Modifications to Regulations Regarding Mutual Funds

On May 24, 2018, the Argentine Securities and Exchange Commission (“CNV”, after its acronym in Spanish) issued Resolution No. 735, modifying the rules regarding mutual funds in line with the amendments introduced by the new Productive Financing Law, passed by the Argentine Congress on May 9, 2018.

Among other important modifications, the Productive Financing Law had eliminated the requirements to publish the management regulation of the mutual fund (“reglamento de gestión del fondo común de inversión”) in the Official Gazette and in a newspaper of national circulation, and to register it with the Public Registry. Instead, the Law established that the procedure to be followed would be determined by the CNV, thus eliminating the “double registration” requirement with both the CNV and the Public Registry, and leaving only the former as the relevant authority to this end.

As a consequence, the CNV issued Resolution No. 735, which establishes, among others, that after obtaining authorization to operate, the Management Company must:

• Submit the management regulation instrumented through a public deed or a private deed with certified signatures to the CNV;
• Publish the Management Regulation through the CNV’s online information system (the “AIF” or Autopista de la Información Financiera), as well as a notice of the matter in question (“hecho relevante”) containing the corresponding approval by the CNV and an express indication that a copy of the text of the management regulation is available at the corporate headquarters of the Management Company and/or the Depository Company; and
• Submit through the AIF, as a sworn affidavit, a notice of the matter in question indicating that the text of the management regulation published through the AIF corresponds to the text approved by the CNV.

In addition, Resolution No. 735 unifies the terms used in the CNV rules with the ones in Law No. 24,083 of Mutual Funds (“Agentes de Administración Colectiva de Productos de Inversión Colectiva” must be called “Sociedades Gerentes”, or Managing Companies, and “Agentes de Custodia de Productos de Inversión Colectiva” must be called “Sociedades Depositarias”, or Depository Companies)

Finally, in order to maintain uniformity throughout the CNV Rules, Resolution No. 735 also replicates the abovementioned modifications in the texts regarding substitution of the bodies of the mutual fund, publicity and information, modifications to the management regulation, and content of general provisions of the default management regulation.