New rule for foreign investment consultants working in Brazil

The Securities and Exchange Commission (CVM) published Instruction n° 619/2020 that explicitly allows foreign-based investment consultants to operate in the country. By promoting the opening of the Brazilian market to foreign investment consultants, the new rule adapts the regulatory treatment in an increasingly global market.

The Instruction eliminates the regulatory barrier that required investment consultants to have domicile in Brazil, when working in the country. From June 1, 2020, the investment consultants not based in the country will be subject to the same regulatory framework applicable to local consultants when performing services in Brazil. There is no impact on investment consultants who continue to perform their activities only abroad.