Banco de Chile, Falabella, and Consorcio all refuted the claims made by the National Economic Prosecutor’s Office regarding Hernán Büchi‘s simultaneous executive roles within the three organizations.
Last Thursday, The National Economic Prosecutor’s Office (FNE) filed its initial complaint alleging a breach of the prohibition against interlocking directorates, focusing on the simultaneous involvement of the same director or high-ranking executive in multiple competing entities. The FNE targeted Hernán Büchi, alongside Banco de Chile, Consorcio, and Falabella before the Court for the Defense of Free Competition (TDLC).
The FNE’s action asserted that Büchi held director and/or key executive positions at Banco de Chile, Consorcio Financiero, and Falabella—companies vying for market share in banking, insurance, and securities brokerage (Consorcio and Banco de Chile)..
The FNE’s case sought penalties totaling $357 million for Büchi, $2,899 million for Banco de Chile, $2,678 million for Consorcio Financiero, and $2,632 million for Falabella.
Financial institutions counter the accusations
Banco de Chile, Falabella, and Consorcio, in published statements, contested the FNE’s accusations.
Specifically, the banking institution firmly denied “the alleged infraction attributed to it by the FNE.” Furthermore, it noted the FNE’s “imprecise identification” of the supposedly competing entities as “ineffective.”
Concerning Büchi, the bank clearly stated that he “is neither a director nor a senior executive of any company competing with Banco de Chile, and certainly not another bank.”
The bank declared its intention to utilize “all available legal recourse before the Court for the Defense of Free Competition, confident that the alleged violation has not occurred.”
Falabella affirmed that “Hernán Büchi serves as a director of the parent company, Falabella SA, but not of Falabella Inversiones Financieras SA or its subsidiary, Banco Falabella Chile. These entities possess independent boards and corporate governance structures, operating fully in compliance with legal and banking regulations.”
“Board members do not access confidential business information”
Falabella added that “to uphold interlocking laws, Falabella SA employs controls to ensure its board of directors doesn’t receive commercially sensitive or strategic data from any affiliate or subsidiary, including Banco Falabella”.
