Changes on How Public Debt Securities are to be Appraised

The Argentine Securities and Exchange Commission (“CNV” after its acronym in Spanish) unified the appraisal criteria applicable to Mutual Fund portfolios. The measure was handed down through General Resolution No. 905 on September 30, 2021, and was supplemented by General Resolution No. 908 on October 14, 2021 (collectively, the “Resolutions”).

Through these Resolutions, the CNV incorporated appraisal criteria applicable to national public debt securities acquired in initial placement, with a maturity of thirty days or less and a partial or total pre-cancellation and non-transferable option.

Accordingly, the part of the securities that can be prepaid will be appraised at its realization price following the “good businessperson” standard, while the remaining part will be appraised by recognizing the interest accrued by the calculation date in accordance with its issuance conditions.

In addition, the Resolutions offset a 15% investment limit in Open-Ended Mutual Funds related assets.

Finally, these regulations increase from 20% to 25% the investment limit in assets appraised at the accrual basis for all the Mutual Funds that are not set up as Money Market Funds.

This article is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.