The National Securities Commission (CNV) confirmed that it is studying the regulation of Labor Termination Fundsthe mechanism promoted by the Government to replace the compensation for dismissal (in the sectors that define it through collective bargaining) and that Congress approved as part of the Base Law.
The president of the CNV, Roberto Silva, speaking at the closing of the 2024 Annual Convention of the Ibero-American Federation of Investment Funds (FIAFIN), organized by the Argentine Chamber of Common Investment Funds (CAFCI).
There, Silva stated: “From a review of the previous regulations relating to funds, it can be seen that the vast majority were linked to current issues. On the contrary, general resolution 1,030 (published this Wednesday in the Official Gazette) by regulating the modifications made by Law No. 27,440 to Law No. 24,083, “Together with the regulation of the Termination Funds under study by CNV, they imply a change of era for the fund industry.”
In his words, in addition to the aforementioned Labor Termination Fund, he referred to the general resolution made official this morning, which dictated the regulations applicable to the special regime of Open Common Investment Funds (FCI) intended for Qualified Investors with the objective of “increase the offer of FCI alternatives”. Specifically, it enabled investments in: ETFs that passively replicate widely disseminated indices referring to stocks, cryptocurrencies and/or commodities; external assets without application of the 25% limit; and local assets, making diversification limits more flexible.
The event program included sessions on Closed Investment Funds, New Industries in the Region, innovative products such as hedge funds in Mexico and regulatory reform in Brazil, sustainability and certification trends, distribution of Investment Funds and tax aspects of FCIs in Argentina, among others. FIAFIN is made up of 13 countries: Argentina, Chile, Brazil, Bolivia, Colombia, Peru, Mexico, Ecuador, Costa Rica, El Salvador, Dominican Republic, Panama and Spain.
What is the Labor Termination Fund?
The regulations that the CNV works on run parallel to those of the National Insurance Superintendency (SSN). It happens that, according to the sanctioned regulations, the system of Labor Termination Fund may be provided by insurance companies, FCI, financial trusts and bank accounts. In the case of the Commission, the regulations will be oriented to the investment instruments that are under its jurisdiction.
The labor reformapproved by Congress in the Base Law and later regulated by the Executive Branch, establishes that Through each sectoral collective agreement the parties (unions and business chambers) They may decide to replace the traditional compensation provided for in the Employment Contract Law with a Labor Termination Fund.
It is about a system that has similarities with the one that already applies to the construction sectoran area that has particular characteristics since employment contracts usually govern during the validity of a work. Its generalization to other sectors (although it is optional) generated criticism from some unions, although certain CGT leaders stated that when negotiated in collective agreements it should not generate alarm.
The Noticias Argentinas agency reported days ago that the SSN, together with the insurers, sought to finalize the details of the regulation of the Cessation Fund alternatives through insurance. “It will be a new product but with the DNA of Retirement and Life policies. You will have the option of contributions and rescue,” explained negotiation sources cited by NA.
“The conditions of the product may vary, adapting to each collective agreement.” and the employee adheres voluntarily. Each agreement will define how the previous years of work are taken. It may be that the agreement determines that the above is paid by traditional employment contract law and the new with the severance fund,” explained the sources involved in the draft. And they added: “The same agreement can also enable different systems (be it insurance or a FCI, for example) and the employee can choose between them.”
Source: Ambito
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