Chile will seek to liberalise access to capital markets for foreign investors and authorize new financial instruments such as covered bonds to increase trading, Finance Minister Andres Velasco said, according to Bloomberg.

A bill with the changes will be sent to Congress this week. The government wants to broaden tax breaks for foreigners, allow exchange-traded funds and promote investment in mutual funds and securitized debt. Rules on venture capital may also be eased along with help for smaller companies to access financing.

“Everything that encourages competition is good,” Mr Velasco was quoted as saying.

The move, if it is accepted by Chile’s lawmakers, may encourage wealth managers to increase their focus on the South American economy as a place to do business.

Mr Velasco says he wants to position the country, which has $100 billion of assets under management, as a regional financial hub where foreign companies will be encouraged to list stocks and sell bonds in the local market. Chile should become an exporter of financial services, he said.

Mr Velasco said he plans to make mutual funds tradeable on the secondary market and introduce exchange-traded funds.

Foreign investors will be able to buy stakes in funds with holdings in Chile and abroad, and only pay tax on dividends from Chilean companies. They currently pay tax on all dividend income.