Associations advocating for participants of the investment fund industry, including Anbima and Anfidc, requested the Brazilian Securities and Exchange Commission (CVM) to extend the deadline for compliance with Instruction CVM No. 175 (“ICVM 175“).

Anbima clarified that the extension request is based on recent changes that affect investment funds’ day-to-day operations. Both ICVM 175 and Federal Law No. 14,754, dated December 12, 2023, have changed the legal scope in which investment funds incorporated in Brazil work.

Under this context, the CVM, through Resolution CVM No. 200, dated March 12, 2024, extended the deadlines for compliance with the new scope of applicable rules. As per effect of CVM’s regulations, these are the new deadlines:

Fundos de investimento em direitos creditórios – FIDC

Prazo anterior: 1º de abril de 2024        Novo prazo (Res. CVM 200): 29 de novembro de 2024

Fundos de investimento

Prazo anterior: 31 de dezembro de 2024           Novo prazo (Res. CVM 200): 30 de junho de 2025

The regulatory body instructed the superintendencies to actively monitor the efforts of market participants to adapt to the rule since the new deadlines set have been definitively established and will not be subject to further extension.

Resolution CVM No. 200 also included adjustments to Normative Annex III of ICVM 175 to align administrative rules with the changes provided by Federal Law No. 14,754, dated December 12, 2023. As previously reported by Abe Advogados, CVM indicated that since the enactment of Resolution CVM No. 200, it is lawful for investment funds to encumber their real estate assets as collateral to satisfy debts.