On Monday, September 30, 2024, the Brazilian Securities and Exchange Commission ("CVM") published CVM Resolution 214, which establishes specific regulations for Investment Funds in Agribusiness Production Chains ("FIAGRO"). The rule, considered one of the most awaited on this year's regulatory agenda, was added as Normative Annex VI to CVM Resolution No. 175, of December 23, 2022, known for being the New Regulatory Framework for Investment Funds.
After approximately three years of market development under CVM Resolution No. 39, of July 13, 2021, the CVM aims for the new regulation to facilitate access to public savings resources, allowing the expansion of investments in assets related to agribusiness, such as operations with physical and financial Rural Product Notes ("CPR"), exploitation of rural real estate and participation in companies in the agribusiness production chain.
It is worth noting that the rule will allow FIAGRO to participate in the carbon market and acquire decarbonization credits, such as CBIOs, given that ethanol production is an agribusiness activity.
CVM Resolution 214 will come into force on March 3, 2025, and the FIAGROs already in operation will have until September 30, 2025 to adapt.
For more information, please contact our Capital Markets team at (mercadodecapitais@btlaw.com.br).
