Argentina - Despite heavy pressure exerted not only by the Argentine Mutual Fund Association, the AFJP Association and the Private Pension Fund Management Association (ASAP), but also by many of the affected banks, the Argentine AFJP Superintendent has announced its intention to stand firm on most of the language contained in Instruction 018, which imposed severe restrictions on pension fund investments in local mutual funds.

During the next few days, the Superintendent is expected to publish a note to clarify the instruction, aimed at clearing up a number of doubts. It will, for example, authorize the purchase of equities issued in Brazilian reals, an operation which according to Article 1, paragraph (b) was banned because of Brazil's poor risk-rating as a currency issuer. In addition, it will make clear that the enactments made by mutual fund company boards of directors constitute a valid safeguard for complying with Article 6.

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