Amendments to Mutual Funds Placement

Through General Resolution 1057, issued on March 12, 2025, the Argentine Securities Commission (CNV) launched a public consultation to discuss modifications to the regulatory framework governing the placement and distribution of open-ended mutual funds by the agents involved in their commercialization.

The CNV stated that, considering the continuous advancements in digital platforms and systems used for placing open-ended mutual fund units, and in line with the modernization process promoted by the federal government, it is necessary to update the current regulatory framework to reflect emerging technological trends, ensuring a more efficient and streamlined implementation.

Key modifications

The Resolution introduces key changes in the placement methods of units, establishing that they must guarantee:

1. proper identification of clients,
2. inalterability, traceability—including date, hours, and minutes—and availability of information related to placed orders,
3. procedures for safeguarding the information and contingency plans, in addition to the requirements specified for each placement method.

Agents must also offer clients at least one alternative placement method in case the primary system experiences a disruption that prevents its ordinary and continuous operation.

Agents must retain all placement-related documentation for at least five years. They must also implement security and contingency plans and policies for subscribing and redeeming fund units through the Internet and establish an alternative method for receiving orders if there are system failures.

Further, the resolution allows mutual fund placement and distribution through third-party platforms, provided that a formal agreement is executed and made available to the CNV, and that all relevant regulatory requirements for this placement method are fulfilled.

Such agreements may only be entered into with:

1. Third parties registered before the CNV that engage in advisory, management, brokerage, and/or trading activities, including agents affiliated with the same economic group, as well as parent companies, subsidiaries, and affiliates. This also includes entities registered in the CNV's Registry of Virtual Asset Service Providers (PSAV).
2. Financial institutions and/or Payment Service Providers (PSPs), in accordance with the regulations the Argentine Central Bank (BCRA) established.
3. Specialized agencies with a recognized reputation in financial information dissemination.

The products agents offer must be distinguishable from those of third parties, and users must receive the corresponding agent’s full name and its registration information and corresponding category.

Any advertising or promotional activity agents carry out through third parties must comply with the CNV Regulations and the Capital Markets Law 26831 (as amended). Agents remain fully responsible for ensuring compliance with all applicable regulations.

Agents will also be held accountable for any disruptions affecting the ordinary operation of IT tools third parties provide.