The new legislation represents a major development for the securitization industry in Brazil, as it allows for greater standardization in the structuring of transactions with different types of securities, reducing costs and providing greater legal certainty for investors.
The rule enters into force on July 1 with innovations for small scale business companies in the public offering of securities with exemption from registration and carried out through an electronic crowd investment platform.
A new rule will come into force on May 2. Its application will be mandatory for corporate claims filed from that date and optional for those initiated before the standard.
The document consolidates the Company Relations Bureau guidelines to be observed by publicly-traded, foreign, and incentivized companies to fulfill their regulatory obligations.
Changes establish a more straightforward, flexible, and less costly procedure for companies. However, there is doubt whether organizations can choose to publish their entire financial statements in the printed newspaper and if this would exempt them from releasing the same publication on the newspaper's website.
An assessment of the regulatory time milestones relating to condo-hotels, the role of developers and hotel operators in the offer of collective investment contracts and business models recently analyzed by CVM collegiate.
Companies operating in Brazil must prepare themselves to deal with the uncertainties of the current scenario and the new regulations, some of which are already in effect.
Read a summary of the practices prohibited by the Brazilian Securities and Exchange Commission in the new rule that came into force last February 1st.
In order to reduce the costs of complying with the rules established by the regulator and eliminate the disclosure of repeated information, CVM Resolution 59 makes several changes to CVM Instructions 480 and 481.
The outcome of the administrative sanctions proceeding was considered adequate and sufficient to discourage similar practices.
Depending on the assets that will make up Fiagro's portfolio, the fund manager may use the existing regulations applicable to credit rights investment funds, real estate investment funds or equity investment funds.
After overturning the vetoes by the National Congress, Fiagro regains fiscal attractiveness for investors. As a result, agribusiness now has an important private financing instrument to boost its growth at a time of severe fiscal constraints.