Adopting Sector Skills Councils or similar bodies as part of TVET systems has been a popular policy around the globe. Usually supported by international organisations, their implementation seeks to involve different stakeholders in skill formation. However, there is little empirical evidence about how key stakeholders have responded to these bodies and thus enacted the policy. This study addresses this issue and explores how employers and TVET providers have interpreted and reacted to these bodies in two sectors in Chile and if their responses fulfil the policy expectations related to skills identification and development. The findings from in-depth interviews indicate that both actors presented diverse responses to these bodies, partially fulfilling the policy expectations. Employers responded positively to the expectation of providing information on their skills needs. However, their responses have been varied to the expectation of changing their organisational practices according to sector skills standards. Similarly, TVET providers value employers' information but do not always agree to adjust their programmes according to these standards. The article concludes by discussing enablers and barriers to fulfilling the policy expectations and questions the continuing skills supply-led approach underpinning this policy.