* Government to send new funds law to Congress in Q1
* New law to govern 5 different types of fund
(Updates with quote)
NEW YORK, July 15 Chilean Finance Minister
Felipe Larrain said on Thursday the government plans to send a
new law to Congress that governs different types of financial
funds to simplify the legal framework.
Chilean law recognizes five different fund types:
investment funds, mutual funds, funds for the investment of
foreign capital, funds for the investment of foreign venture
capital and funds for home savings purposes, Larrain said in a
speech to investors in New York.
"The project seeks the creation of a new legal framework,
simplified and symmetric to be applicable to all types of
funds," Larrain said.
Larrain said each type of fund was currently regulated by
different laws. The project seeks to standardize the regulatory
framework, which he says the finance ministry will work to
present to Congress in the first quarter of 2011.
"Although these instruments are functionally similar and
may face comparable problems, the legal frameworks applicable
to each of them establishes several differences ... generating
confusion among investors, unjustified discrimination among
industries and allowing regulatory arbitrage," Larrain said.
(Reporting by Daniel Bases; Editing by Gary Hill)