Consultation Procedure for Regulating Advertising and Publicity of Capital Market Agents’ Services

On November 29, 2023, the Argentine Securities Commission (CNV) issued General Resolution 983, submitting to public consultation the new regulations regarding advertising activities and/or dissemination of agents’ services, the modalities for receiving orders or instructions from their clients to operate in the Capital Markets, and the means for clients to send any inquiries and/or claim. All this considering the different technological systems that allow the CNV regulated agents to offer their services in a much more agile and simpler way, while accessing a wider and more varied range of potential clients. In this way, traditional investment schemes are simplified and streamlined.

Some of the amendments of the Resolution include:

1. Advertising and/or dissemination actions: the Resolution regulates the advertising and dissemination actions done through third parties, both registered or not before the CNV. Those not registered before the CNV must comply with the formalities the CNV requires and which the Resolution regulates. Publication and dissemination must differentiate the agents’ services from those of third parties. Publication or dissemination through third parties does not release agents from liability.

Agents using digital media for advertising must inform the CNV the internet domains they use or the websites from which clients can download the mobile device applications to carry out the activity.

Pursuant to the Financial Institutions Law 21526 (as amended and supplemented), if the advertising and/or dissemination is done through third parties not registered before the CNV, they must be financial institutions,. It can also be done through payment service providers (PSP), pursuant to the legal regime the Argentine Central Bank established.

2. Order reception modalities: it is mandatory to keep a procedure manual with clear and precise details of the order reception modalities that agents implement. Agents must make available to the client at least one alternative order reception method if, for any reason, the implemented method cannot operate normally. Agents must also keep the documents related to the orders received for five years. They can delegate this obligation to third parties, but under the agents’ exclusive responsibility.

3. Modalities of contact with clients: agents must establish contact channels for clients, to receive queries, provide information, advise, and attend to any other claims or requests from them. Further, the procedure manual must identify which will be the contact channels. Agents may only contact clients through the same channel they received the orders (provided this is possible).

Finally, within the framework of the procedure for the Participative Preparation of the Standards, opinions and comments on the Resolution may be submitted as from December 2, 2023, and for 15 working days.