General Resolution Nº 328

GENERAL RESOLUTION No. 328 AMENDING SECTION 38, CHAPTER 10, OF THE RULES AND PROCEDURES. MUTUAL FUNDS.

BUENOS AIRES, March 4, 1999

IN VIEW OF these records entitled "General Resolution on the amendment of section 38 of Chapter X of the RULES AND PROCEDURES. (N.T. - 1997) pending on file No. 209/99, and

WHEREAS:

Section 38, Chapter X, of the RULES AND PROCEDURES (N.T. - 1997) sets forth the guidelines that shall be considered in the announcements made by mutual funds managing corporations.

For the purpose of reaching a better understanding of said announcements, it is advisable that shareholders receive enough information about the kind of investment they are making, drawing a distinction between mutual fund shares and deposits with financial institutions.

Consequently, measures should be taken in order to avoid misunderstandings among investors in connection with the capital reserves provided for their investment in such funds.

The NATIONAL SECURITIES COMMISSION is empowered to adopt the necessary regulations in order to adjust the rules and procedures to the current economic context. This general resolution is adopted by virtue of the powers granted by Section 32 of Law No. 24,083 and Section 1 of Executive Order 174/93.

NOW THEREFORE,

THE NATIONAL SECURITIES COMMISSION

RESOLVES :

SECTION 1 – Section 38, Chapter X, Mutual Funds of the NATIONAL SECURITIES COMMISSION RULES AND PROCEDURES (New Text 1997) is hereby superseded by the following provisions:

SECTION 38 – DISCLOSURE. The mandatory disclosure required from "mutual funds", as per Section 27, paragraph a) of Law No. 24,083, "shall represent, without exception, ONE THOUSAND (1000) shares.

The disclosure to be made by the placement agents in regard to said activity shall be expressly approved by the managing corporation, which shall comply with the applicable provisions of Law No. 24,083 and its Regulatory Executive Order.

Mutual fund managing corporations shall perform the disclosure set forth by Section 27 of Law No. 24,083 through:

1. Any official gazette of a stock exchange or securities market; or
2. Any major newspaper, from the city where the managing corporation’s main offices operate, having a specialized economic and financial section.

In regard to the disclosure established by paragraphs b), c) and d) of the abovementioned section, the interested parties may –upon the Commission’s previous consent- fulfill their disclosure duty at the relevant times, by publishing an advertisement in any media that complies with the guidelines set forth by this Section, mentioning the address and business hours, and indicating which copies of the relevant instruments will be available at the offices of the depositary company

"The information requirement established by Section 11 of Law No. 24,083 shall be deemed met by means of a publication stating that the Commission has approved the original text of the "Management Rules of Procedure" or any later amendment thereof and expressly mentioning that copies of the relevant text are available to the interested parties at the main offices of the Depositary company.

PROMOTIONAL DISCLOSURE. The Managing Corporation, the Depositary Company and the placement agents or other persons authorized by the Commission are empowered to conduct all and any necessary business for the promotion and development of the fund, including, but not limited to, promotional disclosure through any means. Regardless of the means used, under no circumstances, the disclosure shall ensure or guarantee the investment results; the same shall conform to the applicable provisions and shall specify the existence of the managing corporation and of the Depositary with the same degree of importance. Should the Depositary company be a bank, the disclosure shall make clear, in legible and highlighted characters, that neither the "investments in shares of the fund" constitute deposits in the Depositary companies as financial entities, nor do they benefit from any of the guarantees that said sight or term deposits might enjoy pursuant to the rules and regulations enforceable on the bank at any given time. Names, words, phrases, abbreviations, acronyms or symbols that could lead shareholders to take the fund for the Depositary financial entity shall not be allowed. Likewise, any written disclosure shall include a caption specifying the actual expenses and commissions managed by the fund. Brochures shall include an example of the impact of expenses and commissions on the share value.

SECTION 2 – The entire amendment to the Management Rules of Procedure is hereby excluded from this duty whenever the amendment has the sole purpose of adding the provision approved by Section 1 herein.

SECTION 3 – With respect to the amendment of the Management Rules of Procedure, By-laws, and stationery of the fund, this General Resolution shall become effective one hundred and eighty (180) days after its publication in the Official Gazette and it shall become effective immediately for any other purpose. Likewise, the caption mentioned in Section 1 shall appear in highlighted characters in all the offices where the fund shares are promoted and/or sold.

SECTION 4 – Be noticed, published, referred to the National Board of Official Registration and Filed. GUILLERMO HARTENECK (Chairman). GUILLERMO A. FRETES (Deputy Chairman). JORGE LORES (Director). J. ANDRES HALL (Director).