Complementary services of financial activity and permitted activities: regulatory adaptation

2017 - YEAR OF RENEWABLE ENERGIES

COMMUNICATION “A” 6154
13/1/2017

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
RUNOR 1 - 1256

“Complementary services of financial activity and permitted activities”. Regulatory adaptation.

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

“- Incorporate as points 2.2.22. and 2.2.23. of the rules on “Complementary services of financial activity and permitted activities” the following:

“2.2.22. Payment service providers (PSP), considering as such those legal persons that provide services related to the processing of payment and/or collection transactions through the use of different payment methods, such as debit cards, credit cards, prepaid cards, mobile payment platforms (PPM) and other electronic payment methods.

2.2.23. Companies for the development and provision of technology-based services for financial activity.”

On the other hand, we send you in annex the sheets that, in replacement of those previously provided, should be incorporated into the rules on “Complementary services of financial activity and permitted activities”.

Likewise, it is recalled that on the website of this Institution www.bcra.gob.ar, by accessing “Financial and Payment Systems - 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

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications
Agustín Torcassi
General Deputy Manager of Regulations

ANNEX

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

Additionally and to the extent that they have available financing margin, observing for this purpose the limit assigned in the aforementioned point 1.1.3.4., subparagraph a), item ii), credits may be granted to the microentrepreneur for the acquisition of goods or services for consumption.

For the granting of financings, the company may act with its own funds, with funds obtained from credits and/or donations and/or other types of contributions and/or act as originator agent of loans on behalf of the participating financial entity or of another/others of the financial system.

2.2.21. Exchange houses and agencies.

2.2.22. Payment service providers (PSP), considering as such those legal persons that provide services related to the processing of payment and/or collection transactions through the use of different payment methods, such as debit cards, credit cards, prepaid cards, mobile payment platforms (PPM) and other electronic payment methods.

2.2.23. Companies for the development and provision of technology-based services for financial activity.

2.3. Authorization.

2.3.1. Scope.

The acquisition or incorporation by financial entities of corporate participations, direct or indirect, in companies whose object is the development of two of the activities included in point 2.2. or of any of the activities listed in points 2.2.1., 2.2.6., 2.2.8., 2.2.19. to 2.2.21., that exceed 12.5 % of the share capital or of the total votes or lower percentages if this is sufficient to form the corporate will in shareholders' meetings or board meetings of said companies and without prejudice to the specific regulatory treatment that in each case may be applicable, will be subject to the authorization of the Superintendency of Financial and Exchange Entities, for which they must comply with the conditions established for the transformation of financial entities.

2.3.2. Application.

With the pertinent authorization applications, the following information must be accompanied, in accordance with the procedure established for that purpose:

2.3.2.1. Name, corporate object and description of the company's activities and specification of its degree of linkage to financial activity and the intention to exercise or not exercise corporate control.

2.3.2.2. Corporate bylaws, which must expressly provide:

i) That modifications to the corporate object must be authorized by the Superintendency of Financial and Exchange Entities.

ii) That the verification of the company's operations be admitted with the scope provided in the Law on Financial Entities.

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

2.3.2.3. Amount of the investment and schedule of disbursements.

2.3.2.4. Participation in the share capital, its total percentage distribution and list of shareholders holding 5 % or more of the share capital and/or votes.

2.3.2.5. Use of the entity's infrastructure for the offering of services provided by the company.

2.3.2.6. All other information that, in the opinion of the financial entity, is useful for the Central Bank of the Argentine Republic to evaluate the effect of the investment on its solvency, managerial capacity and management.

2.3.3. Evaluation.

The Superintendency of Financial and Exchange Entities will evaluate the characteristics of each project, emphasizing the effect of the investment on the economic, financial and management situation of the financial entity.

2.3.4. Approval.

Applications will be considered conformed once 90 calendar days have elapsed from the verification of the conditions established in points 2.3.1. and 2.3.2. if the Superintendency of Financial and Exchange Entities does not express its opposition. Said term may be extended if there are circumstances that prevent adopting a resolution.

2.4. Cases that do not require authorization. Information.

When they are holdings in companies whose corporate purpose is the performance of complementary activities not included in point 2.3.1., the entities must inform the Superintendency of Financial and Exchange Entities of the acquisitions they make - to the extent that they determine holdings exceeding 12.5% of the share capital or of the total votes or lower percentages if this is sufficient to form the corporate will in shareholders' meetings or board meetings of said companies -, within the following 15 calendar days from the date on which the first payment committed by the transactions is made effective.

2.5. Consolidated basis.

Financial entities must consolidate their information with those companies that carry out the activity provided for in point 2.2.6. in which more than 12.5% of the company's share capital or of the total votes is held or controlled, or lower percentages if this is sufficient to form the corporate will.

For the remaining activities, when more than 12.5% of the company's share capital or of the total votes is held or controlled, or lower percentages if this is sufficient to form the corporate will in shareholders' meetings or board meetings but does not determine the requirement for consolidation, the Superintendency of Financial and Exchange Entities will establish in each case whether or not the company's information must be consolidated, with the general scope provided for in the consolidated supervision regime.

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

TEXT AS AMENDED	RULE OF ORIGIN	OBSERVATIONS
Sect.	Point	Para.	Comm.	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/ Comm. "A" 3086.
2.	2.1.	1st	"A" 2619						S/ Comm. "A" 2988, 3086 and 5700.
		2nd	"A" 3086
		3rd	"A" 5700				1.
	2.2.1.		"A" 2056				2.	1st	S/ Comm. "A" 5691.
	2.2.2. a		"A" 3086
	2.2.3.
	2.2.4.		"A" 2155						S/ Comm. "A" 5183.
	2.2.5.		"A" 2197						S/ Comm. "A" 5691.
	2.2.6.		"A" 3086						S/ Com. "A" 5700 and 5853.
	2.2.7.		"A" 3086
	2.2.8.		"A" 3086						S/ Com. "A" 5067.
	2.2.9. a		"A" 3086						S/ Com. "A" 5691.
	2.2.17.
	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.
	2.2.22.		"A" 6154
	2.2.23.		"A" 6154
	2.3.1.		"A" 2619					1°	S/ Com. "A" 2988, 3086, 4891 (point 4.), 5691, 5700 and 6094.
	2.3.1.1.		"A" 2619					1°	S/ Com. "A" 3086.
	2.3.1.2.		"A" 2619					1°	S/ Com. "A" 3086.
	2.3.2.		"A" 2619					2°
	2.3.2.1.		"A" 2619					2°
	2.3.2.2.		"A" 2619					2°	S/ Com. "A" 3086.
	2.3.2.2.i)		"A" 2619					4° a)
	2.3.2.2.ii)		"A" 2619					4° b)
	2.3.2.3.		"A" 2619					2°
	2.3.2.4.		"A" 2619					2°	S/ Com. "A" 3086.
	2.3.2.5. a		"A" 2619					2°
	2.3.2.6.
	2.3.3.		"A" 2619					3°	S/ Com. "A" 3086.
	2.3.4.		"A" 2619					5°	S/ Com. "A" 3086.
	2.4.		"A" 3086
	2.5.		"A" 2619					Last	S/ Com. "A" 2988, 3086 and 5700.