Simplification of the Dual Listing of Foreign Companies

The Argentine Securities Commission (CNV) issued General Resolution 1020 (GR) on September 30, 2024, modifying the Special Dual Listing Regime for Foreign Companies.

Through the issuance of the GR, the CNV eliminated the requirement of registering the issuer under the terms of Law 19550, article 118 (as amended) (LGS), regarding companies incorporated abroad that only intend to trade their shares under the Special Regime in Argentina.

The CNV stated that the “act” carried by the company incorporated abroad that agrees to the possibility of listing its shares in the local markets implies, exclusively, providing its shareholders with the possibility of trading their shares in a market other than the one of origin. Based on this, the requirement of registration of such issuing companies incorporated abroad in the corresponding Public Registry, under the terms of LSG article 118 is no longer reasonable.

In addition, the GR seeks to simplify the registration process for those companies seeking to list their shares in both local and international markets, reducing costs and operational complexities. The CNV also indicated that the GR will allow attracting a greater number of foreign issuers, expanding the investment options for local investors.

As of October 2, 2024, foreign companies requesting to benefit from the Special Regime will no longer have to register with the corresponding Public Registry. Instead, companies will have to submit, among other documentation, proof of registration in the country of their jurisdiction and a copy of the power of attorney with sufficient powers to act in Argentina and/or proof of registration, in case of having a legal representative registered under the terms of article 118 and/or 123 of the LGS.