The Ministry of Economy regulates the investments of the Labor Assistance Fund.

The Ministry of Economy regulated the investment of the resources of the Labor Assistance Fund (FAL) through Resolution 1276/2026 (RESOL-2026-1276-APN-MEC), published on Wednesday, August 12, 2026, in the Official Gazette of the Argentine Republic. The regulation, signed on August 11 by Minister Luis Andrés Caputo, requires that the fund’s portfolios be integrated and payable in pesos and that negotiable securities be issued and traded in authorized markets of the country, and sets diversification limits and a liquidity floor.

The FALs were created by Title II of Law 27.802 to contribute to the fulfillment of the benefits provided for in Article 58 of that regulation, and their regime was regulated by Decree 408/2026 of May 29, 2026. That decree defined as authorized entities those authorized by the National Securities Commission (CNV) to administer, invest, and safeguard the resources through mutual funds or financial trusts constituted in the country, and entrusted the Ministry of Economy with setting the investment limits. The measure was issued within the framework of file EX-2026-59224846-APN-DGDA#MEC and is in force from the day following its publication.

Permitted assets and requirements

The FAL resources may only be invested in:

• Negotiable debt securities issued by the National Government.
• Negotiable debt securities of the provinces and of the Autonomous City of Buenos Aires.
• Deposits in financial entities authorized by the Central Bank of the Argentine Republic (BCRA).
• Negotiable obligations issued in the Argentine Republic by private issuers.

Subnational debt and negotiable obligations must have authorized public offering, be traded in markets authorized by the CNV, and have an AAA risk rating on the national scale granted by at least two registered rating agencies. Regarding yield, fixed rate, TAMAR rate, capitalizable adjustment by CER, or a clause linked to the exchange rate in accordance with Communication “A” 3500 of the BCRA are admitted, as well as dual bonds that combine these modalities.

Concentration and liquidity limits

To limit concentration risks, the portfolios must at all times comply with the following caps, calculated on the total equity of the FAL:

• Deposits in the same financial entity and its related entities: up to 15%.
• Debt of the provinces and of the Autonomous City of Buenos Aires: 15% in aggregate and 5% per jurisdiction.
• Negotiable obligations: 20% in aggregate and 10% per issuer and its related entities.
• Instruments with yield linked to the exchange rate, including the corresponding component of dual bonds: 10% in aggregate.

Authorized entities may not invest in instruments issued by themselves, their parent company, their subsidiaries or their related entities, except for operational demand deposits. In addition, they must maintain at least 10% of their equity in highly liquid assets —demand deposits, pre-cancellable fixed-term deposits or those with a remaining term of up to 30 days, and national treasury bills in pesos with a term of up to 90 days— and restore that floor within 90 days if it drops due to the payment of benefits.

Deadlines and portfolio adequacy

If an instrument loses its AAA rating after its acquisition, it may be held until maturity or sold in an orderly manner within 180 calendar days, without any new purchases from the same issuer being made while the non-compliance persists. The CNV must issue complementary and clarifying regulations within 45 days from the entry into force, and entities are obliged to keep their investments in permanent compliance with the established limits and conditions.

The regulation directly affects the employers covered by the regime, whose contributions fund the benefits of article 58 of Law 27.802, and the workers who benefit from that assistance. By limiting investments to highly rated peso assets traded on Argentine markets, the Executive seeks to preserve the value of contributions and ensure the availability of funds, in line with channeling savings toward the local market.

Source: Official Gazette of the Argentine Republic, Wednesday, August 12, 2026, First Section (official reference: RESOL-2026-1276-APN-MEC, edict No. 56378/26).