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Title I
Objective and Functions of the Superintendencia de Valores y Seguros (SVS)

Article 1.- The SVS is hereby created; it will be an autonomous institution governed by the present law, a legal entity with its own resources that will interact with the Government through the Ministry of Finance. Its domicile is the city of Santiago, without detriment to other regional offices that the Chairman may establish in other cities in the country. Its assets consist of the goods transferred to it by virtue of this statutory law, the funds that are annually allocated for such purpose by the Budget Law, the income it receives for services provided and any other goods it acquires at any title whatsoever.

Article 2.- Existing or future, general or specialized rules regulating the administration of the State, both centralized and decentralized, are not applicable to the SVS or its personnel, except those stipulated in statutory law Nº1,263 of 1975.When reference is made to the SVS or the Chairman in the stipulations of this law or in statutory decree Nº251 of 1931, it is understood that reference is being made to the body to which this statutory law refers to or the officer that directs it.

Article 3.- The SVS is responsible for the highest supervision of the following:

a)	The persons that issue or act as brokers of publicly offered securities;
b)	Stock exchanges and brokerage transactions;
c)	Securities dealers associations and the securities transactions they conduct;
d)	Mutual funds and the companies that manage them;
e)	Corporations and partnership companies limited by shares that the law subjects to its surveillance;
f)	Companies that insure or reinsure, regardless of their nature or the nature of their operations, and
g)	g) Any other entity or individual or corporate entity that this or other laws so indicate.

Those banks, financial institutions, pension fund administration companies and the entities and individual or corporate entities that the law expressly excludes are not subject to supervision by the SVS.

Article 4.- The SVS is responsible for overseeing that the persons or institutions it inspects, from their initiation until the completion of their liquidation, comply with the laws, regulations, statutes and other ordinances that govern them, and without detriment to the powers that said dispositions grant it, it is endowed with the following general powers:

a)	To administratively interpret, in materials of its competence, the laws, regulations and other rules that govern supervised persons or entities and to set rules, give instructions and issue orders for their implementation and adherence. The Supreme Court will settle any contests of competence with other administrative authorities arising from the exercise of these interpretation and implementation powers;
b)	To resolve inquiries and petitions and investigate charges or complaints formulated by shareholders, investors or other legitimate parties, in areas of its competence, determining any requirements or conditions that must be fulfilled prior to examination;
c)	To provide reports required by courts that are conducting criminal proceedings when such information corresponds to material within the SVS' competence and that is available within its records;
d)	To examine all of the transactions, goods, books, accounts, archives and documents of supervised subjects or activities and demand of them or their administrators, advisors or personnel the information and explanations that it deems necessary for its information. It may request the formulation and submission of financial balance sheets and statements when it considers such actions to be appropriate in order to ascertain the exactness and investments of capitals and funds. It may also request the presentation of any document, book or piece of information that is necessary for supervision purposes, without altering the affected party's normal operations. Except when authorized by the SVS, all books, files and documents of supervised entities or persons must be made permanently available for examination at the affected party's main place of business;
e)	To set rules for the formulation and presentation of annual reports, balance sheets, statements and other financial reports of persons and entities subject to supervision and to determine guidelines for accounting activities. For these purposes it may also issue instructions and adopt measures to correct deficiencies it observes and, in general, measures it deems necessary for the protection of shareholders, investors, insurance policy holders and the public interest. Specifically, it may order the rectification or correction of the value at which a given accounting item is recorded when it establishes that said value does not correspond to the real value. The resolutions issued by virtue of this point may be appealed before the Appellate Court of Santiago within 10 working days from the time of notification. The Court will forward the case to the SVS for 6 working days and, with said process completed, will hand down a decision without further appeal. The cases originating from these appeals will be especially added to the next day's agenda. Notification of appeals will suspend the effects of the measures ordered by the SVS.
f)	To audit, using their own employees or external auditors, the persons or entities subject to supervision;
g)	To require that supervised persons or entities provide the public, through the channels indicated by the SVS, with accurate, sufficient and timely information on their legal, economic and financial situations. The SVS may publish directly any documents that are necessary for the purposes indicated in the previous point, charging expenses to the supervised parties, with the stipulations of articles 5 and 6 of the current statutory law applicable in such cases;
h)	To summon representatives, administrators, advisors and employees of supervised entities or persons, or any other person that may have conducted or celebrated any kind of acts or conventions with them, to make declarations to provide information the SVS deems necessary for the fulfillment of its duties. Those persons indicated in article 361 of the Civil Procedures Code will not be obliged to appear to declare; the SVS, for the purposes expressed in the above point, may request written declarations from said persons;
i)	To issue rules that ensure the accuracy of the records, books and documents that the SVS indicates and to require, as the case may be, that communications be fully or partially recorded or attached to said documents;
j)	To order the designation of external auditors to supervised persons or entities decided upon by the SVS; these auditors will report on general account statements and, as the case may be, replace account inspectors and be invested with said inspectors' powers and duties. The SVS may set the requisites that said auditors and inspectors must meet for the fulfillment of their duties, in accordance with the characteristics of the supervised persons or entities;
k)	To oversee the activities of all external auditors and account inspectors designated by persons or entities subject to supervision; issue rules concerning the content of their reports and request any information relating to the fulfillment of their tasks;
l)	lTo designate external auditors for entities or persons subject to supervision to conduct the tasks it specifically assigns them, with the powers it deems necessary. The external auditors assigned by the SVS will be bound by the requisite of confidentiality established and sanctioned in article 23 of this legal body and will be remunerated by the supervised party. The remuneration will posses the privilege established in article 2472, number 4 of the Civil Code;
m)	To maintain public records on professionals and information as dictated by law;
n)	To request reports from the State's technical bodies as it deems necessary and hire the services of experts or technicians; and
ñ)	As it deems necessary, to see to it that the documents it keeps in its registries are filed by means electronically, through technological systems that ensure faithfulness to the original. At the same time, to authorize supervised entities to keep their documentation in electronic files. Paper print-outs of the documents located in these files, will have evidentiary value as a public or private instrument, according to the nature of the original. In the case that the printed copy of an electronically-filed document shows differences with the original or an authentic copy of it, these last two will hold precedence without the need for new authentication. Additionally, any document received by the SVS which is sent by the electronic methods authorized by the organization and that has been deemed to be factual, will also be considered as an original document. To this purpose, the SVS will authorize electronic methods that maintain integrity, authenticity and durability;
o)	To establish the manner, timeframes and procedures for supervised institutions to present the information referred to in the law relating to the securities market or insurance market, as is their case, through electronic methods or computing files as established by the SVS, as well as the manner for presenting the contents and details of the information.
p)	To charge and collect fees for registry, approvals and certifications established by this law;
q)	To estimate to the amount of benefits, expressed in its equivalent in U.F.s, that have been collected by violators of Title XXI of Law No 18,045, and to indicate it in the resolution that applies the sanction. In estimating benefits, the SVS will consider the weighted average market price of the value of the public offering during the 60 days preceding the date of transactions made with privileged information.The SVS, in order to look after the interests of aggrieved third parties, according to article 172 of Law No 18,045, may request that the corresponding court orde the precautionary measures as indicated by the law;
r)	In civil matters, to present to the courts of justice written reports on actions that have been verified, which will be evaluated in accordance with the rules of reasoning and will be granted civil status;
s)	To provide technical assistance and take part in the investigation of infractions to securities and insurance legislation, as requested by foreign regulatory and supervisory entities or international organizations, in virtue of agreements or memoranda of understanding that it has signed for technical collaboration, exchange of information, training and reciprocal assistance, in areas of its competence;
t)	To come to agreement with other public services and organizations of the State regarding the electronic transfer of information in order to facilitate the fulfillment of its functions. At the same time and before a resolution set forth by the Chairman, it may establish this interconnection with private organizations or institutions. Likewise, it may establish this interconnection with foreign public organizations or international organizations, with which it celebrates agreements or memoranda of understanding;
u)	To exercise any other powers expressly conferred upon it by other laws or regulations.

Article 5.- The SVS may use funds from its budget to pay the expenses arising from the exercise of the functions conferred upon in it article 4, letters e) and g) and in article 23, point 2 of this statutory law.

In such cases it will have the right to charge the amounts paid, plus the readjustments and interests indicated in article 53 of the Tax Code, to the entity or persons on whose behalf it made payment.

Article 6.- For the collection of the sums referred to in the previous article, the SVS may file summary proceedings against the debtor before the corresponding civil law court in Santiago, requesting the corresponding writ for execution and seizure.
In these cases, a liquidation will be conducted that, signed by the Chairman, will be legally binding.
In the corresponding trial, the defendant's opposition will not be admissible unless it is founded on one of the following exceptions:

1. Debt was paid. If this occurs subsequent to the notification of the suit, the defendant will be obligated to pay the legal fees.

2. The title does not apply to the defendant. By virtue of this exception, the legality of the resolution that produced the expenses that the SVS filed proceedings for may not be disputed.

3. Prescription.