Circular Letter No. 6/2024, issued by the Brazilian Securities and Exchange Commission (CVM), focuses primarily on reinforcing transparency and standardization in financial statements and periodic disclosures.
The document highlights the need for improved disclosure of data related to securitization transactions, specifically regarding the clarity of information on underlying assets and future cash flows. The CVM underscores the importance of ensuring that such information is accurate and up to date, providing investors with a clear view of the risks involved, and reaffirms the importance of compliance with CVM Instruction No. 600, which regulates the issuance of Real Estate Receivables Certificates (CRI) and Agribusiness Receivables Certificates (CRA). The focus is on ensuring that companies strictly adhere to the disclosure and prospectus structuring requirements, as well as observing best corporate governance practices.
Beyond regulatory obligations, the document emphasizes the importance of alignment with market best practices. This includes the provision of detailed information on the characteristics of securitized assets and the financial instruments issued, as well as a clear description of any credit support mechanisms that may be involved.
The CVM warns that non-compliance with the guidelines set out in the Circular Letter may result in sanctions, as provided for under current legislation. The authority reaffirms its supervisory role, indicating that monitoring of securitization companies’ activities will be intensified to ensure compliance with applicable regulations. The guidelines emerge as a response to demands for greater transparency and standardization in the securitization market. The document reinforces the need for strict compliance with the rules, aimed at providing greater security for investors.
