To become an authorized financial entity, an applicant must satisfy the requirements stated by the Argentine Central Bank.

In considering the application for authorization, the Argentine Central Bank shall evaluate the appropriateness of the initiative, the characteristics of the project, the general and specific conditions of the market, and the applicant’s background, responsibility and experience in financial activities.

Requirements can vary depending on the particular regulated activities that the applicant intends to carry out. Broadly, however, the following conditions will need to be satisfied:

• Guarantee of performance - All directors of a financial entity who may be subject to financial penalties under Act 41 of the Financial Entities Act must provide a guarantee of performance.
• Legal address - The financial institution to be set up must establish a legal address in the city of Buenos Aires. This address will allow the Argentine Central Bank to litigate in the courts of the city, except in the case of bankruptcy or credit verifications.
• Shareholdings report - Current and future shareholders must file a report with their participation in any other company (financial or not) in which they have holdings exceeding 5% of the corporate capital.

For the regulatory requirements regarding the process for obtaining authorization to conduct business as a financial entity or securities’ broker, please refer to Q&A 6.