meta_id 3045705

Argentina's National Securities Commission (Comisión Nacional de Valores, CNV) has expanded the individual investment percentage limits for money market funds (fondos comunes de inversión de dinero o Money Market Clásicos) in fixed-term deposits. The measure, developed through coordinated monitoring with the Central Bank of the Argentine Republic (Banco Central de la República Argentina, BCRA), increases the maximum investment limit in non-cancellable fixed-term deposits from 50 percent to 60 percent of fund assets. This increase applies when the average life of assets valued at accrual does not exceed 30 calendar days. Under this condition, the required liquidity margin may be constituted by an amount equivalent to no less than 65 percent of the total percentage of accrual-valued assets the fund holds in its portfolio. Additionally, the CNV increased the investment limit in cancellable fixed-term deposits from 50 percent to 60 percent of fund assets, while maintaining the combined maximum limit of 70 percent for investment across both fixed-term deposit modalities. The modifications aim to improve efficiency in asset allocation and optimise returns for investors while maintaining prudence principles and adequate risk and liquidity management for these funds. The changes are outlined in CNV Resolution General (RG) 1126. These adjustments reflect the CNV's ongoing coordination with the BCRA to monitor and refine regulatory frameworks governing money market fund operations in Argentina.