Economist from the University of Chile: "The law needs to be reformed to prevent a situation like that of Falabella and D&S from happening again"

SANTIAGO.-  The director of the School of Business at the University of Chile, Professor Pedro Hidalgo, has stated that it is necessary to reform the law in order to avoid situations such as that involving Falabella and D&S from reoccurring.

The statement comes after the Chilean Insurance and Securities Supervisor (SVS) penalized five individuals involved in the transaction that allegedly had used privileged information concerning the failed merger between the two companies, as well as three other individuals for having disclosed confidential information.

“If there were a regulation prohibiting these people and their family members from investing, these risks would be avoided (…)  The best option is to create a transparency regulation and it is going to be important to discuss which (regulations) could be eliminated”, Hidalgo proposed on Radio Cooperativa.

Hidalgo also pointed out that Chilean regulations are outdated compared to other countries since, in other nations executive officers and their relatives (to a certain degree) are prohibited from buying shares from the company for a certain amount of time before it engages in special negotiations.