ARGENTINA Law and Practice Contributed by: Santiago J. Mora, Nicolas Garfunkel, Milagros Caneda and May Steward, GPG Advisory Partners
the use of a robo-adviser by an agent regulated by the CNV will be subject 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 activi - ties within the existing legal framework. Although robo-advisers are gaining increasing popularity among investors, traditional players have not yet widely implemented the use of robo-adviser solutions. 3.3 Issues Relating to Best Execution of Customer Trades In line with international guidelines, proper exe - cution 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 information, providing advice in a reasonable manner that is personalised and consistent between the profile of the investor and the recommended trade.
its lending activity is subject to the PNFC regu - lations 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 obli - gations and conditions applicable to its opera - tion, including how to calculate rates and impose additional charges, how their contracts should be redacted, and how to handle claims. Fintech lenders tend to cater to the credit mar - ket, which is not usually covered by traditional lenders; ie, individuals with insufficient credit records. Further, under Law No 27,739, PNFCs were included as reporting subjects. Therefore, in addition to the obligations that may apply to them under the scope of the BCRA, their activ - ity is now supervised by the UIF (as was the case with financial institutions). 4.2 Underwriting Processes Fintech companies operating in the online credit market rely on various digital onboarding sys - tems to identify and link with clients remotely, using digital documents and electronic signa - tures. However, these systems vary in terms of their security measures. To reinforce customer identification and credit risk prediction, these companies are increasingly utilising the opportunity to collect, process, and cross-check customer information. Recently, the BCRA and the UIF have also authorised banks to introduce a fully digital onboarding experience, which has led to the emergence of 100% digital financial entities. Also, under Law No 27,739, PNFCs were includ - ed as reporting subjects, and must comply with
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 depos - its), the activity is heavily regulated by the BCRA in order to safeguard 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),
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