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New Regulation Prompts FyF Closure

CHILE

Interesting news out late yesterday surrounding the closure of advisory firm Felices y Forrados. Recommendations from the firm have prompted volatility in local foreign exchange and fixed income markets for years. They will cease operations by August 31.

  • The announcement came hours after congress approved a government-sponsored bill that reduces the frequency of transfers between funds, and set fines and prison sentences for "uncertified" pension advisers.
  • The Chilean Government had been very vocal on the recommendations and the lack of benefit they provided to the economy.
  • The company's founder Ginzo Lorenzini reacted angrily to today's vote.

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