12 Ago 26 General investment guidelines for the Labour Assistance Fund (FAL)

Agustín Cerolini, Martín Chindamo, Marcos Mc Lean

Through Resolution 1276/2026 (the "Resolution"), the Ministry of Economy established the
general investment guidelines to be observed by the entities authorized to manage such
funds (hereinafter, the "Authorized Entities") when investing the resources of the Labor
Assistance Funds ("FAL" by its acronym in Spanish), created by Law No. 27,802 and
regulated by Decree No. 408/2026.
Eligible Instruments
FAL resources may only be allocated to:
 Debt securities issued by the National State;
 Debt securities issued by the provinces and the City of Buenos Aires;
 Deposits held with financial institutions authorized by the Central Bank of the
Argentine Republic ("BCRA" by its acronym in Spanish);
 Negotiable obligations issued in Argentina by private issuers.
Provincial debt securities and negotiable obligations must have public offering
authorization, be traded on markets authorized by the National Securities Commission
("CNV" by its acronym in Spanish), and hold a national-scale "AAA" risk rating issued by at
least two registered rating agencies.
If an instrument loses the required rating after acquisition, it may be held in the portfolio
until maturity or disposed of in an orderly manner within 180 calendar days. While the
noncompliance persists, no new instruments from the same issuer may be acquired.
In addition, eligible instruments must provide for one of the following yield structures: Fixed
Rate, TAMAR, adjustment by CER, or adjustment linked to the exchange rate pursuant to
BCRA Communication "A" 3500. Dual Bonds structured as negotiable securities are also
permitted, provided they combine any of the yield structures set forth above.
All assets must be denominated and payable in pesos, and Authorized Entities are
prohibited from investing in instruments issued by themselves, their controlling company,
subsidiaries, or affiliates, except for demand deposits of an operational nature.
Diversification Limits
In order to limit concentration risk, the Resolution establishes the following caps calculated
on the fund's total net worth:
 Deposits held with a single financial institution and its affiliates: up to 15%;
 Sub-national debt: up to 15% in the aggregate and 5% per jurisdiction;
 Negotiable obligations: up to 20% in the aggregate and 10% per issuer;
 Instruments with yields linked to the exchange rate: up to 10% in the aggregate.
Minimum Liquidity
Authorized Entities must maintain, at all times, at least 10% of the FAL's net worth invested
in highly liquid, low market-risk assets, in order to ensure the availability of funds for the
payment of the benefits set forth under Law No. 27,802.

Finally, the Resolution provides that the CNV must issue supplementary regulations within
45 days of its entry into force.