The National Securities Commission (CNV) put the automatic authorization for closed-end credit funds to public consultation by market players. What do they imply?
The National Securities Commission (CNV), As the enforcement authority of the Capital Markets Law, it put to public consultation the automatic authorization regime for Closed credit funds. It did so through General Resolution 1042/2024 published this Thursday in the Official Gazette.
The objective is to submit to consultation of all capital market actors the automatic authorization regime for public offerings for Common Investment Funds (FCI) Closed Credits, intended exclusively for qualified investors. This regime includede specific requirements such as the maximum issuance amount of 7 million Purchasing Value Units (UVA) and simplified procedures to guarantee transparency and protection for investors.
Public offering documents will not be reviewed by the CNV, but they must comply with the principles of equity, transparency and protection of the investing public. Besides, The regime includes reporting obligations, such as the publication of financial statements and quarterly reports on credit collection.
The regulations seek streamline and deepen the capital market, guaranteeing integrity and transparency, without giving up control and protection of public savings. Its implementation will be carried out through the “Participatory Development of Standards” procedure, promoting dialogue between the CNV and market participants.
FCI Closed: how the public consultation of the CNV will be carried out
According to the Resolution, the opinions and/or proposals that will be made through the website are authorized. www.argentina.gob.ar/cnv.
Also there is a form like model to enter opinions and/or proposals. The deadline is 25 business days to make the presentations and the validity of this decree is two days, starting from the day following the day of its last publication.
What are closed FCIs?
The Closed FCIs are established with a maximum fixed amount of shares which are issued at the placement stage and whose quantity cannot increase or decrease to the extent that no new subscriptions or redemption requests will be received until the dissolution of the closed FCI in question or until the completion of the investment plan determined in the their respective management regulations and/or issuance prospectus.
Consequently, in the case of closed FCIs Only shares can be subscribed at the time of the initial offer. After that time and throughout the life of the FCI, the investing public will only be able to acquire or sell shares in the securities markets.
In this sense, the shares of the closed FCIs They may only be traded in institutionalized markets organized and authorized by the CNV.
Source: Ambito
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