On August 12, 2026, Resolution No. 1276/2026 (the “Resolution”) of the Ministry of Economy was published in the Official Gazette of the Argentine Republic, establishing the general investment guidelines applicable to the resources of the Labor Assistance Funds (Fondos de Asistencia Laboral, “FAL”), created by Title II of Law No. 27,802 and regulated by Decree No. 408/2026.
The Resolution establishes the principles that investments of FAL resources must observe, determines the eligible financial instruments, sets rating and trading requirements, establishes diversification limits, and provides for a minimum percentage of highly liquid assets. It also introduces rules aimed at preventing conflicts of interest and establishes mechanisms for adjusting portfolios in the event of subsequent changes in the conditions applicable to the instruments.
The main provisions of the Resolution are summarized below:
- Investment principles: Investments of FAL resources must comply with the principles of security, liquidity, diversification, transparency, capital preservation, and adequate matching between the assets comprising the portfolios and the obligations arising from Law No. 27,802 and Decree No. 408/2026. Investments must also seek to preserve the value of employers’ contributions and ensure the availability of funds to meet labor-related benefits.
- Eligible instruments: FAL resources may only be invested in: (i) debt securities issued by the National Government; (ii) debt securities issued by the provinces and the Autonomous City of Buenos Aires; (iii) deposits held with financial institutions authorized by the Central Bank of the Argentine Republic (Banco Central de la Republica Argentina, the “BCRA”,); and (iv) negotiable obligations issued in Argentina by private issuers.
- Requirements for provincial securities and negotiable obligations: Debt securities issued by the provinces and the Autonomous City of Buenos Aires, as well as negotiable obligations, must have public offering authorization, be traded on markets authorized by the National Securities Commission (Comision Nacional de Valores, the “CNV”), and have an “AAA” credit rating on a national scale, granted by at least two credit rating agencies registered with the CNV.
- Yield modalities: Eligible instruments may only form part of FAL portfolios if they provide for returns based on a fixed rate, the Wholesale Deposit Interest Rate in Pesos (Tasa de Interés de Depósitos Mayoristas en Pesos, “TAMAR”), an adjustment based on the Reference Stabilization Coefficient (Coeficiente de Estabilización de Referencia, “CER”), or an adjustment linked to exchange rate movements, pursuant to BCRA Communication “A” 3500 or any regulation that may replace or amend it in the future. Dual Bonds may also be included, provided that they combine any of these yield modalities.
- Diversification limits: The Resolution establishes maximum concentration limits calculated based on the total assets of the FAL. Deposits with the same financial institution and its affiliates may account for up to 15%; provincial and Autonomous City of Buenos Aires securities may account for up to 15% on an aggregate basis and 5% per jurisdiction; negotiable obligations may account for up to 20% on an aggregate basis and 10% per issuer and its affiliates; and instruments whose returns are wholly or partially linked to exchange rate movements may account for up to 10% on an aggregate basis.
- Restrictions concerning the relevant entity: Authorized Entities may not invest FAL resources in deposits or negotiable securities issued by themselves, their controlling entities, controlled entities, or affiliates. Demand deposits of an operational and temporary nature are excluded from this restriction.
- Subsequent loss of rating: If an instrument acquired subsequently ceases to meet the required rating, it may remain in the portfolio until maturity or be disposed of in an orderly manner within 180 calendar days. While the non-compliance persists, no new acquisitions of instruments issued by the same issuer may be made.
- Minimum liquidity: Authorized Entities must permanently maintain at least 10% of the total assets of the FAL invested in highly liquid assets with low market risk. For these purposes, only demand deposits, pre-cancellable time deposits or time deposits with a remaining term of no more than 30 days, and National Treasury bills denominated in pesos, bearing a fixed rate or adjusted by CER, with a remaining term of no more than 90 days, will qualify.
- Restoration of the minimum liquidity level: If the minimum liquidity percentage decreases as a result of the payment of benefits, the Authorized Entity must restore such level within 90 calendar days.
- Currency and markets: Assets comprising FAL portfolios must be denominated and payable in pesos. In addition, negotiable securities must be issued and traded on authorized markets in the Argentine Republic.
- Ongoing compliance with investment requirements: Authorized Entities must permanently maintain their investments within the limits and conditions established by the Resolution and by the supplementary and clarifying regulations issued by the CNV.
- Supplementary CNV regulations: The CNV must issue the supplementary and clarifying regulations necessary to implement the Resolution within 45 days from its effective date.
Why is this important?
The Resolution establishes parameters aimed at reconciling the preservation of the capital contributed by employers with the availability of the resources necessary to meet the labor-related benefits provided for under Law No. 27,802. It also precisely defines the assets in which FAL resources may be invested and establishes concentration limits and credit quality requirements.
Effective Date of the Resolution
The Resolution entered into force on August 13, 2026, i.e., the day following its publication in the Official Gazette.
The CNV will have 45 days from such date to issue the supplementary and clarifying regulations necessary for the implementation of the measure.
