On September 18, 2018, General Resolution 763-E/2018 (the "Resolution"), issued by the Comisión Nacional de Valores ("CNV"), was published in the Official Gazette, which regulates the creation and performance of Closed-end Mutual Funds (the "Closed-end Funds"), according to the amendments introduced by the Productive Financing Law No. 27,440 to Law No. 24,083.
The Resolution regulates following matters:
(a) Investment Regime
Closed-end Funds may only invest in assets located, established, created, issued and/or based in Argentina, except for, inter alia, Closed-end Funds aimed at investing in technological innovation projects with the possibility of regional or global expansion.
(b) Minimum Holders Requirement
Closed-end Funds must have at least five (5) holders, and no holder may hold, directly and/or indirectly, more than fifty one percent (51%) of the units (cuotapartes). Failure to meet these requirements must be solved within a six (6)-month period, which may be extended for another six (6) months. Otherwise, the Closed-end Fund must be liquidated.
(c) Capitalization of Profits
The number of units may be increased as a result of the capitalization of the Closed-end Fund's profits, and units shall be proportionally allocated to the holders.
(d) Deferred Payment of Units
Closed-end Fund's management regulations (reglamento de gestión) may authorize the payment of units to be...