On Sep. 30, BRZ CVM issued new requirements for agribusiness funds.
CVM issued Resolution 214 for Investment funds in agribusiness production chains (Fiagros), after trial period with temporary rules, it adds Annex VI to Resolution 175.
Annex VI of Resolution 175, see #169200, contains the definitive regulation of Fiagro.
BRZ Anbima issued a press release informing on new regulations for the sector.
Follows prior BRZ CVM proposal to implement Fiagro regulation, see #110905.
Highlights
With new regulations for Fiagro, CVM mainly seeks to facilitate access by local agribusiness to Brazilian public savings resources through investment funds.
New rules allow for the expansion of the investment capacity of these vehicles.
Making it possible to acquire, in the same fund, all the assets listed in Law 8.668.
This includes operations with physical and financial CPR, exploration of rural properties as well as acquisition of shares in companies in the agribusiness production chain.
Fiagros will be allowed to participate in the carbon market; however, it is very important to consider that, for now, this market in Brazil still has extra-market risks.
So the regulation imposes additional governance requirements on the operation.
The requirements are aimed at protecting FIAGRO shareholders, more related to the control of the existence, integrity and ownership of agribusiness carbon credits.
Also, considering that ethanol production is an agribusiness activity, Fiagros will be allowed to acquire decarbonization credits, CBIO, a product traded on organized OTC.
CVM also seeks to provide them with standards of conduct, informational transparency
Governance that serves to protect investors, a fundamental mandate of the BRZ CVM.
Effectiveness
Resolution 214 comes into force on Mar. 3, 2025; Fiagro funds that are already in operation must adopt and comply with the new regulations by Sep. 30, 2025.
