ARGENTINA Law and Practice Contributed by: Santiago J. Mora, Nicolas Garfunkel, Milagros Caneda and May Steward, GPG Advisory Partners
The 2024 FATF Plenary concluded that Argentina had strengthened its AML and CFT framework since its last mutual evaluation in 2010, and highlighted its strong internal co-operation and co-ordination among supervisory and regulatory authorities. 2.16 Reverse Solicitation Argentina has not regulated reverse solicitation in general. However, CNV’s General Resolution No 1016/2024 regulates a safe harbour in reverse solici - tation for securities. Also, Resolution No 1058 takes this circumstance into account as one of the factors to be considered when assessing whether foreign PSAVs are required to register in Argentina. 3. Robo-Advisers 3.1 Requirement for Different Business Models Robo-adviser services can vary, and range from finan - cial advice to the possible assumption and automated management of the client’s investment portfolio based on their profile. Robo-advisers are subject to the same regulations applicable to agents (brokers and investment man - agers) who are authorised to participate in exchanges and markets under the CML and CNV regulations. Through its rules and general resolutions, the CNV regulates different figures that could use robo-advis - ers as an investment tool. Therefore, the use of a robo- adviser by an agent regulated by the CNV will be sub - ject to the general rules applicable to such activity. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers Legacy players continue to carry out their activities within the existing legal framework. Robo-advisers are gaining increasing popularity among investors, with traditional players gradually beginning to implement the use of robo-adviser solu - tions. In particular, some traditional institutions have made significant investments in the digitalisation of their services, driven not only by evolving customer
expectations but also by regulatory developments and broader market trends. These efforts include, for example, enhancements to online investment platforms and the expansion of digital investment services, although fully automated robo-advisory solutions remain limited among tradi - tional players. 3.3 Issues Relating to Best Execution of Customer Trades In line with international guidelines, proper execu - tion of client operations involves knowing the integral profile of the client (their risk profile as well as their financial expectations) and, on the basis of this infor - mation, providing advice in a reasonable manner that is personalised and consistent between the profile of the investor and the recommended trade. 4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities When the online lender is a financial institution (which finances its loans with third-party deposits), the activ - ity is heavily regulated by the BCRA in order to safe - guard the funds of the general public. In this sense, there are restrictions on the amount of the loans that can be granted, the concentration among sectors, etc. Where the online lender is a fintech company (in which case, the main source of funds is own capital and the securitisation of previous loans), its lending activ - ity is subject to the PNFC regulations mentioned in 2.2 Regulatory Regime , which establish the need to register and report to the BCRA, as well as a series of information duties addressed to its clients, and certain obligations and conditions applicable to its operation – including how to calculate rates and impose addi - tional charges, how their contracts should be redact - ed, and how to handle claims. Fintech lenders tend to cater to the credit market, which is not usually covered by traditional lenders – ie, individuals with insufficient credit records.
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