Teenagers May Now Open Trading Subaccounts
This measure seeks to promote different tools and instruments to facilitate young people's access to the financial system.
By means of General Resolution 1023, issued on October 7, 2024, the Argentine Securities Commission (CNV), in line with a series of initiatives aimed at fostering savings and promoting financial education from an early age, facilitated the access of young people to the financial system, regulating the opening of trading subaccounts for teenagers as of the age of 13.
The main points of the Resolution are:
- Opening of trading subaccounts: Broker-Dealers (ALyC) may now open trading subaccounts for individuals aged 13 and above. To do so, they must obtain specific information from the teenager’s legal representative through a sworn statement.
The movement of funds in these subaccounts must comply with CNV Regulations (N.T. 2013 as modified) provided in the Section and Title, applicable to ALyCs.
- Permitted Transactions: Teenagers will be allowed to conduct only: a) cash transactions, including fixed-income and variable-income securities, and b) term transactions, exclusively for underwriting transactions.
All transactions must be arranged in trading segments based on time-price priority.
- Movement and origin of funds: ALyCs must comply with established provisions regarding payment modalities and control procedures for the receipt and delivery of funds. The origin of the funds for capital market operations in these new trading sub-accounts must adhere to the “Savings Accounts for Teenagers” regulations.
- Deadline for Compliance: ALyCs have until November 15, 2024, to adapt their trading subaccount opening agreements and update the corresponding documentation in the Information Reporting System.
Additionally, the Central Securities Depository Agent must submit updated regulations for CNV approval before that date.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.