Putting open market capital into practice in Brazil
This week, the Brazilian Securities Commission (CVM) published two resolutions establishing the open finance rules and procedures for investment portability.
Why it matters. These resolutions mark a significant step forward in implementing open finance within the capital market, making the process transparent for all investors. Institutions, with their clients’ permission, will be able to automatically access investor data and portfolio details, streamlining the transfer process.
- “Portability has become a relevant topic in recent years, mainly due to the evolution of the [Brazilian] market, which has an increasing number of product options offered by different institutions,” said Ademir Correa Júnior, president of the distribution forum of the Brazilian Association of Financial and Capital Market Entities (Anbima).
How it will work. The new rules standardize the process, delineating responsibilities for each participant in the distribution chain — custodians, intermediaries, central depositories, registration entities, and portfolio managers. Deadlines will be set based on the complexity of each asset, with the regulations taking effect on July 1, 2025, giving all agents time to prepare.
- The investor will be able to choose where to request asset portability: at the origin, destination, or central depository (the stock exchange).
- It is a more flexible process than those in markets such as the U.S., Australia, or Mexico, where requests must be made at the…
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