The Securities and Exchange Commission of Brazil (CVM) temporarily exempted institutional investors of presenting documents related to the acceptance of public offers of securities, as a means to assess potential improvements to the regulatory framework on public offerings.
Resolution n. 27/2021 from the Securities and Exchange Commission of Brazil (CVM) temporarily exempted institutional investors of presenting subscription lists or purchase receipts related to the acceptance of public offers of securities, ruled by CVM Instruction n. 400/2003 (Annex “II”, item 4).
As provided by article 2 of the new resolution, the listed institutional investors must adopt their own procedures for formalizing the acceptance of public offers. By determining that exemption, in line with the Law of Economic Freedom (Law n. 13.874/2019), CVM intends to assess the benefits of removing that presentation requirement for institutional investors.
In addition to the provision from the Law of Economic Freedom, CVM Instruction n. 400/2003 is currently under regulatory revision, as part of the CVM 2021 Regulatory Agenda. As reported by the 22nd edition of the Regulatory Report, CVM launched a public consultation on the modernization of the regulatory framework on public offerings, including CVM Instruction n. 400/2003. Contribution can be submitted until July 8.
