Argentina Drafts Hack Reporting and 15% Deal Rules

Argentina’s securities regulator, the Comisión Nacional de Valores (CNV), is proposing new disclosure rules for listed companies. The draft, known as General Resolution 1171, aims to modernize the material events regime to provide greater certainty in Argentina's capital markets.

Companies with shares listed on the NYSE or Nasdaq would be required to report certain events immediately through the regulator’s online filing system. These material events include cyber incidents, significant market rumours, and large deals or losses. For instance, losses exceeding 15% of the company's equity or sales of stakes in other companies worth more than 20% of equity would need to be disclosed.

The draft also includes specific reporting requirements for cybersecurity incidents that could significantly disrupt business operations. Companies must provide information on the known and foreseeable consequences of such incidents, as well as the steps taken in response. Additionally, the CNV emphasized the importance of timely disclosure, stating that companies must report events immediately without waiting for the next financial statements.

The draft does not impose specific deadlines for reporting events, but rather emphasizes the immediate duty to report. Companies can submit requests for postponement of disclosure, but these requests must be approved within five business days by the CNV board. Companies can also correct or deny false or inaccurate reports made by third parties in a formal filing.

The CNV is reviewing disclosure rules in various jurisdictions, including Spain, the European Union, the United States, and the United Kingdom. The proposed rules align with a broader capital-market overhaul that the regulator is advocating. The final rules are expected to be approved by the CNV board, but the specific timeline and any changes to thresholds remain uncertain.