On May 13, through General Resolution 838/2020, the National Securities Commission (CNV) updated the provisions concerning peso investments made by Common Investment Funds (CIFs). These are pooled investments made through instruments both issued nationally and those denominated in foreign currency.
The measure also covers foreign currency investments in corporate debt and in provincial and municipal public debt securities, acquired prior to the entry into force of this resolution.
The purpose of the regulation is to protect CIF investments in pesos and includes clarifications to establish the scope of the treatment given to CIFs which own negotiable obligations issued and negotiated in Argentina, and/or provincial and municipal public debt securities issued in foreign currency as part of their portfolio. The CNV has ruled that such investments may be kept in their portfolios until final maturity.
The CNV has also stated that CIFs in foreign currency arising from coupons and/or redemption payments may be reinvested in instruments either issued in foreign currency to finance SMEs and commercial initiatives which will benefit regional economies and infrastructure, and/or in provincial and municipal public debt securities, also issued in foreign currency.