Brazil’s Securities and Exchange Commission (Comissão de Valores Mobiliários/CVM) released on October 31, 2023, a public consultation to discuss a proposal for a specific rule for Investment Funds in Agro-Industrial Production Chains (Fundos de Investimento nas Cadeias Produtivas do Agronegócio/FIAGRO). Regulations for the latter will be established in an Normative Annex to CVM Resolution 175, published in 2022.
The rule proposes that FIAGRO be allowed to invest resources in Brazilian agribusiness through acquisition of assets that are already part of the local market –– such as financial assets, credit rights, real estate and corporate interests. Another proposal is that FIAGRO be allowed to participate in the regulated carbon –– compulsory or voluntary –– market, and also by means of funds focused on the latter.
Suggestions and comments may be sent by January 31, 2024 to the following email: [email protected].
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