With the CVM Resolution No. 184 of May 31st, 2023, the Brazilian Securities and Exchange Commission (CVM) introduced new rules to the Regulatory Framework for Investment Funds disciplined by CVM Resolution No. 175 of December 23rd, 2021.
In addition to the general rules applicable to all investment funds, the Regulatory Framework is now composed of twelve Normative Annexes containing specific guidelines and requirements for the different categories of funds, namely: (I) Finance Investment Funds; (II) Credit Rights Investment Funds; (III) Real Estate Investment Funds (FII); (IV) Equity Investment Funds (FIP); (V) Market Index Investment Funds (ETF); (VII) Privatization Mutual Funds (FMP-FGTS); (VIII) Investment Funds in the National Film Industry (FUNCINE); (IX) Incentivized Stock Mutual Funds (FMAI); (X) Cultural and Artistic Investment Funds (FICART); (XI) Social Security Funds; and (XII) Investment Funds in Credit Rights of Social Interest Projects (FIDC-PIPS).
Among the novelties brought by Resolution 184, a more significant restriction on insider trading by a FII stands out. The new regulation of the Investment Fund in Agribusiness Productive Chains (FIAGRO), which will replace the temporary rules currently in force, is still pending.
Resolution CVM 184 will become effective on October 2nd, 2023, along with CVM Resolution 175.
For any questions or clarifications on the subject, the teams at Fraga, Bekierman & Cristiano Advogados teams are prepared to provide extensive assistance.