CVM Clarifies Rules On Income Distribution For Fiagro Funds

Notice from the Brazilian Securities and Exchange Commission addresses the income distribution policy of Investment Funds in Agribusiness Production Chains (Fiagro)

The Superintendencies of Securitization and Agribusiness and of Accounting Standards and Auditing of the Brazilian Securities and Exchange Commission (CVM) issued Joint Circular Letter CVM/SSE/SNC 1/2025 last Thursday, April 3.

The notice addresses the income distribution policy of the Investment Funds in Agribusiness Production Chains (Fiagro), taking into account provisions of Law 8,668 of June 25, 1993, CVM Resolution 39 of July 13, 2021, and Regulatory Annex VI of CVM Resolution 175 of December 23, 2022.

The letter clarifies that Article 10, sole paragraph, of Law 8,668—which deals with income distribution based on a cash basis—does not apply to Fiagro funds, whether established under CVM Resolution No. 39 or under the new Fiagro framework provided in Regulatory Annex VI of CVM Resolution No.