister of Economy, Lucas Palacios, and the executive vice president of the Development Corporation of the Production (Corfo), Pablo Terrazas.
Both authorities assured that one of the conditions of the program in support of SMEs “is that only financial entities registered with the CMF may participate, both the administrators of the fund and the intermediaries who will deliver resources to the SMEs.”
The Chilean media stated that according to the decision there is an exception: “Firms that are not regulated by the CMF may participate as intermediaries as long as they have the express authorization of the Corporation. In this way, entities such as factoring and Fintech that are not registered with the regulator will be able to access the Grow Fund through this mechanism.”
For its part, the main objective of the fund will be to provide financing to some 40,000 SMEs through non-bank financial institutions and it will be guaranteed by Corfo with a fund of USD 150 million. The intention, according to Terrazas, is that non-bank financial intermediaries can deliver a total amount of credits of up to USD 1 billion.