Circular OPRAC 1-1273: Cash and Forward Operations, Pases, Guarantees, Other Derivatives and Investment Funds. Adjustments

"Year of the Reconstruction of the Argentine Nation" COMMUNICATION "A" 8198 13/02/2025 TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1-1273:
Cash and Forward Operations,
Pases, Guarantees, Other Derivatives and Investment Common Funds. Adjustments.
___________________________________________________________________________ We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

"- To arrange that financial entities may be holders of shares of closed common investment funds, with public offering authorized by the National Securities Commission, whose object is the investment in credits originated by financial entities or other subjects obliged to observe the ordered text on Debtor Classification, within the framework of the provisions of Section 7. of the ordered text on Cash and Forward Operations, Pases, Guarantees, Other Derivatives and Common Investment Funds.

In credit matters, these investments will receive the same regulatory treatment as that provided for trusts whose underlying assets are credits."

Regarding this, we send you the sheets that, in replacement of those previously provided, must be incorporated into the ordered text of the reference. In this sense, it is recalled that on this Institution's website www.bcra.gob.ar, by accessing "Financial System - LEGAL AND REGULATORY FRAMEWORK - Regulations and summaries - Ordered texts of general regulations", the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli Marina Ongaro
Principal Manager of Issuance and
Regulatory Applications
General Deputy Manager of
Financial Regulation

ANNEX

a) instruments provided for in items i), ii), iii) and/or iv) of article 21 of Section V "Special Regime for the Constitution of SME Common Investment Funds", Chapter II of Title V, of the norms of the National Securities Commission (N.T. 2013 and modif.), which do not imply granting financial assistance to persons –human or legal– linked to the financial entity according to point 1.2.2. of the TO on Large Credit Exposures.

In the case of discounted instruments, the values must come from the collection of sales operations and/or provision of services corresponding to the activity of the SME that discounts them.

b) at least 85% of the investments, with respect to instruments for which the subjects legally obliged to pay are classified in normal situation (category 1) according to the last information available in the Debtors Central of the Financial System.

These conditions must be verified prior to making the investment.

The participation in each of the funds referred to in items ii), iii) and iv) may be up to 15% of the total issuance.

The total holdings of shares of the funds referred to in items i) to iv) –calculated as a monthly average of daily balances– must not exceed the amount equivalent to 2% of the CAR that the financial entity registers in the month immediately preceding the one in question.

v) Shares of closed common investment funds, with public offering authorized by the CNV whose object is the investment in credits originated by financial entities or other subjects obliged to observe the TO on Debtor Classification.

The participations in the funds referred to in this item will receive the same treatment in credit matters as that provided for credit trusts.

7.2.2. Transactions with fund assets.
7.2.2.1. On own account.
Financial entities may not carry out any transaction that implies granting liquidity to common investment funds –regardless of whether they perform the functions of managers, custodians, sellers or promoters–, such as the purchase or transfer of the assets that make up their assets, unless they are instruments of monetary regulation of the BCRA or securities, public or private, with normal and habitual quotation, in the country or abroad, of wide dissemination and easy access to public knowledge, in operations agreed at market prices.

B.C.R.A.
CASH AND FORWARD OPERATIONS, PASES, GUARANTEES, OTHER DERIVATIVES AND COMMON INVESTMENT FUNDS
Section 7. Operations with common investment funds.
Version: 5th COMMUNICATION "A" 8198 Validity:
14/02/2025 Page 2

7.2.2.2. On behalf of third parties.
Financial entities may act as intermediaries –whether as negotiation agents and/or settlement and clearing agents (integral or own)– in transactions with other instruments of the funds. These operations must be perfected on the day, so that at daily closing the values involved do not remain registered with the character of holding.

7.2.3. Bases of observance.
The established limitations must be observed on individual and consolidated bases.

For the purposes of the calculation on a consolidated basis, holdings of shares that non-financial companies must consolidate with the financial entity are excluded from the count, provided that in the transactions they have applied resources from their own business that –directly or indirectly– have not been provided to effect the acquisition by the controlling entity.

7.3. Transparency.
7.3.1. Information to investors.
7.3.1.1. Mandatory character.
Financial entities that, directly or indirectly, act as managers, custodians, sellers or promoters of common investment funds, must inform interested parties that the shares of the funds do not constitute deposits in the intervening financial entity, which, moreover, is prevented from assuming any commitment that implies guaranteeing, at any time, the maintenance of the value of the invested capital, its yield, the redemption value of the shares or granting liquidity for that purpose.

7.3.1.2. Exception.
In cases where the resources of a fund are placed in term investments in accordance with current regulations that contemplate the possibility of ensuring the maintenance of the value of the capital, or that have directly sold options to the fund with the same effect, regardless of the intervening entity, the prohibition in the matter referred to in point 7.3.1.1. will not be applicable.

Version: 3rd COMMUNICATION "A" 8198 Validity:
14/02/2025 Page 3
B.C.R.A.
CASH AND FORWARD OPERATIONS, PASES, GUARANTEES, OTHER DERIVATIVES AND COMMON INVESTMENT FUNDS
Section 7. Operations with common investment funds.

7.3.2. Legend.
7.3.2.1. Scope.
The intervening financial entities will expressly state the aspects mentioned in point 7.3.1.1. in the graphic advertising carried out through any medium and in the documentation (subscription requests and account summaries detailing share holdings) related to the placements made.

It must also be displayed in all premises of the intervening entities in which shares of the funds are promoted and/or sold.

7.3.2.2. Text.
In a legible and prominent manner, the following text will be used:

"Investments in Fund shares do not constitute deposits in .................... (name of the intervening financial entity) for the purposes of the Financial Entities Law nor do they enjoy any of the guarantees that such demand or term deposits may enjoy according to the legislation and regulations applicable in the matter of deposits in financial entities. Likewise, ................. (name of the intervening financial entity) is prevented by norms of the Central Bank of the Argentine Republic from assuming, tacitly or expressly, any commitment regarding the maintenance, at any time, of the value of the invested capital, to the yield, to the redemption value of the shares or to the granting of liquidity for that purpose."

7.4. Identification and tax situation.
7.4.1. Identification.
At the time of making the first operation, human persons who are holders or for whose order an operation is registered, legal representatives of legal entities, etc. will use one of the documents provided for in the TO on Identification Documents in Force.

7.4.2. Tax situation.
Legal or human persons who are holders or for whose order an account or operation is registered, legal representatives, etc. will inform their situation before the Revenue and Customs Control Agency (ARCA) by providing the corresponding element, as indicated below:

7.4.2.1. Unique tax identification key (CUIT).
7.4.2.2. Unique labor identification code (CUIL).
7.4.2.3. Identification key (CDI). Financial entities intervening in the operation will manage compliance with this requirement through the process generated by the ARCA for such purposes.

B.C.R.A.
CASH AND FORWARD OPERATIONS, PASES, GUARANTEES, OTHER DERIVATIVES AND COMMON INVESTMENT FUNDS
Section 7. Operations with common investment funds.
Version: 4th COMMUNICATION "A" 8198 Validity:
14/02/2025 Page 4

CASH AND FORWARD OPERATIONS, PASES,
GUARANTEES, OTHER DERIVATIVES AND COMMON INVESTMENT FUNDS ORDERED TEXT ORIGIN NORM OBSERVATIONS Sec. Point Para. Com. Annex Ch. Sec. Point Para. 4.
4.5.2.1. "A" 1465 I 1.2.1. and
5.2. 1st
According to Com. "A" 2061,
2064, 2181 and 2275.
4.5.2.2. "A" 1465 I 1.2.4. According to Com. "A" 6472.
Includes interpretative clarification.
4.5.2.3. "A" 1465 penultimate
According to Com. "A" 6472.
Includes interpretative clarification.
4.5.3. "A" 1590 I 1.2.
4.5.3.1. "A" 1590 I 1.2.1. and
4.2. 1st
According to Com. "A" 2181.
4.5.3.2. "A" 1590 I 1.2.3.
4.5.3.3. "A" 1590 I 1.2.5. According to Com. "A" 6472.
Includes interpretative clarification.
4.5.3.4. "A" 1590 I 1.2.6. According to Com. "A" 6472.
Includes interpretative clarification.
4.6. "A" 6472 Includes interpretative clarification.
5.
"A" 2061 5. According to Com. "A" 1746,
1769, 2064, 2181,
2275, 2286, 2356,
2393, 2771, 6472,
6978, 7683 and 8119.
6.
6.1. "A" 2461 unique IV 2nd and
last
According to Com. "A" 5740 and
6472.
6.2. "A" 2461 unique IV 1st According to Com. "A" 5740 and
6472.
6.3. "A" 6663 1.
7.
7.1. 1st "B" 5484 1st and
2nd
According to Com. "A" 2953
(point 2., para. 1st).
2nd "B" 5484 2nd According to Com. "A" 2953
(point 2., para. 2nd).
7.2.1. "A" 3027
7.2.1.1. "A" 2953 1. 1st According to Com. "A" 2996
(Annex, point 1., para.
1st).
7.2.1.2. i) "A" 2953 1. 1st According to Com. "A" 2996
(Annex, point 1., para.
2nd b), 3558 and 7234. ii) "A" 7234 1. According to Com. "A" 7341. iii) "A" 7341 1. iv) "A" 7430 According to Com. "A" 7937. 5th "A" 7234 1. According to Com. "A" 7341 and 7430. 6th "A" 7234 2. According to Com. "A" 7341 and 8198. v) "A" 8198

CASH AND FORWARD OPERATIONS, PASES,
GUARANTEES, OTHER DERIVATIVES AND COMMON INVESTMENT FUNDS ORDERED TEXT ORIGIN NORM OBSERVATIONS Sec. Point Para. Com. Annex Ch. Sec. Point Para. 7.
7.2.2. "A" 2996 unique 2.
7.2.2.1. "A" 2953 1. 2nd According to Com. "A" 2996
(Annex, point 2., para.
1st), 6522 and 6523.
7.2.2.2. "A" 2996 unique 2. 2nd According to Com. "A" 6472.
Includes interpretative clarification.
7.2.3. 1st "B" 6566 1. According to Com. "A" 2996
(Annex, point 3.).
2nd "B" 6609
7.3.1. "A" 3027
7.3.1.1. "A" 2996 unique 4.1. 1st
7.3.1.2. "A" 2996 unique 4.1. 2nd According to Com. "A" 3027.
7.3.2. "A" 2996 unique 4.2. According to Com. "A" 3027.
7.3.2.1. 1st "A" 2953 1. 3rd According to Com. "A" 2996
(point 4.2., para. 1st).
2nd "A" 2996 unique 4.2. 3rd
7.3.2.2. "A" 2953 1. 4th According to Com. "A" 2996
(point 4.2., para. 2nd).
7.4.1. "A" 3323 According to Com. "A" 5728.
7.4.2. "A" 3323 According to Com. "A" 4875,
6472 and 8131.
8.
8.1. "A" 7432 4. According to Com. "A" 7573,
7616 and 7717.
8.2. "A" 7432 5. According to Com. "A" 7473
and 7717. Includes interpretative clarification.
8.3. "A" 6647 3.