The Central Bank of Uruguay published a public statement explaining that, since 2018, it has carried out 11 supervisory actions involving companies offering “livestock investments” and has intervened where offerings appeared to resemble unregistered financial products. Through its Financial Services Superintendency, the central bank reviewed whether the marketed arrangements were genuine livestock contracts or instead deposits, individual loans, investment funds, or public offerings of securities without the required registration of the instrument and issuer. The interventions required firms to provide corporate and accounting records, client lists, standard contracts, and detailed documentation for a sample of signed client agreements; where the information did not demonstrate a livestock investment, firms were instructed to refrain from advertising to investors, with some later amending their business model and resubmitting contracts to address supervisory observations. The central bank also reiterated that businesses dedicated solely to cattle breeding, fattening, or livestock capitalization that do not present the cited shortcomings are not regulated or supervised by the BCU under Article 34 of its Charter, while unauthorised financial activity remains within its enforcement powers, and its president noted that expanding the perimeter to cover these contracts would require a legal change.
Central Bank of Uruguay 2025-01-23
Central Bank of Uruguay outlines 11 interventions in livestock investment offers and orders some firms to stop investor advertising
Since 2018, the Central Bank of Uruguay has conducted 11 supervisory actions on companies offering "livestock investments," intervening when offerings resembled unregistered financial products. Firms had to provide documentation, and those failing to prove genuine livestock investments were told to stop advertising. The central bank clarified that businesses focused solely on cattle breeding or livestock capitalization without regulatory issues are not supervised under its current mandate, with any expansion needing legal changes.