Financial Trusts– Ordinary Public Trustees

General Resolution No. 567 of the Argentine Securities Commission (Comisión Nacional de Valores, the “CNV”), published on March 3, 2010 (the “Resolution”), modifies Articles 5 and 9 of Chapter XV (“Trusts”) of the CNV regulations (the “CNV Regulations”), adapting such articles to Article 5 of Law No. 24.441 (the “Argentine Trust Law”).    

Article 5 of the Argentine Trust Law sets forth that “any individual or legal entity” may act as trustee.  However, this Article also states that “only authorized financial institutions and companies that are authorized by the CNV are entitled to offer to the public their trustee services, as the CNV is the agency that will establish the requirements to be complied with”.  

Prior to the Resolution, Article 5 of Chapter XV of CNV Regulations used to allow “individuals and partnerships (sociedades de personas)” to act as Ordinary Public Trustees, exceeding the limits established by Article 5 of the Argentine Trust Law.   

Hence, the Resolution has limited the possibility of a individuals acting as Ordinary Public Trustees.  The Resolution establishes that the following are the only persons entitled to act as Ordinary Public Trustees: (i) financial institutions authorized by the Financial Institutions Law No. 21.526 and its implementing regulations; (ii) depositary entities authorized by Law No. 20.643 and its implementing regulations; (iii) companies incorporated in Argentina; (iv) companies incorporated in a foreign countries as long as such companies can prove the establishment of a local branch or other local representation; and (v) the bondholders’ representative contemplated by Article 13 of Law No. 23.576.  The above mentioned persons must be registered in the Ordinary Public Trustee Registry in order to act as Ordinary Public Trustees. 

The Resolution is effective as of March 4, 2010.