CVM publishes resolution on Investment Funds in Agro-Industrial Productive Chains

The Brazilian Securities and Exchange Commission (CVM) published, on 13.07.2021, CVM Resolution 39 which provides, on a provisional and experimental basis, for the registration of Investment Funds in Agroindustrial Productive Chains (Fiagro).

According to CVM, the experience with Fiagro that will be registered will certainly increase the knowledge of the regulator and the market about these funds, so that it will be useful when the specific rule is drafted.

Therefore, CVM opted to take advantage of the regulatory platform in force, which allows three different types of Fiagro to be immediately constituted and registered:

  • Fiagro - Creditor Rights: an investment fund in creditor rights constituted in accordance with CVM Instruction 356, and the expression "FIAGRO - Creditor Rights" shall appear in its name;
  • Fiagro - Real Estate: real estate investment fund constituted in accordance with CVM Instruction 472, and the expression "FIAGRO - Real Estate" must appear in its name; or
  • Fiagro - Participações: equity investment fund constituted in accordance with CVM Instruction 578, and the expression "FIAGRO-Participações" shall appear in its name.

The enactment of a specific rule to regulate the creation and operation of Fiagro will require prior studies and a public hearing, which CVM estimates will only occur in 2022, considering that the regulatory agenda of the Autarchy for the year 2021 does not include the matter.

Click here to access the full content of the Resolution. For further information, please contact our Capital Markets team([email protected]).