By Brazil Stock Guide – Brazil’s National Monetary Council tightened rules governing investments by receivables funds in judicial and arbitration claims, restricting purchases of assets whose value or enforceability still depends on the outcome of legal disputes.
The CMN approved the changes on Thursday, replacing rules that had been in effect since 2001, according to Agência Brasil. The restrictions target Brazil’s Fundos de Investimento em Direitos Creditórios, or FIDCs, which pool investor capital to acquire receivables ranging from financing installments to commercial invoices.
Under the new framework, FIDCs will be barred from acquiring court-related or arbitration claims unless the assets are liquid, certain and legally enforceable. The prohibition applies both to direct acquisitions and indirect exposure through other funds or financial instruments holding the same type of assets.
The measure is aimed at claims where the existence of the right, the amount owed, the timing of payment or even the final outcome of a dispute remains uncertain.
Regulators Target Valuation Risk
Judicial claims can carry estimated values that ultimately differ significantly from the amounts recovered by investors. Regulators said that uncertainty creates additional risks compared with conventional receivables.
The CMN said the changes are designed to reduce vulnerabilities that could be exploited for fraud or price manipulation in Brazil’s capital markets.
The rules do not amount to a blanket prohibition on judicial claims. FIDCs may still pursue legal or arbitration proceedings to recover conventional receivables that were validly acquired and later became delinquent.
The distinction is whether the underlying credit already existed when acquired or whether its existence, value or recoverability still depended on the resolution of litigation or arbitration.
R$35.2 Billion Already in Fund Portfolios
Brazilian FIDCs had about R$35.2 billion of exposure to judicial proceedings as of July 2026, according to data from securities regulator CVM cited by Agência Brasil.
The new resolution does not require funds to automatically dispose of those existing assets. Instead, managers will face stricter valuation, pricing, disclosure and governance requirements.
Existing holdings will be subject to enhanced valuation procedures, more detailed disclosure to investors, independent audits of valuation methodologies and minimum standards aimed at limiting conflicts of interest.
The objective is to provide investors with greater visibility into the fair value of the claims and the risks attached to them.
Restrictions on new purchases will take effect on Oct. 13, while the revised valuation requirements for assets already held in fund portfolios will apply from Jan. 4.
Government Says Move Protects Market Integrity
Regis Dudena, Brazil’s secretary for economic reforms at the Finance Ministry, said the resolution is part of regulators’ efforts to identify and address vulnerabilities in the financial system.
“The publication of this resolution is another sign that the regulator is attentive to diagnoses of vulnerabilities in the financial market and has been acting to preserve its integrity and its capacity to contribute to economic development and the social interest,” Dudena said.
The CMN, Brazil’s top-level body for monetary, credit and foreign-exchange policy guidelines, is chaired by Finance Minister Dario Durigan and also includes Central Bank President Gabriel Galípolo and Planning and Budget Minister Bruno Moretti.
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