The Argentina Securities Commission (CNV) issued General Resolution No. 1071 creating a special regulatory regime for “Employment Termination” Collective Investment Products under Decree No. 847/2024. The rules implement the decree’s Employment Termination System, a collectively bargained alternative that can replace the statutory seniority severance payment and other termination-related compensation items, with the resulting “Employment Termination Fund” required to be managed through Open-End Common Investment Funds (FCI) or Financial Trusts (FF). Under the regime, fund units or trust securities can be structured at an individual, company or sector level, and the parties can freely agree the employer contribution as a percentage of pay or a fixed amount and its frequency. The Employment Termination Fund is protected from seizure, and the vehicles may only accept subscriptions linked to employer and/or worker contributions; where the employer contributes, the units or trust securities are assigned subject to a suspensive condition in favour of workers, the company or the sector. For FCIs, the governing bodies can set investment policies, objectives and eligible assets within the diversification rules applicable to open-end funds, and must adapt fund documentation to the regime; once ownership of units is transferred to the worker, they may dispose of them but cannot make new subscriptions. For FFs, a prospectus or prospectus supplement is not required to be prepared, filed or published on the CNV website, investment policies must align with the regime’s purpose, additional settlors are permitted, and additional trust securities may be issued. The final text reflects non-binding comments received during the public consultation launched under General Resolution No. 1066, with amendments introduced following CNV technical review.

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