The Argentine Securities Commission (CNV) issued Resolution No. 710 (Resolution) by means of which it has created a new category of broker denominated Global Investment Advisory Agent (Advisor) who shall be able to advise on investments related to local and foreign securities.

The Resolution sets forth that only local corporations can obtain authorization to act under this category. The Broker will be allowed to: (i) provide advice on capital markets investments; (ii) manage transaction orders; and/or (iii) manage investments portfolios. Moreover, the Agent shall be able to manage portfolios including local securities, but also securities listed in foreign markets.

On the contrary, the Broker will not be allowed to provide custody services or publicly offer unauthorized securities. Therefore, the Broker shall negotiate agreements with other categories of brokers for the development of the business. In addition, for foreign investments, the client will be to be a qualified investor. Otherwise, an express consent from the client will have to be obtained in order to provide any advice. The purpose of this consent is to protect medium and minor investors.