Fabian D'Aiello on Regulatory and De-Facto Restrictions on Investments in Argentina

Fabian D'Aiello on Regulatory and De-Facto Restrictions on Investments in Argentina

By Fabian D'Aiello

Regulations in emerging markets, particularly in Argentina, pose an ever-changing and difficult-to-assess scenario that can complicate investment decisions. In recent years, added to changes in regulations restricting certain types of investments (many of which are still under judicial review, thus aggravating the uncertainty regarding the applicable legal framework), Argentina has faced an increasing number of "de facto" measures that are written nowhere. This commentary summarizes the main regulations that an investor should consider when deciding to invest in a merger or acquisition in Argentina. Further highlighted is the importance of being attentive to certain "de facto" measures that could be expected in some industries.


Good standard practice prompts counsel to tell his or her clients that it is key to understand the legal framework before investing or participating in a merger and acquisition in a foreign jurisdiction. For example, regulations affecting external financing, repatriation of funds, access to imported goods and raw materials, and/or exit strategies might have a significant impact on the economics of the projected deal. Moreover, in certain jurisdictions, the economic trends and the government's attitude towards foreign investments and the relevant industry are also significant.

In Argentina, both legal and political factors are increasingly interdependent. As a result, analyzing the regulatory scenario facing any planned investment is not simple. Having local counsel compile all applicable legal provisions that might affect investors' plans would be a good start, but will likely fall short of painting the full picture for the interested parties. 

About the Author:

Fabian D'Aiello is a founding partner of cfgd| Cordova Francos Gorbea D'Aiello ABOGADOS. He specializes in mergers and acquisitions, debt restructurings, syndicated loans, and other forms of financing and venture capital. Mr. D'Aiello advises both local and international clients in connection with complex cross-border transactions, including stock and asset acquisitions, bulk transfers, mergers, spin-offs, and joint ventures in Argentina and other Latin American countries. He also assists domestic and international companies in structuring financing. He serves hedge funds in the purchase and sale of distressed assets, and represents companies, banks, and hedge funds in the negotiation of out-of-court debt restructurings. 

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Hounkpe Julien
  • 12-08-2011

An interesting approach of regulations in emerging market.