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Investment Funds and Structured Operations Newsletter – March 2024

April 25th, 2024

The Investment Funds and Structured Operations Newsletter provides information on the main administrative acts, rules, and legal texts on the regulation of investment funds, asset management, and structured operations.

This material is for informative purposes only, and should not be used for decision-making.

Specific legal advice can be provided by our legal team.

The English version of the Investment Funds and Structured Operations Newsletter presents a summary of the Portuguese version, in which we highlight the news most relevant to our international clients. If you want to access a specific article that was not translated into the English version, please contact us. 


ANBIMA submits contributions to the CVM on ProRecicle funds

On March 04, 2024, the Brazilian Financial and Capital Markets Association (“ANBIMA”) submitted contributions to the Brazilian Securities and Exchange Commission (“CVM”) regarding the public consultation on ProRecicle funds, which are funds allocated for investments in projects that stimulate the recycling production chain.

The CVM requested the market’s opinion on two aspects:

  • The possibility of not creating a specific category for these funds, so that all types of funds can create ProRecicle quotas if they comply with the applicable rules; and
  • The possibility of offering tax incentives to investors, in compliance with Law No. 14,260, establishing that individuals and legal entities taxed on taxable profit can choose to have part of the income tax deducted due to their direct support to projects previously approved by the Brazilian Ministry of the Environment.

In regard to not creating a specific category for these funds, Carlos Takahashi, ANBIMA’s vice-president, agreed that ProRecicle funds are usually classified as sustainable funds, so there is no need to include a specific annex in CVM Resolution 175. As for the tax incentives, ANBIMA argued that ProRecicle funds should not offer such benefits, given that sustainable funds do not bear such tax benefits.

Find out more at the ANBIMA article.


CVM approves term extension of temporary authorizations and exemptions for regulatory sandbox participants

On March 05, 2024, the CVM Collegiate approved a proposal submitted by the CVM’s Sandbox Committee, regarding the extension of the term of authorizations granted by CVM Resolutions 874, 875 and 877, which temporarily authorize three different companies to carry out activities regulated by the CVM within the scope of the Regulatory Sandbox.

The term extension is backed up by the CVM’s regulatory agenda, given that it provides for the regulation of the sandbox experience and, before this effectively happens, the projects can reach the operational limits granted by the CVM under the corresponding authorizations.

Such extension also benefits the CVM, given that the CVM can take advantage of the authorizations already in force to end specific authorizations and admit new companies to the sandbox under the sector’s new regulation.

Find out more at the CVM article.


CVM’s technical area publishes understanding on registration of securities and payment of subordinated quotas through credit rights

On March 28, 2024, the CVM’s Superintendence of Securitization and Agribusiness (“SSE”) published Circular Letter CVM/SSE 2/2024 (“Letter”), to clarify its understanding on the applicability of article 37 of Normative Annex II (Credit Rights Investment Fund – “FIDC”), of CVM Resolution No. 175, of December 23, 2022, with regard to registering credit rights that are classified as securities.

The Letter was published as a supplement to CVM/SSE Circular Letter 8/2023, issued on September 27, 2023, which clarifies the CVM’s understanding of other provisions in Normative Annex II of CVM Resolution 175.

In addition to providing for the applicability of article 37 of Normative Annex II, the Letter also provides for the possibility of offsetting subordinated quotas through credit rights. The SSE clarified that, although Normative Annex II does not specifically provide for subordinated quotas, the circular letter seeks to clarify the possibility of offsetting these quotas through credit rights – a process that requires detailed implementation criteria established in the fund’s regulations.

Find out more at the CVM press release.