General Resolution No. 1002 and No. 1003 of the National Securities Commission (CNV): Definition of Activities Not Considered Financial Advice – Regulation of Hard Dollar Promissory Notes
Banking & Financial Institutions department report | General Resolution No. 1002 and No. 1003 of the National Securities Commission (CNV): Definition of Activities Not Considered Financial Advice – Regulation of Hard Dollar Promissory Notes
We inform you that the National Securities Commission (CNV) has recently issued General Resolutions No. 1002 and No. 1003. Below, we provide a summary of the key points of both resolutions.
General Resolution No. 1002
General Resolution No. 1002 specifies the behaviors that, among others, will not be considered financial advice:
· Generic opinions about investments or the mere distribution of information or explanation of the characteristics and risks of an operation or security.
· The creation of reports, statements, or general analysis, even when they include a buy or sell recommendation.
Additionally, it clarifies that the promotion of securities, or connecting clients to registered agents without CNV authorization, is prohibited. Consequently, clients can only be referred to agents if the person making the referral is registered in the agent producer category.
This regulation came into effect on May 17, 2024.
General Resolution No. 1003
General Resolution No. 1003 established new rules for negotiable promissory notes:
· Minimum issuance amount: $20,000 (previously $5,000).
· Payment in foreign currency: Promissory notes can now be paid in foreign currency, whereas previously the drawer had to pay the equivalent in pesos.
· Issuance term: Promissory notes can be issued for a minimum term of 15 days without maximum term restrictions (previously, they could not exceed three years).
Additionally, under certain circumstances, both promissory notes and deferred payment checks may be transferred to other account holders, provided that the latter are:
· Foreign intermediaries and custodians, under global custody agreements through a depositor in Caja de Valores S.A.
· Financial trustees, as part of a financial trust with public offering authorization for the securitization of these instruments.
General Resolution No. 1003 will come into effect on May 20, 2024.
For any questions or additional information, please do not hesitate to contact our team.
Sincerely,
Luciana Denegri
Felipe Videla
María Victoria Pavani