New Guidelines on Financial Trusts

With the aim of strengthening a secure and efficient environment for the issuance of financial trusts constituted with assets originated through electronic means, keeping pace with technological advances, and with the evolution of the capital market and industry practices, the Argentine Securities Commission (CNV) issued the new Guidelines on Financial Trusts Constituted with Assets Originated through Electronic Means. Through this document, the CNV outlines the special requirements and additional documentation that must be filed with each application for public offering authorization of financial trusts whose trust portfolio is constituted of at least 10% credits originated and/or perfected through electronic channels and/or means.

The special requirements the CNV describes—which also apply to financial trusts issued under any of the automatic public offering regimes—include:

1. the obligation to provide evidence of a digital file for the credit applicant, subject to a control and review agent’s review,
2. the obligation to carry out controls regarding the integrity and registration of data,
3. the need to have a reliable debtor identification system accompanied by sufficient security measures,
4. the obligation to include in the respective prospectus supplements a special investment risk consideration that indicates the implications that may arise from the particularities of the underlying asset.

The following documents must be submitted for each public offering process:

1. an affidavit from the settlor and the trustee containing specific statements regarding the asset origination processes and the electronic systems used for such purposes,
2. a legal opinion on the validity, effectiveness, and enforceability of the credits,
3. a technical expert report, prepared by a qualified professional, regarding the IT processes used.