The measure establishes a differentiation between classic and dynamic money market mutual funds.
The National Securities Commission (CNV) modified the Regime of Common Investment Funds (FCI) Open Money Market (Money Market).
Through general resolution No. 1038, the Board of Directors of the CNV arranged a differentiation between Money Market Common Funds Classic and Dynamic.
New regime: the modifications of the CNV
The resolution establishes that the Funds that are offered to the investing public as Money Funds Classics will have a limitation of 20% of the Fund’s net assets regarding the acquisition of debt securities less than one year oldwhich will not apply to the Dynamic Funds to which the 100% percentage will continue to apply.
Likewise, it is expected that the Management Regulations incorporate a special section detailing distinctive risk considerations depending on the type of respective Fund.
Finally, transitional provisions are established in relation to the FCIs that are in operation at the time of the issuance of the measure, contemplating a adaptation period of 45 calendar days counted from its publication.
“The initiative aims to promote regulatory improvements aimed at guaranteeing adequate investor protection, based on the clarity and precision necessary when informing the objectives and investment policy that distinguish these instruments, especially the classic Money Markets where it must be very the possibility of suffering any capital loss is limited,” the agency said in a statement.
Source: Ambito
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