The investment funds for agribusiness production chains – Fiagro, created by Law No. 14,130, of March 29, 2021, had in September the publication by the Securities and Exchange Commission – CVM, of the new CVM Resolution No. 214, of September 30, 2024.

Initially regulated by CVM Resolution No. 39 of July 13, 2021, Fiagro funds now have, with the publication of CVM Resolution 214, the establishment of an alternative that was still subject to a transitional rule. The new CVM Resolution 214, which comes into effect on March 3, 2025, will become part of the regulatory framework for investment funds in the country, integrating Annex VI of CVM Resolution No. 175. Existing Fiagro funds will have until June 30, 2025 to adapt to the new resolution.

Among the changes brought about by CVM Resolution 214 are:

• The subsidiary application of other CVM regulatory annexes for Fiagro, integrating them into the investment policy of other categories of investment funds.
• Definition of the strategic policy and management of the invested company, following the corporate governance practices provided for in the FIP Normative Annex (originally set out in art. 26, III, of Normative Annex IV of CVM Resolution 175), so that Fiagro may not invest passively in closed companies or limited companies.
• In the event of the possible existence of credit rights in the Fiagro portfolio, the Fiagro manager must verify (a) the classification of the credit rights in accordance with the investment policy of the respective class; (b) the possibility of the assignment to the class being ineffective due to tax risks; and (c) the existence, integrity and ownership of the collateral for the rights and securities representing credits contained in the class's investment portfolio.
• possibility of negotiating agribusiness carbon credits within the scope of Fiagro, linking them to activities developed within the scope of the agribusiness chain and to specific legislation or regulations.
• greater responsibility for managers and administrators in selecting carbon credits for Fiagro's portfolio, with responsibilities regarding due diligence (environmental and land) and verification of the existence and integrity of agribusiness carbon credits, bringing the need for Fiagro's regulations to detail the criteria for selecting and certifying carbon credits in its portfolio.
• Issuance of carbon credits from rural properties in the Fiagro portfolio, boosting Fiagro's position as a highly relevant instrument for financing carbon credit projects developed within the agribusiness production chains.
• Expansion of the definition of “rural property”, considering as rural properties not only properties with a Rural Property Registration Certificate – CCIR, but also properties located in urban areas that are intended for the exploration of activities in the agribusiness production chains and are registered in the General Property Registry.
• Possibility of investment by the Fiagro classes in “any real rights over rural properties”, including the use of other legal instruments for investment in rural properties other than just property rights, including real surface rights and usufruct.

Finally, the new CVM Resolution 214 establishes the following portfolio of assets for Fiagro, observing the specific rules applicable to each category of assets:

• any real rights over rural properties;
• participation in companies that carry out activities that are part of the agribusiness production chains;
• financial assets, credit securities and securities issued by natural and legal persons that are part of the agribusiness production chains;
• agribusiness credit rights and real estate credit rights relating to rural properties;
• agribusiness receivables certificates and other securitization securities issued backed by agribusiness credit rights and real estate receivables certificates and other securitization securities issued backed by credit rights relating to rural properties;
• receivables certificates and other securitization securities issued with collateral in financial assets issued by natural or legal persons that are part of the agribusiness production chains;
• quotas of classes that apply more than 50% (fifty percent) of their net equity in the assets referred to in items I to VI, which includes quotas of other Fiagro, but is not limited to this category of funds;
• agribusiness carbon credits; and
• decarbonization credits – CBIO.