On November 1, 2024, the National Securities Commission (“CNV”), issued Resolution 1030/2024 (the “Resolution”), which introduces changes in the rules for Mutual Funds (“Mutual Funds”).
Among them:
Use of Exchange Traded Funds (“ETFs”) as underlying assets of CEDEARs.
- ETFs may be the underlying asset of CEDEARs if they passively replicate widely held indices related to stocks, virtual assets or commodities.
- Except in these cases, any public offering of foreign mutual funds (as underlying of CEDEARs or other representative securities) may only be made through FCIs created under Law 24,083 and registered with the CNV.
Conditions to invest in ETFs as underlyings
- If the ETF meets the above conditions and has a liquidity index equal to or greater than the MERVAL: Non-qualified investors may purchase local fund shares, provided that:
1. They were clearly informed about the risks.
2. They explicitly state that they wish to purchase them.
Special Regime for Qualified Investors
- A specific regime will be created for open FCIs intended only for Qualified Investors.
- Placement agents must verify that investors meet the requirements to be considered qualified.
Exceptions for FCI in foreign currency
- Open-ended FCIs exclusively for Qualified Investors in foreign currency are not required to invest at least 75% in local assets.
- These FCIs will only be able to accept money from foreign accounts.
Limitations on foreign investments
- For funds investing in a single ETF, the name of the underlying ETF must appear in the name of the local fund.
Non-retroactivity
- These new rules will not apply retroactively to CEDEARs programs with funds that replicate actively managed indexes.
This Resolution became effective on November 2, 2024.
