The Securities and Exchange Commission of Brazil (CVM) launched a public consultation on the consolidation and improvement of the regulatory framework on investment funds. It also aims at regulating the dispositions of the Law of Economic Freedom (Law n. 13.974/2019) on investment funds.
Public Audience n. 8/2020 from the Securities and Exchange Commission of Brazil (CVM) seeks to collect public contributions to a draft resolution that consolidates and improves the regulatory framework of domestically operating investment funds, currently ruled by CVM Instruction n. 555/2014 (in Portuguese).
The draft resolution alters rules on the constitution, operation and disclosure of information of investment funds, including Financial Investment Funds (FIF, in the Portuguese acronym) and Credit Rights Investment Funds (FIDC, in the Portuguese acronym). The modifications also comply with the Law of Economic Freedom (Law n. 13.974/2019), which included legal dispositions on investment funds to the Brazilian Civil Code (articles 1.368-C to 1.368-F).
The revision of Real Estate Investment Funds (FII, in the Portuguese acronym) and Venture Capital Funds (FIP, in the Portuguese acronym) is not provided in the draft, but it will be addressed on a subsequent consolidation process, according to CVM.
The draft resolution also seeks to comply with Decree n. 10.319/2019, which provided the regulatory consolidation within the Federal Public Administration, by revoking 10 CVM Instructions, including CVM Instruction n. 555/2014, and other 13 regulatory dispositions.
The draft resolution and more information on the public consultation are available here (in Portuguese). Contributions can be submitted until April 2 to this e-mail address.
