Since the radical neoliberal reforms to Chilean higher education of the 1980s, the creation of a quality regulatory system has been gradual and unfinished. It was only in 2006 that a law created the National Commission for Accreditation and two instruments: programmes and institutions accreditation. This article analyses the design and implementation of the latter policy instrument using mixed methods, including in-depth interviews with key actors. Our findings show that, although regulations have introduced quality assurance as a key element in higher education policy, the link established between accreditation and financing has generated incentives that dangerously weaken these quality mechanisms.