The CNV advances in the regulation of ALyCs: what are the new modifications

After the creation of a new subcategory of ALYCS AGRO For those agents that carry out grain, agricultural and agro-industrial brokerage activities, now the National Securities Commission (CNV) continues to make progress in adapting the regulations both for this new category and for the comprehensive ALYCs and established new changes for the category of Trading Agent (AN). At the same time, also He stressed the limits of operation.

The objective, according to General Resolution 967/2023, is to “strengthen the control and supervision objectives” by the CNV. “It is essential to establish specific regulatory requirements regarding the action guidelines of the Agents affected by this regulatory reform, in order to allow an adequate exercise of the control and supervision powers assigned to the CNV, as well as to incorporate certain provisions in relation to with the account opening agreements and the settlement and compensation agreements to be entered into by those with the Integral ALyC”.

In this sense, the CNV points out that these regulations “are aimed at developing the capital market, mitigating risks, facilitating operational traceability and protecting the interests of the investing public, guiding principles of capital market regulation and essential functions of the CNV”.

ALYCs: what are the new modifications

In an extensive statement, the CNV establishes the requirements that Trading Agents (AN) must meet both for their own portfolio and for third-party clients. At the same time that he listed the limits of action.

As Trading Agents, they must meet the following requirements both for activities with their own portfolio and for third-party clients:

a) Provide advice regarding investments in the capital market.

b) Act in primary placement and secondary trading through the Market Trading Information Systems authorized by this Commission, entering -directly- offers in primary placement and/or registering -directly- operations in secondary trading.

c) Place orders directly, in accordance with the guidelines established in the following article, to carry out purchase and/or sale operations abroad of financial instruments that have authorization from Securities Commissions or other control agencies of countries that are not included in the list of non-cooperative jurisdictions for the purposes of fiscal transparency, under the terms of article 24 of the Annex to Decree No. 862/2019 and its amendments, and that are not considered high risk by the Group of International Financial Action (FATF). Likewise, the instruments must be authorized to be marketed in those jurisdictions to investors according to the client’s risk profile. Said operations may only be carried out with respect to clients who have the status of qualified investors in the terms established in article 12 of Section I of Chapter VI of Title II of these Regulations, with the exception set forth in subparagraph m) of article 12 of the present Chapter.

d) Referencing Mutual Investment Funds to their clients, having previously signed the pertinent agreement with at least one Agent for the Placement and Comprehensive Distribution of Mutual Investment Funds that also has the quality of ALyC-INTEGRAL.

e) Provide services tending to act as managers between the ALyC-INTEGRAL and the clients of the AN with respect to the functions included in the agreement for the liquidation and compensation that binds them, this to the extent that they always act on behalf and order of the ALyC- INTEGRAL, and only in the case of:

e.1) Checks issued by the ALyC-INTEGRAL in favor of the clients of the AN or vice versa, observing the requirements set forth in the last paragraph of article 3 of this Chapter and in subparagraph b) of article 3 of Title XI of these Rules.

e.2) In the case of NAs that simultaneously carry out grain, agricultural, and agro-industrial brokerage activities in general and/or ancillary to them, the funds of third-party clients of such NAs, coming and/or originating exclusively , due to and/or on the occasion of the aforementioned activities, to the extent that:

e.2.i) the aforementioned NAs are: (a) duly authorized and registered in the Single Registry of the Agri-Food Chain (RUCA) maintained by the Ministry of Agriculture, Livestock and Fisheries of the Nation, or the enforcement authority that in the future it will continue for all its purposes; (b) included in the Fiscal Registry of Grain and Legume Operators SECA under the terms of RG AFIP 2300/2007 and its amendments and/or supplements; and (c) registered in the Simplified Agricultural Information System (SISA);

e.2.ii) the third-party clients of the NA have chosen to carry out operations in the capital market and integrate them with said funds, only, through the specific bank account owned by the NA assigned to the aforementioned activities of grain, agricultural and agro-industrial brokerage in general and/or accessory to these. For such purposes, the aforementioned clients must: (a) be registered in the SISA system indicated in the preceding section; and (b) be specially identified by the NAs through the incorporation of an additional section to the provisions of Annex I of Chapter I of this Title, expressly indicating their CUIT and activity carried out, as an affidavit, all of which must be kept in the client’s file together with the respective supporting documentation; and

F) In their relationship with their clients, NAs may:

i) operate through specific instructions given by each operation; and

ii) exercise discretionary administration -total or partial- of investment portfolios on behalf and in the interest of its client, having an express mandate to do so – under the terms of article 19 of Chapter VII “Common Provisions” of this Title.