The Argentine Securities Commission aligned its reporting requirements for Financial Institutions and Insurance Companies to Central Bank and Superintendence of Insurance guidelines

On July 13, 2022, the Argentine Securities Commission (CNV, by its acronym in Spanish) issued General Resolution No. 936, amending the applicable reporting regime. This affects mainly insurance companies admitted to the public offering regime, and financial entities registered at the CNV due to their activities involving capital markets.

The Resolution established that these companies are allowed to prepare their financial statements in accordance with the term, valuation criteria, and audit requirements established respectively by the Argentine Superintendence of Insurance (SSN) and the Argentine Central Bank (BCRA).

This differential regime will apply as well to controlling companies of financial institutions and/or insurance companies admitted to the public offering regime, which meet the following requirements:
 

i) The controlling company’s exclusive corporate purpose is to carry out financial and investment activities.

ii) The investments in financial institutions or insurance companies constitute the controlling company's main asset.

iii) At least 70% of the controlling company's income comes from its participation in financial institutions or insurance companies.

iv) The controlling company controls the financial institution or the insurance company.
 

The controlling companies of financial institutions or insurance companies admitted to the public offering regime but which do not comply with the abovementioned requirements must file their financial statements in accordance with the valuation criteria established in CNV regulations, within the term established by the BCRA or the SSN, as appropriate.

This Resolution was preceded by General Resolution No. 842 (see our article here), issued in the context of the COVID-19 pandemic.