Law 19,705 represents progress in the continuing efforts to make the domestic securities sector more efficient. Among other matters the law regulates tender offers, employee stock compensation plans, corporate governance, insider trading, share repurchases, investment and pension funds investments, and the powers of the Superintendency of Securities and Insurance.

The superintendency is empowered to promulgate regulations concerning the simplification of disclosure requirements for the public offering of securities. Issues that will be taken into consideration include the issuer's profile, the volume of transactions and the limiting of securities offerings to specific investor groups or sectors.

To date the superintendency has not promulgated any regulations but it is expected to do so soon. The superintendency aims to ease the registration process and allow separate registration forms with varying disclosure levels for different classes of issuers, thus making the decision to go public more economically feasible for small businesses and other less established enterprises.

The superintendency is expected to allow certain securities to be traded among wealthy and financially sophisticated investors (eg, accredited investors as defined by the US Securities Act of 1933 Section 2(15)) and in sectors other than securities exchanges (eg, so-called 'over-the-counter' markets), provided that the necessary requirements are met.

For further information on this topic please contact Jaime Martínez or Luis Maldonado at Carey y Cía by telephone (+56 2 365 7255) or by fax (+56 2 633 1980) or by e-mail ([email protected] or [email protected]).

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