On Dec. 20, BRZ CVM delayed effect date of investment adviser regs.
BRZ CVM extended the entry into force of Resolution 179 provisions to Nov. 1, 2024.
Applies to certain obligations imposed on intermediaries, especially on information that must be provided by intermediaries on aspects of their remuneration practices.
Also, BRZ CVM issued Resolution 196 on this extension from Jan. 2, 2024 to Nov. 1st.
Follows the Feb. 14, 2023 BRZ CVM issuance of Resolution 179, see #163290.
Resolution 179, Transparency for Investors
Resolution 179 introduces changes to other rules issued by BRZ CVM, especially CVM Resolution 35, with the main objective of increasing transparency for investors.
Including regarding remuneration practices for securities intermediation activities.
Res 179 incorporates requirements to disclose qualitative and quantitative information on forms, as well as remuneration arrangements and potential conflicts of interest.
Intermediaries must keep such information available in a specific section or page of the website, so that investors can access it before making the investment decision.
Created a quarterly statement on remuneration, which must contain remuneration earned by the intermediary in the reference period, allowing verification of amounts.
Extension Highlights
Sections III and IV of Chapter VII-A of Resolution 35 of 2021, as amended by Art. 7 of Resolution 179, come into force on Nov. 1, 2024; rest of Res 179 in force Jun. 1, 2023.
Effectiveness
Resolution 196 comes into force on the date of its publication, i.e. Dec. 21, 2023.
Aug. 2024 BRZ CVM Public Hearing
On Aug. 22, 2024, BRZ CVM reported on hearing on adjustments to Resolution 179, to standardize remuneration practices for marketing investment services and products.
Suggestions can be sent until Sep. 20, 2024, new rules and code changes for investors to identify conflicts when receiving recommendations, will be effective Nov. 1, 2024.
As of Nov. 1, institutions must keep quantitative data on the remuneration re sale of securities so investors will know remuneration when making investment/redemption.
Investors will have access to quarterly statement and CVM accepted ANBIMA's suggestion that the first document for Nov. and Dec. 2024, be available in Jan. 2025.
The others will be provided quarterly, always with data from the previous 3 months.
Also, in the case of investments in funds, the investor will be informed, at the time of contracting, of the effective rate and the estimated variable distribution rate.
The fees for intermediation services abroad must also be disclosed to the investors.
Trading code updates help institutions define remuneration received for distributing guaranteed real estate bills, certain financial bills, structured operations certificates.
Intermediation of OTC derivative models, securities traded on the secondary market also come under the rule, internal document must describe remuneration procedures.
Regulators
BRZ CVM
Entity Types
B/D; Corp; Exch; IA; Inv Co; MG Orig
Reference
PR, 8/22/2024; PR, Res 196, 12/20/2023; Res 179, 2/14/2023;
