Brazil CVM Resolution 175/2022 Investment Funds Framework

The resolution provides for the constitution, operation, and disclosure of information by investment funds, as well as the provision of services to funds. It replaced a fragmented set of fund rules with a general part applicable across fund categories and normative annexes that address specific fund types, including financial investment funds (FIF), credit-rights funds (FIDC), real-estate funds (FII), private-equity funds (FIP), ETFs, agribusiness-chain funds, and other specialized vehicles.

The framework is important for crypto-law tracking because it is not a standalone virtual-asset service-provider regime, but it establishes how Brazilian regulated funds may treat cryptoasset exposure inside securities-market products. Its practical effect is most visible in Annex I, which governs FIFs such as equity, currency, multimarket, and fixed-income funds.

Annex I treats certain cryptoassets as financial assets by nature or equivalence when they are traded through entities authorized by the Central Bank of Brazil or the CVM. For offshore transactions, the relevant trading venue must be supervised by a local authority with legal authority to oversee trading, address abusive market practices, and supervise anti-money laundering, counter-terrorist financing, and counter-proliferation controls.

Annex I also places cryptoassets within a group of assets subject to concentration limits. For funds aimed at the public in general, CVM staff guidance states that the 10% cryptoasset limit includes direct cryptoasset investments and exposure through local funds, offshore funds, or offshore ETFs whose principal risk factor is cryptoasset exposure. The same guidance states that certain onshore crypto ETFs and local funds investing exclusively through those onshore ETFs are not counted in that specific cryptoasset limit.

Resolution 175 modernized fund structuring by allowing different classes of quotas with distinct rights and obligations, provided each class has segregated assets. Where a fund’s regulation limits quotaholder liability to the subscribed amount, the class name must include the Portuguese suffix for limited liability. These provisions align the fund rulebook with broader Brazilian legal reforms while leaving detailed fund-category rules to the applicable annex.

The resolution also sets an operating model based on essential service providers, including administrators and managers, and states that fund operation is carried out through those providers and third parties contracted in the name of the fund. For FIFs offered to the public in general, Annex I includes requirements for a basic information sheet and periodic disclosure of net asset value, performance information, and other class-level information.

The CVM issued Resolution 175 on Dec. 23, 2022, and the official CVM page records publication in Brazil’s Diário Oficial da União on Dec. 28, 2022, with a correction published on Mar. 31, 2023. The rule originally had an April 2023 entry date, but Resolution 181/2023 postponed the general effective date to Oct. 2, 2023.

Implementation continued through later phase-ins. Resolution 200/2024 extended adaptation deadlines for existing funds, including a Nov. 29, 2024 deadline for existing FIDCs and a Jun. 30, 2025 deadline for the remaining existing fund stock. As of the latest verified official materials, there is no separate future crypto-specific milestone in Resolution 175 itself.