CVM publishes new regulatory framework for investment funds

The CVM (Securities and Exchange Commission) published this Friday (23) the new Regulatory Framework for Investment Funds, which brings changes to the market’s operating rules.

“Through the new regulation for funds, CVM seeks to reflect fundamental advances for greater efficiency in the functioning of the fund market, as well as to reduce compliance costs for its participants, without disregarding investor protection”, said the autarchy, in a note. .

The new rules come into effect from April 2023.

Among the main changes brought about by Resolution 175, which deals with the new regulatory framework, is the limitation of the liability of each shareholder to the value of the subscribed shares.

Under previous legislation, fund shareholders could be required to deposit additional amounts in relation to the volume already contributed in case of loss as a result of the strategy adopted by the manager.

The new framework also provides for the possibility for funds to have different classes of shares, with assets segregated for each class, as well as the application of the civil insolvency institute to funds.

According to Antonio Berwanger, CVM’s market development superintendent, the possibility of creating segregated assets within a single fund creates countless new opportunities for structuring products and reducing costs for the investment fund industry in Brazil.

“These are measures that increase the equity security of investors”, said Erik Oioli, partner at VBSO Advogados.

Also among the main changes brought about by the regulatory framework, funds that allocate in global assets intended for retail individual investors may have exposure of up to 100% of their portfolio abroad.

In the current format, only funds aimed at investors considered professionals by market legislation, which are those with BRL 10 million in financial investments, can access funds that allocate their entire portfolio abroad.

“Another interesting novelty is the possibility for funds to invest in “environmental assets”, such as carbon credits, which is a huge step towards directing resources towards the so-called green and low-carbon economy”, stated the partner at VBSO Advogados .

He added that the norm also now allows funds to invest directly in crypto assets, which until then was only allowed for investment funds abroad and indirectly. “This is another important step towards the development and consolidation of this industry in the country.”

The framework also foresees the possibility for retail investors to allocate resources in FIDCs (Credit Rights Investment Funds), investment funds restricted until now to qualified investors (with at least R$ 1 million in financial investments) that invest in credit backed by debt.

The new rule also provides for the attribution of responsibility to the manager for structuring the FIDCs, as well as for verifying the backing of credit rights, and the need for credit rights to be submitted for registration.

“With the modernization of regulations, we are confident in allowing the retail public access to FIDC quotas, thus making a new class of assets available to this public”, said Bruno Gomes, superintendent of supervision of securitization and agribusiness.