The Superintendence of Institutional Investor Relations (SIN) of the Brazilian Securities and Exchange Commission (CVM) and the Social Security Secretariat of the Ministry of Finance (SPREV) released, on 03.12.18, the CVM/SIN/SPREV Joint Circular Letter 02/2018, on CMN Resolution 4,695, which introduced criteria to the administrators and managers of the investment funds in which the Special Social Security Systems ("RPPS") are authorized to invest their resources.
One of the requirements is that the administrator or manager of the investment fund must be an institution authorized to operate by the Central Bank of Brazil and obliged to establish an audit committee and a risk committee, in accordance with CMN regulations.
In this sense, the Official Letter clarifies that institutions that voluntarily establish audit and risk committees, without being obliged to do so, do NOT meet the CMN requirement.
Moreover, the Official Letter informs that the list of institutions that meet the requirements established by the Resolution will be posted on the SPREV website (http://www.previdencia.gov.
To access the full Circular Letter CVM/SIN/SPREV 02/18, click here.
