Brazil – CVM Investment Funds Shares

Brazil – CVM Investment Funds Shares

On 4 February 2020, BRZ CVM issued rules for investment funds managers.

  • Circular with clarifications on disclosure, by investment fund managers intermediated by account, order of information re application and redemption time limit for shares.


  • In account and order intermediation, independent intermediary is hired by fund to distribute its shares, as provided for in BRZ CVM instruction 555.
  • For operational reasons, time limits for distributors on account and order often need to be different from those adopted by administrator of intermediary fund as once application/redemption requested by shareholder, intermediary needs additional time.
  • To process it and pass it on to invested fund's manager, ideally, essential information sheet should indicate this possible time difference.


  • Refers to requirement in art 40.II ins 555, for disclosure of essential information sheet, including information referred to conditions and respective time limits for application and redemption of fund shares.
  • In interpretation of technical area it is lawful for distributors on account and order to apply different time limits for application, redemption of fund quotas intermediated by them, in order to accommodate needs arising from interactions that need to maintain.
  • With the manager of intermediated fund to make such operations feasible.
  • Also refers to anticipated times for application or redemption of shares to process requests on same day as order, compared to those in fund essential information slide.
  • To avoid disclosing information that may appear to conflict with shareholders involved, fund managers who are intermediated on their own account should provide.
  • In hour field for application and redemption of essential information sheet time limits.
  • Time limits set may not apply to investments made on account/order, where applicable time limits must be confirmed with share distributor with which investment was made.