Investment In Structured Financial Instruments (SFIs) In Brazil

On August 25, 2015, the Supervision of Relations with Institutional Investors (Superintendência de Relações com Investidores Institucionais – SIN) of the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) issued Circular-Letter No. 6/2015/CVM/SIN (CL 6/2015) that aims to guide securities portfolios' managers as to the recommended procedures regarding the investment of third party resources in structured financial instruments (SFIs). These recommendations are outlined herein.

This subject is of undisputed importance since the financial instruments of this type have their own features which must be carefully evaluated by the managers in order to comply with the due diligence requirements referred to in the applicable regulation^[1].