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[BUSINESS] · Brazil · 27 sources

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CMN tightens rules for FIDCs investing in judicial credits

The National Monetary Council (CMN) has implemented stricter regulations for Credit Rights Investment Funds (FIDCs) regarding the acquisition of judicial and arbitration credits. The new rules prohibit FIDCs from purchasing credits or expectations of rights from legal proceedings or arbitrations that lack liquidity, certainty, and enforceability. This measure aims to mitigate financial risks, prevent market manipulation, and curb fraudulent practices, such as those identified in investigations involving Banco Master.

The restriction applies to both direct purchases and indirect acquisitions through other funds or instruments. While the rule prevents new investments in uncertain assets, it does not force funds to liquidate existing holdings. However, existing portfolios must now adhere to more rigorous standards, including independent third-party pricing, enhanced transparency, and mandatory monthly disclosures. According to the CVM, the exposure of regulated funds to judicial disputes reached approximately R$ 35 billion in July.

Entities

Advocacia-Geral da União · Banco Central do Brasil · Banco Master · Brazil · Comissão de Valores Mobiliários · Conselho Monetário Nacional · Darío Durigan · Ministério da Fazenda · Reag

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