"1999 - Year of Export"
CENTRAL BANK OF THE ARGENTINE REPUBLIC

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COMMUNICATION "A" 3027 I 01/12/99

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TO FINANCIAL ENTITIES:
Ref.: Circular
RUNOR - 1 - 367
OPRAC - 1 - 467
Rules on operations with mutual investment funds. Consolidated text We address you to send you the consolidated text as of the date of the rules issued by this Institution that apply to the subject of the reference. Likewise, an indicative table of the origin of the provisions included in said compilation is attached. We greet you very attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Juan Carlos Isi Alfredo A. Besio Deputy Manager Manager of Rules for Regulatory Regime Financial Entities a/c Management of Rules Adscript to the Area of for Financial Entities Economy and Finance
ANNEX: 9 sheets

B.C.R.A.
CONSOLIDATED TEXT OF THE RULES ON
OPERATIONS WITH MUTUAL INVESTMENT FUNDS.

- Index -

Section 1. Name.

1.1. Necessary characteristic.

1.2. Non-compliance.

Section 2. Restrictions.

2.1. Holding of units.

2.2. Transactions with fund assets.

2.3. Bases of observance.

Section 3. Transparency.

3.1. Information to investors.

3.2. Legend.

Section 4. Issuance of bills by holders.

4.1. Disposition of funds.

4.2. Operating conditions.

Version: 1st	Communication "A" 3027	Effective: 01.12.1999	Page 1

OPERATIONS WITH MUTUAL INVESTMENT FUNDS B.C.R.A. Section 1. Name.

1.1. Necessary characteristic.

The name of the mutual investment funds with respect to which financial entities act, directly or indirectly, as managers, custodians, distributors or promoters must clearly distinguish that they are independent of each other.

The use of common words or the same root, abbreviations, acronyms, symbols, etc. that identify them with financial entities shall not be admitted, so other names must be used that leave no doubt in the investing public that the mutual investment funds do not have the patrimonial or financial backing of the intervening financial entities.

1.2. Non-compliance.

Financial entities that incur non-compliance with the provisions of point 1.1. shall be subject to a daily fine equivalent, at minimum, to 0.5% and, at maximum, to 1% of the assets of the funds involved, recorded on the last day of the month prior to that in which the non-compliance is configured, applying the procedure provided in article 41 of the Law on Financial Entities.

Version: 1st	Communication "A" 3027	Effective: 01.01.2000	Page 1

OPERATIONS WITH MUTUAL INVESTMENT FUNDS B.C.R.A. Section 2. Restrictions.

2.1. Holding of units.

2.1.1. Prohibition.

Financial entities may not be holders of units of mutual investment funds, whatever the nature of the assets that constitute the fund's assets.

2.1.2. Exceptions.

2.1.2.1. Units corresponding to funds computable as integration of minimum liquidity requirements.

2.1.2.2. Units of new mutual investment funds for 120 consecutive days counted from the date on which the public offering is launched, with respect to which financial entities act as managers, custodians, distributors or promoters, insofar as the holdings –calculated on a monthly average basis– do not exceed the amount equivalent to 2% of the integration of the entity's minimum liquidity requirements for the corresponding month or $2,000,000, whichever is greater.

2.2. Transactions with fund assets.

2.2.1. On own account.

Financial entities may not carry out any transaction that implies granting liquidity to mutual investment funds –whether or not they perform the functions of managers, custodians, distributors or promoters– such as the purchase or assignment of the assets that make up their assets, unless it involves national public securities with normal and habitual quotation, in the country or abroad, widely disseminated and easily accessible to public knowledge, in transactions agreed at market prices.

2.2.2. On behalf of third parties.

Financial entities may act as intermediaries –whether as agents of the Electronic Open Market or through stockbrokers– in transactions with other instruments of the funds. These operations must be perfected on the same day, so that at the daily close the values involved are not recorded as holdings.

Version: 1st Communication "A" 3027	Effective:	01.12.1999	Page 1

OPERATIONS WITH MUTUAL INVESTMENT FUNDS B.C.R.A. Section 2. Restrictions.

2.3. Bases of observance.

The established limitations must be observed on an individual and consolidated basis.

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

Version: 1st Communication "A" 3027 Effective:
01.12.1999

OPERATIONS WITH MUTUAL INVESTMENT FUNDS B.C.R.A. Section 3. Transparency.

3.1. Information to investors.

3.1.1. Mandatory nature.

Financial entities that, directly or indirectly, act as managers, custodians, distributors or promoters of mutual investment funds must inform interested parties that the units of the funds do not constitute deposits in the intervening financial entity, which is also prohibited 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 units or granting liquidity for that purpose.

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 capital value, or where options with the same effect have been directly sold to the fund, whatever the intervening entity, the prohibition in the matter referred to in point 3.1.1. shall not apply.

3.2. Legend.

3.2.1. Scope.

The intervening financial entities shall expressly state the aspects mentioned in point 3.1.1. in the graphic advertising carried out through any medium and in the documentation (subscription applications and account statements detailing holdings of units) related to the placements made.

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

3.2.2. Text.

In a legible and prominent manner, the following text shall be used:

"Investments in units of the Fund do not constitute deposits in ...... (name of the intervening financial entity) for the purposes of the Law on Financial Entities nor do they have any of the guarantees that such demand or term deposits may enjoy in accordance with the legislation and regulations appli-

Version: 1st Communication "A" 3027 Effective:
01.12.1999

OPERATIONS WITH MUTUAL INVESTMENT FUNDS B.C.R.A. Section 3. Transparency.

cable in matters of deposits in financial entities. Likewise, ...... (name of the intervening financial entity) is prohibited by rules 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, the yield, the redemption value of the units or the granting of liquidity for that purpose".

Version: 1st Communication "A" 3027 Effective:
01.12.1999

OPERATIONS WITH MUTUAL INVESTMENT FUNDS B.C.R.A. Section 4. Issuance of bills by holders.

4.1. Disposition of funds.

4.1.1. Holders of units of mutual investment funds may draw sight bills of exchange against those accounts –in $–, with respect to which a commercial bank –that agrees to provide the service– is the depositary company, observing all other provisions that the respective control authority dictates for those funds, under the conditions provided in point 4.2.

4.1.2. The holder must first comply with the requirements established for opening a bank current account.

4.2. Operating conditions.

4.2.1. They may be paid by cashier or processed through electronic clearing houses, with the modalities and exchange periods established.

For both purposes, the beneficiary must insert –on the back of the bill– their signature and the type and number of document that corresponds according to the rules on identification documents in force.

4.2.2. Bills drawn to bearer or in favor of a determined person, for amounts exceeding $50,000, shall not be paid over the counter. This restriction shall not apply in the case of drafts made in favor of the holders of the accounts on which they are drawn, exclusively when presented to the entity by themselves.

4.2.3. They shall conform to the provisions on the characteristics of payment instruments issued by financial entities, which are generally in force and, at minimum, must contain:

4.2.3.1. Amount in pesos.

4.2.3.2. Place and date of drawing.

4.2.3.3. The expressions:

• "At sight you will be served to pay WITHOUT PROTEST by this Bill of Exchange to ...(name and surname of the beneficiary)...the sum of pesos...(in words)..., amount that I/we will charge to my/our unit account of the Mutual Investment Fund ...(name of the fund)...".

• "This Bill of Exchange does not require prior acceptance by the drawee".

Version: 1st Communication "A" 3027	Effective:	01.12.1999	Page 1

OPERATIONS WITH MUTUAL INVESTMENT FUNDS B.C.R.A. Section 4. Issuance of bills by holders.

4.2.3.4. Name of the drawee bank with the corresponding payment address.

4.2.4. Acceptance by the drawee bank shall be optional.

4.2.5. The rejection of documents for lack of funds and their communication to the Central Bank of the Argentine Republic shall be subject to the provisions contained in that regard for checks in the bank current account regulations.

Version: 1st Communication "A" 3027 Effective:
01.12.1999

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE RULES ON OPERATIONS WITH MUTUAL INVESTMENT FUNDS

CONSOLIDATED TEXT				SOURCE RULE					OBSERVATIONS
Sec.	Point	Par.		Communic.	Annex	Sec.	Point	Par.
1.	1.1.	1st		"B" 5484				1st and 2nd	S/Com."A" 2953 - point 2,.parr. 1st
		2nd		"B" 5484				2nd	S/Com."A" 2953 - point 2, parr. 2nd
	1.2.			"A" 2953			2.	3rd
2.	2.1.			"A" 3027
	2.1.1.			"A" 2953			1.	1st	S/Com."A" 2996, Annex-point 1.- parr.1st
	2.1.2.			"A" 2953			1.	1st	S/Com."A" 2996, Annex-point 1.- parr.2nd
	2.1.2.1.			"A" 2953			1.	1st	S/Com."A" 2996, Annex-point 1.- inc.a)
	2.1.2.2.			"A" 2996	unique		1.	2nd b)
	2.2.			"A" 2996	unique		2.
	2.2.1.			"A" 2953			1.	2nd	S/Com."A" 2996, Annex-point 2.- parr.1st
	2.2.2.			"A" 2996	unique		2.	2nd
	2.3.	1st		"B" 6566			1.		S/Com."A" 2996, Annex-point 3.-
		2nd		"B" 6609
3.	3.1.			"A" 3027
	3.1.1.			"A" 2996	unique		4.1.	1st
	3.1.2.			"A" 2996	unique		4.1.	2nd	S/Com. "A" 3027
	3.2.			"A" 2996	unique		4.2.		S/Com. "A" 3027
	3.2.1.	1st		"A" 2953			1.	3rd	S/Com. "A" 2996, point 4.2., parr. 1st
		2nd		"A" 2996	unique		4.2.	3rd
	3.2.2.			"A" 2953			1.	4th	S/Com. "A" 2996, point 4.2., parr. 2nd
4.	4.1.			"A" 3027
	4.1.1.			"A" 2092			3.	1st	S/Com. "A" 3027
	4.1.2.			"A" 2092	I		2.	1st
	4.2.			"A" 3027
	4.2.1.	1st		"A" 2092	I		1.
		2nd		"A" 2091	I	5.			S/Com. "A" 3027
	4.2.2.			"A" 2814		2.	2.1.		S/Com. "A" 3027
	4.2.3.			"A" 2092	I		1. and 3.
					III				S/Com. "A" 3027
	4.2.4.			"A" 2092	I		6.
	4.2.5.			"A" 3027