Fraud in unregulated investment platforms – El Mercurio Inversiones
Our lawyer Juan Hurtado Turner, who is part of the Palma Tech practice, was one of the people interviewed by Camilo Castellanos in an article published by El Mercurio Inversiones about fraud in unregulated investment platforms, which -under the guise of investment advice and with promises of high returns- have increased. As they are unregulated entities, the CMF cannot exercise its supervisory or sanctioning powers over them or hear any complaints from the public.
“To operate legally, financial advisors must be registered in the Registry of Financial Service Providers, regulated by the Fintech Law and NCG No. 502. These regulations establish, among other things, reporting obligations, transparency duties and minimum risk management standards that investment advisors must comply with. This not only protects investors, but also raises the standard of all those who work in this area,” says Juan.