On August 24, 2026, the Financial Market Commission (CMF) submitted for public consultation a draft regulation that consolidates the rules applicable to credit rating agencies into a single General Rule (the “Draft Regulation”). In addition to systematizing current regulations, the Draft Regulation modernizes Chilean regulation and brings it closer to international standards in this area, moving toward a framework based on the governance and conduct of these entities; that is, on who leads the rating process, how conflicts of interest are managed and the independence of the risk management function.
In general terms, the Draft Regulation amends several requirements for the incorporation and operation of a credit rating agency, including its corporate form, the ownership threshold for principal partners and the point at which the limit on revenue concentration per issuer or business group takes effect. To this end, the Commission relies on the power granted to it by Article 4 of Law No. 18,045 on the Securities Market, as amended by Article 32 of Law No. 21,521 (the “Securities Market Law” and the “Fintech Law,” respectively).
This article allows the CMF to exempt certain persons or entities from legal requirements, or to impose less burdensome requirements on them, provided that public trust is not compromised. The Draft Regulation also introduces standards of conduct and independence, including minimum technical qualifications for those who certify ratings, a rotation policy and a risk management function separate from the rating process. It also merges the register of rating agencies with that of other rating entities and reorganizes the ancillary activities these entities may carry out.
The Securities Market Law currently requires credit rating agencies to be organized as partnerships and at least 60% of their capital to be owned by the principal partners. The Draft Regulation eliminates both requirements, allowing them to opt for a corporate form without that ownership threshold. It also defers the prohibition on a credit rating agency obtaining more than 15% of its revenue from a single issuer or business group: that limit will only take effect in the sixth year of registration, rather than the third, as is currently the case.
Along the same lines of easing the regulatory burden, the obligation to report quarterly financial statements and an annual audited financial statement to the CMF is also deferred, from the start of operations to the sixth year of registration. Finally, entities currently registered in the Register of Financial Institution Rating Entities will automatically be registered in a new Single Register of Credit Rating Entities.
This greater flexibility is accompanied by stronger conduct and integrity requirements. The Draft Regulation requires minimum technical qualifications for partners who lead or certify ratings, consisting of five years of experience in credit rating at entities supervised by the Commission and a professional degree requiring at least eight semesters of study. It also introduces a rotation policy, both for partners who lead or certify ratings and for the rest of the team involved in the process. In addition, it requires credit rating agencies to have a risk management function separate from the rating activity, so that its staff may not take part in the rating process or in the design of methodologies.
The treatment of ancillary activities is also reorganized. General Rule No. 362 of 2014 authorizes three categories of ancillary activities: economic and financial reports, rating or scoring systems, and expert appraisals and valuation. The Draft Regulation narrows ancillary activities to expert appraisals and valuation, and classifies the remaining activities, including economic and financial reports and rating systems, as part of the agencies’ core business, together with the assessment of environmental, social and governance factors, the rating of all types of financial instruments and the credit advisory services that the Fintech Law already allows these entities to provide.
For rating agencies already registered, the Draft Regulation provides a period of three months from its entry into force to update their registration information, and twelve months to bring their internal regulations and policies into line with the new corporate governance and technical qualification requirements. Failure to meet these deadlines could expose the agency to cancellation of its registration.
Finally, the CMF invites credit rating agencies and other financial market participants to comment on two points: (i) whether the proposed regulation includes requirements whose fulfillment could entail a significant cost for credit rating agencies that would make their proper operation unfeasible or substantially more difficult; and (ii) whether there are other elements to consider that would give the market greater confidence in the quality and integrity of the credit ratings issued. This consultation will allow the industry to enrich the regulation with its technical expertise.
Comments, observations and suggestions on the Draft Regulation under consultation may be submitted to the CMF through its website until September 20, 2026.
