On March 18, 2022, Law No. 21.433 (the “Law”) was published in the Official Gazette amending Law No. 20.712 on the Administration of Third-Party Funds and Individual Portfolios, in relation to the destination of monies not collected in a timely manner by the participants of mutual or investment funds, or by their beneficiaries, for the benefit of the Chilean Fire Department.
The Law includes two new articles:
1. Art. 38 bis, which establishes that the quotas of mutual or investment funds that have not been registered in the name of the respective heirs or legatees within 10 years from the death of the respective participant, will be redeemed by the fund administrator and must be delivered to the National Board of Fire Departments of Chile.
In order to comply with the above, the fund managers must inform the Financial Market Commission in March of each year, the date of death of the participants, the quotas redeemed, and the amounts delivered to the National Board of Firemen of Chile in the previous year.
The Law also adds that the provisions of this article shall also apply to those mutual or investment fund shares whose participants have died prior to the entry into force of the Law.
2. Art. 80 bis, which establishes that dividends and other benefits not collected by the respective participants within five years from the payment date determined by the respective investment fund manager must be delivered to the National Board of Firefighters of Chile.
It also adds that, in order to comply with the above, the fund manager must keep such resources in adjustable term deposits after one year has elapsed since the monies have not been collected by the respective participants. The fund managers must inform the Financial Market Commission, in March of each year, of the dividends and other cash benefits paid to the National Board of Firefighters of Chile, as well as an updated list of the dividends agreed to be paid to the participants with their respective dates and the amounts not collected in each fund at the end of the previous year.
Finally, the Law also adds that the provisions of Article 80 bis will also be applicable to those dividends and other cash benefits which payment dates established by the fund managers are prior to the entry into force of the Law.