On August 6, 2026, General Resolution No. 1160/2026 (the “Resolution”) of the National Securities Commission (Comisión Nacional de Valores, the “CNV”) was published in the Official Gazette of the Argentine Republic. The Resolution amends Section III of Chapter III of Title V, as well as various provisions of Section I of the same Chapter, of the CNV Rules (N.T. 2013, as amended) (the “Rules”).
The Resolution establishes the mandatory application of the automatic public offering authorization regime for the establishment and amendment of Closed-End Mutual Investment Funds (“FCICs”), eliminating the possibility of opting for the ordinary prior authorization procedure for those funds that meet the applicable requirements.
The main provisions of the Resolution are summarized below:
- Mandatory Automatic Authorization Regime: FCICs that meet the requirements established under the Resolution will be subject to the automatic public offering authorization regime referred to as “Public Offering of FCIC Units with Automatic Authorization due to Extended Medium Impact”, with no possibility of opting for the prior authorization procedure before the CNV.
- Issuance of new tranches and capitalization of profits: FCICs subject to the automatic regime must also follow such procedure for the issuance of new tranches and for increases in the number of units resulting from the capitalization of profits. In both cases, there will be no need to submit prior documentation to the CNV, and publication through the Financial Information Highway (Autopista de Información Financiera, the “AIF”) will be sufficient.
- Risk arising from the absence of independent legal counsel: Where placement agents do not have independent legal counsel separate from that of the Management Company, the Prospectus must mandatorily include a risk factor alerting investors to such circumstance and recommending that they consult their own legal counsel.
- Automatic amendment of the Management Regulations: Amendments to the Prospectus and the Management Regulations that do not result in the fund being excluded from the automatic regime shall be implemented through direct publication on the AIF.
- Transitional regime: Applications for authorization of new FCICs initiated prior to the effective date of the Resolution may elect to continue under the ordinary prior authorization procedure or be subject to the automatic authorization procedure.
Why is this important?
The Resolution consolidates and deepens the deregulation process of the Argentine capital markets initiated by General Resolution No. 1148 by making the automatic authorization regime mandatory for FCICs that meet the applicable requirements.
For the closed-end fund industry, this entails a significant reduction in the time and costs associated with accessing the capital markets, the elimination of prior regulatory review of documentation, and the possibility of launching new tranches and carrying out capitalizations without prior administrative intervention.
At the same time, the Resolution preserves the CNV’s supervisory, oversight, and sanctioning powers, shifting regulatory control toward an ex post framework based on compliance with ongoing disclosure requirements and the direct responsibility of the fund’s governing bodies.
Effective Date of the Resolution
The Resolution entered into force on August 7, 2026, i.e., the day following its publication in the Official Gazette.
