The Brazilian Pension Funds Authority (PREVIC) has completed its July review of 254 independent audit reports carried out in 2024 on the financial statements of closed pension entities (EFPC) under its risk-based supervision framework. The review found that most pension funds were compliant with sector accounting, actuarial, financial and tax rules, with findings used to build supervisory indicators and support ongoing off-site monitoring. Across the audit reports assessed by Brazilian Federal Revenue Service tax auditors working at PREVIC, 74.02% contained no reservations, 23.62% included an emphasis of matter, 1.97% (five EFPC) received qualified opinions, and one entity failed to meet legal requirements. The reports are required under National Council for Complementary Pensions Resolution 44/2021 and PREVIC Resolution 23/2023, and are received through PREVIC’s File Transfer System (STA) to inform monitoring of governance, internal controls and risks including solvency, liquidity, actuarial, investment, market and operational risks. Off-site checks also identified 13 EFPC (5.11%) that used audit professionals without the specific certification required under Article 21-A of PREVIC Resolution 23/2023. PREVIC will notify the relevant deliberative and fiscal councils of the entities that used uncertified professionals so they can take the appropriate measures, and supervisory recommendations and determinations are discussed with EFPC management after approval by PREVIC’s board at the end of each exercise. The authority also indicated that the audit-report dataset supports regulatory refinement, licensing, and the setting of minimum security and transparency standards for benefit plans and EFPC administrative management.

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