Brazilian Pension Funds Authority (PREVIC) issued an ordinance updating the segmentation of closed private pension entities (entidades fechadas de previdência complementar, EFPC) for 2026, which determines how funds are grouped for supervision, inspection and proportionate regulatory treatment. The new classification will apply from 1 January 2026. Under the 2026 segmentation, 10 entities are allocated to Segment 1 (S1), 75 to S2, 89 to S3 and 72 to S4, based on consolidated December 2024 data and criteria related to size and complexity. The segmentation-based monitoring model, introduced in 2023 under PREVIC Resolution 23/2023, replaced the earlier approach in which only systemically important entities were subject to closer monitoring, and now applies risk-based supervision to all funds calibrated to their profile. PREVIC also reiterated that segmentation is not a ranking, but a grouping of EFPCs by similarities for supervisory purposes. PREVIC indicated that its next step is to deepen the application of regulatory proportionality by segment, aiming to balance information requirements and compliance costs with supervisory needs.
Brazilian Pension Funds Authority (PREVIC) 2025-06-23
Brazilian Pension Funds Authority updates 2026 supervisory segmentation for closed pension funds with 10 entities in S1, 75 in S2, 89 in S3 and 72 in S4
The Brazilian Pension Funds Authority (PREVIC) updated the segmentation of closed private pension entities (EFPC) for 2026, affecting supervision and regulatory treatment. The new classification, effective 1 January 2026, allocates entities into four segments based on size and complexity. PREVIC aims to enhance regulatory proportionality by balancing information requirements and compliance costs with supervisory needs.