On April 11, 2023, Brazil’s Securities and Exchange Commission (Comissão de Valores Mobiliários/CVM) released Official Letter 1/2023/CVM/SIN/SSE dealing with the interpretation of provisions of CVM Resolution 175, of December 23, 2022, called “Regulatory Framework for Investment Funds.”
The Official Letter is intended for investment fund managers and aims to disclose the interpretations of the Superintendence for Supervision of Institutional Investors (Superintendência de Supervisão de Investidores Institucionais/SIN) and Superintendence for Supervision of Securitization (Superintendência de Supervisão de Securitização/SSE) concerning the provisions of the general part of the Resolution.
The document presents 84 answers to the market’s doubts, and which have been divided into 24 topics:
Schedule for entry into force
Classes and Subclasses
Class equity calculation
Periodic reports
CVM website and systems
Remuneration/Rebate/Charges/Accounting statements
Adequacy of funds by unilateral act vs assembly
Documents that must be kept on service providers’ websites
Hiring service providers
Distribution of class quotas within open regimes
Need for appraisal report
Fund constitution and registration
Accounting records and financial statements
Communication with shareholders
Trading with improper use of privileged information
Attachment A: term of acknowledgment and assumption of unlimited liability
Distribution on account and order - bookkeeping license
Liquidity management
Sending a copy of a document signed by managers to administrators
Management transfer financial statements
General adaptations of other rules (COFI and Res. CVM 21)
Voting in assemblies by related parties
Social and environmental funds
Investment through limited liability funds
In due course, other Official Letters will be released to clarify doubts concerning the Resolution’s Normative Attachments – and, as the case may be, by whichever Superintendence is responsible for supervision of the fund category dealt with therein.
To access the full Official Letter, please click here. For more information, contact our Capital Markets team at ([email protected]).