New CNV Regulations on Mutual Funds

On July 6, 2022, the Argentine Securities Commission (“CNV”, after its acronym in Spanish) issued General Resolution No. 935 (“GR 935”) by which it includes the Agro-industrial Broker-dealer (“ALyCI AGRO”, after its acronym in Spanish), subcategory of brokers (“AlyC”, after its acronym in Spanish) created by General Resolution No. 934 last March 11, to the regulatory framework for Placement and Distribution Agents.

The CNV amended certain articles regarding to the registration and operation of Placement and Distribution Agents of Mutual Funds (“ACyD”, after its acronym in Spanish) and Integral Placement and Distribution Agents of Mutual Funds (“ACyDI”, after its acronym in Spanish), with the purpose to integrate ALyCI AGRO into the existing regulations.

GR 935 thus broadens the range of subjects that may act as ACyD and ACyDI in the Argentine capital market, by allowing broker-dealers engaged in agricultural and/or agro-industrial activities to operate under such figures.

In particular, GR 935 provides that ALyCI AGRO requesting its registration as ACyD or ACyDI must exclusively submit the Board of Directors' Minutes which approves the request and evidence a minimum net worth not less than 163,500 Units of Acquisition Value (UVAs”, after its acronym in Spanish) and at least 50% of such net worth must comply with the requirements set forth in Annex I of Chapter I of Title VI of the CNV's Regulations. 

Finally, GR 935 requires ALyCI AGRO that are registered under both the ACyD and ACyDI categories to comply with the reporting requirements according to the chosen category.