CVM guides and clarifies FIAGRO's income distribution policy in new Joint Circular Letter CVM/SSE/SNC 1/2025.
The Superintendencies of Securitization and Agribusiness (SSE) and Accounting and Auditing Standards (SNC) of the Securities and Exchange Commission (CVM) published, on April 3, 2025, the Joint Circular Letter CVM/SSE/SNC No. 1/2025, containing guidelines on the income distribution policy of the Investment Funds in Agribusiness Production Chains (FIAGRO).
The Circular Letter clarifies that the art. 10, sole paragraph, of Law No. 8,668/1993, which provides for the possibility of distributing results based on the cash basis, does not apply to FIAGRO.
The distribution of income from these funds must follow the accrual basis, limited to accounting profits – whether for the fiscal year or accumulated. The cash flows from FIAGROs may be used to pay periodic income during the fiscal year, however, they must comply with the legal limits of profits effectively recorded under the accrual basis.
Cynthia Braga (GSEC-1), the CVM's Securitization and Agribusiness manager, reinforces that1:
“Article 10, sole paragraph, of Law 8,668 does not apply to FIAGRO, nor to new funds aligned with Normative Annex VI. Therefore, the administrator/manager who uses the cash regime in the distribution of results cannot exceed the limits of the fiscal year and accumulated profits.”
Furthermore, CVM highlights that the regulations of FII-FIAGRO that still contain a provision for distribution based on this legal provision must be adapted, in order to exclude any possibility of distributions that exceed the limits established by the accrual basis.
These adaptations can be carried out in the context of the process of conforming FIAGRO to the new guidelines of Normative Annex VI of CVM Resolution No. 175, which has been in force since March 3, 2025. Funds structured in the FIDC, FII or FIP categories must complete their adaptations by September 30, 2025, as established in the Circular Letter.
Administrators and managers must observe and adopt the understandings presented in the aforementioned Official Letter from its date of publication, that is, from April 3, 2025.
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