Circular RUNOR 1 - 166: Intermediation by Financial Institutions in the Placement of Insurance

CENTRAL BANK OF THE ARGENTINE REPUBLIC

__________________________________________________________________ COMMUNICATION " A " 2384 17/10/95 __________________________________________________________________

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
RUNOR 1 - 166.
Intermediation by financial institutions in the placement of insurance

We address you to inform you that this Institution adopted the following resolution:

"1. Authorize financial institutions to act in the intermediation of insurance contracts offered to their clientele, complying with mandates expressly agreed upon with insurance companies through which they assume the status of "institorial agents", in accordance with the legal and regulatory provisions governing the insurance activity.

Notwithstanding the foregoing, the intervention of financial institutions in the mass marketing regime of insurance shall also be admitted, in accordance with the provisions of Resolution No. 23.469 of 31.8.94 of the Superintendency of Insurance of the Nation.

In no case may the actions of financial intermediaries imply the assumption of liability toward third parties, nor affect their solvency or equity.

2. Remind financial institutions that, in accordance with the provisions contained in Title II of Law 21.526, its amendments and regulatory norms, they are not empowered to carry out -whatever their modality- operations unrelated to financial intermediation -except those specifically admitted by this Institution-, and therefore any activity that does not fall within those definitions, including those intended to be carried out in compliance with mandates conferred by third parties, must be submitted for consideration by this Institution, which will evaluate the appropriateness of authorizing its performance within the framework of the provisions of article 28, subsection a, of the aforementioned law."

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Alfredo A. Besio
Miguel A.
Kiguel
Manager of Norms for
Deputy General Manager
Financial Institutions
Area of Economy and Finance