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CNV sets new requirements for risk management in the capital market: what it is about

CNV sets new requirements for risk management in the capital market: what it is about
February 23, 2024 – 08:38

The changes are based on international best practices and seek to improve risk management, transparency and efficiency.

Mariano Fuchila

The National Value Comission (CNV) published this Friday in the Official Gazette a general resolution that establishes new requirements for risk management in the capital market. According to the official text, these changes are based on “international best practices” and seek to improve the stability, integrity and sustainability of the Argentine marketwhile seeking to protect investors.

The main changes

Implementation of a comprehensive risk management framework: six types of risks are established that must be considered; general business, legal, market, credit, liquidity and operational.

Good governance structure and mechanisms for central counterparties (CCP): entities that act as CCP must have a structure and clear decision-making mechanisms and accountability.

Comprehensive disclosure framework: required of Markets and Clearing Houses that provide clear and complete information about their rules, procedures and risks.

Limitation of information on Guarantee Funds: information about the assets that make up these funds can only be provided to financial entities authorized by the Central Bank of the Argentine Republic.

Objectives of the changes

  • Reduce systemic risk in the capital market.
  • Strengthen the stability, integrity and sustainability of the market.
  • Protect investors from possible risks.
  • Promote transparency and efficiency in the market.

It should be remembered that the general resolution came into force on the day of its publication in the Official Gazette, that is, this Friday, February 23. Likewise, the regulations establish deadlines for the implementation of the changes and The CNV may request additional information from the Markets and Clearing Houses..

The official text emphasizes that the resolution It is an important step to improve the Argentine capital market and protect investors.

Source: Ambito

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