The leadership of Chile’s financial watchdog, the Comisión para el Mercado Financiero (CMF), is undergoing a seismic restructuring that has sent ripples through the country’s banking and investment sectors. The ascent of Catherine Tornel to the presidency of the regulator has been marked by an immediate and aggressive overhaul of the agency’s technical core, signaling a sharp departure from the supervisory philosophy of her predecessor.
On March 19, Tornel executed a swift “cleaning of the house,” removing three of the organization’s most senior technical figures: Daniel García, the director general of market conduct supervision; Nancy Silva, the director general of studies; and José Antonio Gaspar, the director general of legal affairs. The dismissals reportedly took place while the officials were on legal leave, a move that met with significant opposition from other members of the CMF council.
This internal purge is not merely an administrative reshuffle. It represents the culmination of a long-standing ideological rift within the commission. Before assuming the presidency, Tornel was frequently the lone dissenting voice on the council, often voting against the imposition of sanctions on some of Chile’s most powerful financial entities. Her appointment, linked to the political shift under the administration of José Antonio Kast, transforms her from a marginal dissenter into the chief architect of the regulator’s future.
A Record of Dissent: The LarrainVial and Factop Controversy
The most glaring example of Tornel’s divergence from her peers centers on the “Caso Factop,” a scandal that erupted following leaked audio involving elite lawyer Luis Hermosilla. The investigation culminated in August 2025 with the CMF imposing a fine of 60,000 UF against LarrainVial Activos AGF—the largest penalty in the agency’s history at the time.
The regulator found that the asset manager had engaged in serious irregularities regarding the “Capital Estructurado I” fund, a vehicle used to manage the financial distress of businessman Antonio Jalaff, a former shareholder of Grupo Patio. The CMF determined that LarrainVial had falsely valued the fund’s assets as equity when they were, in reality, impaired credits against a failing company—a fact known to the managers and directors.
While the majority of the council moved to punish the leadership, Tornel voted to absolve the directors of LarrainVial Activos—including Claudio Yáñez Fregonara, Andrés Bulnes Muzard and Andrea Larraín Soza—on four of the five charges. She argued that the managers had implemented the necessary safeguards and found the defense of the firm plausible. Crucially, she stated there was insufficient evidence to prove that the fund’s creation or marketing involved fraudulent or deceptive practices.
Tornel’s only vote for sanction in the case was directed at STF Capital, a significantly smaller brokerage firm and its general manager, Luis Flores, for providing misleading information to investors.
Patterns of Leniency in High-Stakes Cases
The LarrainVial case is not an isolated instance of Tornel’s willingness to shield corporate executives. Her voting record reveals a consistent trend of viewing regulatory breaches through a more lenient lens than her colleagues.
In September 2023, the CMF fined Matías Videla, the former CEO of Cencosud, 15,000 UF for the prohibited use of privileged information after he acquired approximately $800 million in company shares in May 2022. While the council majority saw a clear case of insider trading, Tornel argued that the transaction merely constituted a “breach of the duty of abstention.” She contended that given that Videla remained in his position for a year after the trade, the link between the privileged information and the operation was not sufficiently established.
Similarly, Tornel clashed with the council over the enforcement of the “Ley Papito Corazón,” a law designed to prevent banks from granting credits to debtors who fail to pay court-ordered child support. When the Banco de Chile was sanctioned for 617.98 UF, Tornel dissented, arguing that the bank should not be penalized in instances where the national registry (RNDPA) failed to provide a response to the bank’s inquiry.
The Sartor AGF Recusal
Tornel’s ties to the financial elite have occasionally necessitated her removal from proceedings entirely. In November of last year, the CMF levied fines totaling $14.569 billion against Sartor AGF in a case that drew public scrutiny due to the role of director Michel Clark and his leadership of Azul Azul, the concessionaire for the Universidad de Chile football club.
At the onset of this process, Tornel recused herself from the case, citing a personal friendship with one of the contributors to the Sartor Táctico Investment Fund.
From the Central Bank to the Presidency
Catherine Tornel’s trajectory reflects a career deeply embedded in both the public and private financial apparatus of Chile. Her professional background suggests a preference for the operational realities of the market over the rigid application of supervisory penalties.
| Sector | Key Roles & Institutions |
|---|---|
| Public Sector | Coordinator of Capital Markets (Ministry of Finance), Senior Economist (Central Bank of Chile) |
| Private Banking | Executive roles at Banco de Chile and BBVA (Insurance and Pensions) |
| Corporate Leadership | Vice President of Transbank, Director of Banchile AGF |
| Infrastructure | Executive role at Combanc (High Value Payment Clearing House) |
This blend of experience—spanning the Central Bank and the boardrooms of major retail banks—has defined her approach to regulation. Where the previous administration under Solange Berstein focused on aggressive deterrence and transparency, Tornel’s tenure suggests a pivot toward a “business-friendly” supervisory model.
Disclaimer: This article discusses regulatory actions and legal proceedings. It’s provided for informational purposes and does not constitute legal or financial advice.
The CMF’s next critical checkpoint will be the upcoming quarterly review of market conduct, where the new technical leadership’s first set of guidelines is expected to be released. These guidelines will likely reveal whether the agency will maintain its historical rigor or adopt the more flexible interpretation of the law championed by its new president.
Do you believe a more lenient approach to financial regulation encourages investment or risks systemic instability? Share your thoughts in the comments below.
