On January 25th, the Securities and Exchange Commission of Brazil (CVM) updated important rules about the distribution of CRIs (Real Estate Receivable Certificates) and CRAs (Agribusiness Credit Receivable Certificates). The new rules are listed in CVM rule no. 605, which amends rules no. 476, 521 and 555.

The body limited CRIs’ and CRAs’ public offerings with restrict distribution to offerings issued by publicly-held securitization companies.

In addition, rule 605 added failure to fulfill some duties by the investment funds managers and trustees (as per CVM Ruling 555) and risk rating agencies (CVM Ruling 521) to the serious violations category. This category is important because the CVM may impose critical penalties only to serious violations.

Our firm’s capital markets team is available to answer any questions related to this matter.

With a view to speeding up administrative proceedings, reducing costs and adding convenience to its investors and brokers, B3, through its self-regulatory entity BSM, launched an Indemnification for Losses online platform (“MRP Digital”).

The system guarantees indemnifications of up to R$ 120,000.00 (one hundred and twenty thousand Reais) for damages and/or losses caused by middlemen such as brokers, officers and agents, in stock exchange operations or in custody services. The indemnification is paid provided that it is proved that the damages and/or losses were caused by action or omission of the middleman.

With the new MRP Digital, not only the submission of claims – previously made by presenting printed documents – but also the communication between the parties – previously by post – will now be carried out on an online system.

To submit and/or follow up with the complaint analysis, investors and brokers/officers/agents must access the MRP Digital platform through the BSM website MRP Digital. Our team is fully available to help you and answer any questions on how to file the online administrative proceeding.

Because of the strategic project Process Transformation – Sanctioning, the Control Coordination of Sanctioning Process (CCP/SPS) of CVM promoted measures aiming the procedure’s promptness and transparency. Now, the request for examination of the case records is completely online. The interested party has to file a petition to CCP/SPS and request access via Digital Protocol, through the Electronic Information System (SEI).

In addition, a search engine that helps accessing all decisions pronounced by CVM’s Board – both on judgments and consent decrees’ analysis – has been developed, making it possible to comprehend the historical and up-to-date understanding about the subject searched (Link).