author
Carlos Balthazar Summ
author
Carlos Balthazar Summ
post date
02/06/2023
reading time
3 minutes
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What You Need to Know About the New CVM Rules
Marking a significant transformation in Brazil’s financial landscape, CVM Resolution 175 emerges as a new regulatory framework for investment funds. Designed to align Brazil’s investment fund market with international practices, this regulation plays a central role in the sector’s ongoing evolution. With a focus on global markets and the realities of modern finance, CVM Resolution 175 serves as a beacon of change and progress.
A Global Alignment
One of the most notable changes introduced by Resolution 175 is the inclusion of “classes” and “subclasses”, bringing the Brazilian market closer to international standards. This approach provides crucial clarity for investors, especially foreign investors, by offering a better understanding of the structure and operation of investment funds in Brazil. This standardization not only fosters investor confidence but also lays the groundwork for more robust and informed participation.
Specificities and Focused Approaches
The new annexes reflect a pursuit of greater clarity and comprehensiveness. They cover a diverse range of funds, including:
● Real Estate Investment Funds (FIIs)
● Index Funds (ETFs)
● Private Equity Funds (FIPs)
● Privatization Mutual Funds (FMPs-FGTS)
● National Film Industry Investment Funds (Funcine)
● Incentivized Mutual Stock Funds (FMAI)
● Cultural and Artistic Investment Funds (Ficart)
● Pension Funds
● Credit Rights Investment Funds for Social Interest Projects (FIDC-PIPS)
This expanded scope addresses the needs of a wide array of investors and industries.
Transparency in Fees and Compensation
Transparency is a cornerstone of CVM Resolution 175. The regulation brings greater clarity to the distribution of fees and the compensation of different players in the value chain. This change responds to the need for a clearer understanding of how market participants are remunerated. Enhanced transparency not only builds investor trust but also fosters more equitable and collaborative relationships within the industry
Legal Certainty and Simplification
The introduction of these annexes aims to provide greater legal certainty and clarity for participants in the capital markets. João Pedro Nascimento, president of the CVM, emphasizes that this initiative seeks to establish a solid foundation for market players, enabling a more precise interpretation of rules in a constantly evolving environment.
A Milestone in Modernization and Maturity
As Brazil progresses toward a more modern and aligned regulatory framework, CVM Resolution 175 stands out as a milestone of change and maturity. This regulation not only enhances understanding of the investment fund market but also fosters greater harmony with international practices and global dynamics.
Each step taken toward the implementation of this resolution paves the way for growth, innovation, and renewed investor confidence in Brazil’s investment fund sector.
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CIX Capital is an investment by Maiz: maiz.com.br
