Regulation of the Securities Law

On August 1, 2013 the Decree No. 1023/2013 (hereinafter the “Decree”), which regulates the provisions of the Capital Market Law, was published in the Official Gazette. Although the Decree does not regulate all sections of the Law, it emphasizes the power of the National Securities Commission (Comisión Nacional de Valores – “NSC”) as enforcement authority, empowering it to issue supplementary regulations necessary to implement the provisions of the Decree.

First, the Decree leaves it to the NSC the fixing of the requirements of eligibility, moral integrity, probity and solvency to be met by those who aspire to obtain authorization from the NSC to operate in activities related to the capital market. The criminal history record release of those requesting authorization, especially convictions for money laundering and / or terrorist financing and / or the appearance in lists of terrorists, will be taken into account by the NSC.

The Decree also provides that all persons engaged in activity in the capital market must be enrolled in a NSC registry. This registry shall be public and it will keep a record of all markets, clearing houses, brokers and other individuals involved in the public offering of securities. As for the requirements for registration, the Decree only states that legal persons must prove their constitution in Argentina, leaving to the NSC the criterion for determining the requirements to be met by the rest of the people interested in participating in the capital market.

Regarding sanctions, the Decree provides that the NSC may, as a preventive measure, suspend the registration in cases of irregularities which, according the criteria by the NSC, may jeopardize the interests of the investing public or the normal functioning of markets. Moreover, it shall order the revocation of the registration when the natural or legal persons no longer meet the essential requirements which enable them to operate.

The Decree came into force on August 1, 2013.

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