The Brazilian Pension Funds Authority (PREVIC) outlined its 2025 normative agenda priorities as improving investment guidelines for closed pension funds (Entidades Fechadas de Previdência Complementar, EFPC) and updating the sanctions regime, according to remarks by Director-Superintendent Ricardo Pena at a CONTEC-organised virtual seminar. On investments, the agenda responds to what PREVIC described as a heavy concentration in government bonds and aims to create conditions for EFPC to build more diversified portfolios, reflecting their long-term liabilities and allowing them to compete more effectively with international funds. On enforcement, PREVIC flagged that the current sanctions framework has been in place for more than 20 years and needs updating to improve legal certainty for decision-making by pension fund managers, with a more graduated approach that balances appropriate severity for irregularities with protection of regular management actions. Pena also pointed to recent supervisory changes including segmentation of EFPC by size and complexity to refine monitoring, and measures to increase social participation, including rules on admitting associations of participants and beneficiaries as interested parties in administrative proceedings at PREVIC’s Licensing Directorate.
Brazilian Pension Funds Authority (PREVIC) 2025-02-20
Brazilian Pension Funds Authority sets 2025 rulemaking priorities on pension fund investment guidelines and sanctions regime update
The Brazilian Pension Funds Authority (PREVIC) announced its 2025 priorities, focusing on enhancing investment guidelines for closed pension funds (EFPC) and updating the sanctions regime. The agenda aims to diversify EFPC portfolios beyond government bonds and modernize the 20-year-old sanctions framework for better legal certainty and balanced enforcement. PREVIC also introduced supervisory changes, including EFPC segmentation by size and complexity and increased social participation in administrative proceedings.