Circular RUNOR 1-1184 / OPASI 2-489: Protection of Financial Services Users, Savings Accounts, Salary Accounts, Universal Free Accounts, and Special Accounts; Regulation of Bank Current Accounts; Demand Accounts in Cooperative Credit Unions

"2016 - Year of the Bicentennial of the Declaration of National Independence" COMMUNICATION "A" 5928 21/03/2016 TO FINANCIAL ENTITIES, TO EXCHANGE HOUSES, AGENCIES AND OFFICES, TO NON-FINANCIAL COMPANIES ISSUING CREDIT CARDS, TO TRUSTEES OF FINANCIAL TRUSTS INCLUDED IN THE FINANCIAL ENTITIES LAW, TO COOPERATIVE CREDIT UNIONS (LAW 26.173), TO NON-FINANCIAL COMPANIES ISSUING PURCHASE CARDS:
Ref.: Circular
RUNOR 1 - 1184
OPASI 2 - 489
"Protection of users of financial services." "Savings deposits, salary account, universal free account and special accounts." "Regulation of the bank current account." "Demand accounts opened in cooperative credit unions." Adjustments.
____________________________________________________________ We address you to inform you that this Institution has adopted the resolution which, in its pertinent part, provides:

"1. Replace subsection iv) of point 2.3.4., point 2.3.11. and point 2.5. of the regulations on "Protection of users of financial services" with the following:

"iv) Notifications. Form, deadlines and effects.
The user of financial services must be notified of the modifications that the obligated subject will apply with a minimum advance of (60) sixty calendar days before their entry into force. Modifications that result in economically more beneficial outcomes for the user -due to a reduction in agreed values- do not require advance notification. Notifications regarding changes in agreed conditions (new concepts and/or values or reduction of service benefits) shall in all cases be free for the user of financial services. They must be carried out through a written document addressed to the real domicile of the user of financial services -separately from any other information sent by the obligated subject (account summaries, informational bulletins, etc.), even if it forms part of the same batch- or via electronic means in those cases where this was the form of communication. In the body of these notifications, the following legends must be included:

• "You may opt to terminate the contract at any time before the change enters into force and without any charge, provided that you must fulfill pending obligations on your part".
• "You can consult the "Transparency Regime" prepared by the Central Bank of the Republic Argentina based on information provided by obligated subjects in order to compare the costs, characteristics and requirements of financial products and services, by accessing http://www.bcra.gob.ar/Informacion_usuario/iaureg010000.asp."
  Likewise, when the value of the commissions detailed below is modified, the body of the notifications must display a comparative table for these amounts, which will be elaborated and made available in due course by the Superintendence of Financial and Exchange Entities on the exclusive site https://www3.bcra.gob.ar:
• Savings account: issuance of additional debit cards; replacement of debit cards due to theft or loss and use of ATMs (outside the operating houses of the entity, of another entity and abroad).
• Credit cards: service of issuance, renewal, administration or maintenance of account; replacement or reprinting of card due to theft or loss and additional cards.
• Specific to the current account: account maintenance and checkbook.
• Package intended for beneficiaries of social security benefits that include the service of advancing pension benefits.
• Service of maintenance of packages."
  ………
  "2.3.11. Insurance as ancillary contracting to a financial service.
  It comprises those insurances contracted with the aim of decreasing risks associated with financings granted by the obligated subject.
  2.3.11.1. Life insurance on debtor balance.
  Obligated subjects may not collect from users any type of commission and/or charge linked to these insurances.
  Such subjects must contract an insurance on debtor balance covering death and total permanent disability regarding those financings granted to natural persons.
  Alternatively, they may self-insure the risks derived from the death and total permanent disability of users.
  In both cases, the coverage must totally extinguish the amount owed in case of death or total permanent disability of the debtor.
  2.3.11.2. Other insurances.

Obligated subjects must offer users of financial services at least three insurance companies not linked to each other among which they must be able to choose, and keep record of the exercise of that right by said users.
For the purpose of comparison, the obligated subject must inform the user of the minimum coverage that the insurance in question must provide. In case that the user obtained with any of the three insurers offered by the obligated subject a cheaper insurance than those offered through the latter, the one offered directly by the insurer to the user must be contracted. The charge that the obligated subject applies to the user cannot be higher than what the chosen insurance company collects for operations with individuals and without the intervention of the obligated subject, arranged in the place of contracting or domicile of the user. In no case may obligated subjects register remuneration nor profits from the insurances that their users contract as accessory to a financial service -regardless of whether it is a request from the user or a condition established by the obligated subject to access the financial service-, therefore these concepts cannot integrate the charges transferred to them nor be collected directly or indirectly from the insurance company." ……… "2.5. Information to the Central Bank of the Republic Argentina. Financial entities and non-financial companies issuing credit and/or purchase cards that offer and market products and/or services that are perfected with the signing or acceptance of contracts with pre-established clauses (adhesion contracts), must inform the commissions and charges they collect from users of financial services mentioned in point 2.4. to the Main Management of Protection of Users of Financial Services of the Central Bank. New product and/or service commissions that they wish to market -and increases in commissions that they wish to implement- must be previously informed to said Main Management and only may be notified to those users of financial services after thirty (30) calendar days have passed from the date of information to the BCRA. They must also inform modifications of charges. Reductions in commissions and/or charges may be applied without delay, provided that they must be informed to the BCRA within thirty (30) calendar days following their application."

2. Incorporate as the first paragraph of point 2.3.1., as subsections x…) and xx) following subsection vii) of point 2.3.1.1., as section e) of subsection ii) of point 2.3.2.2. and as points 2.3.12. and 2.3.13. of the regulations on "Protection of users of financial services" the following:

"2.3.1. At the moment of contracting the product or service.
Financial entities, upon requests for opening demand accounts by users of financial services, must offer the "Savings Account" in pesos with the benefits provided in point 1.X. of the regulations on "Savings deposits, salary account and special accounts" and keep record of the express offer." ……… "x…) The legend: "You can consult the "Transparency Regime" prepared by the Central Bank of the Republic Argentina based on information provided by obligated subjects in order to compare the costs, characteristics and requirements of financial products and services, by accessing http://www.bcra.gob.ar/Informacion_usuario/iaureg010000.asp". xx) The right to request the opening of the "Savings Account" in pesos with the benefits provided in point 1.X. of the regulations on "Savings deposits, salary account and special accounts", which will be free." ……… "e) Valuation, notarial or scrivener expenses that arise on the occasion of granting or cancelling financings -such as constitution of pledge or mortgage-." ……… "2.3.12. Insurance as non-ancillary contracting to a financial service. Obligated subjects may not collect from insurance companies nor from users any type of remuneration -commission and/or charge- additional to the premium determined by the insurer, linked to the activity of intermediation of general insurance contracts provided in point 3.1.2. of the regulations on "Complementary services of the financial activity and permitted activities". The collection by the obligated subject cannot be higher than the amount that the chosen insurance company collects for operations with individuals and without the intervention of the obligated subject.
2.3.13. Information to the user.
On the occasion of sending account summaries, the obligated subject must include the following legends in a visible place and with highlighted letter size:

• "You can request the "Savings Account" in pesos with the benefits provided in point 1.X. of the regulations on "Savings deposits, salary account and special accounts", which will be free"; and
• "You can consult the "Transparency Regime" prepared by the Central Bank of the Republic Argentina based on information provided by obligated subjects in order to compare the costs and characteristics of financial products and services by accessing http://www.bcra.gob.ar/Información_usuario/iaureg010000.asp."

3. Leave point 5.5. of the regulations on "Protection of users of financial services" without effect from the date of dissemination of this communication.

4. Replace the title of the regulations on "Savings deposits, salary account, universal free account and special accounts" with "Savings deposits, salary account and special accounts".

5. Replace the first paragraph of point 1.4. of the regulations on "Savings deposits, salary account and special accounts" -text according to point 4. of this communication- with the following:

"The opening of a savings account in pesos cannot be conditioned on the acquisition of any other product and/or financial service nor integrate any multi-product package."

6. Incorporate as the last paragraph of point 1.3., and as points 1.X. and 7.3. of the regulations on "Savings deposits, salary account and special accounts" -text according to point 4. of this communication- the following:

"For the accreditation of the data foreseen in points 1.3.1. to 1.3.3., the sole presentation of identity documents foreseen in the regulations on "Valid identification documents" will be sufficient, without prejudice to compliance with regulations on anti-money laundering and terrorist financing prevention -especially regarding customer identification and knowledge-." ……… "1.X. Cost-free services and movements. When it concerns a savings account in pesos, the following movements and services will be cost-free:

• Opening and maintenance of account.
• Provision of 1 (one) debit card to each holder at the moment of account opening.
  Entities cannot charge fees or commissions for replacements of debit cards that occur due to demagnetization and deterioration (in the latter case up to one per year) and/or in compliance with the minimum security requirements established in the regulations on "Minimum management requirements, implementation and control of risks related to information technology systems, information systems and associated resources for financial entities".
• Operations carried out through ATMs and self-service terminals in operating houses of the financial entity issuing the debit card.
• Use of Internet banking ("home banking")."
  ………
  "7.3. Financial entities must notify holders of savings accounts in pesos who were included in a package of products and services as of 04/01/16, that they may request the cancellation of said package, provided that they may maintain the savings account in pesos free of charge as provided in Section 1.

Likewise, prior to 09/01/16, they must adopt necessary measures in order to separate from multi-product packages the savings accounts in pesos that were included in said packages as of 04/01/16."

7. Leave point 6.12.1. and Sections 3. and 4. of the regulations on "Savings deposits, salary account and special accounts" -text according to point 4. of this communication- without effect.

8. Replace the second paragraph of point 6.13. of the regulations on "Savings deposits, salary account and special accounts" -text according to point 4. of this communication-, the last paragraph of point 1.5.3. of the regulations on "Regulation of the bank current account" and the last paragraph of point 1.5.3. of the regulations on "Demand accounts opened in cooperative credit unions" with the following:

"No commissions may be applied to operations carried out at the counter by users of financial services who are natural persons, with the scope provided in point 2.3.2.2. of the regulations on "Protection of users of financial services"."
… …
"No commissions may be applied to operations carried out at the counter by users of financial services who are natural persons, with the scope provided in point 2.3.2.2. of the regulations on "Protection of users of financial services"."
… …
"No commissions may be applied to operations carried out at the counter by users of financial services who are natural persons, with the scope provided in point 2.3.2.2. of the regulations on "Protection of users of financial services"."

9. Provide that financial entities must convert existing basic and universal free accounts as of 04/01/16 into the "Savings Account" in pesos provided in Section 1. of said regulations -text according to point 6. of this communication-.

10. Establish that financial entities that offer demand accounts to users of financial services must allow their clients to carry out operations on their demand accounts through ATMs installed in the country and not operated by financial entities, to the extent that those devices inform the client in advance of the cost of the transaction they wish to perform.

11. Establish that an accumulated increase between 01/01/16 and 09/01/16 of up to 20% in the amount of each of the commissions that obligated subjects collect from users of financial services will be admitted, provided that the increases are notified with 60 calendar days of advance counted from the date of dissemination of this communication, the minimum advance period of 30 calendar days to the Central Bank of the Republic Argentina provided in point 2.5. of the regulations on "Protection of users of financial services" -text according to this communication- not being applicable in these cases.

12. Establish that the provisions foreseen in points 1., 2. and 4. to 10. of this communication will enter into force in the following manner:

i. The obligation to display the comparative table established in point 2.3.4. of the regulations on "Protection of users of financial services" -text according to this communication- will be applicable from the date on which it is made known on the exclusive site https://www3.bcra.gob.ar.
ii. The provisions of points 2.3.11. and 2.3.12. of the regulations on "Protection of users of financial services" -text according to this communication-, will be treated as detailed below:
a) They will apply to financings and refinancings of fixed term (personal loans, pledges and mortgages) that are granted from 09/01/16. Consequently, it reaches all credit assists that are disbursed from that date and not the "stock" of operations. b) If they concern credit contracts with automatic renewal (credit cards and advances and/or overdrafts in bank current account), they will apply to consumptions and overdrafts and/or advances that are made from 09/01/16.
iii. The remaining provisions will enter into force from 04/01/16, except for the provisions of section e) of subsection ii) of point 2.3.2.2. of the regulations on "Protection of users of financial services" (text according to this communication) which will have effect from 09/01/16.

13. Establish that, from 07/01/16, financial entities providing Internet banking ("home banking") service must locate as one of the elements of their main menu, in equal visibility condition as other main items, one named "Commission Comparison", which upon selection will link to an Internet address of the BCRA (which will be provided in due course) where users can compare the amounts that different entities charge for financial commissions.

14. Provide that financial entities that must offer the "Savings Account" in pesos must display the informational sign about said account which this Institution will make known in due course on its exclusive site https://www3.bcra.gob.ar."

Finally, we inform you that subsequently we will send you the sheets that, in replacement of those previously provided, should be incorporated into the regulations on "Protection of users of financial services", "Savings deposits, salary account and special accounts", "Regulation of the bank current account" and "Demand accounts opened in cooperative credit unions".

We salute you attentively.
CENTRAL BANK OF THE REPUBLIC ARGENTINA
Matías A. Gutiérrez Girault Agustín Torcassi
Manager of Emission of Norms
General Manager of Norms