Argentina’s CNV redirects pending trust and fund applications

Three categories of pending Argentine financial-trust and closed-end-fund proceedings now require route-specific treatment. General Resolution 1159/2026 and General Resolution 1160/2026 have applied since 7 August, but they do not treat the two products—or applications already in progress—in the same way.

The chronology is fixed. Argentina’s Comisión Nacional de Valores adopted both resolutions on 5 August. They were published in the Official Gazette on 6 August and entered into force the following day. For an affected pending proceeding, product classification determines the applicable regime; that regime determines what happens to the open file; and the transition outcome determines which document and disclosure controls apply.

1. Classify the product and route

RG 1159 governs financial trusts. It removes the separate low-impact and medium-impact automatic public-offering regimes. The CNV said the low-impact route had recorded no issuances and that the medium-impact route substantially overlapped with the later expanded regime.

For an automatic route, the offering proceeds without prior CNV review of the documents as a condition of authorisation, but the regulator retains its powers of regulation, supervision, inspection and control. The legal owner must therefore identify whether the transaction falls within an automatic route before applying the transition rule to an existing file.

RG 1160 governs closed-end mutual funds, or FCICs. Revised Article 26 states that an FCIC meeting the conditions in Section III receives automatic public-offering authorisation and cannot opt for the prior-authorisation procedure. The regime is named the expanded medium-impact automatic public offering of closed-end fund units.

Investor eligibility remains a separate legal question within that FCIC route. Article 27 provides for acquisition by qualified investors. Article 28 allows an offer to the general public where the maximum issuance does not exceed UVA100 million, or the equivalent in pesos or foreign currency calculated using the prescribed reference exchange rate. That threshold determines the permitted audience for the offer; it does not answer the separate question of how a pending authorisation file transitions.

2. Decide the fate of each affected file

The transition provisions require three distinct results rather than one generic migration:

- A pending application for a new financial trust, started before RG 1159 entered into force and falling within an automatic-offering regime, becomes ineffective without a separate withdrawal request. Article 23 requires the trustee to use the applicable automatic procedure.

- A pending application for authorisation of a new FCIC, started before RG 1160 entered into force and falling within the revised automatic regime, may continue under the general prior-authorisation procedure or move to the automatic route. If it moves, the pending proceeding is archived.

- A pending application to modify an FCIC prospectus or management regulation, where the change falls within the automatic-modification procedure, becomes ineffective without a withdrawal request. The proceeding is archived and the automatic procedure applies.

The choice exists only for the second category: a pending new-FCIC authorisation may remain in the general procedure or move to the automatic route. The cited transition provisions determine the treatment of the other two categories without a separate withdrawal request.

3. Rebuild the disclosure control after routing

The CNV’s 5 August release describes automatic offering as a way to simplify authorisation and reduce processing time. The operative texts preserve a different control boundary: lack of prior document review does not remove CNV supervision, inspection or sanction powers.

RG 1160 makes the information-risk allocation explicit. The fund manager, depositary and other legally responsible parties remain responsible for published information. Repeated amendments caused by inconsistencies, inaccuracies or errors attributable to the parties, rather than market conditions, may lead to disciplinary sanctions.

Where placement agents do not have legal advisers independent from the fund manager’s advisers, RG 1160 requires the prospectus and management regulation to include a risk factor explaining that position and recommending that investors obtain their own legal advice.

RG 1159 applies a similar separation between automatic authorisation and continuing responsibility. A preliminary prospectus or offering document for an automatic financial-trust route must carry the prescribed warning, including that the preliminary document may change and cannot itself be treated as an offer to buy or sell. The definitive prospectus must be published through the CNV’s Financial Information Highway, or AIF, before purchases or sales take place.

As an operational recommendation—not an additional rule—each affected-file decision should record the legal entity, product, selected regime, application status, transition provision and document owner. The supporting review record should also show who checked information released without prior CNV review. That control responds to the resolutions’ retained supervision and sanction powers; it is not stated in the instruments as a prescribed evidence template.

The official materials supply no later implementation deadline that displaces the 7 August entry into force. That is the fixed legal milestone. The immediate internal task is narrower: identify the affected pending proceedings, apply the corresponding transition provision and use the disclosure package attached to the selected route.