Banco de Crédito e Inversiones S.A. (Bci) is Chile's largest privately owned bank, established in 1937 and headquartered in Santiago.
The bank operates a wide range of financial services, including retail, corporate, and investment banking. Bci offers a variety of products such as deposit and lending options, mortgages, credit cards, securities brokerage, asset management, factoring, leasing, and insurance products. It also provides digital services through mobile and online banking platforms.
As of September 2023, Bci’s total assets were approximately CLP81.7 trillion, loans of CLP49.1 trillion, and total deposits of CLP43.4 trillion. Bci operates not only in Chile but also has an international presence, with subsidiaries such as City National Bank of Florida in the United States and branches in Peru. The bank is publicly traded on the Santiago Stock Exchange, the Electronic Stock Exchange of Chile, and the Valparaíso Stock Exchange.
Objective
Bci aimed to establish and operate a broker-dealer subsidiary to allow international investors to trade in U.S. markets. The goal was to navigate the complex regulatory landscape, ensure compliance with U.S. regulations, and expand the bank's presence in global equities trading.
Background
Bci, a well-established bank with a significant presence in both Chile and the United States, wanted to expand its services by offering retail investors worldwide access to investing in the US financial markets. While Bci had a solid foundation in banking and financial services, the complexities of establishing a broker-dealer operation in the US required specialized knowledge of regulatory requirements, operational setup, and ongoing compliance management.
To achieve this, Bci needed a partner with deep expertise in navigating US financial regulations and designing effective compliance frameworks for cross-border investment activities.
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Challenges
The client faced several critical challenges:
Establishing a compliant brokerage operation with a global footprint.
Navigating US regulations to support international retail investors.
Establishing and maintaining effective compliance processes for a global business model.
InnReg's Solution
InnReg provided comprehensive regulatory and operational support:
Compliance Framework:
Conceptualized and implemented a broker-dealer compliance model tailored for international investors.Regulatory Guidance:
Leveraged compliance expertise to provide advice on managing regulatory examinations and inquiries.Process Optimization:
Designed and implemented compliance workflows to ensure effective resource utilization.
Client Results
Bci successfully navigated the regulatory complexities of launching and expanding broker-dealer operations in the US and established efficient compliance processes that supported sustainable growth.
Throughout this process, Bci achieved positive outcomes in regulatory exams, benefiting from the strategic guidance and support provided by InnReg.
