In May 2024, the Chilean economy reported its most impressive growth since 2021 (when pandemic-related government stimuli buoyed domestic demand), with GDP rising 1.9% in the first quarter; and with mining exports, private investment and household consumption increasing alongside lower interest rates and decelerating inflation, the Government of the world’s largest copper producer recently upped its 2024 growth forecast to 2.7%.
Further to the September 2022 rejection by 62% of voters of a new constitution to replace the 1980 Pinochet-era constitution, in December 2023 56% of Chilean people again voted against a replacement. President of the Republic of Chile, Gabriel Boric, subsequently ruled out any further attempt to alter the current constitution during his administration.
Recent major legislation for Chile includes the introduction of a new white-collar crime law, which expands liability for economic crimes and introduces new offences, such as crimes against the environment. Published in August 2023, the white-collar crime bill came into effect in September 2024, and is expected to have significant consequences for businesses. It has has already induced companies to review their board memberships, D&O (directors and officers’ liability”) coverage, and crime prevention models.
Other new, noteworthy legislation upon which clients require advice from Chile’s top law firms is a September 2023 bill that seeks both to bolster the protection of consumer rights and strengthen Chile’s national consumer agency SERNAC. The bill awaits discussion by the Chilean Congress and would grant SERNAC the power to sanction companies that fail to offer appropriate solutions to individual consumer issues. SERNAC would also be able to order cessation of the infringing behaviour and compel companies to take preventive measures against future infringements.
Chilean legislation on data protection is also undergoing change. The current Law No. 19.628 on the Protection of Private Life 1999 (the Data Protection Law) is widely considered to be outdated and unable to address current digital economy and data flow-related challenges.
A personal data protection bill is in its third constitutional stage and currently before the National Congress. It is expected to become law by the end of 2024. Predominantly based on Europe's General Data Protection Regulation (GDPR), the bill includes the creation of new security obligations for data controllers, the regulation of international data transfers, compliance prevention models, data protection officers and the creation of a Personal Data Protection Agency (among other refinements).
In other practice areas, leading employment lawyers can expect to be increasingly consulted on harassment issues, further to the enactment of a January 2024 law that was brought in to strengthen Chile’s workplace harassment legislation. In force since July 2024, the so-called Karin Law establishes obligations for companies and state bodies to introduce specific protocols and measures that guarantee safe work environments for workers.
Energy lawyers are also being sought out to advise on the Chilean Government’s April 2024 declaration of a Green Hydrogen Action Plan 2023-2030. The plan intends to promote the development of Chile’s green hydrogen industry, replacing polluting industries with sustainable ones and achieving carbon neutrality by 2050.
As always, Chile’s legal market is highly vibrant and fluid. Complex dispute resolution boutique Jana Leiva Litigio y Arbitraje was launched in May 2023 by former Bofill Mir Alvarez Jana partner Álvaro Jana and Felipe Leiva, previously the civil and commercial litigation head at López Escobar Del Río Leiva. In September of the same year, civil and commercial litigation specialist and former Jana & Gil Dispute Resolution partner Carla Dittus departed to open the disputes practice at what is now Epic Litigios & PI; and Vial Larraín Femenías spun out of regional law firm Philippi Prietocarrizosa Ferrero DU & Uría (PPU). The group is led by former PPU disputes leader Jorge Vial, domestic arbitration, energy and commercial disputes expert Ignacio Larraín, and Jorge Femenías, who acts in natural resources and environment-related arbitrations.
In late 2023, Lathrop, Mujica & Herrera Abogados also opened its doors. The firm was co-founded by corporate team head Fernando Lathrop Aubert (formerly of Eluchans Abogados); real estate, urban planning and construction law leader Pedro Pablo Mujica (previously at Cubillos Soza Abogados); and Sebastián Herrera Larraín (formerly of KH Legal), who heads up the firm’s environmental and natural resources team. In May 2024, the firm changed its name to Lathrop Mujica Herrera & Diez Abogados, when it invited José María Diez to join as name partner and tax practice leader from Recabarren & Asociados.
Elsewhere, CMS Carey & Allende’s offering on the Chilean market was shaken up when the firm’s banking and finance head Fernando De Cárcer, data privacy leader Diego Rodríguez, employment and pensions group head Enzo Canales, dispute resolution co-leader Stephan Lührmann, M&A specialist Luis Felipe Arze, and recently-promoted partner Sebastián Barros Eyzaguirre all departed to co-found A/C/R Legal in April 2024; the new firm currently focuses on corporate law, M&A, venture capital, innovation, dispute resolution, energy, projects and infrastructure, as well as employment law, banking, finance and fintech.
Other start-ups include Silva & Urrutia Abogados, which was established in January 2024 following the decision of Montero, Silva & Valdé’s former criminal law department head Darío Silva Villagrán to open a criminal law and white-collar crime-dedicated firm alongside criminal law expert Juan Enrique Urrutia (previously at Luis Hermosilla Abogados); and FVP Tax, which was co-launched in February by Bofill Mir Abogados (BMA)’ former tax heads Guillermo Fonseca and Jorge Valenzuela, along with former BMA associate Andrés Palacios (now a name partner).
In additional developments, further to the departure of managing partner Humberto Del Río (currently at a creative production company), Chilean law firm Del Río Izquierdo changed its name to Aguad Bañados Izquierdo Abogados (ABI Abogados) in January 2024, and announced the promotion of Joaquín Meza to partner and civil and commercial litigation head.
Other movements at an individual level include Lembeye's bolstering of its tax practice through the February 2024 recruitment of tax, corporate and business reorganisation expert and former MBC Abogados partner Evelyn Sepúlveda (currently serving as executive secretary of the Tax Committee at AmCham) as practice head; while Marcelo Armas, a former partner and co-chair of PPU, became the new chair of Affinitas, an alliance of four elite firms from the Pacific Alliance countries, namely Chile, Colombia, Mexico and Peru. Full-service law firm Barros & Errázuriz is Affinitas’ Chilean member.
Some firms on the Chilean market continue to strive towards greater internationalisation. One example is Molina Ríos Abogados, which formed an alliance with UK-based Fenwick Elliott LLP in March 2024, such union enhancing both firms’ construction, energy and infrastructure expertise across Latin America.
