The CNV simplified requirements for financial trusts: what it is about

The CNV simplified requirements for financial trusts: what it is about

October 31, 2024 – 07:59

The entity headed by Roberto E. Silva, assured that the organization’s focus is on simplifying processes and presentations, while maintaining investor protection.

Through the dictation of RG CNV No. 1027, National Securities Commission (CNV) resolved to reduce the requirement for the presentation of financial statements of the financial trusts only on an annual basis and enable the financial fiduciary to exercise, by itself, the functions related to the control and review of the underlying asset.

The president of the CNV, Roberto E. Silva highlighted that “We are working to simplify processes and presentationshaving as a priority the expansion of the capital market and the protection of investors.”

In relation to the information on the assets transferred and the behavior of the trust itself during its validity, as of the issuance of RG No. 992, Investors and the general public have standardized information available on the website of this National Securities Commission. and monthly relative to the future of each trust structure.

Through this regulation It is up to the Trustees to exercise the option of presenting quarterly financial statements, with only the presentation of annual financial statements being required. It is worth clarifying that the presentation of quarterly financial statements will continue to be required for those financial trusts that are constituted in the form of “Direct Investment Funds”, in attention to the structural peculiarities that these vehicles have.

On the other hand, the new regulation enables Financial Fiduciaries carry out control and review tasks in the understanding that in the case of a company specifically registered in the respective registry of this National Commission, it has the capacity to carry out such tasks with the obligations and responsibilities intrinsic to its performance.

What is a financial trust

The financial trust is a instrument that allows the investor to participate in a project or a future payment determined through a placement of debt or equity participation.

In this way, purchasing debt securities from a trust, The investor lends money to the trust in order to advance funds to a project or a future stream of payments. During the validity period and until the maturity of the title, the investor receives the return of the money contributed plus an agreed interest rate.

If the investor wants to assume greater risk and participate in the profits of the project, he or she can invest in trust participation certificates. With this title the investor assumes the risk of the project but also participates in its profits.

The characteristic of the trust is that it is established from assets separate from the company that generates it. In this way, A company can launch a project through a trust and your present or future creditors cannot claim rights to the trust assets. This constitutes a advantage for the investor since he participates in a project, without assuming the risk of the company that generates it.

Source: Ambito

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