The Brazilian Pension Funds Authority (PREVIC) outlined changes introduced by the National Monetary Council’s Resolution CMN 5,202/2025 updating investment guidelines for assets backing benefit plans run by Closed Complementary Pension Entities (EFPC). The package is intended to align the closed pension fund regime with Brazil’s new investment fund framework under Brazilian Securities and Exchange Commission (CVM) Resolution 175/2022, and PREVIC assessed that around 70% of its original proposal was incorporated. Key changes include removing the requirement to sell real estate holdings by 2030, while maintaining the ban on direct investment in the purchase of properties and permitting exposure via real estate investment funds (FII), real estate receivables certificates (CRI) and real estate credit notes (CCI). The rule expands eligible assets by allowing Fiagro up to 10% of each plan’s resources and permitting exposure to energy transition instruments such as decarbonisation credits (CBIO) and carbon credits up to 3% of each plan, subject to registration in a specific Banco Central registry system or trading on a CVM-authorised market. Limits and conditions for investments in private equity funds (FIP) were tightened, including cutting the allocation limit from 15% to 10% and capping EFPC holdings, in aggregate, at 40% of units of the same FIP outside specified first-year and last-year periods; EFPC liability is limited to its status as a fund unitholder, and the FIP must be classified as an investment entity under CVM rules. The update also maintains a 20% allocation limit for infrastructure debentures, including those issued under Law 14,801/2024, requires EFPC to consider sustainability-related factors when material and relevant and to assess and disclose ESG impacts subject to criteria to be set by PREVIC, prohibits direct or indirect investment in cryptoassets, and provides a two-year remediation window for “passive” breaches arising from judicial recovery processes or real estate revaluations. PREVIC scheduled a live webcast for 1 April at 15:00 to discuss the changes and indicated it will issue further rules to operationalise the new ESG transparency requirements.
Brazilian Pension Funds Authority (PREVIC) 2025-03-28
Brazilian Pension Funds Authority (PREVIC) outlines CMN overhaul of closed pension fund investment rules ending mandatory property sales by 2030 and banning cryptoassets
The Brazilian Pension Funds Authority (PREVIC) updated investment guidelines for Closed Complementary Pension Entities (EFPC) under Resolution CMN 5,202/2025, aligning with Brazil's new investment fund framework. Key changes include removing the requirement to sell real estate holdings by 2030, expanding eligible assets, and tightening limits on private equity fund investments. The update mandates consideration of sustainability factors and prohibits cryptoasset investments, with further rules on ESG transparency forthcoming.