On November 4, 2021, the Argentine Securities and Exchange Commission (“CNV,” after its acronym in Spanish) issued General Resolution No. 909, submitting to public consultation a Draft Regulation (the “Draft Regulation”) to amend the legal framework for Placement and Distribution Agents (“ACD,” after its acronym in Spanish) and Integral Placement and Distribution Agents (“ACDI,” after its acronym in Spanish).
Pursuant to the Draft Regulation, the minimum net worth requirement for both agents should be set using the Units of Purchasing Value (“UVA,” after its acronym in Spanish) as reference. Thus, if the Draft Regulation is implemented, the minimum net worth requirements will be 16,350 UVAs for the ACD (currently set on AR$ 250,000) and 163,500 UVAs for the ACDI (currently AR$ 2,500,000).
Further, the Draft Regulation proposes that, besides financial institutions authorized under Law No. 21,526, the registration and activity of ACDI should be restricted to Mutual Fund Managers and Broker-Dealers registered with the CNV.
Finally, the Draft Regulation proposes a grace period for the ACD and ACDI registered before a resolution of CNV enforces the Draft Regulation. Accordingly, compliance with the minimum net worth requirement must be credited with the submission of financial statements as of June 30, 2022, or by means of a CPA certificate submitted within 42 days following that date. As to the entities authorized to act as ACDI, the new requirements must be met by June 30, 2022. In both cases, after the expiration of this term, non-compliance will result in being stricken off the CNV registry.