1. Market Update ASLF 2016 Antonio Blázquez D. Securities Country Manager

2. Capital Market Fixed Income Mkt Cap – Billion USD Equity Mkt Cap – MM USD FX CLP/USD Price Net General Government Debt – % GDP Quald Financial and Economic Data Central Bank (BCCH)

3. Capital MarketRecent Market Developments Key Development Change Client Impact Accrual tax clarification Elimination of inflation adjustments and allowance of provisional payments - Tax calculation and collection simplification - Increased timeframe for payment and reduced overall burden Tax Reform and complementary regulation New tax regimes affecting dividend withholding tax, including effects of residence in any country with a outstanding DTT with Chile. New rules for the statute of tax haven based investors Key changes, such as attributed tax regime and DTT benefit use restrictions, do not seem to become effective before a new legal change is in place Santiago Stock Exchange rules on corporate governance Increased requirements to issuers and participants on access to information, broker- investor relationships and issuer governance - Market transparency - Increased/enhanced investor protection

4. Capital Market Key Development Change Client Impact Operational committee among CSD, brokers and custodians Initiative to foster standardization among market participants and improve overall functioning of post- trade activities. Unification of core market descriptions - Enhanced services and more settlement reliability - Improvement in operational efficiency and DCC client deadlines Accrued interest withholding tax payment simplification Changes in the interpretation of the law based on official clarifications allowed to eliminate inflation (CPI) restatements to accrued tax Diminished burden and simplified processing and client communications Service Update

5. Forthcoming Initiatives Technical enhancements to control lent positions as well as collateral posting for borrows Associated reporting under standard channels No collateral management or margin call controls Shadow posting for securities lending and borrowing Elimination of attributed tax regime for listed companies DTAT benefit extension for countries with DTATs signed before 2017 and not yet in full force, until 2019 DTAT use simplification Simplification of the 2014 Tax Reform Maintain actual control over lent positions and securities posted as collateral Allow proper reporting of said securities Complement shadow posting offering Custody account for Banco de Chile at the Santiago Stock Exchange Key DevelopmentsClient Impact

6.  Elimination of the possibility to opt for the attributed tax regime for listed companies will prevent the appearance of obligations becoming due before the income is actually received and will simplify processing and calculations  DTAT benefit extension to treaties signed before 2017 and not ratified, provisionally until 2019  Simplification and alignment with international practices for the use of DTAT for the application of the total tax credit of previously paid taxes for additional withholding tax on dividends Country Hot Topic: Simplifications to the 2014 Tax Reform

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