On March 10, the National Securities Commission issued Resolution 828/2020 which regulates the requirements to be met by Common Investment Funds (CIF, for its acronym in Spanish) to be considered investment alternatives for fund repatriation, as established by the Social Solidarity and Productive Reactivation Law (27,541). This bill came into force March 10, 2020.

The resolution stipulates that subscriptions arising from the repatriation of funds must be allocated to a specific share type. Meanwhile, open CIFs to be created under this regime must invest at least 75% of their holdings in assets issued and negotiated, and may invest the remaining percentage in assets issued and negotiated in countries members of Mercosur and/or Chile.

On the other hand, existing or to-be-created closed CIFs must invest exclusively, directly and/or indirectly, in assets located, constituted, originated, issued and/or located in the country.