Non-resident investors in Brazil may have easier market access

RIO DE JANEIRO, BRAZIL – Brazil’s Securities and Exchange Commission (CVM) has put up for public hearing on Wednesday (15) a proposal to amend CVM Resolution 13, which contains the rules on registration, operations and disclosure of non-resident investor data in the country.

One of the main changes is the proposal that the non-resident investor – individuals, not companies – may operate in the Brazilian market without having to undergo a registration procedure at the CVM.

“The proposal is in line with other recent initiatives to simplify the access of non-resident investors to Brazil, by simplifying the rules and reducing the cost of regulatory compliance to a more appropriate level,” says CVM President Marcelo Barbosa.

In exchange, the investor’s representative in Brazil must, before the beginning of his operations, send standardized data on the non-resident, through an electronic system provided by CVM or by an organized market management entity.

CVM also suggests waiving the need for the non-resident investor’s representative in Brazil to send the authority periodic information about the client.

“CVM’s proposal does not imply the opacity of this investor’s operations in the Brazilian market, given that his/her representative, the intermediary of his/her operations in Brazil and the administrator of the organized market will hold a set of information that will allow the regulator to act if needed,” says the CVM’s Superintendent of Institutional Investors Supervision (SIN) Daniel Maeda.

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