Brazil: Financial Sector Assessment Program-Technical Note on Fund Management: Regulation, Supervision and Systemic Risk Monitoring

IMF Staff Country Reports, December 11, 2018

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Brazil has a large and diverse investments funds sector which is subject to a robust regulatory framework.
The competent authority, the Comissão de Valores Mobiliários (CVM), requires high standards of the entities it oversees and makes good use of the extensive data it receives from market participants on an ongoing basis.
Fiduciary administrators play an important role as the main gatekeeper for investment funds.
Despite the highly concentrated nature of the industry, there is evidence that fiduciary administrators make a significant contribution to the safety and soundness of the sector as a whole.

The CVM is identified as the competent authority overseeing the investment funds sector.
The CVM requires high standards of the entities it oversees.
The CVM makes operational use of extensive data received from market participants on an ongoing basis.

The investment funds sector is described as large and diverse.
The industry is characterized as highly concentrated.
Fiduciary administrators act as the main gatekeeper for investment funds and contribute materially to sector safety and soundness.