Official Gazette: January 1, 1999

IN VIEW OF File No. 636/98 of the NATIONAL SECURITIES COMMISSION record and Laws 17,811 and 22,169 and supplemental regulations, and

WHEREAS:

Under the provisions stated in the above introduction, the NATIONAL SECURITIES COMMISSION was granted autarkic powers, its relationship with the NATIONAL EXECUTIVE POWER being maintained through the COORDINATION SECRETARIAT of the MINISTRY OF ECONOMY AND PUBLIC WORKS AND SERVICES. This Authority shall have jurisdiction throughout the ARGENTINE REPUBLIC to control individuals and legal persons involved in the public offering of securities.

Section 2 of Law 22,169 states that the NATIONAL SECURITIES COMMISSION is exclusively responsible for the duties, jurisdiction and powers that Laws 22,315 and 19,550, as amended, grant to the INSPECTION BOARD OF LEGAL ENTITIES in connection with corporations that make public offering of their securities within the Argentine Republic.

Executive Order No. 621, dated May 19, 1988, authorized the NATIONAL SECURITIES COMMISSION to enforce the provisions of Executive Order No. 157, dated July 14, 1978, related to the collection of incorporation and annual rates within its jurisdiction, on corporations making public offering of their securities according to the provisions of Laws 17,811 and 22,169.

Said Executive Order No. 1547/78, which served as the basis for the adoption of Executive Order No. 621/88, was repealed by Executive Order No. 360, dated March 14, 1995. The latter authorized the INSPECTION BOARD OF LEGAL ENTITIES to collect a fee for any service rendered in the discharge of the duties and powers granted by Law No. 22,315 and its Regulatory Executive Order No. 1493/82.

In turn, Executive Order No. 67, dated January 24, 1996, sets forth that the INSPECTION BOARD OF LEGAL ENTITIES shall collect the rates established herein for the services rendered by virtue of the functions and powers granted by the above-mentioned provisions, and repeals sections 1 through 7, and 10, 11, 13, 14 and 15 of Executive Order No. 360/95.

Pursuant to the provisions of Executive Orders No. 1493/82, No. 360/95 and No. 67/96, the INSPECTION BOARD OF LEGAL ENTITIES collects certain rates and tariffs from corporations that do not resort to public saving. Therefore, corporations with stronger shareholders’ equity do not pay contributions for the services they receive from the NATIONAL SECURITIES COMMISSION.

For said reason, and taking into account the volume and importance of the Commission’s control functions, it is necessary to empower the CNV to collect administrative rates for the services it renders to corporations making public offering of their securities, control that was formerly in the hands of the INSPECTION BOARD OF LEGAL ENTITIES .

The charging of tariffs on services to be used to cover the costs derived from control activities is taken from the systems of several countries with capital market grades similar to those of Argentina, and from different tariff and administrative rates systems established in our country, for the activities of specific regulatory authorities, to be paid by organizations subject to their control, such as the NATIONAL TELECOMMUNICATIONS COMMISSION, the NATIONAL TRANSPORTATION REGULATORY COMMISSION and the Regulatory Body for Water and Sewage Services.

The GENERAL LEGAL AFFAIRS DEPARTMENT of the MINISTRY OF ECONOMY AND PUBLIC WORKS AND SERVICES adopted the relevant measures.

This Executive Order is issued by virtue of the powers and jurisdictions set forth by section 99, paragraph 1, of the NATIONAL CONSTITUTION.

THE PRESIDENT OF THE ARGENTINE REPUBLIC

DECREES:

Section 1 – The NATIONAL SECURITIES COMMISSION is hereby authorized to collect the rates and tariffs mentioned by section 2 of this Executive Order.

Section 2 – The rates and tariffs to be collected by the NATIONAL SECURITIES COMMISSION are as follows:

1. Control Rate: Annual rate that shall be paid on the date specified by the NATIONAL SECURITIES COMMISSION by all those persons regulated by the NATIONAL SECURITIES COMMISSION. In the event new companies are regulated or controlled by the NATIONAL SECURITIES COMMISSION, said rate shall be paid prior to their incorporation, authorization or registration. Among others, the following shall pay the Control Rate:

I) stock exchanges with associated securities markets;

II) stock exchanges without associated securities markets;

III) securities markets;

IV) forward and/or futures and options markets;

V) other self-regulating markets;

VI) corporations managing mutual funds, for each of the funds they manage;

VII) issuers of debt shares and/or securities;

VIII) risk rating agencies;

IV) Collective deposit institutions;

X) Financial trust corporations, for each of the trusts;

b) Authorization tariff: This rate shall be paid by issuers of securities or instruments to be offered for public sale when the authorization for public offering is granted. It shall be as follows:

1. Issue of shares to be paid up in cash, in kind or through credit capitalization. Issuers shall pay a percentage of the amount required for authorization before they are granted authorization for public offering.
2. Issue of fully paid shares. Issuers shall pay a percentage of the amount required for authorization before they are granted authorization for public offering.
3. Issue of corporate bonds: Corporate bond issuers shall pay a percentage of the amount required for authorization before they are granted authorization for public offering. The tariff established by this item shall neither apply to corporate bonds issued by small and medium-sized enterprises under the terms established by the NATIONAL SECURITIES COMMISSION nor to corporate bonds issue programs governed by the provisions of paragraph IV below.
4. Issue of corporate bonds through programs: Issuers of corporate bonds shall pay a percentage of the total amount of the program whose authorization is required before they are granted authorization for public offering. Likewise, corporate bond issuers shall pay a percentage of the tranche or extension required for authorization at the time each program tranche or extension is authorized.
5. Financial trust: Trust companies shall pay a percentage of the tranche amount or extension required for authorization before they are granted authorization for public offering. Likewise, trust companies shall pay a percentage of the trust tranche, series, equivalent or extension required for authorization at the time they are granted authorization for each trust series, tranche or equivalent, or any extension thereof.

Section 3 – The Minister of Economy and Public Works and Services is hereby empowered to establish, in general and upon the proposal of the NATIONAL SECURITIES COMMISSION, the amounts and percentages of the rates and tariffs established by section 2 herein and to adopt the provisions necessary for the application thereof.

Section 4 – The NATIONAL SECURITIES COMMISSION shall establish the terms of payment of the rates and tariffs referred to by section 2 herein.

Section 5 – The NATIONAL SECURITIES COMMISSION shall be empowered to pursue the collection of the rates and tariffs in arrears through debt collection lawsuits. For collection purposes and eventual compulsory collection of said rates and tariffs, a certificate signed by the officer appointed by the Board of Directors of the NATIONAL SECURITIES COMMISSION shall be enough to require said collection. Outstanding amounts, while in arrears, shall accrue a late payment interest equivalent to a similar interest as applied by the FEDERAL PUBLIC REVENUE ADMINISTRATION (Administración Federal de Ingresos Públicos) to its outstanding amounts in arrears .

Section 6 – The proceeds from the rates and tariffs established by section 2 herein shall be collected by the NATIONAL SECURITIES COMMISSION and may be charged to General Revenues.

Section 7 – Be noticed, published, referred to the National Board of Official Registration and filed – MENEM – Jorge A. Rodríguez – Roque B. Fernández.