CVM suspends decision on real estate fund

In a new chapter, the decision of the Securities and Exchange Commission (CVM) on the Maxi Renda real estate fund is no longer valid, at least temporarily. The autarchy's collegiate responded to a request from BTG, the fund's administrator, for the so-called "suspensive effect". The expectation is that an understanding will accompany the forthcoming decision by the regulator on the subject that applies to the entire industry. In practice, the effectiveness of the understanding is suspended until the directors analyze the request for reconsideration that will be presented.

In recent days, the case generated significant repercussions in the market, with fears about the possible repercussions on income distribution and tax. The case discusses whether the fund continues to pay income despite reducing the market value of its assets, as happened with real estate during the pandemic.

The most recent decision by the CVM referred only to the request for suspensive effect. The suspensive effect ceases to be valid if the request for reconsideration is not presented or if the collegiate rejects it. The collegiate understood that the immediate fulfilment of the previous decision could imply operational obstacles and took into account the number of Maxi Renda shareholders - there are about 500 thousand individuals. The regulator also considered possible repercussions on other funds in the same situation.

Experts point out a conflict between what Law 8,668 says, which regulates real estate funds in Brazil, and accounting standards. In the case of Maxi Renda, the technical area of the CVM understood that the distribution of income was carried out in amounts greater than the profits for the years or accumulated. At the same time, they increased losses and reduced equity. Thus, income distribution would not result from income or profit earned by the fund but from the allocation of capital invested by the investors themselves.