The regulation of Real Estate Investment Funds (FII) in Brazil is defined by the Securities Commission (CVM), the entity responsible for regulating the capital market in the country. CVM Instruction 472, of October 31, 2008, is the main legal document that establishes the rules and guidelines for the constitution, administration, operation and disclosure of information of FIIs.
According to CVM Instruction 472, Real Estate Investment Funds are closed condominiums, whose resources are destined for investment in real estate projects. The fund is managed by a financial institution, which is responsible for making investment decisions and managing the fund, including holding shareholder meetings and disclosing information to investors.
FII funds are raised through public offerings for the distribution of quotas. These offers must be registered with the CVM and must be accompanied by a prospectus, which is a document that contains all relevant information about the fund, including a description of the real estate project that will be the object of investment, the characteristics of the shares, the investment risks , among other information.
CVM Instruction 472 also establishes that FIIs must have a regulation, which is the document that establishes the fund's operating rules. The regulation must be approved by the CVM and must be made available to shareholders. In addition, the funds must have separate assets from the managing institution's assets, which guarantees the security of the shareholders' investments.
FIIs are required to periodically disclose information on their management and on their investments. Among the information that must be disclosed are the value of the fund's assets, the profitability of the shares, the investment decisions taken by the management, among others. This information must be disclosed through management reports, which must be made available to shareholders and the CVM.
CVM Instruction 472 further establishes that FIIs must be audited by independent auditors registered with CVM. The purpose of the audit is to verify the compliance of the fund's management with the rules established in the regulations and legislation in force, as well as the veracity of the information disclosed to shareholders.
In addition to CVM Instruction 472, FIIs are subject to other rules and regulations, such as Law 8.668/1993, which provides for the constitution and operation of FIIs, and CVM Instruction 558, which regulates the activity of managing securities portfolios.
It is important to highlight that FII regulation is dynamic and can be changed by the CVM according to market needs. Therefore, it is essential that investors are always up to date on the rules and guidelines that govern Real Estate Investment Funds.
In summary, the regulation of FIIs aims to ensure the transparency and security of investments in real estate through funds. Through clear and rigorous rules, the CVM seeks to ensure that investors have access to all the information necessary to make informed and conscious investment decisions.
