2018 - YEAR OF THE CENTENARY OF THE UNIVERSITY REFORM

CENTRAL BANK
OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 6523
14/06/2018

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
RUNOR 1 - 1405
OPRAC 1 - 948

Spot transactions to be settled and forward transactions, repos, collateralized loans, other derivatives and with mutual investment funds. Adaptation . ____________________________________________________________

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

• “- Replace point 7.2.2.1. of the rules on “Spot transactions to be settled and forward transactions, repos, collateralized loans, other derivatives and with mutual investment funds” with the following:

“7.2.2.1. On own account.

Financial institutions may not carry out any transaction that implies providing liquidity to mutual investment funds –with respect to which they perform or not the functions of managers, custodians, placing agents or promoters–, such as the purchase or assignment of the assets that make up their portfolio, unless they are instruments of monetary regulation of the BCRA or securities, public or private, with normal and habitual quotation, in the country or abroad, widely disseminated and easily accessible to public knowledge, in transactions agreed at market prices.”

For this purpose, we send you in annex the sheets that, replacing those previously provided, should be incorporated into the reference rules. 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

SPOT TRANSACTIONS TO BE SETTLED AND FORWARD TRANSACTIONS, REPOS, COLLATERALIZED LOANS, B.C.R.A. OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS
Section 7. Transactions with mutual investment funds.

7.1. Name.

The name of the mutual investment funds with respect to which financial institutions act, directly or indirectly, as managers, custodians, placing agents or promoters must allow clearly distinguishing that they are independent from each other.

The use of common words or the same root, abbreviations, acronyms, symbols, etc. that identify them with financial institutions 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 institutions.

7.2. Restrictions.

7.2.1. Holding of shares.

7.2.1.1. Prohibition.

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

7.2.1.2. Exceptions.

Shares of new mutual investment funds for 120 consecutive days counted from the day the public offering is launched, with respect to which financial institutions act as managers, custodians, placing agents or promoters, to the extent that the holdings –calculated on a monthly average– do not exceed the amount equivalent to 2 % of the integration of the minimum cash of the entity of the corresponding month or $ 2,000,000, whichever is greater.

7.2.2. Transactions with fund assets.

7.2.2.1. On own account.

Financial institutions may not carry out any transaction that implies providing liquidity to mutual investment funds –with respect to which they perform or not the functions of managers, custodians, placing agents or promoters–, such as the purchase or assignment of the assets that make up their portfolio, unless they are instruments of monetary regulation of the BCRA or securities, public or private, with normal and habitual quotation, in the country or abroad, widely disseminated and easily accessible to public knowledge, in transactions agreed at market prices.

Version: 3rd. COMMUNICATION “A” 6523
Effective date:
15/6/2018
Page 1

“SPOT TRANSACTIONS TO BE SETTLED AND FORWARD TRANSACTIONS, REPOS, COLLATERALIZED LOANS, OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS”

ORDERED TEXT			SOURCE RULE						OBSERVATIONS
Sect.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Par.
6.	6.2.		"A" 4742				1.		According to Com. "A" 6472. Includes interpretive clarification.
	6.2.1.		"A" 4742				1.
	6.2.2.		"A" 4742				1.
	6.2.3.		"A" 4742				1.		According to Com. "A" 5740, 6232 and 6472.
	6.2.4.		"A" 4742				1.
	6.2.5.		"A" 4742				1.
	6.2.6.		"A" 4742				1.
7.	7.1.	1st	"B" 5484					1st and 2nd	According to Com. "A" 2953 (point 2., par. 1st).
		2nd	"B" 5484					2nd	According to Com. "A" 2953 (point 2., par. 2nd).
	7.2.1.		"A" 3027
	7.2.1.1.		"A" 2953				1.	1st	According to Com. "A" 2996 (Annex, point 1., par. 1st).
	7.2.1.2.		"A" 2953				1.	1st	According to Com. "A" 2996 (Annex, point 1., par. 2nd b) and 3558.
	7.2.2.		"A" 2996	sole			2.
	7.2.2.1.		"A" 2953				1.	2nd	According to Com. "A" 2996 (Annex, point 2., par. 1st), 6522 and 6523.
	7.2.2.2.		"A" 2996	sole		2.	2°		According to Com. "A" 6472. Includes interpretive clarification.
	7.2.3.	1°	"B" 6566			1.			According to Com. "A" 2996 (Annex, point 3.).
		2°	"B" 6609
	7.3.1.		"A" 3027
	7.3.1.1.		"A" 2996	sole			4.1.	1°
	7.3.1.2.		"A" 2996	sole			4.1.	2°	According to Com. "A" 3027.
	7.3.2.		"A" 2996	sole			4.2.		According to Com. "A" 3027.
	7.3.2.1.	1°	"A" 2953				1.	3°	According to Com. "A" 2996 (point 4.2., para. 1°).
		2°	"A" 2996	sole			4.2.	3°
	7.3.2.2.		"A" 2953				1.	4°	According to Com. "A" 2996 (point 4.2., para. 2°).
	7.4.1.		"A" 3323						According to Com. "A" 5728.
	7.4.2.		"A" 3323						According to Com. "A" 4875 and 6472.