Complementary Services of Financial Activity and Permitted Activities: Adjustments

2017 - YEAR OF RENEWABLE ENERGIES

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 6342
13/10/2017

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
RUNOR 1 - 1326

Complementary services of financial activity and permitted activities. Adjustments.

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

“1. Replace the second paragraph of point 2.1. of the rules on “Complementary services of financial activity and permitted activities” with the following:

“In the case of participation in the capital of companies whose purpose is the development of the activities listed in points 2.2.6., 2.2.8., 2.2.19. to 2.2.21., as a prior step the financial institution must recalculate its last closed position of minimum capital in order to verify that, considering that incorporation, it does not present an integration deficiency, both at individual and consolidated level.”

2. Replace point 2.2.12. of the rules on “Complementary services of financial activity and permitted activities” with the following:

“2.2.12. Advisory in financial and investment matters (including the functions of capital market advisor agent and global investment advisor agent), and for mergers and/or acquisitions of companies, provided that it does not imply business administration or management. It may not grant loans.”

Finally, we send you in annex the sheets that, in replacement of those previously provided, should be incorporated into the referenced rules. Likewise, it is recalled that on the page of this Institution www.bcra.gob.ar, accessing “Financial System - LEGAL AND REGULATORY FRAMEWORK - Compilations and summaries - Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Issuance Manager of Rules
Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

ANNEX

COMPLEMENTARY SERVICES OF FINANCIAL ACTIVITY AND B.C.R.A.
PERMITTED ACTIVITIES
Section 2. Complementary services.

2.1. Scope.

Commercial banks and financial companies may hold participations in the capital of companies in the country or abroad whose exclusive purpose is some of the activities mentioned in point 2.2., greater than 12.5% of the share capital or of the total votes or lower percentages if this is sufficient to form the corporate will in the shareholders' meetings or board meetings of said companies, subject to compliance with the provisions contained in point 2.3.

In the case of participation in the capital of companies whose purpose is the development of the activities listed in points 2.2.6., 2.2.8., 2.2.19. to 2.2.21., as a prior step the financial institution must recalculate its last closed position of minimum capital in order to verify that, considering that incorporation, it does not present an integration deficiency, both at individual and consolidated level.

In the cases of the other banks, of the savings and loan societies for housing or other real estate and of the credit unions, these participations may be maintained to the extent that the nature of the activity is compatible with the class of entity, according to the operations authorized in the Law of Financial Entities.

2.2. Activities included.

2.2.1. Negotiation agent, settlement and clearing agent (integral or own), producing agent and/or brokerage agent of negotiable securities.

2.2.2. Operation and administration of ATM networks.

2.2.3. Electronic transmission systems of transactions with entities and/or their clients.

2.2.4. Administration of retirement and pension funds, including the activity of administrators with reconverted corporate purpose in accordance with the provisions of article 6 of Law 26.425.

2.2.5. The following agent functions related to collective investment products:

2.2.5.1. Mutual investment funds: administration, custody, placement and distribution and/or integral placement and distribution.

2.2.5.2. Financial trusts: administration (trustees).

2.2.6. Issuance of credit, debit and similar cards and/or provision of credit.

2.2.7. Administration of closed savings circles.

2.2.8. Financial assistance through leasing operations of capital goods, durables and real estate, acquired for such purpose (“leasing”) or on credits from sales (“factoring”).

Version: 8th. COMMUNICATION “A” 6342
Effective date:
14/10/2017
Page 1

COMPLEMENTARY SERVICES OF FINANCIAL ACTIVITY AND B.C.R.A.
PERMITTED ACTIVITIES
Section 2. Complementary services.

2.2.9. Management of collection of public service invoices, credits and similar and salary payment service, supplier payment and collection of collections.

2.2.10. Data processing and/or transmission service linked to financial activity.

2.2.11. Credit information services for commercial and financial use (databases of financial records).

2.2.12. Advisory in financial and investment matters (including the functions of capital market advisor agent and global investment advisor agent), and for mergers and/or acquisitions of companies, provided that it does not imply business administration or management. It may not grant loans.

2.2.13. Mutual guarantee companies, in the capacity of protecting partner.

2.2.14. Advice on fund management and/or trust administration with respect to activities compatible with the class of entity.

2.2.15. Transport and/or custody of cash and securities, including the service of transporting correspondence and financial documentation of the entities and/or their clients. Associated security service for premises of financial entities.

2.2.16. Service as registrar of securities and of book-entry mortgage notes.

2.2.17. Securities market or clearing house.

2.2.18. Funds clearing houses.

2.2.19. Temporary acquisition of interests in companies to facilitate their development, with the purpose of subsequently selling the holdings. Granting to those companies of financing and advice on planning and management.

2.2.20. Provision of financial services to natural persons or associative groups of natural persons, with low resources, who carry out activities on their own account, not linked to the financial entity.

The activity consists of granting loans to microentrepreneurs destined for natural persons to meet needs linked to productive, commercial and service activities, and financing destined for the improvement of the single dwelling and family housing, in which specific methodologies are used for the prior evaluation, granting and monitoring of the financial assistance in accordance with the provisions of point 1.1.3.4., subparagraph a), item v) of the rules on “Credit management”. Likewise, they may provide beneficiaries with: training, technical assistance and the monitoring necessary to carry out their activities.

Version: 7th. COMMUNICATION “A” 6342
Effective date:
14/10/2017
Page 2

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “COMPLEMENTARY SERVICES OF FINANCIAL ACTIVITY AND PERMITTED ACTIVITIES”

CENTRAL BANK OF THE ARGENTINE REPUBLIC

CONSOLIDATED TEXT			SOURCE RULE						OBSERVATIONS
Sect.	Point	Para.	Com.	Annex	Chap.	Sect.	Point	Para.
1.	1.1.	1st	“A” 2384				2.
		2nd	“A” 2384				2.		Incorporates interpretive clarification.
	1.2.	1st and 2nd	“A” 3086
		3rd	“A” 2384						S/ Com. “A” 3086.
2.	2.1.	1st	“A” 2619						S/ Com. “A” 2988, 3086, 5700 and 6304.
		2nd	“A” 2619					1st	S/ Com. “A” 2988, 3086, 4891 (point 4.), 5691, 5700, 6094, 6164, 6304 and 6342.
		3rd	“A” 3086
	2.2.1.		"A" 2056				2.	1°	S/ Com. "A" 5691.
	2.2.2. a		"A" 3086
	2.2.3.
	2.2.4.		"A" 2155						S/ Com. "A" 5183.
	2.2.5.		"A" 2197						S/ Com. "A" 5691.
	2.2.6.		"A" 3086						S/ Com. "A" 5700, 5853 and 6277.
	2.2.7.		"A" 3086
	2.2.8.		"A" 3086						S/ Com. "A" 5067.
	2.2.9. a		"A" 3086						S/ Com. "A" 5691.
	2.2.11.
	2.2.12.		"A" 3086						S/ Com. "A" 5691 and 6342.
	2.2.13. and		"A" 3086						S/ Com. "A" 5691.
	2.2.14.
	2.2.15.		"A" 3086						S/ Com. "A" 5691 and 6218.
	2.2.16.		"A" 3086						S/ Com. "A" 5691.
	2.2.17.		"A" 3086						S/ Com. "A" 5691.
	2.2.18.		"A" 2557	Sole		2.		1°
	2.2.19.		"A" 3086
	2.2.20.		"A" 4891				3.
	2.2.21.		"A" 6094				6.		S/ Com. "A" 6304.
	2.2.22.		"A" 6154						S/ Com. "A" 6277.
	2.3.		"A" 2619					1° and 2°	S/ Com. “A” 2988, 3086, 4891 (point 4.), 5691, 5700, 6094, 6164 and 6304.
			“A” 3086
	2.3.1.		“A” 2619					2°	S/ Com. “A” 6304.
	2.3.2.		“A” 2619					2°	S/ Com. “A” 3086 y 6304.
	2.3.2.1.		“A” 2619					4° a)	S/ Com. “A” 6304.
	2.3.2.2.		“A” 2619					4° b)	S/ Com. “A” 6304.
	2.3.3.		“A” 2619					2°	S/ Com. “A” 6304.
	2.3.4.		“A” 2619					2°	S/ Com. “A” 6304.
	2.4.		“A” 2619					Últ.	S/ Com. “A” 2988, 3086 and 5700.