Brazilian Pension Funds Authority updates accounting rules to track Shared Administrative Fund spending on promotion and innovation

The Brazilian Pension Funds Authority (PREVIC) issued an ordinance amending the accounting annexes used by closed supplementary pension entities to reflect the new rules for using the Shared Administrative Fund under National Council for Supplementary Pension (CNPC) Resolution No. 62/2024. The changes are intended to ensure that expenses related to promotion and innovation activities financed through the fund are recorded in specific line items, improving transparency and supervisory oversight. The amendments update Annexes I (standard chart of accounts), II (function and operation of accounts) and III (financial statement models) to PREVIC Resolution No. 23/2023. PREVIC introduced a new income statement account called “Shared Fund (principal)” with two subaccounts for “Promotion” and “Innovation”, aligning accounting treatment with the requirement in CNPC Resolution No. 62/2024 (Article 11) to classify these expenses separately and supporting more precise monitoring by participants and beneficiaries. The updated accounting annexes take effect on 24 March, alongside the entry into force of CNPC Resolution No. 62/2024, when entities may establish the Shared Administrative Fund. PREVIC expects regulated entities to adjust systems and accounting records accordingly.