Argentina’s National Securities Commission (CNV) has approved the opening of a public consultation on the creation of a new special regime for sustainable collective investment instruments. This is part of the consolidation of the strategic agenda that seeks to draw resources from the capital market to various sectors of the real economy, on an inclusive and federal basis.
The public consultation, which will last 10 working days, includes both a special regime for the constitution of sustainable open-ended Mutual Funds (MIFs) and another that promotes sustainable collective investment products.
The sustainable investment instruments are part of the Sustainable Financing Program that the agency has also approved. This programme, which was designed to promote a domestic capital market that incorporates aspects related to good governance and the social and environmental impact generated by investments, includes the creation of technical skills in the area of sustainable finance.
As a precedent, the CNV had issued RG 788, which created the “Guidelines for the Issuance of Social, Green and Sustainable Negotiable Securities in Argentina”, which constitutes the conceptual framework for specific financial instruments that generate social, environmental and/or positive governance impact through the capital market.
Under the approved regulation, the constitution of both closed-end FCIs and Financial Trusts (FF) with public offering in compliance with the provisions of the guide is contemplated, as well as the creation of open-end FCIs whose special investment objective is the issuance of negotiable securities with environmental, social and governance (ESG) impact.
In addition to the contents of the respective regimes applicable to FFs and closed-end ICFs, the new regulations establish the minimum content of the prospectus or its supplement depending on the investment purpose, consolidating the requirements of both instruments. In particular, the incorporation of a special section in the offering documents with the identification and credentials of the independent expert appointed to prepare the external review reports is envisaged.