The Brazil Securities Commission’s Superintendence of Securitization and Agribusiness issued Circular Letter CVM/SSE 03/2025 with guidance on how Investment Funds in Agroindustrial Production Chains (FIAGRO) should adapt to the application of Article 2 of Annex VI to CVM Resolution 175. Under Article 2, when a FIAGRO’s investment policy allows more than 50% of its net assets to be invested in assets eligible for other fund categories, the relevant provisions of the other normative annexes apply on a subsidiary basis. The guidance clarifies that only provisions related to the governance of the invested assets (to execute the investment policy) should be applied, and that this does not extend to each annex’s specific disclosure regime, minimum portfolio compliance requirements, or unitholders’ meeting rules. It also notes that a FIAGRO investing in Agribusiness Receivables Certificates or Real Estate Receivables Certificates (CRA and CRI) may apply Annex III of Resolution 175 in addition to Annex VI.
Brazil Securities Commission (CVM) 2025-06-12
Brazil Securities Commission clarifies FIAGRO obligations to apply other CVM Resolution 175 annexes when investment policy allows over 50% in other eligible assets
The Brazil Securities Commission issued Circular Letter CVM/SSE 03/2025, guiding Investment Funds in Agroindustrial Production Chains (FIAGRO) on applying Article 2 of Annex VI to CVM Resolution 175. Governance provisions of other fund categories apply when FIAGRO invests over 50% of net assets in eligible assets, excluding disclosure, portfolio compliance, and unitholders' meeting rules. FIAGRO investing in Agribusiness Receivables Certificates or Real Estate Receivables Certificates may also apply Annex III of Resolution 175.