Resolution 175, the comprehensive regulatory framework issued by Brazil’s Securities and Exchange Commission (CVM), is now fully in effect across the country’s entire investment fund industry. Since July 1, all Brazilian funds must comply with the new rule, which streamlines and modernizes decades of scattered regulations into a unified framework.

Over the past few years, ANBIMA (Brazilian Financial and Capital Markets Association) has actively shared the relevance and impact of this transformation with global investors, regulators, and international institutions. The complete implementation of Resolution 175 marks a major milestone in Brazil’s efforts to align with international best practices while enhancing investor protection and operational efficiency. 

“Resolution 175 is a turning point for the Brazilian fund industry,” said ANBIMA CEO José Carlos Doherty. “Its full implementation gives international investors greater transparency, legal certainty, and flexibility to operate in Brazil, especially with the possibility of investing up to 100% of fund assets abroad.” 

Key changes for global investors 

Resolution 175 brings several structural and strategic innovations that make Brazil’s fund industry more accessible and transparent to foreign investors: 

• Limited liability for investors: The regulation allows for limited liability for fund shareholders. This means that investors cannot lose more than the amount invested.
   

• International diversification: all investment funds, even those for retail investors, can now allocate up to 100% of their portfolios to foreign assets, subject to specific requirements. 
   

• Modern fund structure: The rule enables a multi-class fund structure, allowing different investment strategies and investor profiles to coexist under a single legal fund “shell.”
   

• New asset classes and ESG guidelines: Digital assets traded on regulated exchanges (in Brazil or abroad) are now considered financial instruments, with a 10% cap for retail funds. ESG funds also face clearer requirements for classification, enhancing credibility and disclosure standards.
   

• Improved governance and transparency: Fund managers are formally recognized as essential service providers and share responsibility with administrators. Management, administration, and distribution fees must now be disclosed separately.
   

• Liquidity management tools: The resolution introduces tools such as side pockets and gates to manage liquidity more efficiently and protect investors in times of market stress.
   

• Retail access to direct lending funds (FIDCs): Direct lending funds, known in Brazil as Credit Rights Investment Funds (FIDCs), which were previously restricted to qualified and professional investors, can now be offered to retail investors under certain conditions.
   

Continued support and oversight 

ANBIMA has played a leading role in supporting market participants through the transition. In addition to creating Radar 175, an interactive dashboard tracking fund adaptation, the association has published technical guidance and engaged in dialogue with both local and international stakeholders. 

With the rule now fully enforced, ANBIMA will continue to supervise its implementation, helping ensure that the modernized regulatory framework fulfills its promise of a stronger, more competitive Brazilian fund market. 

 Click here to access the full text of Resolution 175 in English.