In the last month of 2021, the Brazilian Securities and Exchange Commission (CVM) released its Regulatory Agenda for 2022 and it is full!
For the public hearings planned, the highlight is the long-awaited specific regulation of the Fund for Investments in Agroindustrial Productive Chains (Fiagro). In August 2021, the CVM published CVM Resolution No. 39, which temporarily provided for the registration of Fiagro, allowing its creation as long as it falls into one of the categories already regulated by the CVM (FIDC, FII or FIP). The market has already shown an appetite for the product. Since the publication of the regulation, approximately 30 Fiagros has been registered with CVM (17 of them listed on the Stock Exchange). The expectation is that the new regulation will now bring greater flexibility and allow hybrid characteristics of the other funds for Fiagro.
Regarding the rules to be published, the highlights are those of Investment Funds and Crowdfunding, which public hearings had a very relevant participation of the public, showing their importance for the development of the national capital market.
On the Crowdfunding topic, the new rule shall be a review of CVM Instruction No. 588, to provide for expansion of funding limits, issuer size and investment value per investor, among others. In October 2021, the CVM launched the regulatory sandbox that includes crowdfunding projects, and the expectation is that the new regulation will boost the still small crowdfunding market in Brazil.
Finally, regarding the new regulation of investment funds, the CVM’s proposal is to set a rule that will bring: (i) a main structure, containing the provisions applicable to all categories of funds (“Resolution”); (ii) an annex regulating the specifics of equity, foreign exchange, multimarket and fixed income investment funds; and (iii) an annex regulating the specifics of credit rights investment funds.
The agenda is positive and, if implemented, will allow for greater modernization and incentives for the local capital market. We will closely follow the topics proposed in the CVM regulatory agenda!
