The Brazilian Pension Funds Authority (PREVIC) outlined legal certainty and continued regulatory improvement as priorities to support a more conducive investment environment for closed pension funds, as market conditions may prompt greater allocation to risk assets such as private equity. The update was delivered by PREVIC’s Director of Standards, Alcinei Rodrigues, during a panel at the 16th Latin America Private Equity Forum in São Paulo. Rodrigues noted that elevated interest rates have driven pension funds toward government bonds and other fixed income, which currently represent around 80% of assets, but argued that an expected inflection in interest rates in 2026 would increase the relevance of risk assets for meeting actuarial targets. He pointed to existing legal provisions for such assets under National Monetary Council rules on guarantee assets, and cited PREVIC’s work to modernise proposals that resulted in new Council requirements, alongside a sanctioning decree that remains under review by the Presidency’s Chief of Staff Office. Ongoing enhancements to PREVIC’s risk-based supervision framework are being pursued through public consultation and industry participation.

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