Placement Regulations for Mutual Funds Now Eased

Through General Resolution 1064, issued on April 24, 2025, the Argentine Securities Commission (CNV) has simplified the implementation of technological mechanisms used for placing and distributing open-end mutual funds (Fondos Comunes de Inversión Abiertos) for agents involved in their trading. The reform aims to streamline and deregulate procedures, facilitating and modernizing operations within the capital markets.

 

The key changes the Resolution introduces include eliminating the obligation to submit the “Notice of Placement of Mutual Fund Units Through Alternative Mechanisms.”

 

The Resolution also eliminates the requirement to publish an annual external systems auditor report on the implemented placement method. Instead, it introduces an initial submission scheme, with new filings required only in cases of system updates and/or modifications.

 

Agents must also have a detailed Procedures Manual describing the placement process, its scope of application, and the system’s security and contingency policies.

 

Agents are required to offer clients at least one alternative placement method in case the primary method suffers any contingency that renders it unavailable or inoperative. On an annual basis, management companies, custodians, placement and distribution agents, and integrated placement and distribution agents of mutual funds must indicate if they are involved in the placement of fund units.

 

The Resolution also authorizes the placement and/or distribution of mutual funds through third-party platforms, after the execution of the corresponding agreements. Such agreements may be entered into only with:

 

1. third parties registered before the CNV that provide advisory, management, intermediation, and/or trading services, including entities listed in the Virtual Asset Service Providers (PSAV) Registry maintained by the CNV,

 

2. financial institutions,

 

3. reputable financial information dissemination agencies.

 

A clear distinction must be made between the products offered by the participating agent and those offered by third parties. The participating agent will be liable for any contingency that prevents the normal functioning of the IT tools provided by a third party.

 

Management companies, custodians, and placement and distribution agents must submit the initial information required by the Resolution within 30 business days from its effective date.