Automatic Regime for Closed-End Mutual Funds Updated

General Resolution 1160 of the Argentine Securities Commission (CNV), issued on August 5, 2026, amends the regime applicable to closed-end mutual funds (FCICs) and establishes the mandatory use of the automatic authorization procedure whenever the relevant requirements are met.
 

The main amendments include:

1. FCICs meeting the requirements of the Public Offering Regime for FCIC Units with Automatic Authorization due to expanded medium impact must be processed under that regime, and it will not be possible to opt for the prior authorization procedure.

2. The automatic regime does not apply to Infrastructure FCICs, Venture Capital FCICs, FCICs whose underlying assets consist of virtual assets, or FCICs whose underlying assets are securities convertible into shares or equity interests in such vehicles.

3. Fund units may be offered to the general public if the maximum issuance amount does not exceed 100 million acquisition value units (UVA). When the structure, characteristics, or specific risks of the FCIC warrant so, the offering must be directed exclusively to qualified investors.

4. For FCICs subject to the automatic regime, the issuance of additional tranches and the capitalization of profits may also be implemented without a prior authorization procedure before the CNV, subject to compliance with the applicable disclosure obligations.

5. When placement agents do not retain independent legal counsel separate from the legal counsel of the management company, the offering documentation must include a risk factor disclosing that circumstance and recommending that investors consult their own legal advisors.
    

In addition, applications for the authorization of new FCICs initiated before the effective date of General Resolution 1160 and covered by the automatic regime may either continue under the general prior authorization procedure or be transferred to the automatic procedure. In the latter case, the pending proceedings will be filed away without further action. Applications to amend the prospectus and management regulations that were initiated before the Resolution's effective date and fall within the scope of the automatic amendment procedure will become void and will be filed way without requiring a formal withdrawal.