The recent General Resolution 1023/2024 issued by the National Securities Commission (CNV) has introduced significant changes to how minors can access the capital markets, allowing teenagers from the age of 13 to open sub-accounts as investors. This regulatory framework aims to promote financial inclusion and foster savings and investment habits from an early age, all within a controlled regulatory environment and with strict protective mechanisms to avoid unnecessary risks.
What does the new regulation establish?
The novelty of this resolution is that it allows teenagers from 13 years old to open a sub-account, which is essentially an account in the capital markets, provided they meet certain formal requirements:
Authorization and Information from the Legal Representative:
Opening the account requires the authorization of a legal representative (parents or guardians). The representative must provide, under a sworn statement, personal data such as name, address, identification number, and email address of both the minor and the legal representative.
Permitted Operations for Minors:
Teenagers holding these sub-accounts are only allowed to engage in specific, limited operations, which reduces their exposure to high financial risks. Specifically, they are authorized to conduct:
Spot Transactions: Buying and selling negotiable securities of both fixed and variable income.
Term Transactions: They are only allowed to carry out collateralized placements (i.e., transactions in which they lend money in exchange for an interest rate).
All transactions must be carried out in trading segments that prioritize price and time, following a transparent system.
Additional Limitations:
Minors are not permitted to engage in complex or high-risk operations, such as derivatives or leveraged financial transactions, ensuring a more controlled environment for learning and investment.
Implementation Timeline:
Brokers, known in Argentina as Settlement and Clearing Agents (ALyC), must adapt their systems and procedures to comply with this new regulation by November 15, 2024. This adjustment includes updating the sub-account opening agreements and ensuring compliance with the new documentary requirements.
A Responsible Approach to Youth Access in the Market
This new regulation reflects a balanced approach. On one hand, it encourages early participation in the financial market, which is crucial for generating practical financial education. On the other hand, the CNV has imposed necessary restrictions to ensure that minors operate in a safe environment without taking on disproportionate risks.
The role of parents or guardians in this regulation is critical, as, although teenagers can operate autonomously once the account is open, the legal representatives must authorize the opening and ensure that the provided information is accurate. This ensures initial control over the minor’s financial activities, while the CNV and ALyCs are responsible for monitoring compliance with the permitted framework.
Impact on Financial Inclusion and Education
General Resolution 1023/2024 is part of a broader context of promoting financial inclusion in Argentina. By allowing teenagers to enter the capital markets, an opportunity is created for them to acquire knowledge about how the financial system works, risk management, and the importance of saving from a young age. Additionally, it is an important step toward developing responsible financial habits, which are essential for long-term economic well-being.
In conclusion, this regulation represents a significant step toward democratizing access to the capital markets, allowing new generations to familiarize themselves with key financial tools in a controlled and responsible manner. While the measure has raised some concerns about exposing young people to market risks, the imposed limitations and the proposed regulatory framework are designed to ensure that access is accompanied by the necessary safeguards.
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