Fiscalía Nacional Económica market study on public notaries

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Fiscalía Nacional Económica market study on public notaries

The Fiscalía Nacional Económica (FNE) announced the launch of a market study on public notaries. There are currently 327 public notaries throughout Chile currently.

In the FNE´s view, this is a market that even though appears to be very regulated, there are various spaces within the market which should be competitive, in relation to which there is limited public information available to adequately assess the level of competition.

The Organization for Economic Cooperation and Development (OECD) will also assist the FNE during the study, only in verifying the compliance with international best practices on market studies.

The Internal Guidelines for the Development of Market Studies, published by the FNE on May 5, establishes that upon the launch of a study, the hypothesis of lack of competition that motivates the study along with the schedule of the study should be published.
In this sense, the FNE states that the hypothesis of lack of competition for this study is that “the intensity of competition in the public notary market is insufficient, existing space for regulatory changes that may correct this aspect”.

According to the work calendar set by the FNE, between July of this year and April 2018, the team in charge of the study will focus on data gathering and analysis, and during the two following months, it will work on preliminary conclusions, so it may publish the final report on July 2018.

Among the reasons that justify the launch of this market study, four main ones are highlighted. These relate to the spaces of competition that should exist in the appointment of the notaries, in the prices charged for their services, and in the quality of service delivered.
An additional reason refers to the lack of public information available in regards to the methodology used to determine the supply of notaries in the country (the quantity and location of them).

For this study, the lawyers Mr. Enrique Barros and Mr. Felipe Bulnes, along with the economists Mr. Claudio Agostini and Mr. Eduardo Engel, will act as consultants of the FNE.

This is the second market study of the FNE after the legal reform from last year, which gave the agency the power to develop market studies, and where it deemed necessary, to make recommendations to amend or create regulation to the relevant authority. The first study, which focuses on the annuity market, should conclude on February 2018.

Launch of market study on notaries