Simplified Proceedings Of Public Offering Authorization For Financial Trusts

Author:Mr Juan Diehl Moreno, Sergio Talamo and Micaela A. Varas Bleuer
Profession:Marval O'Farrell & Mairal

With the enactment of General Resolution No. 675, which establishes a simplified authorization procedure applicable to financial trusts that comply with certain requirements, the Argentine Securities Commission (the "CNV") sought to expedite this proceeding, and generate a control process and a more efficient use of resources by facilitating the analysis and processing of information to any investor interested in trust securities.

The aforementioned Resolution regulates a simplified procedure only with regard to frequent issuers of such securities; that is to say, those entities that have issued, in the last twelve months, at least three financial trusts' series with identical characteristics under a global trust securities' program. Moreover, the Resolution requires that the entities acting as trustee and settlor are maintained, as well as the composition of the underlying asset.

Those entities that choose the simplified procedure must submit certain documentation to the CNV on an annual basis and at the moment of requesting authorization for each series of securities. The documentation required by the commission for this purpose is as follows:

Prospectus Supplement of General Terms: must be updated annually and must include all the information that will remain unchanged during the term of its validity (such as Sections related to warnings to investors, risk considerations for the investment, description of trustee and settlor, graphical representation of the trust structure...

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