The Brazilian Security and Exchange Commission (CVM) has issued Resolution CVM No 194, dated November 17, 2023 (“Resolution 194”), which introduces updates to enhance the existing legal framework enforceable to securitization companies, public offerings, and investment funds.

As commented by ANBIMA (a non-governmental business association), CVM addressed several suggestions submitted by market players. Amongst the most significant updates, the key ones include (i) expanding legal possibilities for reinvesting the proceeds from assets used as collateral in financial transactions, (ii) standardizing definitions of legal concepts, (iii) updating rules for Special Purpose Acquisition Companies (SPACs), (iv) providing clarity and improved regulations for investor’s meetings, (v) updates to the regulation of managing underlying assets, and (vi) clarification regarding the non-obligation to prepare a rating report for assets initially offered to professional and qualified investors.

CVM has shown its commitment to developing and democratizing access to the securitization market in Brazil by adopting more sophisticated regulations aligned with international standards.