Internet and investors 
“Today the Internet and new communications technology are changing the way global markets do business. There are certain benefits for investors, such as lower transaction costs and greater access to markets, in relation to time and distance. The Internet allows us to access the majority of the world’s stock markets and obtain information about the buying and selling of securities 24 hours a day. Nevertheless, every investment made via the Internet implies certain risks that you should consider at the time of investment:
- Be informed, which means knowing not only what you are buying but also the medium through which you are making your purchase.
- Know the obligations and limitations of investing via the Internet. For example, most times there is a time delay for transactions, such as submitting orders and receiving confirmation of these transactions. For this reason, you should have an alternate means of transaction, like a fax or telephone.
- Investors must be aware of how fast share prices move online. The price that appears on our screen does not necessarily mean that we can access that price, especially when there are rapid fluctuations in the market.
- It is always a good idea to purchase or sell securities with a limited or fixed price in order to avoid losses due to significant and sporadic fluctuations in the market.
- Online transactions are not always immediate, and share prices, in general, have a delay time of 20 to 30 minutes. This delay could affect the conditions of your transaction.
- You should not assume that the mere fact of ordering or selling securities will indicate a completed transaction. When you submit an order or sale, verify that the transaction has actually gone through.
- Technical problems with the computer, modem, Internet service provider, as well as with the electronic investor or broker, may interfere with a transaction. Additionally, high internet traffic can affect the speed and efficiency of the service and the transaction result.
- Make sure that the website of the online broker is secure and that the broker is authorized by the SVS to serve as a securities intermediary. To verify this information, please consult the current registries found on this site.
- Be careful with information obtained in newsgroups, emails, or bulletin boards, which have converted into popular forums for the exchange of information among investors. Special care should also be taken with mass emails, which can send personalized messages to a large group of users.
- If you find investment information that is extremely attractive on the Internet, think twice before making the decision to invest. Do not forget the saying, “If it looks too good to be true, it probably is.” Many times, companies pay people to post in online news forums, recommending the sale or purchase of certain shares, in order to benefit from market behavior.
- It is never advisable to make investment decisions based solely on information found on the Internet. Before investing, check to see that an offer is registered and authorized. It always a good idea to get information from the issuer or company, the SVS issuer and securities registries, financial reports (FECU, Balance Sheets), and from the risk factors of the business and sector in which you want to invest.
- Every online securities intermediary must comply with the same legal requirements as a traditional intermediary.
- Fraud or violation of the Securities Market Law of Chile can be committed not only via Internet, but over the phone, in person, or by any other method.
- If you have a complaint, please take the following actions:
a) Act quickly to consult or request an explanation from a broker, agent, or manager. Explain your problem or complaint clearly.
b) If you are unsatisfied with the answer given, ask to speak to the General Manager of the organization.
c) If you are still unhappy with the answer, write a letter of complaint to the SVS and the main office of the respective entity.
- Be aware that potential fraud may be committed through the Internet, such as:
a) Changing the securities prices by posting financial information in investment forums, which do not represent correctly the natural fluctuations of the market.
b) Messages which encourage you to invest very little money for a considerable gain, for example, through pyramid structure programs where participants try to earn profit by recruiting new referrals.
c) Investments that are highlighted as having low or “zero” risk.
d) Public offers of foreign securities, not registered or overseen in Chile, to national investors.
e) Unlawful embezzlement of funds or securities by a fictitious entity that operates via the Internet.
f) Insolvent entities that carry out financial or securities activities, without the corresponding financial backing or legal authorizations.
g) Public offers of non-existent companies or securities.
- If you believe that you have been defrauded by a certain entity, securities broker, issuer, funds administrator, or any person involved in the intermediation of your securities, please send us your complaint so that we can determine whether a formal investigation is needed.
- On the same line, if you believe that someone or some entity has violated or is currently violating any legal provision or regulation of the Securities Market of Chile, please report the situation using our complaint form. Our mission is to ensure compliance with the Securities Market Law, to protect the investors, and to guarantee a fair and transparent securities market.
- Although our daily communications are made to a large extent through email, remember that emails via the Internet are not always secure. For this reason, you may provide us with only the most necessary information via email, and transmit confidential or delicate information by regular mail or by phone.”
