The Financial Market Commission (CMF) does not possess the legal authority to intervene in the management of private companies, according to Mauricio Larraín, a professor at the University of the Andes. Larraín issued the statement following assertions made by Dr. Jaime Mañalich, who claimed the regulator failed to prevent precarious administration at Clínica Las Condes.
Larraín clarified that the CMF oversees the entity strictly as a public securities issuer. In this capacity, the regulator mandates transparency and ensures that firms adhere to formal corporate governance standards.
Clarifying regulatory boundaries
"The CMF does not have the power to decide who manages a company, how it is managed, or to intervene in its business decisions," Larraín wrote. He argued that assigning such responsibilities to the commission misrepresents its legal purpose.
According to the professor, the regulator’s primary function is to protect market information and ensure rule compliance. He maintained that the CMF has fulfilled its duties regarding the health provider.
Larraín emphasized that the responsibility for operational success or failure rests entirely with a company's shareholders and its board of directors. He warned that blurring the lines of regulatory authority weakens the accountability of those actually tasked with governing private entities.
Mañalich had previously suggested that the CMF failed to act effectively to stop poor management practices at the clinic. By responding to these claims, the academic sought to establish a clear distinction between the regulator's role in enforcing transparency and the internal decision-making processes of corporate leadership.
