BRAZIL: CVM announces modifications to investment fund rules

Thursday September 1 2016

The Brazilian Securities and Exchanges Commission (CVM) announced changes on 30th August 2016 to the rules governing the establishment, functioning and administration of investment funds with a view to modernising the current system and placing Brazilian investment funds further in line with international standards.

The proposed changes include

• The inclusion of simple debentures to the assets eligible for investment by investment funds, to 33% of the subscribed capital;
• The addition of a multi-strategy category of fund, which can allocate capital to companies in various stages of development; and
• The creation of a sub-category of the multi-strategy fund which can invest up to 100% of its capital in foreign assets. This fund is intended for professional investors only.

The extension of the responsibilities and obligations of the fund manager regarding the procurement of services related to investments, as well as their influence on the pricing of the fund’s investments, is also envisaged in the modifications.

Click on the above link for further details.