New regulation No. 540 has been enacted on November 26, 2013, by the Brazilian Securities and Exchange Commission [Comissão de Valores Mobiliários - "CVM"], to amend CVM Regulation No. 391 of July 16, 2003 (“CVM Regulation 391″), which regulates the equity funds ["fundos de investimentos em participações - FIP"). The new regulation intends to boost investments in small- and medium-sized companies.
The proposed amendments have been based on studies and discussions conducted by the Technical Committee of Smaller Deals [Comitê Técnico de Ofertas Menores - "Committee"], which was formed, among other invited public and private entities, by the Brazilian Agency for Industrial Development [Agência Brasileira de Desenvolvimento Industrial – ABDI], the Brazilian Association of Entities of the Financial and Capital Markets [Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais – ANBIMA], Commodities and Futures Exchange [Bolsa de Valores, Mercadorias e Futuros - BM&FBOVESPA], BNDESPar, CVM, and the Brazilian Innovation Agency [Agência Brasileira da Inovação - FINEP] with the objective of studying reforms in the Brazilian system to make it possible to finance small-sized companies through the stock market.
The Committee understands that changes in the regulation of FIPs may contribute to increase the investments of such funds in small- and medium-sized companies which obtain financing by distributing stock in the securities market without putting at risk or distorting the characteristics of such funds.
Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Brazilian Securities, Exchange Commission, Comissão de Valores Mobiliários, CVM, CVM Regulation, Fundos de Investimentos em Participações, FIP, Technical Committee of Smaller Deals, Comitê Técnico de Ofertas Menores, Brazilian Agency for Industrial Development, Agência Brasileira de Desenvolvimento Industrial, ABDI, Brazilian Association of Entities of the Financial and Capital Markets, Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais, ANBIMA, Commodities and Futures Exchange, Bolsa de Valores, Mercadorias e Futuros, BM&FBOVESPA, BNDESPar, Brazilian Innovation Agency, Agência Brasileira da Inovação, FINEP.