By means of Resolution No. 1276/2026, published today in the Official Gazette, the Ministry of Economy established the investment guidelines to be followed by entities authorized to administer Labor Assistance Funds (Fondos de Asistencia Laboral – “FAL”).
In this regard, it should be recalled that Law No. 27,802 (Labor Modernization Law) created the Labor Assistance Funds, which are intended exclusively to assist with payments due on account of seniority-based severance compensation, compensation in lieu of notice, integration of the month of dismissal, severance payments arising from termination by mutual agreement, indirect dismissals, death benefits, compensation upon termination of fixed-term employment contracts, compensation for permanent total or partial disability, among others.
Decree No. 408/2026 regulated the administration of the FAL, and the Resolution under analysis supplements such regulatory framework by establishing specific limits on the investment of such funds, as detailed below.
Main Provisions
Governing principles (Section 1): Investments must comply with the principles of security, liquidity, diversification, transparency, and preservation of capital.
Eligible instruments (Section 2): Investments may only be made in financial instruments issued in Argentina, namely: National Government and provincial debt securities, deposits with entities authorized by the Central Bank of the Argentine Republic (BCRA), and negotiable obligations issued by private-sector issuers.
Instrument requirements (Section 3): Such instruments must:
(a) be authorized for public offering;
(b) be traded on markets authorized by the National Securities Commission (CNV); and
(c) have an “AAA” rating on the national scale, assigned by at least two rating agencies registered with the CNV.
Yield modalities (Section 4): Eligible instruments may only be included in FAL portfolios when they provide for any of the following yield modalities: Fixed Rate; the Interest Rate on Wholesale Peso Deposits (TAMAR); an adjustment clause providing for capitalization based on the Reference Stabilization Coefficient (CER); or an adjustment clause linked to exchange-rate fluctuations, pursuant to Communication “A” 3500 dated March 1, 2002, issued by the Central Bank of the Argentine Republic (BCRA), or any regulation that may replace or amend it in the future.
Negotiable securities structured as Dual Bonds may also be included in FAL portfolios, provided that they combine any of the aforementioned yield modalities.
Diversification limits (Section 5):
- Deposits with the same entity: maximum of 15% of the fund.
- Provincial debt, in the aggregate: maximum of 15%, subject to a 5% limit per jurisdiction.
- Negotiable obligations, in the aggregate: maximum of 20%, subject to a 10% limit per issuer.
- Instruments with yields linked, in whole or in part, to exchange-rate fluctuations, including the corresponding component of Dual Bonds: up to 10% on an aggregate basis.
Transactions with the administering entity itself (Section 6): FAL funds may not be invested in deposits with, or negotiable securities issued by, the administering entity itself, its controlling entity, its subsidiaries, or its affiliates, except for operational and temporary demand deposits.
Subsequent loss of rating (Section 7): Instruments that cease to satisfy the rating requirement may remain in the portfolio until maturity or may be disposed of in an orderly manner within one hundred eighty (180) calendar days.
Minimum liquidity (Section 8): At least 10% of the fund must be maintained in highly liquid assets with low market risk.
Currency and markets (Section 9): The assets comprising FAL portfolios must be denominated in and payable in Argentine pesos.
In Summary
In summary, the purpose of the Resolution is to ensure that FAL funds are invested prudently and on a diversified basis, while preserving the capital that serves as backing for the fulfillment of payment obligations owed to employees.