Rules for Greater Transparency in Investments Now Modified

On December 4, 2024, the Argentine Securities Commission (CNV) issued General Resolution 1033, which introduced a series of adjustments to the information regime for investments of residents and non-residents, aiming to enhance transparency in the capital market.

The new regulation oversees the information regime applicable to Broker Dealers (ALyCs) and Trading Agents (AN) regarding investments made by clients holding a CDI (Identification Code) or CIE (Foreign Investor Code) who are account holders or co-holders of securities sub-accounts.

The Resolution unifies the existing information regimes for residents and non-residents, and establishes that—as of January 2, 2025—ANs and ALyCs will be required to report monthly, within 10 business days following the end of each calendar month, the investment information of their clients with CDI or CIE.

Additionally, the Resolution states that AN, ALyCS, and Brokerage Agents (ACVN or Agente de Liquidación y Compensación) must review, update, and keep their information constantly up to date. It also requires them to carry out due diligence measures before processing orders or recording transactions in CNV-authorized markets. This includes verifying that clients’ identifying information—such as their Tax ID—is complete, current, and free of inconsistencies.

If errors, omissions, or inconsistencies are detected in the information the client provided, the Central Securities Depository Agent (ADCVN) must block the affected sub-accounts, starting January 2, 2025. These accounts will only be allowed to receive accrual credits while the irregularities persist, and any other movements of securities in the collective deposit will be prohibited.

Furthermore, the information regime for non-resident clients has been adjusted to align with the provisions of the Permanent Information Regime applicable to Collective Investment Product Administration Agents (AAPIC) and the Comprehensive Placement and Distribution Agents (ACDI).

Finally, the 25 issuers with the highest market capitalization at the end of each calendar month, whose shareholder records are not managed by an ADCVN or a Registration and Payment Agent (ARYP), must submit before the CNV a list of resident and non-resident shareholders. This report must include the country of residence and details about the shareholdings, according to the companies’ internal records.