CNV opens consultation on new Labor Assistance Funds in Argentina

The National Securities Commission (CNV) has opened a 15-day public consultation period to regulate the Labor Assistance Funds (FAL), a central component of the Labor Modernization Law. The proposed framework, detailed in General Resolution 1161/2026, establishes how resources intended to cover obligations arising from the termination of employment relationships will be constituted, managed, and invested.

Under the proposal, funds will be financed exclusively through employer contributions. Each company will have an individual account identified by a unique FAL ID. These funds will be treated as separate assets from the employer's general estate and will be characterized as non-transferable and non-seizable. If an employer fails to report a valid FAL ID, the CNV may assign an investment product based on information provided by ARCA.

The regulation allows for the structuring of these resources through Open Labor Assistance Mutual Funds (FCIA FAL) or Labor Assistance Financial Trusts (FF FAL). Permitted investment destinations include national government debt, provincial or Buenos Aires City debt, deposits in banks authorized by the BCRA, and private negotiable obligations issued in Argentina. The project also includes global limits on fees, commissions, and administration costs.