How Was the Shareholding Regime Simplified?

The Argentine Securities Commission (CNV) introduced changes to the shareholder reporting regime by issuing General Resolution 1035 on December 5, 2024, and General Resolution 1036 on December 12, 2024. These measures aim to enhance transparency, reduce costs, and simplify regulatory compliance.

 

Among the key amendments, both resolutions establish specific thresholds for reporting changes in shareholdings:

 

• For issuers under public offering, changes must be reported by individuals and corporations when they reach a threshold of 5% of the exercisable voting rights, and it will only be mandatory to report further changes when they reach increments of multiples of 5%.
• For entities classified as markets, those holding 2% or more of the share capital must report changes in their holdings only when they reach increments of 2%.

 

These changes remove the obligation of reporting minor changes, ensuring the market receives relevant information about significant alterations in the shareholding structure.

 

Extended Deadlines and Electronic Platforms

 

Both resolutions extend the reporting deadline to file informative amendments to 10 business days, replacing the previous requirement of immediacy, and providing investors with greater flexibility to prepare their filings.

 

Additionally, the CNV has enabled an electronic system for submitting information immediately when filing via the CNV's Financial Information Reporting System (AIF) is not applicable. This will reduce operation costs and facilitate regulatory compliance.

 

Effective Date

 

Both resolutions will take effect on December 16, 2024.