The Argentine Securities Commission (Comisión Nacional de Valores or “CNV”) has recently issued a series of new rules and proposed regulations (open for comment) on several matters.

1. Argentine Securities Commission Issues New Rules to Promote Capital Markets
The Argentine Securities Commission (Comisión Nacional de Valores or “CNV”) has recently issued a
series of new rules and proposed regulations (open for comment) on several matters. This continues the
trend initiated under the current administration to boost local capital markets.
Resolution No. 717/18 regulates the Crowdfunding System. The system is based on Crowdfunding
Platforms (corporations authorized by the CNV). Crowdfunding Platforms will facilitate the contact between
investors and Registered Entrepreneurs through websites or similar platforms. The maximum amount of
debt and equity instruments to be issued per Project is limited to US$ 1 million. Investments are limited to
20% of the annual gross income of each investor.
Resolution No. 718/18 allows issuance of indexed debt securities. As a general rule, adjustment of debts
is forbidden in Argentina. However, there are several exceptions to this rule. The CNV included the
possibility of issuing debt securities denominated in “UVA” (Unidades de Valor Adquisitivo), which are
adjusted by the inflation index denominated CER (Coeficiente de Estabilización de Referenecia), and in
“UVI” (Unidades de Vivienda), which are adjusted by the cost of construction of a square meter. These
securities shall have a maturity date of at least 2 years. This exception also applies to securities issued by
financial trusts and certificates issued by investment funds.
Resolution No. 720/18 approves short sales of securities. This rule allows borrowing securities and short
sales in order to provide more liquidity and alternatives to investors. The price to negotiate the short sale
shall be equal or higher than the price of the latest transaction closed in the market. Authorized markets
may issue additional regulations.
Resolution No. 721/18 proposes new regulation on frequent issuers. Frequent issuers are defined as
entities that have placed debt or equity twice in the immediately preceding 12 months. The proposed
regulation simplifies the filing and approval process to issue equity or debt securities.
Resolution No. 723/18 proposes new regulation on distribution of participations in investment funds.
According to this proposed regulation, investment funds will be able to distribute their products locally,
through authorized settlement or brokerage agents (ALyC or AN) or through specific distribution agents
(Agente de Colocación y Distribución Integral). Internationally, investment funds may be distributed upon
execution of a distribution agreement with foreign brokers that are subject to the supervision of a securities
commission in their jurisdictions.