CNV Issues New Regulation in the Context of Re-profiling Public Debt

The Argentine Securities and Exchange Commission (the “CNV”, after its Spanish acronym), by means of General Resolution No. 807 (the “Resolution”), established the guidelines to be followed by agents participating in the operation of mutual funds on occasion of the maturities of the public debt securities re-profiled by virtue of Decree No. 596/2019.

 

The Resolution established that the entities participating in the management of open mutual funds which, as of August 28, 2019 held short term public debt securities identified in the Annex to Decree No. 596/2019, must file with the CNV a sworn affidavit with the following information:

 

 

• Roster of individual investors who held shares in the mutual funds as of July 31, 2019 and who retained such shares on the maturity of such securities, with a detailed description of the amount of shares held in each mutual fund.

 

 

• Roster of individual investors who held shares in the mutual funds as of July 31, 2019 and who withdrew any of the short term public debt securities in kind, indicating the date of such withdrawal, the series thereof and the nominal amount of each withdrawal.

 

 

Furthermore, entities participating in the management of open mutual funds must file a sworn affidavit with Caja de Valores S.A., for each mutual fund, listing the positions open in short term public debt securities identified in the Annex to Decree No. 596/2019 corresponding to individuals who held shares as of July 31, 2019 and keep such shares on the payment debt of each such security, as well as some other specific information.

 

Central depository companies must grant all investors who withdrew securities in kind a receipt which evidences that the investor held shares of the mutual fund as of July 31, 2019, with a detail of their indirect holding on such date and the nominal amount of securities withdrawn in kind.

 

Integral Mutual Fund Placement and Distribution Agents must file the same information before the CNV and managing entities, respectively, as well as to individuals listed in the paragraph above.