As part of the modernization of the capital market, the National Securities Commission (CNV) approved General Resolutions No. 1123 and No. 1124, calling for a Public Consultation to advance the regulation of local ETFs and the updating of the public offering regime linked to these instruments.
The decision of the organization's Board of Directors is part of the process that seeks to expand and sophisticate the tools available in the Argentine financial system.
In this case, the initiative proposes to incorporate so-called Exchange Traded Funds (ETFs) as local instruments, which may be structured through Securities Certificates (CEVA) or Open Common Investment Funds (FCIA).
With this measure, the CNV aims to channel investment structures within the national regulatory framework that replicate the performance of assets or benchmarks.
Message from the CNV.
This would enable investors to access new diversification alternatives through tradable instruments in the local market, strengthening the development of
available financial options.
The president of the organization, Roberto E. Silva, highlighted the relevance of the initiative and stated that “this regulation marks a milestone for the Argentine capital market, since it is the first time that progress has been made in the regulation of a local ETF regime, structured through CEVA or FCIA.”
“This is a significant step that expands investment alternatives, promoting greater diversification and access for investors. In addition, the initiative incorporates modifications to the CEDEAR and CEVA public offering regime, with the objective of making it more efficient, modern and aligned with the dynamics of international markets,”
he added.
In addition to the promotion of new instruments, the proposal incorporates mechanisms aimed at ensuring adequate operating conditions. In this regard, it seeks to ensure the correct accounting and operational custody and segregation of the underlying assets, as well as transparency in price formation and the availability of relevant information for investors
. The CNV.
The CNV also sets specific rules depending on the vehicle used to structure the ETFs. In the case of CEVAs, guidelines are established linked to the processes of creating and canceling units. For the FCIAs, meanwhile, regulations are contemplated related to the subscription and redemption of shares.
Another highlight of the initiative is that, once issued, both CEVAs and FCIA shares can be traded on the secondary market. This will not only expand the available investment options, but it will also contribute to increasing demand for tradable securities, promoting greater depth and liquidity in the
Argentine capital market.
Finally, the agency will make progress in updating the current regulatory framework applicable to CEDEAR and CEVA, including clarifications on their operational functioning and establishing a specific regime for their structuring, issuance and negotiation.
The objective of these modifications is to reinforce the transparency of the system, promote market development and ensure adequate protection of the investing public in a context of increasing financial modernization.
