NUM. 21.158 AMEND LAW Nº19.220, WHICH REGULATES THE ESTABLISHMENT OF BAGS OF AGRICULTURAL PRODUCTS, bearing in mind that the National Congress has given its approval to the following Bill: " Article 1.-Enter the following amendments to Law No 19.220, which regulates the establishment of bags of agricultural products, hereinafter the "law": 1) Replace the name of the law, for which it follows: "Regula Establishment of Bags of Products". 2) Eliminate, in the Title I, the word "agricultural and livestock". 3. in Article 1, the following amendments: (a) In the first indent, delete the phrase "agricultural, hereinafter the product bags,", the words "the local and", and the word "Agritarians". (b) In the second indent, replace the initial voice "Bags" for "bags", and remove the word "agricultural". (c) To replace, in the third subparagraph, the phrase "Superintendence of Securities and Insurance, hereinafter referred to as" the Superintendence "", as follows: "Commission for the Financial Market, hereinafter the" Commission "". 4) Amend Article 2, as follows: a) Replace, in its heading and in the second subparagraph of No 1), the word 'Superintendence' by 'Commission'. (b) Replace, in number 7), the word 'Superintendent' by 'President of the Commission'. 5) (a) In the first subparagraph: (i) Substitute, in the heading, the word "Superintendence" by "Commission". (ii) Replace point (c), by the following: " (c) Account with a corporate governance, internal controls and risk management and the resources, systems and procedures, appropriate to function properly as a bag of products and to assure investors the best execution of their orders, and (iii) Substitute, in point (d), the word "Superintendence" by "Commission". (b) Replace, in the third subparagraph, the word "Superintendence" by "Commission". 6. Replace articles 4 and 5, for the following: " Article 4.-For the purposes of this law, product shall be understood as all types of goods, services, concessions, permits, rights, invoices and contracts, including those registered as Law No. 20,797, which creates a Voluntary Register of Agricultural Contracts, as well as the representative titles and derivatives of all the products mentioned above. They shall not fall within this definition and therefore cannot be transacted on the exchanges covered by this law, the values defined in Article 3 of Law No 18.045 of the Stock Market. Article 5.-The products referred to in Article 4 may be traded on the bags covered by this law, provided that: (a) they are transferable in accordance with the law governing them, and (b) their characteristics and (a) comply with the minimum standards laid down in the register of products registered in the Register of Products to be maintained by the relevant product exchange. ' (7) In Article 6, the following amendments shall be inserted: (a) To replace, in the first indent, the phrase "natural or legal persons engaged in", by the following: "who are authorized by law to perform". (b) In the second subparagraph: (i) Intercalase, in the first sentence, following the sentence "on the same", the following sentence: ", and the intermediation of out-of-stock products". (ii) Replace, in the final sentence, the word "Superintendence" by 'Commission'. (c) Remove the phrase 'in the case of legal persons' in the third indent. 8. In Article 7, the following amendments shall be inserted: (a) In the first subparagraph: (i) Substitute the heading, as follows: "Article 7.-For the purposes of determining compliance with the requirements necessary for its audit, the Commission shall keep a Register of Brokers of Product Exchanges, hereinafter referred to as" Article 7 ". "Register of Brokers", in which the public limited liability companies which credit, to the satisfaction of the Commission, the following shall be entered: ". (ii) Replace points (a) and (b), for the following:" (a) Having a corporate government, internal controls and risk management systems that enable the runner to perform her duties properly and responsibilities, in accordance with the assessment carried out by the Commission, using the methodology for these purposes by means of a general rule. (b) Dispose of personnel who have sufficient suitability and knowledge for the correct performance of the activities that they perform. "(iii) Substitute, in point (e), the word" cancelled "by the phrase" ordered the cancellation of ", and the voice "Superintendence" by "Commission". (b) Reposition, in the second indent, the phrase "The Superintendence shall establish" by "The Commission shall establish, by means of general rule,". 9) Introduces, in Article 8, the following amendments: (a) Reposition, in its first indent, the phrase "Legal persons", by the word "Who", and the voice "Superintendence" by "Commission". (b) Replace, in its second indent, the phrase " the requirements set out in points (a), (e), (f) and (g), "the following article": "the suitability and knowledge sufficient for the correct performance of the activities carried out, and in addition to comply with the provisions of points (e), (f) and (g) of the previous article". 10. In Article 9, the word 'Superintendence' shall be replaced by 'Commission'. (11) Substitute, in Article 10, the word 'Superintendence' by 'Commission'. (12) Introduces, in Article 11, the following amendments: (a) Eliminate, in the First, the expression "in favor of its principals". (b) Substitute the second and third subparagraphs, for the following: " The guarantee shall be an initial amount equivalent to 6,000 units of promotion. The Commission may establish, in a general and compulsory manner, greater guarantees on the basis of the quality of the corporate governance, internal controls and risk management systems of the runner, which have been assessed by the Commission itself, conformity with the methodology referred to in Article 7 of this Law. The greatest demands for guarantees to be established by this body will in no case be higher than the 30,000 units of promotion. The guarantee may be constituted in cash, bank ballot, insurance policy, garment on products, pledge on shares of public limited liability companies or other securities of public offering, with the exception of shares issued by the stock exchanges. participating. The security lodged shall be adjusted in the same proportion as the amount of the promotion unit. '. (13) Amend Article 12, in the following terms: (a) Replace the final sentence of the third subparagraph, by the following: 'garments on products shall be constituted in accordance with the form and solemnities laid down by the special rules governing them.' (b) Reposition, in the fifth indent, the word 'cautioned', by the phrase ' the obligations of which have been guaranteed. ' 14. In Article 13 (a), (a), (b), (c), (d) and (e), the word 'Superintendence' by 'Commission'. (15) Introduces the following amendments to Article 14: (a) Reposition, in its first indent, the word 'Superintendence' by 'Commission'. (b) Substitute its second indent, as follows: ' The brokers shall be responsible for transactions which are agreed by their intermediary. The product bags, in the event of non-compliance with such transactions, shall have the obligation to use the means provided by law and regulations to ensure that those obligations are implemented, including the exercise of such obligations. (16) Add, in Article 15, the following second indent: "The brokers shall not be liable for the obligations arising out of the contracts negotiated." (17) Amend Article 16 as follows: (a) Replace, in its heading, the word 'Superintendence' by 'Commission'. (b) Replace point (a), by the following: ' (a) Failure to provide, within a period of six months, any serious deficiencies which the Commission has notified to it in the requirement referred to in point (a) of Article 7 (a) or no longer meet the requirements of points (b), (c), (d), (e), (f) and (g) of the same Article. Without prejudice to the above, in qualified cases, the Commission may grant an additional period of up to 120 days to the person concerned, in order to remedy the deficiencies related to Article 7 (a). Similarly, the Commission may grant the same (c) The term 'Superintendence' shall be referred to in point (b) of the first subparagraph of Article 4 (2) of Regulation (EC) No 338/2014, in accordance with Article 4 (2) of Regulation (EC) No 72/2014. (d) Substitute (e), as follows: " (e) Participate in stock exchange of products whose characteristics and conditions do not meet the minimum standards set out in the register of products registered in the Register of Products, or (a) In Article 18, the following amendments: (a) In the first subparagraph: (i) the words 'physical, contract or title' shall be deleted in the first subparagraph of Article 18 (3); Replace, in numeral 4), the word "Superintendence" by "Commission". (iii) Replace, in numeral 6), the final expression ", and" by a semicolon. (iv) Replace, in numerals 7) and 8), the point and separately, by a semicolon. (v) Add the following numerals (9), (10) and (11): " 9) Corporate governance and risk management rules, which ensure the application of fair and uniform procedures by which the entities registered in the records bearing the bags, may be sanctioned, cancelled or suspended in case they have been in breach of this law, the rules dictated by the Commission or the regulation of the stock exchange; 10) Rules and procedures governing the conditions of transactions for the various products which are carried out on the stock market, and the monitoring of which enables the brokers to comply with the responsibility laid down in Article 21 (3), and (11) measures aimed at promoting, encouraging and facilitating the participation of micro, small enterprises, small agricultural producers and farmers in the respective product bags. For the purposes of this law, micro and small enterprises shall be defined as those defined in the second article of Law No 20,416, which lays down special rules for smaller companies. Also, small agricultural producers and peasants shall be understood to be those defined in Article 13 contained in the first article of Law No 18.910, which replaces the organic law of the Institute of Agricultural Development. " b) the second, third and fourth points, the word 'Superintendence' by 'Commission'. (19) Substitute Articles 19 and 20, for which they follow: " Article 19.-Each stock exchange shall bear a Register of Products, which shall be available to the public and shall be entered in the register of the register of the register of the register of the register of the register of products. which must comply with the products to be traded on those bags. The incorporation in the register will be subject to the regulations which will have the effect of dictating the bags, which must be previously approved by the Commission, in accordance with the provisions of Article 18 of this Law. The stock exchanges shall forward to the Commission the registered lists, as amended or cancelled in the Register of Products, no later than the working day following the proceedings. The Commission may order the exchange to cancel, suspend or modify the registration in the Register of Products, in the following cases: (a) Where the standards contained in the rolls do not include the minima which the Commission, by (i) a decision on the basis of the judgment of the Court of (b) Where they do not correspond to products, according to the definition contained in Article 4 of this Law. c) When products are transacted that do not meet the standards established in their standard. Article 20. For the purposes of this law, the representative titles of products may only be issued by the exchange against the deposit of the respective products, which shall be duly registered by the same. The deposit of the products in the bag will be done through the formalities proper to the transfer of the domain of each product, as appropriate. In the relations between the exchange and the depositor, this is the owner of the products deposited in his name. To third parties, the exchange is considered to be the owner of the products held in deposit, which does not mean that the depositor no longer has the domain over the products deposited. The refund of the products to their respective owners will be done through the formalities proper to the transfer of the domain of each product, as appropriate. These titles will have the characteristics and will be transposed in the form that the exchange establishes in its regulation. The regulation of the stock exchange shall lay down the requirements to be fulfilled for the authorization, storage and return of the said products. The exchange, for the securities issued in accordance with the provisions of this article, will be responsible for the existence and custody of the products and for the custody of their fruits and flows, while these are not returned to their respective owners. Also, in the case of securities representing invoices, contracts or rights, the latter shall be responsible for the fact that the securities issued are compatible with the terms, deadlines and modalities contained in the contracts, invoices, or documents where they contain the rights that these securities represent. Without prejudice to the foregoing, the risk of non-compliance or non-payment of the obligations contained in the respective contracts, invoices or rights shall be the responsibility of their respective owners. The foregoing shall not preclude the completion of the responsibilities which, in accordance with the law and the securities regulations, may be held by the brokers who participated in the transaction, as well as the guarantees or safeguards that may exist, where appropriate. All products, and the fruits or flows thereof, that are deposited in the exchange pursuant to this article, either to guarantee or facilitate their stock transaction or for simple custody, will be held in custody by the exchange and will not be able to be seized by creditors of the debtor in the event of the quality of the debtor in a winding-up proceedings, nor shall they be part of the debtor's mass of assets. The products, and the flows thereof, which are in the custody of the stock exchange, may only be the subject of an embargo, preliminary or precautionary measures or other limitations to the domain for personal obligations of the depositor, when they are property and so identify it in the records of the stock exchange. The products that the exchange maintains in custody will be returned to its respective owner, according to the information contained in the records that the bag will carry, when requested. The said custody may be carried out directly by the exchange or through banks, deposit and custody companies regulated in law No. 18,876, or general warehouses of deposit regulated in law No. 18,690. For all the purposes of the custody referred to in the preceding paragraphs, the provisions contained in Title XXIII of Law No. 18.045 of the Market of Securities shall be fully applicable, as appropriate. " 20) Article 20a: " Article 20a.-The respective owners of products in the custody of a product bag may constitute garments or other real rights on the products in custody, in accordance with the respective rules governing the use of such products. the incorporation of such garments or other real rights, in the same cases in which the respective owner could do so if they were not in custody. For these purposes, the bag, at the request of the respective owner to whose name the products are registered, or its broker, will deliver a certificate that accredits the products it has in custody. At the request of the respective owner or his/her broker, as appropriate, the certificate may be restricted to only part of the products it has in custody. If a broker declares that the products were given in custody to the stock exchange, to its own name, but on behalf of a customer, the exchange shall issue the certificate of this article in the name of the broker, under sole responsibility for this. In cases where the products protected are invoices, contracts or other products referred to in Article 4 of this Law, the certificate referred to in this Article shall replace the certificate for the purposes of compliance with the requirements of this Article. respective legal formalities. The constitution of any garment or other real rights in products protected by a bag of products must be notified to it through a notary or through other forms of notification regulated in the regulations of the bags. " (21) Reposition Article 21, which follows: " Article 21.-The charges or any other precautionary measure or contract which is serious or affecting the product, as well as the legal remedies or remedies, shall be inapplicable to the acquirers of goods in bags. which may have been validly applicable in respect of the original owner and seller of the products, where appropriate. In the event that invoices are transacted, it will also be inapplicable to the acquirers of products in bags, the nullity of the act or contract of sale or provision of services that originated the credit that consists in the respective invoice. Except as regards the charges which the acquirer has known and expressly accepted and which are in a public record, as well as those guarantees, liens and prohibitions which have been notified to the public purse judicially, by a notary or by another form of notification authorized in the respective regulation. The bags, at the request of any interested party, may issue certificates attesting that the products in custody are not affected by the exceptions indicated in this paragraph or the fact that they are affected by other charges, where, in the latter case, specify the rate of charge, the product on which it falls, the date on which it was constituted, its beneficiary, and the holder of the products taxed. In the case of products whose domain or encumbrances affect them, they are subject to registration registration or the transfer of which requires the authorization or prior registration of a State organ, the regulation of the bag of products treat, previously approved by the Commission in accordance with the provisions of Article 18 of this Law, must lay down the conditions under which such products may be transacted on the product bags, in order to ensure that the payment for such products occurs if, and only if, the domain of the same has been transferred, and said Transfer takes place if, and only if, the payment has been made. The liability referred to in the second paragraph of Article 14 of this Law in respect of transactions carried out on the stock exchange shall require the exchange broker to comply with all the solemn declarations which, in accordance with the Corresponding laws and regulations of the stock exchange, must be carried out to transfer the domain of negotiated products. ' (22) Substitute the first paragraph of Article 31, as follows: " Article 31.-The Commission shall monitor the actions of the stock exchanges and corridors to be established, for which it shall have all the powers and powers conferred upon it by this law, Decree Law No 3,538 of the Ministry of Finance, 1980, as amended by Law No 21,000, and the other laws relating to its jurisdiction. " 23) In Article 32, replace, in the first sentence, the word "Superintendence" by "Commission", and replace the second Prayer for the following: "The resolution adopted by the Commission may be claimed according to Title V of Decree Law No. 3,538, of the Ministry of Finance, 1980, as amended by Law No. 21,000." (24) Substitute Article 33, as follows: " Article 33.-The certification of conformity of products which are carried on a bag with the rolls established in the Register of Products and with the other requirements laid down by the same bag must be performed by entities that comply with the rules of this article. By way of derogation from the foregoing paragraph, the certification of conformity of the products to be carried out shall not be necessary, where the parties involved in the negotiation have agreed to express and in advance, in time and to determine the regulations of the respective exchange. The provisions of the foregoing paragraph shall not apply to securities issued in accordance with Article 20 of this Law. Each stock exchange shall carry a Registry of Certificate Entities, in which it shall practice the registration of such entities. The incorporation of the aforementioned register shall be subject to the rules governing the stock exchanges, which must be approved in advance by the Commission in accordance with Article 18 of this Law. Without prejudice to the foregoing, the said entities shall at least permanently comply with the following requirements: a) Contar with facilities, technical capacity and competent professionals, necessary to carry out the certification according to the standards established in the Register of Products; and b) Constituir a guarantee for the performance of its activity, in the words referred to in Article 11, for an amount equivalent to 3,000 units of promotion in favour of the product bag concerned as a representative of the party which has suffered damage on account of the negligent performance of the certifier. It shall be for each stock exchange to supervise that the entities registered in their registers comply with this law, the rules provided by the Commission and the rules of the respective stock exchange. " 25) Intercalase, in Article 34, expression "shall be sanctioned", the following sentence: "by the bag in which they are registered". (26) The following amendments to Article 35 (a) shall be inserted: (a) Replace the original sentence "Shall be punished" for "The relevant bag shall sanction". (b) to replace the literal (d) by the following: "(d) Not to remedy the deficiencies observed by the respective stock exchanges in respect of the certification activity, within the time limit set by the securities regulation." 27) Article 36 should be repealed. 28. In Article 37 (2), the word "Superintendence" shall be replaced by the word "Commission". Article 2.-Eliminate in the third paragraph of Article 25 contained in Article 14, which dictates rules on garment without displacement and creates the Register of Benefits without Displacement, of Law No. 20,190, the word "agricultural". Article 3.-The annual cost arising from the application of this law shall be financed from the resources provided for in the budget of the Commission for the Financial Market and, as far as possible, from those consulted in the Public Treasury Item of the corresponding budget year. TRANSITIONAL ARTICLES Article 1.-Article 1 of this Law shall enter into force on the first working day of the tenth fifth month following its publication in the Official Journal. The bags of products whose authorization of existence has been granted prior to the date of publication of this law shall adapt their regulations and systems to the modifications introduced by this law, and to present such amendments for the approval of the Commission for the Financial Market, within the period of eight months from the date of publication of this law. However, the aforementioned amendments to the regulations will only begin to govern with the entry into force of article 1 of this law, and once these are approved by the Commission for the Financial Market, which, for these effects, shall have the powers of approval, rejection or proposal of amendments to the regulations from the date of publication of this law. Article 2.-Once the amendments to the regulations of the product bags referred to in the previous article, including the regulations of the respective registers, are approved, the bags must register in their Register of Products all registered rolls in the Register of Products to be carried by the Commission for the Financial Market. Likewise, all entities that are incorporated in the Registry of Certification Entities maintained by the Agricultural and Livestock Service must be registered in their Registry of Certificate Entities. The registration must be carried out as long as the respective product rolls and entities comply with the conditions laid down in the respective regulations. The information necessary to carry out the said entries must be provided by the Commission for the Financial Market and the Agricultural and Livestock Service, as appropriate, at the request of the respective product exchanges. Without prejudice to the foregoing, the Register of Products carried by the Commission for the Financial Market and the Registry of Certificate Entities carried by the Agricultural and Livestock Service shall be kept fully in force until the date of entry into validity of this law. Once this deadline has been met, those records will be deemed to be cancelled in full, so that the product rolls or entities that are not registered in the Product Records and Records of the Certificate Entities of the The respective stock exchanges will not be able to carry out the activities that the law allows them, nor will they be transacted in stock exchange. " And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, May 8, 2019.-SEBASTIAN PINERA ECHENIQUE, President of the Republic.-Felipe Larraín Bascunan, Minister of Finance.-José Antonio Walker Prieto, Minister of Agriculture.-Baldo Prokurica Prokurica, Minister of Mining. What I transcribe to you for your knowledge.-Saluda Atté. to you, Francisco Moreno Guzmán, Undersecretary of Finance.