With Restricted Efforts of CRI AND CRA and Add New Serious Infractions Committed by Investment Fund Managers and Administrators
The Brazilian Securities Commission (CVM) published, on January 25, 2019, Instruction No. 605 (ICVM 605), which amended, among other rules, CVM Instruction No. 476, which regulates public offerings of securities distributed with restricted efforts, determining that only Real Estate Receivables Certificates (CRI) and Agribusiness Receivables Certificates (CRA) issued by securitization companies registered with the CVM as publicly-held companies may be offered with restricted efforts.
CVM understood that the different treatment is necessary due to the peculiar nature of the activities performed by the securitization companies, which function not only as issuers, but also as service providers to the certificate holders, approximating the "fiduciary administrators of investment funds".
In the eyes of the CVM, the information regime for public companies will bring benefits to the market and will facilitate the CVM's supervision and monitoring of issues and separate equities.
In addition, ICVM 605 also amended CVM Instruction 555, which provides for the constitution, administration, operation and disclosure of information on investment funds, so that non-compliance with the diligence obligations of the manager and/or administrator in the exercise of their duties will be considered a "serious breach" and, therefore, subject to the penalties provided in Law 6385/76.
To access CVM Instruction 605 in its entirety click here.
The professionals of Barcellos Tucunduva Advogados are available to clarify any doubts related to the topic.
Ricardo Vieira
