Non-financial credit providers: Adjustments

2020 - YEAR OF GENERAL MANUEL BELGRANO

COMMUNICATION “A” 7146
22/10/2020

TO FINANCIAL INSTITUTIONS,
TO NON-FINANCIAL CREDIT CARD ISSUING COMPANIES, TO COOPERATIVE CREDIT UNIONS (LAW 26.173), TO OTHER NON-FINANCIAL CREDIT PROVIDERS, TO NON-FINANCIAL PURCHASE CARD ISSUING COMPANIES:

Ref.: Circular
OPRAC 1 - 1070
RUNOR 1 - 1614
CONAU 1 - 1438

Non-financial credit providers. Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:

“1. Replace the name of the rules on “Credit assistance to non-financial credit providers” with “Non-financial credit providers”.

2. Extend the application of the provisions of the Financial Institutions Law to the “Other non-financial credit providers” covered by the rules on “Non-financial credit providers”, with a scope limited to the financings they grant under those rules, for the purpose of compliance with the provisions of this communication and other regulations of the Central Bank of the Argentine Republic (BCRA) that are established as applicable to them.

3. Provide that registration in the “Registry of other non-financial credit providers” shall be mandatory for other non-financial credit providers and for non-financial credit and/or purchase card issuing companies – for financings not included in Law 25.065 on Credit Cards –, in both cases, when they have granted financings covered for an amount exceeding $ 10 million, whether or not they receive assistance from financial institutions, whether the credit offer is made in person and/or through electronic or remote means.

4. Establish that non-financial credit providers and the members of their governing, administration and oversight bodies shall be subject to the application of the sanctions provided for in articles 41 and 42 of the Financial Institutions Law and concordant provisions for the non-compliances verified with respect to the rules issued by the BCRA to regulate their activity.

Registration in the “Registry of non-financial credit and/or purchase card issuing companies” and/or in the “Registry of other non-financial credit providers” shall not imply authorization to carry out financial intermediation operations, raising funds from the publi-

c, carrying out advertising or using denominations reserved for entities authorized for that purpose, or that raise doubts about their nature, individuality or object.

5. Apply to the other non-financial credit providers covered by the rules on “Non-financial credit providers” – including non-financial credit and/or purchase card issuing companies for financings not included in the Credit Card Law –, for the financings they grant, the provisions of Sections 1. “General aspects”, 3. “Expression of rates” and 4. “Advertising” of the rules on “Interest rates in credit operations”.

6. Incorporate as obligated subjects of the provisions established in the rules on “Protection of users of financial services” the other non-financial credit providers covered by the rules on “Non-financial credit providers” and the non-financial credit and/or purchase card issuing companies, for the financings they grant.

7. Incorporate as subjects covered by the provisions established in the rules on “Communication by electronic means for environmental care” the other non-financial credit providers covered by the rules on “Non-financial credit providers”, with the scope provided in the regulation cited first for non-financial credit and/or purchase card issuing companies.

8. Establish that non-financial credit and/or purchase card issuing companies must comply with the provisions of the “Monthly Accounting Information Regime” Section “Claims”, and that the other non-financial credit providers and the non-financial credit and/or purchase card issuing companies that, in accordance with point 3. of this communication, are covered by the rules on “Non-financial credit providers”, must comply with the provisions of the Sections “Transparency” and “Claims” of the “Monthly Accounting Information Regime”.

9. Establish that non-financial credit providers covered by the rules on “Non-financial credit providers” must submit a compliance report made by registered professionals or associations of professionals, with the pertinent certification by the Professional Council of Economic Sciences in which they are registered, it not being a requirement that they be registered in the registry of auditors referred to in the “Minimum Standards on External Audits for Financial Institutions”.

This special report shall be prepared in accordance with the model that is established in due course and verify compliance with the rules issued by the BCRA that are applicable according to the type of non-financial provider in question and be submitted to the SEFyC on an annual basis.

10. The provisions set forth in points 2. to 9. of this communication shall not apply to mutual and cooperative associations, except for the provisions of point 8. regarding the “Transparency” Section for those that are registered or must register in the “Registry of other non-financial credit providers” and for the provisions of the second paragraph of point 4.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

11. Order that points 3. to 9. of this communication shall enter into force according to the following schedule: on 1.12.2020 points 3. and 4., on 1.1.2021 point 5., on 1.2.2021 points 6. and 7., and on 1.3.2021 points 8. and 9.”

In due course we will send you the sheets that, in replacement of those previously provided, must be incorporated into the rules on “Non-financial credit providers”, “Interest rates in credit operations”, “Protection of users of financial services” and “Communication by electronic means for environmental care”.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

María D. Bossio
Deputy General Manager of Financial Regulation